CMFO REVIEW EXAM QUESTIONS AND CORRECT ANSWERS

CMFO REVIEW EXAM QUESTIONS
AND CORRECT ANSWERS
EveryA2auditA2requiredA2byA2theA2LocalA2FiscalA2AffairsA2LawA2isA2requiredA2toA2beA2compl
etedA2byA2anA2accountantA2orA2auditorA2whoA2holdsA2anA2uncanceledA2licenseA2as:A2-
A2Ans--registeredA2municipalA2accountant


TheA2statutoryA2responsibilityA2forA2theA2filingA2ofA2theA2UnauditedA2AnnualA2FinancialA2St
atementsA2isA2assignedA2toA2whichA2localA2governmentA2officialA2-A2Ans--cfo

AA2localA2governmentA2officerA2thatA2servesA2onA2aA2localA2governmentA2agencyA2thatA2ap
provedA2developmentA2applicationsA2wouldA2referA2toA2aA2memberA2ofA2whichA2boardA2-
A2Ans--planningA2board


TheA2"LocalA2FiscalA2AffairsA2Law"A2mandatesA2thatA2theA2CashA2ManagementA2PlanA2be
A2approvedA2annuallyA2byA2the:A2-A2Ans--governingA2body


TheA2LocalA2BondA2LawA2stipulatesA2thatA2theA2maturitiesA2ofA2allA2bondsA2shallA2beA2asA2
determinedA2byA2theA2bondA2ordinanceA2orA2byA2subsequentA2resolutionA2andA2beA2within
A2theA2followingA2limitations:A2-A2Ans--
allA2bondsA2shallA2matureA2withinA2theA2periodA2ofA2usefulness,A2allA2bondsA2shallA2mature
A2inA2annualA2installments,A2theA2governingA2bodyA2mayA2provideA2forA2aA2singleA2orA2com
binedA2issue

TheA2effectiveA2dateA2ofA2aA2bondA2ordinanceA2isA2whatA2lengthA2ofA2time?A2-A2Ans--
20A2daysA2afterA2theA2firstA2publicationA2afterA2adoption

AllA2mattersA2notA2requiredA2toA2beA2containedA2inA2aA2bondA2ordinanceA2mayA2beA2actedA
2onA2byA2subsequentA2resolutionsA2passedA2byA2theA2affirmativeA2votesA2ofA2aA2majorityA2
ofA2theA2governingA2bodyA2-A2Ans--true

AnA2increaseA2inA2anticipatedA2revenueA2fromA2aA2knownA2andA2recurringA2sourceA2mayA2
haveA2whatA2effectA2onA2theA2appropriationA2forA2theA2ReserveA2forA2UncollectedA2Taxes?
A2-A2Ans--decreaseA2theA2RUT


NoA2resolutionA2authorizingA2theA2enteringA2intoA2anyA2contractA2shallA2beA2enactedA2unle
ssA2itA2shallA2reciteA2thatA2suchA2aA2certificateA2showingA2theA2availabilityA2ofA2fundsA2hasA
2beenA2provided.A2InA2additionA2itA2requires:A2-A2Ans--
theA2resolutionA2specifyA2theA2exactA2lineA2itemA2appropriationA2orA2ordinanceA2toA2beA2ch
arged

TheA2NewA2JerseyA2BudgetA2LawA2requiresA2thatA2theA2budgetA2shallA2consistA2ofA2aA2tab
ulatedA2statementA2of:A2-A2Ans--

,allA2anticipatedA2revenuesA2applicableA2toA2expendituresA2forA2whichA2appropriationsA2are
A2made


TheA2fourA2classificationsA2ofA2revenueA2are:A2-A2Ans--
surplusA2anticipated,A2miscellaneousA2revenues,A2receiptsA2fromA2delinquentA2taxes,A2am
ountA2toA2beA2raisedA2byA2taxation

ImplementationA2ofA2aA2dedicatedA2taxA2programA2forA2openA2space,A2recreation,A2farmla
ndA2andA2historicA2preservationA2trustA2fundA2taxingA2districtsA2areA2authorizedA2byA2which
A2ofA2theA2following:A2-A2Ans--referendumA2heldA2atA2aA2generalA2orA2specificA2election


TheA2LocalA2BudgetA2LawA2permitsA2theA2taxA2collectionA2rateA2usedA2toA2computeA2theA2
RUTA2toA2beA2basedA2onA2anA2averageA2whenA2theA2taxA2collectionA2rateA2hasA2beenA2aff
ectedA2byA2taxA2refundsA2orA2adjustmentsA2fromA2successfulA2propertyA2taxA2appeals.A2Th
eA2numberA2ofA2yearsA2includedA2inA2theA2calculationA2ofA2theA2averageA2is:A2-A2Ans--3

TheA2limitationA2ofA2aA2municipality'sA2debtA2isA2regulatedA2byA2theA2LocalA2BondA2Law.A2It
A2statsA2thatA2theA2limitA2shallA2beA2aA2percentageA2ofA2theA2averageA2ofA2theA2precedingA2
threeA2yearsA2equalizedA2assessedA2valuations.A2ThatA2percentageA2limitA2isA2whichA2ofA2
theA2following:A2-A2Ans--3.5

WhatA2isA2theA2valueA2thresholdA2establishedA2byA2theA2"PayA2toA2Play"A2law,A2atA2whichA2
aA2contractA2cannotA2beA2awardedA2byA2aA2NewA2JerseyA2governmentA2entityA2-A2Ans--
17500

AccordingA2toA2LocalA2BondA2LawA2theA2shortA2termA2borrowingA2instrumentsA2areA2know
nA2asA2BondA2AnticipationA2NotesA2andA2theseA2notesA2mayA2notA2beA2issuedA2forA2aA2peri
odA2ofA2timeA2exceeding:A2-A2Ans--1A2year

AllA2bondA2anticipationA2notesA2shallA2matureA2andA2beA2paidA2notA2laterA2thatA2whichA2an
niversaryA2ofA2theA2dateA2ofA2theA2originalA2notes?A2-A2Ans--10A2years

TheA2LocalA2BondA2LawA2requiresA2thatA2"priorA2toA2theA2passageA2onA2firstA2readingA2ofA2
anyA2bondA2ordinance,A2orA2ordinanceA2amendingA2aA2bondA2ordinance,A2exceptA2amendi
ngA2asA2toA2mattersA2whichA2areA2notA2requiredA2toA2beA2containedA2inA2aA2bondA2ordinan
ceA2orA2whichA2doesA2notA2increaseA2theA2totalA2amountA2ofA2theA2obligationsA2authorized
A2byA2suchA2bondA2ordinance",A2theA2financialA2officerA2shallA2fileA2withA2theA2officeA2ofA2th
eA2clerkA2whichA2documentA2-A2Ans--supplementalA2debtA2statement

TheA2LocalA2PublicA2ContractsA2LawA2permitsA2contactingA2toA2beA2enteredA2intoA2thatA2e
xceedA2theA2biddingA2thresholdA2ifA2theA2situationA2effectsA2whichA2ofA2theA2followingA2-
A2Ans--theA2publicA2health,A2safetyA2orA2welfare


TheA2minimumA2numberA2ofA2daysA2forA2theA2advertisementA2forA2theA2receiptA2ofA2bidsA2i
s:A2-A2Ans--10A2days

, TheA2NJAC,A2TheA2LocalA2PublicA2ContractsA2LawA2RulesA2listsA2theA2generalA2requireme
ntsA2forA2allA2changeA2ordersA2oneA2ofA2thoseA2requirementsA2isA2that:A2-A2Ans--
responsibilityA2forA2changeA2ordersA2liesA2withA2theA2governingA2body

AnyA2anticipatedA2deficitA2inA2expendituresA2toA2whichA2dedicatedA2revenuesA2areA2applic
ableA2shallA2beA2providedA2forA2byA2anA2appropriationA2inA2theA2budget.A2TheA2appropriati
onA2ofA2theA2anticipatedA2deficitA2wouldA2beA2includedA2inA2whichA2budget?A2-A2Ans--
currentA2fund

TheA2statutoryA2deadlineA2forA2theA2filingA2ofA2theA2UnauditedA2AnnualA2FinancialA2Statem
entA2forA2aA2StateA2FiscalA2YearA2municipalityA2isA2-A2Ans--AugustA210

WhatA2isA2theA2dollarA2amountA2thresholdA2thatA2mustA2beA2exceededA2inA2orderA2forA2aA2
propertyA2ownerA2toA2fileA2aA2complaintA2directlyA2withA2theA2NewA2JerseyA2TaxA2CourtA2in
A2theA2appealingA2ofA2propertyA2assessmentsA2-A2Ans--1000000


TheA2LocalA2FiscalA2AffairsA2LawA2permitsA2theA2establishmentA2ofA2pettyA2cashA2funds.A2
NJSAA240A:5-21A2describesA2withA2whomA2theA2authorityA2restsA2forA2approvalA2and/
orA2disapprovalA2ofA2theA2pettyA2cashA2fund.A2TheA2personA2thatA2hasA2saidA2authority,A2w
hichA2mustA2beA2receivedA2priorA2toA2activationA2ofA2theA2pettyA2cashA2fundA2is:A2-A2Ans--
directorA2ofA2theA2DLGS

WhichA2publicA2officialA2isA2statutorilyA2responsibleA2forA2htA2billingA2ofA2aA2specialA2asses
smentA2levy?A2-A2Ans--taxA2collector

AA2NewA2JerseyA2municipalityA2isA2prohibitedA2fromA2increasingA2its'A2taxA2levyA2byA2whatA
2percentageA2rateA2beforeA2permittedA2exclusionsA2areA2addedA2toA2theA2taxA2levyA2-
A2Ans--2


TheA2MunicipalA2PublicA2DefendersA2LawA2containsA2aA2requirementA2forA2theA2accountin
gA2ofA2applicationA2feesA2thatA2areA2collected.A2ItA2isA2requiredA2thatA2theA2fundsA2collecte
dA2shallA2beA2depositedA2where?A2-A2Ans--dedicatedA2trustA2fund

WhichA2ofA2theA2followingA2isA2anA2appropriationA2thatA2wouldA2notA2beA2subjectA2toA2theA2l
imitationA2asA2providedA2byA2theA2NewA2JerseyA2"CAP"A2law?A2-A2Ans--
noneA2ofA2theA2above

TheA2LocalA2GovernmentA2CAPA2LawA2addressedA2thatA2permittedA2transferA2ofA2currentA
2yearA2appropriationsA2andA2reserveA2yearA2appropriations.A2TheA2statuteA2prohibitsA2theA
2transferA2ofA2fundsA2fromA2anA2appropriationA2thatA2isA2notA2subjectA2toA2limitationA2toA2an
A2appropriationA2thatA2isA2subjectA2toA2limitation.A2-A2Ans--true


TheA2LocalA2GovernmentA2EthicsA2LawA2requiresA2theA2filingA2ofA2anA2annualA2financialA2d
isclosureA2statement.A2TheA2disclosureA2statementA2shallA2includeA2theA2name,A2addressA
2andA2eachA2sourceA2ofA2incomeA2earnedA2byA2theA2localA2governmentA2employeeA2orA2m
emberA2ofA2theirA2immediateA2familyA2inA2excessA2ofA2whatA2amountA2-A2Ans--2000