CMFO EXAM – PRACTICE 2025
QUESTIONS AND ANSWERS
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
1
Page
The effective date of a bond ordinance - ANS 20 days after first publication after adoption
@COPYRIGHT @THEBRIGHT 2025/2026
, 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 -
2
Page
allowable with a resolution of the governing body
@COPYRIGHT @THEBRIGHT 2025/2026
, 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
3
Page
@COPYRIGHT @THEBRIGHT 2025/2026
QUESTIONS AND ANSWERS
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
1
Page
The effective date of a bond ordinance - ANS 20 days after first publication after adoption
@COPYRIGHT @THEBRIGHT 2025/2026
, 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 -
2
Page
allowable with a resolution of the governing body
@COPYRIGHT @THEBRIGHT 2025/2026
, 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
3
Page
@COPYRIGHT @THEBRIGHT 2025/2026
