CMFO EXAM PRACTICE
QUESTIONS AND
CORRECT ANSWERS
GRADED A+ 2025-2026
Every Audit Required by the Local Fiscal Affairs Law is required to be completed by: -
ANS-An RMA (Registered Municipal Accountant)
The statutory responsibility for filing the AFS is assigned to: - ANS-CFO
A local government officer that serves on the agency that approves development
applications refers to a member of which board? - ANS-Planning Board
Cash management plan must be approved annual by the: - ANS-Governing Body
The local bond law stipulates that the maturities of all bonds shall be as determined by
the local bond ordinance or by subsequent resolution and be within the following
limitations:
a. All bonds shall mature within the period or average period of usefulness
b. All bonds shall mature in annual installments
c. The governing body may provide for a single and combined bond issue
d. All of the above
e. None of the above - ANS-d. All of the above
The effective date of a bond ordinance - ANS-20 days after first publication after
adoption
,T/F - 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 - ANS-True
An increase in anticipated revenue from a known and recurring source will have what
effect on the appropriation for the RUT - ANS-Would decrease the appropriation for
the RUT
T/F - The exact line item appropriation or ordinance must be shown on the resolution
with the certification of funds in order to enter a contract - ANS-True
The NJ Budget Law requires that the budget shall consist of a tabulated statement of:
a. Both the CAP calculations on the tax levy and appropriations
b. All debt calculations, including total principal and interest due on outstanding debt
c. All anticipated revenues applicable to expenditures for which appropriations are
made
d. All of the above
e. None of the above - ANS-c. All anticipated revenues applicable to expenditures for
which appropriations are made
Four classifications of revenue - ANS-Surplus Anticipated
Miscellaneous Revenues
Receipts from Delinquents
Amount to be Raised
Implementation of a dedicatied tax program for open space is authorized by: - ANS-
Referendum held at general or special election
Alternate calculation for the RUT - ANS-Average of the prior three years collection
rates - allowable with a resolution of the governing body
Debt limit - ANS-3.5% prior three years average equalized assessed valuation
, Pay to play threshold - ANS-$17,500
How long can a BAN be issued for - ANS-1 year
When must BANs fully mature - ANS-1st day of the 5th month following the close of
the 10th fiscal year
Who is responsible for change orders? - ANS-Governing Body
Any deficit in expenditures to which dedicated revenues are applicable shall be
provided for by an appropriation in which budget? - ANS-Current Fund
Threshold for Tax Court appeal - ANS-$1,000,000
Who has the authority to approve the establishment of a petty cash fund? - ANS-The
Director of the DLGS
Who is responsible to bill the special assessment levy - ANS-Tax Collector
Levy Cap - ANS-2%
The municipal public defenders law contains a requirement for the accounting of
application fees that are collected. It is required that the funds collected should be
deposited where? - ANS-Dedicated trust fund
Which of the following is an appropriation that would not be subject to limitation as
provided by the NJ CAP law?
a. Audit Fees
b. Police S&W
c. Utilities
d. All of the above
QUESTIONS AND
CORRECT ANSWERS
GRADED A+ 2025-2026
Every Audit Required by the Local Fiscal Affairs Law is required to be completed by: -
ANS-An RMA (Registered Municipal Accountant)
The statutory responsibility for filing the AFS is assigned to: - ANS-CFO
A local government officer that serves on the agency that approves development
applications refers to a member of which board? - ANS-Planning Board
Cash management plan must be approved annual by the: - ANS-Governing Body
The local bond law stipulates that the maturities of all bonds shall be as determined by
the local bond ordinance or by subsequent resolution and be within the following
limitations:
a. All bonds shall mature within the period or average period of usefulness
b. All bonds shall mature in annual installments
c. The governing body may provide for a single and combined bond issue
d. All of the above
e. None of the above - ANS-d. All of the above
The effective date of a bond ordinance - ANS-20 days after first publication after
adoption
,T/F - 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 - ANS-True
An increase in anticipated revenue from a known and recurring source will have what
effect on the appropriation for the RUT - ANS-Would decrease the appropriation for
the RUT
T/F - The exact line item appropriation or ordinance must be shown on the resolution
with the certification of funds in order to enter a contract - ANS-True
The NJ Budget Law requires that the budget shall consist of a tabulated statement of:
a. Both the CAP calculations on the tax levy and appropriations
b. All debt calculations, including total principal and interest due on outstanding debt
c. All anticipated revenues applicable to expenditures for which appropriations are
made
d. All of the above
e. None of the above - ANS-c. All anticipated revenues applicable to expenditures for
which appropriations are made
Four classifications of revenue - ANS-Surplus Anticipated
Miscellaneous Revenues
Receipts from Delinquents
Amount to be Raised
Implementation of a dedicatied tax program for open space is authorized by: - ANS-
Referendum held at general or special election
Alternate calculation for the RUT - ANS-Average of the prior three years collection
rates - allowable with a resolution of the governing body
Debt limit - ANS-3.5% prior three years average equalized assessed valuation
, Pay to play threshold - ANS-$17,500
How long can a BAN be issued for - ANS-1 year
When must BANs fully mature - ANS-1st day of the 5th month following the close of
the 10th fiscal year
Who is responsible for change orders? - ANS-Governing Body
Any deficit in expenditures to which dedicated revenues are applicable shall be
provided for by an appropriation in which budget? - ANS-Current Fund
Threshold for Tax Court appeal - ANS-$1,000,000
Who has the authority to approve the establishment of a petty cash fund? - ANS-The
Director of the DLGS
Who is responsible to bill the special assessment levy - ANS-Tax Collector
Levy Cap - ANS-2%
The municipal public defenders law contains a requirement for the accounting of
application fees that are collected. It is required that the funds collected should be
deposited where? - ANS-Dedicated trust fund
Which of the following is an appropriation that would not be subject to limitation as
provided by the NJ CAP law?
a. Audit Fees
b. Police S&W
c. Utilities
d. All of the above
