CMFO EXAM QUESTIONS AND
CORRECT ANSWERS
LocalA2BondA2LawA2(StatuteA2#)A2-A2Ans--NJSAA240A:2
LocalA2BudgetA2LawA2(StatuteA2#)A2-A2Ans--NJSAA240A:4
LocalA2FiscalA2AffairsA2LawA2(StatuteA2#)A2-A2Ans--NJSAA240A:5
LocalA2PublicA2ContractsA2LawA2-A2Ans--NJSAA240A:11
EncumbranceA2SystemA2(TAD#)A2-A2Ans--TADA285-1
FixedA2AssetsA2(TAD#)A2-A2Ans--TADA285-2
GeneralA2LedgerA2(TAD#)A2-A2Ans--TADA285-3
AnnualA2AuditA2MustA2beA2ConductedA2byA2a:A2-A2Ans--
RegisteredA2MunicipalA2Accountant
AccountingA2Formula(s)A2-A2Ans--AssetsA2=A2LiabilitiesA2+A2FundA2Balance
or
AssetsA2-A2LiabilitiesA2=A2FundA2Balance
BalanceA2SheetA2AccountsA2-A2Ans--Assets,A2LiabilitiesA2&A2FundA2Balance
OCBOAA2-A2Ans--OtherA2ComprehensiveA2BasisA2ofA2Accounting
TheA2LocalA2BudgetA2Law,A2NJSAA240A:4-
3.1(b)A2requiresA2anyA2municipalityA2decidingA2toA2convertA2toA2aA2StateA2FiscalA2YearA2fr
omA2aA2CalendarA2FiscalA2YearA2to:A2-A2Ans--ApplyA2toA2theA2LocalA2FinanceA2Board
WhenA2convertingA2toA2aA2StateA2FiscalA2YearA2calendarA2fromA2aA2CalendarA2YearA2aA2m
unicipalityA2mayA2doA2soA2by:A2-A2Ans--Ordinance
AllA2budgetsA2shallA2beA2introduced,A2approved,A2amendedA2andA2adoptedA2byA2whatA2vo
teA2andA2byA2whichA2actionA2ofA2theA2governingA2body?A2-A2Ans--
ByA2resolutionA2passedA2byA2notA2lessA2thanA2aA2majorityA2voteA2ofA2theA2fullA2membershi
pA2ofA2theA2governingA2body.
N.J.S.A.A240A:4-
5A2setsA2theA2introductionA2datesA2forA2theA2municipalA2budgetA2forA2bothA2aA2CalendarA2Y
earA2andA2StateA2FiscalA2YearA2community.A2TheA2statutoryA2introductionA2datesA2areA2as
A2follows:A2-A2Ans--CalendarA2YearA2-A2FebruaryA210
,StateA2FiscalA2YearA2-A2AugustA210
AA2municipalA2governingA2bodyA2hasA2introducedA2theirA2townA2budgetA2onA2Thursday,A2F
ebruaryA26A2andA2willA2holdA2aA2publicA2hearingA2onA2saidA2budgetA2onA2Thursday,A2Marc
hA26A2(aA2non-
leapA2year).A2TheA2advertisementA2givingA2noticeA2ofA2theA2publicA2hearingA2shallA2notA2b
eA2publishedA2laterA2thanA2whichA2date?A2-A2Ans--FebruaryA224
AA2municipalA2governingA2bodyA2hasA2introducedA2theirA2townA2budgetA2onA2Thursday,A2F
ebruaryA26A2andA2willA2holdA2aA2publicA2hearingA2onA2saidA2budgetA2onA2Thursday,A2Marc
hA26A2(aA2non-
leapA2year).A2WouldA2theA2minimumA2numberA2ofA2daysA2requiredA2betweenA2approvalA2a
ndA2adoptionA2beenA2satisfiedA2asA2stipulatedA2inA2theA2LocalA2BudgetA2Law,A240A:4-7?A2-
A2Ans--RequirementA2satisfied
T/FA2-A2AccordingA2toA2N.J.S.A.A240A:4-
9,A2concerningA2amendmentsA2toA2anA2introducedA2budget.A2AnA2increaseA2orA2decreaseA
2toA2anyA2itemA2ofA2appropriationA2byA2moreA2thanA2fiveA2percentA2(5%)A2wouldA2requireA2
aA2publicA2hearingA2onA2saidA2amendment.A2-A2Ans--False
TheA2amountA2toA2beA2raisedA2byA2taxesA2forA2schoolA2purposes,A2requiredA2toA2beA2certifi
edA2toA2theA2governingA2bodyA2ofA2aA2municipalityA2forA2inclusionA2inA2itsA2budget,A2shallA2
setA2forthA2inA2theA2separateA2sectionA2ofA2theA2budgetA2uponA2adoptionA2andA2shallA2beA2
addedA2toA2theA2amountA2toA2beA2raisedA2byA2taxesA2by:A2-A2Ans--SchoolA2taxA2rate
TheA2governingA2bodyA2mayA2byA2resolutionA2authorizeA2temporaryA2budgetA2appropriatio
nsA2toA2provideA2forA2theA2periodA2betweenA2theA2beginningA2ofA2theA2fiscalA2yearA2andA2th
eA2adoptionA2ofA2theA2budget.A2TheA2resolutionA2shallA2beA2adoptedA2withinA2howA2manyA2
daysA2ofA2theA2beginningA2ofA2theA2fiscalA2year?A2-A2Ans--Thirty-days
NothingA2inA2theA2LocalA2BudgetA2Law,A2specificallyA2asA2statedA2inA2N.J.S.AA240A:4-
19,A2shallA2preventA2orA2relieveA2theA2governingA2bodyA2fromA2makingA2appropriationsA2d
uringA2theA2lastA210A2daysA2ofA2theA2yearA2precedingA2theA2beginningA2ofA2theA2fiscalA2yea
rA2forA2allA2capitalA2improvementA2fundA2purposes.A2-A2Ans--False
WhenA2emergencyA2temporaryA2appropriationsA2areA2adoptedA2afterA2theA2introductionA2a
ndA2approvalA2ofA2theA2budgetA2andA2wereA2notA2includedA2inA2theA2budgetA2asA2approved
,A2theA2temporaryA2emergencyA2appropriationA2shallA2beA2includedA2byA2amendment.A2-
A2Ans--True
WhichA2ofA2theA2followingA2isA2knownA2as,A2inA2theA2currentA2sectionA2ofA2accountsA2shallA
2consistA2ofA2theA2excessA2ofA2quickA2assetsA2suchA2asA2cash,A2investments,A2StateA2orA2
otherA2publicA2aidA2receivable,A2andA2deferredA2chargesA2overA2legalA2andA2demandA2liabi
lities.A2-A2Ans--Surplus
,WhichA2ofA2theA2followingA2isA2knownA2as;A2revenueA2amountsA2thatA2mayA2reasonablyA2b
eA2expectedA2toA2beA2realizedA2inA2cashA2duringA2theA2fiscalA2yearA2fromA2knownA2andA2re
gularA2sources,A2orA2fromA2sourcesA2reasonablyA2capableA2ofA2anticipation.A2-A2Ans--
MiscellaneousA2RevenuesA2Anticipated
MiscellaneousA2revenuesA2whenA2beingA2anticipatedA2inA2theA2municipalA2budgetA2areA2r
egulatedA2byA2N.J.S.AA240:4-
26.A2ThisA2sectionA2ofA2theA2statueA2limitsA2anticipatedA2revenuesA2toA2theA2amountA2:A2-
A2Ans--
ActuallyA2realizedA2inA2cashA2fromA2theA2sameA2sourceA2inA2theA2nextA2precedingA2fiscalA2
year
AA2municipalA2governingA2bodyA2hasA2determinedA2thatA2aA2parcelA2ofA2landA2isA2noA2long
erA2requiredA2forA2publicA2useA2andA2soA2concludedA2thatA2saidA2parcelA2beA2soldA2atA2auc
tion.A2TheA2parcelA2ofA2landA2willA2generateA2saleA2proceedsA2thatA2wouldA2benefitA2townA
2propertyA2ownersA2ifA2anticipatedA2inA2theA2municipalA2budgetA2asA2aA2revenue.A2InA2orde
rA2forA2theA2proceedsA2toA2beA2anA2anticipatedA2revenueA2inA2theA2budgetA2theA2obligation
A2toA2makeA2paymentA2toA2theA2municipalityA2mustA2beA2enteredA2into:A2-A2Ans--
PriorA2toA2adoptionA2ofA2theA2budget
WhenA2aA2municipalityA2hasA2aA2sinkingA2fundA2cashA2surplus,A2suchA2surplusA2may,A2upo
nA2writtenA2applicationA2byA2theA2sinkingA2fundA2commissionA2andA2theA2approvalA2ofA2the
A2director,A2beA2used,A2inA2wholeA2orA2inA2part,A2asA2whichA2ofA2theA2followingA2accordingA2
toA2N.J.S.AA240A:4-28.A2-A2Ans--
AnA2anticipatedA2miscellaneousA2revenueA2inA2currentA2fundA2budget
N.J.S.AA240A:4-
30A2describesA2theA2amountA2toA2beA2raisedA2byA2taxesA2asA2theA2amountA2requiredA2toA2
beA2leviedA2byA2taxationA2forA2supportA2ofA2theA2municipalA2budget.A2ItA2isA2theA2difference
A2betweenA2theA2totalA2ofA2allA2generalA2municipalA2budgetA2appropriations,A2includingA2ch
apterA26A2schoolA2debtA2service,A2andA2suchA2deferredA2chargesA2andA2statutoryA2expend
ituresA2forA2chapterA26A2schoolsA2asA2areA2requiredA2toA2beA2raisedA2inA2theA2municipalA2b
udget,A2lessA2theA2totalA2ofA2anticipatedA2revenues.A2-A2Ans--True
ToA2theA2extentA2thereA2isA2availableA2surplusA2revenueA2collectedA2byA2aA2municipalityA2f
orA2supplyingA2aA2utilityA2serviceA2whichA2isA2regulatedA2byA2theA2BoardA2ofA2PublicA2Utiliti
esA2anA2amountA2ofA2thisA2utilityA2surplusA2mayA2beA2transferredA2annuallyA2andA2included
A2inA2theA2localA2municipalA2budget.A2ThisA2amountA2ofA2theA2surplusA2toA2beA2utilizedA2ma
yA2notA2exceedA2whatA2percentageA2ofA2theA2annualA2costsA2ofA2operationA2ofA2theA2utility
?A2-A2Ans--FiveA2percent
DedicatedA2revenuesA2statedA2inA2theA2budgetA2shallA2beA2classifiedA2accordingA2toA2their
A2respectiveA2sourcesA2andA2shallA2beA2statedA2inA2aA2separateA2sectionA2ofA2theA2budget,
A2togetherA2withA2theA2appropriationsA2toA2theA2purposesA2toA2whichA2suchA2dedicatedA2re
venuesA2areA2applicable.A2TheA2totalA2ofA2anticipatedA2revenuesA2mustA2equalA2theA2totalA
, 2ofA2appropriations.A2ThisA2definitionA2wouldA2describeA2whichA2ofA2theA2following:A2-
A2Ans--TrustA2FundA2accounts
WhichA2ofA2theA2followingA2wouldA2meetA2theA2standardA2toA2qualifyA2asA2aA2dedicatedA2re
venueA2(Trust)?
a)A2AnimalA2ControlA2Fund
b)A2SinkingA2FundA2forA2termA2bonds
c)A2AA2bequest
d)A2MotorA2vehicleA2finesA2dedicatedA2toA2roadA2repairs
e)A2AllA2ofA2theA2aboveA2-A2Ans--e)A2AllA2ofA2theA2above
AnA2appropriationA2forA2"cashA2deficitA2ofA2precedingA2year"A2shallA2beA2raisedA2how?A2-
A2Ans--InA2fullA2inA2theA2immediateA2successiveA2yearA2ofA2theA2deficit
N.J.S.A.A240A:4-
45.2aA2authorizesA2thatA2amountsA2ofA2revenueA2generatedA2byA2anA2increaseA2inA2itsA2va
luationsA2basedA2solelyA2onA2applyingA2theA2precedingA2year'sA2localA2purposesA2taxA2rat
eA2ofA2theA2municipalityA2toA2theA2assessedA2valueA2ofA2newA2constructionA2orA2improvem
entsA2willA2resultA2inA2whichA2ofA2theA2following?A2-A2Ans--IncreaseA2inA2"CAP"A2base
WhichA2ofA2theA2followingA2groupsA2ofA2appropriationsA2areA2exceptionsA2toA2theA2budgetA
2"CAP",A2orA2alsoA2knownA2asA2outsideA2"CAP"A2appropriations?
a)A2DebtA2service,A2capitalA2expenditures,A2amountsA2expendedA2toA2fundA2aA2freeA2publi
cA2library
b)A2ReserveA2forA2uncollectedA2taxes,A2socialA2security,A2federalA2grants,A2amountsA2toA2
meetA2NewA2JerseyA2PublicA2Employees'A2OccupationalA2SafetyA2andA2HealthA2Act
c)A2PublicA2EmployeesA2RetirementA2System,A2expendituresA2resultingA2fromA2theA2impac
tA2ofA2aA2hazardousA2wasteA2facility,A2municipalA2court
d)A2AllA2ofA2theA2aboveA2-A2Ans--
a)A2DebtA2service,A2capitalA2expenditures,A2amountsA2expendedA2toA2fundA2aA2freeA2publi
cA2library
T/FA2-
A2UnlessA2emergencyA2expendituresA2areA2eligibleA2forA2bondingA2pursuantA2toA2theA2Loc
alA2BondA2Law,A2saidA2expendituresA2shallA2beA2providedA2inA2fullA2byA2theA2governingA2b
odyA2asA2aA2deferredA2chargeA2inA2theA2budgetA2ofA2theA2nextA2succeedingA2fiscalA2year.A2
-A2Ans--True
AA2resolutionA2authorizingA2theA2adoptionA2ofA2anA2emergencyA2appropriationA2shallA2beA2
adoptedA2byA2whatA2voteA2ofA2theA2municipalA2governingA2body?A2-A2Ans--Two-
thirdsA2voteA2ofA2theA2fullA2membershipA2ofA2theA2governingA2body
TheA2governingA2bodyA2ofA2aA2NewA2JerseyA2municipalityA2hasA2appointedA2aA2purchasin
gA2agentA2holdingA2aA2QualifiedA2PurchasingA2AgentA2certificationA2andA2authorizedA2aA2lo
calA2biddingA2thresholdA2ofA2$29,000.A2TheA2purchasingA2agentA2wishesA2toA2awardA2aA2p
rofessionalA2serviceA2agreementA2forA2$15,000.A2PursuantA2toA2N.J.S.AA240A:11-
CORRECT ANSWERS
LocalA2BondA2LawA2(StatuteA2#)A2-A2Ans--NJSAA240A:2
LocalA2BudgetA2LawA2(StatuteA2#)A2-A2Ans--NJSAA240A:4
LocalA2FiscalA2AffairsA2LawA2(StatuteA2#)A2-A2Ans--NJSAA240A:5
LocalA2PublicA2ContractsA2LawA2-A2Ans--NJSAA240A:11
EncumbranceA2SystemA2(TAD#)A2-A2Ans--TADA285-1
FixedA2AssetsA2(TAD#)A2-A2Ans--TADA285-2
GeneralA2LedgerA2(TAD#)A2-A2Ans--TADA285-3
AnnualA2AuditA2MustA2beA2ConductedA2byA2a:A2-A2Ans--
RegisteredA2MunicipalA2Accountant
AccountingA2Formula(s)A2-A2Ans--AssetsA2=A2LiabilitiesA2+A2FundA2Balance
or
AssetsA2-A2LiabilitiesA2=A2FundA2Balance
BalanceA2SheetA2AccountsA2-A2Ans--Assets,A2LiabilitiesA2&A2FundA2Balance
OCBOAA2-A2Ans--OtherA2ComprehensiveA2BasisA2ofA2Accounting
TheA2LocalA2BudgetA2Law,A2NJSAA240A:4-
3.1(b)A2requiresA2anyA2municipalityA2decidingA2toA2convertA2toA2aA2StateA2FiscalA2YearA2fr
omA2aA2CalendarA2FiscalA2YearA2to:A2-A2Ans--ApplyA2toA2theA2LocalA2FinanceA2Board
WhenA2convertingA2toA2aA2StateA2FiscalA2YearA2calendarA2fromA2aA2CalendarA2YearA2aA2m
unicipalityA2mayA2doA2soA2by:A2-A2Ans--Ordinance
AllA2budgetsA2shallA2beA2introduced,A2approved,A2amendedA2andA2adoptedA2byA2whatA2vo
teA2andA2byA2whichA2actionA2ofA2theA2governingA2body?A2-A2Ans--
ByA2resolutionA2passedA2byA2notA2lessA2thanA2aA2majorityA2voteA2ofA2theA2fullA2membershi
pA2ofA2theA2governingA2body.
N.J.S.A.A240A:4-
5A2setsA2theA2introductionA2datesA2forA2theA2municipalA2budgetA2forA2bothA2aA2CalendarA2Y
earA2andA2StateA2FiscalA2YearA2community.A2TheA2statutoryA2introductionA2datesA2areA2as
A2follows:A2-A2Ans--CalendarA2YearA2-A2FebruaryA210
,StateA2FiscalA2YearA2-A2AugustA210
AA2municipalA2governingA2bodyA2hasA2introducedA2theirA2townA2budgetA2onA2Thursday,A2F
ebruaryA26A2andA2willA2holdA2aA2publicA2hearingA2onA2saidA2budgetA2onA2Thursday,A2Marc
hA26A2(aA2non-
leapA2year).A2TheA2advertisementA2givingA2noticeA2ofA2theA2publicA2hearingA2shallA2notA2b
eA2publishedA2laterA2thanA2whichA2date?A2-A2Ans--FebruaryA224
AA2municipalA2governingA2bodyA2hasA2introducedA2theirA2townA2budgetA2onA2Thursday,A2F
ebruaryA26A2andA2willA2holdA2aA2publicA2hearingA2onA2saidA2budgetA2onA2Thursday,A2Marc
hA26A2(aA2non-
leapA2year).A2WouldA2theA2minimumA2numberA2ofA2daysA2requiredA2betweenA2approvalA2a
ndA2adoptionA2beenA2satisfiedA2asA2stipulatedA2inA2theA2LocalA2BudgetA2Law,A240A:4-7?A2-
A2Ans--RequirementA2satisfied
T/FA2-A2AccordingA2toA2N.J.S.A.A240A:4-
9,A2concerningA2amendmentsA2toA2anA2introducedA2budget.A2AnA2increaseA2orA2decreaseA
2toA2anyA2itemA2ofA2appropriationA2byA2moreA2thanA2fiveA2percentA2(5%)A2wouldA2requireA2
aA2publicA2hearingA2onA2saidA2amendment.A2-A2Ans--False
TheA2amountA2toA2beA2raisedA2byA2taxesA2forA2schoolA2purposes,A2requiredA2toA2beA2certifi
edA2toA2theA2governingA2bodyA2ofA2aA2municipalityA2forA2inclusionA2inA2itsA2budget,A2shallA2
setA2forthA2inA2theA2separateA2sectionA2ofA2theA2budgetA2uponA2adoptionA2andA2shallA2beA2
addedA2toA2theA2amountA2toA2beA2raisedA2byA2taxesA2by:A2-A2Ans--SchoolA2taxA2rate
TheA2governingA2bodyA2mayA2byA2resolutionA2authorizeA2temporaryA2budgetA2appropriatio
nsA2toA2provideA2forA2theA2periodA2betweenA2theA2beginningA2ofA2theA2fiscalA2yearA2andA2th
eA2adoptionA2ofA2theA2budget.A2TheA2resolutionA2shallA2beA2adoptedA2withinA2howA2manyA2
daysA2ofA2theA2beginningA2ofA2theA2fiscalA2year?A2-A2Ans--Thirty-days
NothingA2inA2theA2LocalA2BudgetA2Law,A2specificallyA2asA2statedA2inA2N.J.S.AA240A:4-
19,A2shallA2preventA2orA2relieveA2theA2governingA2bodyA2fromA2makingA2appropriationsA2d
uringA2theA2lastA210A2daysA2ofA2theA2yearA2precedingA2theA2beginningA2ofA2theA2fiscalA2yea
rA2forA2allA2capitalA2improvementA2fundA2purposes.A2-A2Ans--False
WhenA2emergencyA2temporaryA2appropriationsA2areA2adoptedA2afterA2theA2introductionA2a
ndA2approvalA2ofA2theA2budgetA2andA2wereA2notA2includedA2inA2theA2budgetA2asA2approved
,A2theA2temporaryA2emergencyA2appropriationA2shallA2beA2includedA2byA2amendment.A2-
A2Ans--True
WhichA2ofA2theA2followingA2isA2knownA2as,A2inA2theA2currentA2sectionA2ofA2accountsA2shallA
2consistA2ofA2theA2excessA2ofA2quickA2assetsA2suchA2asA2cash,A2investments,A2StateA2orA2
otherA2publicA2aidA2receivable,A2andA2deferredA2chargesA2overA2legalA2andA2demandA2liabi
lities.A2-A2Ans--Surplus
,WhichA2ofA2theA2followingA2isA2knownA2as;A2revenueA2amountsA2thatA2mayA2reasonablyA2b
eA2expectedA2toA2beA2realizedA2inA2cashA2duringA2theA2fiscalA2yearA2fromA2knownA2andA2re
gularA2sources,A2orA2fromA2sourcesA2reasonablyA2capableA2ofA2anticipation.A2-A2Ans--
MiscellaneousA2RevenuesA2Anticipated
MiscellaneousA2revenuesA2whenA2beingA2anticipatedA2inA2theA2municipalA2budgetA2areA2r
egulatedA2byA2N.J.S.AA240:4-
26.A2ThisA2sectionA2ofA2theA2statueA2limitsA2anticipatedA2revenuesA2toA2theA2amountA2:A2-
A2Ans--
ActuallyA2realizedA2inA2cashA2fromA2theA2sameA2sourceA2inA2theA2nextA2precedingA2fiscalA2
year
AA2municipalA2governingA2bodyA2hasA2determinedA2thatA2aA2parcelA2ofA2landA2isA2noA2long
erA2requiredA2forA2publicA2useA2andA2soA2concludedA2thatA2saidA2parcelA2beA2soldA2atA2auc
tion.A2TheA2parcelA2ofA2landA2willA2generateA2saleA2proceedsA2thatA2wouldA2benefitA2townA
2propertyA2ownersA2ifA2anticipatedA2inA2theA2municipalA2budgetA2asA2aA2revenue.A2InA2orde
rA2forA2theA2proceedsA2toA2beA2anA2anticipatedA2revenueA2inA2theA2budgetA2theA2obligation
A2toA2makeA2paymentA2toA2theA2municipalityA2mustA2beA2enteredA2into:A2-A2Ans--
PriorA2toA2adoptionA2ofA2theA2budget
WhenA2aA2municipalityA2hasA2aA2sinkingA2fundA2cashA2surplus,A2suchA2surplusA2may,A2upo
nA2writtenA2applicationA2byA2theA2sinkingA2fundA2commissionA2andA2theA2approvalA2ofA2the
A2director,A2beA2used,A2inA2wholeA2orA2inA2part,A2asA2whichA2ofA2theA2followingA2accordingA2
toA2N.J.S.AA240A:4-28.A2-A2Ans--
AnA2anticipatedA2miscellaneousA2revenueA2inA2currentA2fundA2budget
N.J.S.AA240A:4-
30A2describesA2theA2amountA2toA2beA2raisedA2byA2taxesA2asA2theA2amountA2requiredA2toA2
beA2leviedA2byA2taxationA2forA2supportA2ofA2theA2municipalA2budget.A2ItA2isA2theA2difference
A2betweenA2theA2totalA2ofA2allA2generalA2municipalA2budgetA2appropriations,A2includingA2ch
apterA26A2schoolA2debtA2service,A2andA2suchA2deferredA2chargesA2andA2statutoryA2expend
ituresA2forA2chapterA26A2schoolsA2asA2areA2requiredA2toA2beA2raisedA2inA2theA2municipalA2b
udget,A2lessA2theA2totalA2ofA2anticipatedA2revenues.A2-A2Ans--True
ToA2theA2extentA2thereA2isA2availableA2surplusA2revenueA2collectedA2byA2aA2municipalityA2f
orA2supplyingA2aA2utilityA2serviceA2whichA2isA2regulatedA2byA2theA2BoardA2ofA2PublicA2Utiliti
esA2anA2amountA2ofA2thisA2utilityA2surplusA2mayA2beA2transferredA2annuallyA2andA2included
A2inA2theA2localA2municipalA2budget.A2ThisA2amountA2ofA2theA2surplusA2toA2beA2utilizedA2ma
yA2notA2exceedA2whatA2percentageA2ofA2theA2annualA2costsA2ofA2operationA2ofA2theA2utility
?A2-A2Ans--FiveA2percent
DedicatedA2revenuesA2statedA2inA2theA2budgetA2shallA2beA2classifiedA2accordingA2toA2their
A2respectiveA2sourcesA2andA2shallA2beA2statedA2inA2aA2separateA2sectionA2ofA2theA2budget,
A2togetherA2withA2theA2appropriationsA2toA2theA2purposesA2toA2whichA2suchA2dedicatedA2re
venuesA2areA2applicable.A2TheA2totalA2ofA2anticipatedA2revenuesA2mustA2equalA2theA2totalA
, 2ofA2appropriations.A2ThisA2definitionA2wouldA2describeA2whichA2ofA2theA2following:A2-
A2Ans--TrustA2FundA2accounts
WhichA2ofA2theA2followingA2wouldA2meetA2theA2standardA2toA2qualifyA2asA2aA2dedicatedA2re
venueA2(Trust)?
a)A2AnimalA2ControlA2Fund
b)A2SinkingA2FundA2forA2termA2bonds
c)A2AA2bequest
d)A2MotorA2vehicleA2finesA2dedicatedA2toA2roadA2repairs
e)A2AllA2ofA2theA2aboveA2-A2Ans--e)A2AllA2ofA2theA2above
AnA2appropriationA2forA2"cashA2deficitA2ofA2precedingA2year"A2shallA2beA2raisedA2how?A2-
A2Ans--InA2fullA2inA2theA2immediateA2successiveA2yearA2ofA2theA2deficit
N.J.S.A.A240A:4-
45.2aA2authorizesA2thatA2amountsA2ofA2revenueA2generatedA2byA2anA2increaseA2inA2itsA2va
luationsA2basedA2solelyA2onA2applyingA2theA2precedingA2year'sA2localA2purposesA2taxA2rat
eA2ofA2theA2municipalityA2toA2theA2assessedA2valueA2ofA2newA2constructionA2orA2improvem
entsA2willA2resultA2inA2whichA2ofA2theA2following?A2-A2Ans--IncreaseA2inA2"CAP"A2base
WhichA2ofA2theA2followingA2groupsA2ofA2appropriationsA2areA2exceptionsA2toA2theA2budgetA
2"CAP",A2orA2alsoA2knownA2asA2outsideA2"CAP"A2appropriations?
a)A2DebtA2service,A2capitalA2expenditures,A2amountsA2expendedA2toA2fundA2aA2freeA2publi
cA2library
b)A2ReserveA2forA2uncollectedA2taxes,A2socialA2security,A2federalA2grants,A2amountsA2toA2
meetA2NewA2JerseyA2PublicA2Employees'A2OccupationalA2SafetyA2andA2HealthA2Act
c)A2PublicA2EmployeesA2RetirementA2System,A2expendituresA2resultingA2fromA2theA2impac
tA2ofA2aA2hazardousA2wasteA2facility,A2municipalA2court
d)A2AllA2ofA2theA2aboveA2-A2Ans--
a)A2DebtA2service,A2capitalA2expenditures,A2amountsA2expendedA2toA2fundA2aA2freeA2publi
cA2library
T/FA2-
A2UnlessA2emergencyA2expendituresA2areA2eligibleA2forA2bondingA2pursuantA2toA2theA2Loc
alA2BondA2Law,A2saidA2expendituresA2shallA2beA2providedA2inA2fullA2byA2theA2governingA2b
odyA2asA2aA2deferredA2chargeA2inA2theA2budgetA2ofA2theA2nextA2succeedingA2fiscalA2year.A2
-A2Ans--True
AA2resolutionA2authorizingA2theA2adoptionA2ofA2anA2emergencyA2appropriationA2shallA2beA2
adoptedA2byA2whatA2voteA2ofA2theA2municipalA2governingA2body?A2-A2Ans--Two-
thirdsA2voteA2ofA2theA2fullA2membershipA2ofA2theA2governingA2body
TheA2governingA2bodyA2ofA2aA2NewA2JerseyA2municipalityA2hasA2appointedA2aA2purchasin
gA2agentA2holdingA2aA2QualifiedA2PurchasingA2AgentA2certificationA2andA2authorizedA2aA2lo
calA2biddingA2thresholdA2ofA2$29,000.A2TheA2purchasingA2agentA2wishesA2toA2awardA2aA2p
rofessionalA2serviceA2agreementA2forA2$15,000.A2PursuantA2toA2N.J.S.AA240A:11-
