CMFO STATUTES Exam Questions and
Answers Graded A+
Every audit required by the Local Fiscal Affairs NJSA 40A5-9 is required to
completed by an accountant or auditor who holds and uncanceled license as? -
Correct answer-Registered Municipal Accountant
The statutory responsibility for the filing of the "Unaudited Annual Financial
Statements is assigned to which local government official by NJSA 40A:5-12? -
Correct answer-Chief Financial Officer
As defined in the "Local Government Ethics Law" specially, NJSA 40A:9-22.3, a
"Local Government Officer" that serves on a local government agency that
approves development applications would refer to a member of which of the
following boards? - Correct answer-Planning Board
The "Local Fiscal Affairs Law" mandates that the Cash Management Plan be
approved annually by the? - Correct answer-Governing Body (majority vote)
The "Local Bond Law" specially NJSA 40A:2-26, stipulates that the maturities of
all bonds shall be determined by the bond ordinance or by the subsequent
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,resolution and be within the following limitations? - Correct answer-1.All bonds
shall mature within the period or average period of usefulness; 2. All bonds shall
mature in annual installments; 3. The governing body may provide for a single and
combined bond issue
The effective date of a bond ordinance as stipulated by NJSA 40A:2-18 is what
length of time? - Correct answer-20 days after 1st publication "after" adoption
All matters not required to be contained in a bond ordinance may be acted on by
subsequent resolutions passed by the affirmative votes of a "majority of the full
membership of the governing body"? TRUE OR FALSE - Correct answer-TRUE
An increase in anticipated revenue from a known and recurring source may have
what effect on the appropriation for the "Reserve for Uncollected Taxes"? - Correct
answer-would Decrease the appropriation for the Reserve of Uncollected Taxes
NOTE: Higher Revenue = Lower RUT & Lower Revenue = High RUT
The New Jersey Administrative Code 5:34-5.2 outlines the procedure for the
certification for the availability of funds. It is required that no resolution
authorizing the entering into any contract shall be enacted unless it shall recite that
such a certificate showing the availability of funds has been provided. In addition it
requires? - Correct answer-the resolution specify the exact line item appropriation
or Ordinance to be charged
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, The New Jersey Budget Law NJSA40A:4-22 requires that the budget shall consist
of a tabulated statement of? - Correct answer-all Anticipated Revenues applicable
to Expenditures for which appropriations are made
The four classifications of revenue described by the "Local Budget Law" NJSA
40A:4-23? - Correct answer-Surplus Anticipated, Miscellaneous Revenue, Receipts
from Delinquent Taxes, Amount to be Raised by Taxation
Implementation of a dedicated tax program for open space, recreation, farmland
and historic preservation trust fund taxing districts are authorized by which of the
following? - Correct answer-Referendum held at a General or Special Election
Local Budget Law NJSA 40A:4-41 (c)1 permits the tax collection rate used to
compute the reserve for uncollected taxes to be based on an average when the tax
collection rate has been affected by tax refunds or adjustments from successful
property tax appeals. The number of years included in the calculation of the
average is? - Correct answer-3 year average
The limitation of municipality's debt is regulated by the "Local Bond Law" NJSA
40A:2-6. It states that the limit shall be a percentage of the average of the
preceding 3 years equalized assessed valuation . That percentage limit is which of
the following? - Correct answer-3.5 percent for municipal
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
Answers Graded A+
Every audit required by the Local Fiscal Affairs NJSA 40A5-9 is required to
completed by an accountant or auditor who holds and uncanceled license as? -
Correct answer-Registered Municipal Accountant
The statutory responsibility for the filing of the "Unaudited Annual Financial
Statements is assigned to which local government official by NJSA 40A:5-12? -
Correct answer-Chief Financial Officer
As defined in the "Local Government Ethics Law" specially, NJSA 40A:9-22.3, a
"Local Government Officer" that serves on a local government agency that
approves development applications would refer to a member of which of the
following boards? - Correct answer-Planning Board
The "Local Fiscal Affairs Law" mandates that the Cash Management Plan be
approved annually by the? - Correct answer-Governing Body (majority vote)
The "Local Bond Law" specially NJSA 40A:2-26, stipulates that the maturities of
all bonds shall be determined by the bond ordinance or by the subsequent
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,resolution and be within the following limitations? - Correct answer-1.All bonds
shall mature within the period or average period of usefulness; 2. All bonds shall
mature in annual installments; 3. The governing body may provide for a single and
combined bond issue
The effective date of a bond ordinance as stipulated by NJSA 40A:2-18 is what
length of time? - Correct answer-20 days after 1st publication "after" adoption
All matters not required to be contained in a bond ordinance may be acted on by
subsequent resolutions passed by the affirmative votes of a "majority of the full
membership of the governing body"? TRUE OR FALSE - Correct answer-TRUE
An increase in anticipated revenue from a known and recurring source may have
what effect on the appropriation for the "Reserve for Uncollected Taxes"? - Correct
answer-would Decrease the appropriation for the Reserve of Uncollected Taxes
NOTE: Higher Revenue = Lower RUT & Lower Revenue = High RUT
The New Jersey Administrative Code 5:34-5.2 outlines the procedure for the
certification for the availability of funds. It is required that no resolution
authorizing the entering into any contract shall be enacted unless it shall recite that
such a certificate showing the availability of funds has been provided. In addition it
requires? - Correct answer-the resolution specify the exact line item appropriation
or Ordinance to be charged
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, The New Jersey Budget Law NJSA40A:4-22 requires that the budget shall consist
of a tabulated statement of? - Correct answer-all Anticipated Revenues applicable
to Expenditures for which appropriations are made
The four classifications of revenue described by the "Local Budget Law" NJSA
40A:4-23? - Correct answer-Surplus Anticipated, Miscellaneous Revenue, Receipts
from Delinquent Taxes, Amount to be Raised by Taxation
Implementation of a dedicated tax program for open space, recreation, farmland
and historic preservation trust fund taxing districts are authorized by which of the
following? - Correct answer-Referendum held at a General or Special Election
Local Budget Law NJSA 40A:4-41 (c)1 permits the tax collection rate used to
compute the reserve for uncollected taxes to be based on an average when the tax
collection rate has been affected by tax refunds or adjustments from successful
property tax appeals. The number of years included in the calculation of the
average is? - Correct answer-3 year average
The limitation of municipality's debt is regulated by the "Local Bond Law" NJSA
40A:2-6. It states that the limit shall be a percentage of the average of the
preceding 3 years equalized assessed valuation . That percentage limit is which of
the following? - Correct answer-3.5 percent for municipal
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
