MUNICIPAL FINANCE ADMINISTRATION NJCMFO
EXAM | QUIZ SMART | SCORE HIGH | GUARANTEED
ACCURACY!
The Fundamental Purpose of Local Government - Answer: To provide essential public
services such as refuse collection, police protection, education, fire suppression and
prevention, library, recreation, and other important services which impact the everyday
lives of virtually every citizen.
Five types of Municipalities in NJ - Answer: Town, Township, Borough, Village, and City
4-forms of Government that can be adopted by the voters - Answer: 1. The commission
act of 1912 (The Walsh Act)
2. The Municipal Manager Act of 1923
3. The Optional Municipal Charter Law of 1950 (Faulkner Act)
4. Special Charter
4-forms of Faulkner Act Government - Answer: 1. Council-Manager Form
2. a Mayor-Council Form
3. a Small Municipalities Form
4. a Mayor-Council-Administrator Form
Special Improvement District Budgets must be approved by? - Answer: the Governing
Body
Special District Budgets must be approved by - Answer: the Voters
Type 1 School District Budgets are approved by - Answer: the Board of School
Estimate
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
, Special meetings of a governing body must be noticed - Answer: to two newspapers,
including the official newspapers, which have the ability to publish the notice at least 48-
hours in advance of the meeting
Municipal Authority finances must be - Answer: Self-Liquidating and funded by user
fees
Technical Accounting Directive 85-1 mandates - Answer: an Encumbrance System
Technical Accounting Directive 85-2 mandates - Answer: a Fixed Assets Ledger
Technical Accounting Directive 85-3 mandates - Answer: the Use of a General Ledger
What is the limit to the annual increase, subject to limited exceptions, in the amount to
be raised by taxation in a municipal budget? - Answer: 2%
DLGS supervises municipalities under the Fiscal Supervision Act, which occurs when? -
Answer: 1. A default exists in the payment of bonded obligations.
2. Payments are due to state, county, or school districts for more than two years.
3. A cash defecit amounts to more than 4% of the total tax levy.
4. Current tax collections fall below 70% for two successive years.
NJSA 52:27BB-1 is also known as: - Answer: The Local Government Supervision Act
Equalized Valuation represents - Answer: the true value of all taxable property in the
municipality
FCOA (Flexible Chart of Accounts) - Answer: A coding system which categorizes budge
appropriations and revenues
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
EXAM | QUIZ SMART | SCORE HIGH | GUARANTEED
ACCURACY!
The Fundamental Purpose of Local Government - Answer: To provide essential public
services such as refuse collection, police protection, education, fire suppression and
prevention, library, recreation, and other important services which impact the everyday
lives of virtually every citizen.
Five types of Municipalities in NJ - Answer: Town, Township, Borough, Village, and City
4-forms of Government that can be adopted by the voters - Answer: 1. The commission
act of 1912 (The Walsh Act)
2. The Municipal Manager Act of 1923
3. The Optional Municipal Charter Law of 1950 (Faulkner Act)
4. Special Charter
4-forms of Faulkner Act Government - Answer: 1. Council-Manager Form
2. a Mayor-Council Form
3. a Small Municipalities Form
4. a Mayor-Council-Administrator Form
Special Improvement District Budgets must be approved by? - Answer: the Governing
Body
Special District Budgets must be approved by - Answer: the Voters
Type 1 School District Budgets are approved by - Answer: the Board of School
Estimate
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
, Special meetings of a governing body must be noticed - Answer: to two newspapers,
including the official newspapers, which have the ability to publish the notice at least 48-
hours in advance of the meeting
Municipal Authority finances must be - Answer: Self-Liquidating and funded by user
fees
Technical Accounting Directive 85-1 mandates - Answer: an Encumbrance System
Technical Accounting Directive 85-2 mandates - Answer: a Fixed Assets Ledger
Technical Accounting Directive 85-3 mandates - Answer: the Use of a General Ledger
What is the limit to the annual increase, subject to limited exceptions, in the amount to
be raised by taxation in a municipal budget? - Answer: 2%
DLGS supervises municipalities under the Fiscal Supervision Act, which occurs when? -
Answer: 1. A default exists in the payment of bonded obligations.
2. Payments are due to state, county, or school districts for more than two years.
3. A cash defecit amounts to more than 4% of the total tax levy.
4. Current tax collections fall below 70% for two successive years.
NJSA 52:27BB-1 is also known as: - Answer: The Local Government Supervision Act
Equalized Valuation represents - Answer: the true value of all taxable property in the
municipality
FCOA (Flexible Chart of Accounts) - Answer: A coding system which categorizes budge
appropriations and revenues
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
