CMFO Exam Question Bank Exam
Questions and Answers Graded A+
True - Correct answer-T/F: Due from State of New Jersey for Senior citizen
Deductions can be anticipated as a revenue in the current fund budget as non-cash
surplus
retirement of serial bonds - Correct answer-Trust Assessment Fund cash is first
pledged to:
quarterly basis - Correct answer-Municipal Library Levy is paid on a
True - Correct answer-T/F: budget transfers from Capital Improvement Fund are
not permitted
Corrective Action Plan - Correct answer-Finding/Condition; Recommendation;
explanation & corrective action; implementation date
tax collector - Correct answer-___________ mails out local assessment bills
Department of Treasury - Correct answer-Oversight of PERS & PFRS is the
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,60 days - Correct answer-Corrective action must be adopted within _________ of
receipt of the audit reports
$1000 - Correct answer-Developer's Escrow monthly chargers greater than
________. The CFO must provide an accounting statement to the developer on a
monthly basis.
Local Finance Board intervention - Correct answer-Default on bonds, Tax
Collection Rate is less than 70%, Cash Deficit of the tax levy in excess of 4% for 2
consecutive years
immediately - Correct answer-Resident requested to inspect vouchers that were
approved for payment at the most recent governing body meeting. Inspection of
vouchers must be made available for inspection
$2000, $400, NJ - Correct answer-Finance Disclosure forms are required for
Income greater than________, gifts greater than ______, property within
_________
False - Correct answer-T/F: The Supplemental Debt Statement must be filed
between the 1st and 2nd reading of a bond ordinance.
True - Correct answer-T/F: Three Different Bond ordinances are introduced at a
public meeting only 1 supplemental debt statement is required.
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,False - Correct answer-T/F: The anticipated revenue for Receipts from Delinquent
Taxes is limited to the amount of revenue realized in the previous year
False - Correct answer-T/F: The Annual Debt Statement is due upon introduction
of a bond ordinance.
$750000 - Correct answer-Federal Single Audit is required if Federal Grant
expenditures equals or exceeds
True - Correct answer-T/F: The cash management plan can be amended at any
time.
Net Debt - Correct answer-Gross Debt - Deductions =
liquidity - Correct answer-Security can be converted into cash
Director of DLGS - Correct answer-Chairperson of the Local Finance Board is
State of NJ as unclaimed property - Correct answer-Old escrow accounts escheat to
False - Correct answer-T/F: Interest on Utility Assessment Debt is appropriated in
the Current Fund
2/3 of governing body - Correct answer-Budget Transfers need a vote of
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, False - Correct answer-T/F: Pursuant to Local Budget Law municipalities are
permitted to overspend a legal line item appropriation if the overall Current Fund
Budget remains in a surplus
False - Correct answer-T/F: In regard to use of P-cards, under no circumstances
may a transaction exceed 15% of a municipality bid threshold.
True - Correct answer-T/F: Municipalities that carries a statutory excess in Reserve
for an Animal Control Fund at year end excess is Due to Current Fund and
recorded as MRNA.
True - Correct answer-T/F: Director does not approve budget transfers.
False - Correct answer-T/F: The unexpended balance of debt service must be
cancelled by resolution.
False - Correct answer-T/F: Capital Budget must be adopted by a majority of the
governing body.
True - Correct answer-T/F: Municipalities are permitted to negotiate with a vendor,
after 2 attempts, responses to bids were too high and no bids were submitted.
True - Correct answer-T/F: If Trust Assessment Fund cash is less than the required
budgeted amount to retire debt service, a required appropriation in the Current
Fund budget is necessary to cover the deficit.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
Questions and Answers Graded A+
True - Correct answer-T/F: Due from State of New Jersey for Senior citizen
Deductions can be anticipated as a revenue in the current fund budget as non-cash
surplus
retirement of serial bonds - Correct answer-Trust Assessment Fund cash is first
pledged to:
quarterly basis - Correct answer-Municipal Library Levy is paid on a
True - Correct answer-T/F: budget transfers from Capital Improvement Fund are
not permitted
Corrective Action Plan - Correct answer-Finding/Condition; Recommendation;
explanation & corrective action; implementation date
tax collector - Correct answer-___________ mails out local assessment bills
Department of Treasury - Correct answer-Oversight of PERS & PFRS is the
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,60 days - Correct answer-Corrective action must be adopted within _________ of
receipt of the audit reports
$1000 - Correct answer-Developer's Escrow monthly chargers greater than
________. The CFO must provide an accounting statement to the developer on a
monthly basis.
Local Finance Board intervention - Correct answer-Default on bonds, Tax
Collection Rate is less than 70%, Cash Deficit of the tax levy in excess of 4% for 2
consecutive years
immediately - Correct answer-Resident requested to inspect vouchers that were
approved for payment at the most recent governing body meeting. Inspection of
vouchers must be made available for inspection
$2000, $400, NJ - Correct answer-Finance Disclosure forms are required for
Income greater than________, gifts greater than ______, property within
_________
False - Correct answer-T/F: The Supplemental Debt Statement must be filed
between the 1st and 2nd reading of a bond ordinance.
True - Correct answer-T/F: Three Different Bond ordinances are introduced at a
public meeting only 1 supplemental debt statement is required.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,False - Correct answer-T/F: The anticipated revenue for Receipts from Delinquent
Taxes is limited to the amount of revenue realized in the previous year
False - Correct answer-T/F: The Annual Debt Statement is due upon introduction
of a bond ordinance.
$750000 - Correct answer-Federal Single Audit is required if Federal Grant
expenditures equals or exceeds
True - Correct answer-T/F: The cash management plan can be amended at any
time.
Net Debt - Correct answer-Gross Debt - Deductions =
liquidity - Correct answer-Security can be converted into cash
Director of DLGS - Correct answer-Chairperson of the Local Finance Board is
State of NJ as unclaimed property - Correct answer-Old escrow accounts escheat to
False - Correct answer-T/F: Interest on Utility Assessment Debt is appropriated in
the Current Fund
2/3 of governing body - Correct answer-Budget Transfers need a vote of
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, False - Correct answer-T/F: Pursuant to Local Budget Law municipalities are
permitted to overspend a legal line item appropriation if the overall Current Fund
Budget remains in a surplus
False - Correct answer-T/F: In regard to use of P-cards, under no circumstances
may a transaction exceed 15% of a municipality bid threshold.
True - Correct answer-T/F: Municipalities that carries a statutory excess in Reserve
for an Animal Control Fund at year end excess is Due to Current Fund and
recorded as MRNA.
True - Correct answer-T/F: Director does not approve budget transfers.
False - Correct answer-T/F: The unexpended balance of debt service must be
cancelled by resolution.
False - Correct answer-T/F: Capital Budget must be adopted by a majority of the
governing body.
True - Correct answer-T/F: Municipalities are permitted to negotiate with a vendor,
after 2 attempts, responses to bids were too high and no bids were submitted.
True - Correct answer-T/F: If Trust Assessment Fund cash is less than the required
budgeted amount to retire debt service, a required appropriation in the Current
Fund budget is necessary to cover the deficit.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
