CMFO Exam UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
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
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.
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
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.
performance based budgeting - CORRECT ANSWER The number miles of roads in terms of
expenditures would be an example of
maturity schedule for bonds - CORRECT ANSWER Which does not have to be included in the
bond ordinance?
QUESTIONS AND CORRECT ANSWERS
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
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.
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
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.
performance based budgeting - CORRECT ANSWER The number miles of roads in terms of
expenditures would be an example of
maturity schedule for bonds - CORRECT ANSWER Which does not have to be included in the
bond ordinance?
