CMFO Exam Questions And Answers With Complete
Solutions
1st publication of bond ordinance Correct Answers At least one
week prior to the date of further consideration which must be at
least 10 days after introduction
5 Key Credit Factors Correct Answers Financial Performance
Debt Factors
Legal Structure
Economy
Management
8 Contents of a bond ordinance Correct Answers Authorization
to issue debt
Purpose (or multi-purpose)
Maximum amount of debt
Estimated Cost
Useful Life (or Average)
Suplemental debt statement to be filed
Increase in % of debt
Section 20 costs
A bank wishing to do business with a local governiment in NJ
must have a headquarters in ___________ and posess a
______________ issued by ________________ Correct
Answers NJ
GUDPA Certificate
Department of Banking & Insurance
,A capital budget is required where the cumulative cost of such
items will exceed: Correct Answers $25,000 with a useful life
of at least 5 years
A capital budget would best be described as Correct Answers A
plan for capital projects
A certificate of surety is required on all local public construction
contracts in excess of: Correct Answers $100,000
A contracting unit may reject all bids for which of the following
reasons:
a) The governing body of the contracting unit decides to
abandon the project
b) The governing body of the contracting unit decides to use the
State authorized contract
c) The lowest bid substantially exceeds the contracting unit's
appropriation
d) All the above
e) None of the above Correct Answers d) All the above
A local contracting unit has accepted bids. The bids must be
reviewed by the appropriate officials. The length of time to
conclude this process is uncertain. The prospective contractors
submitted bid guarantees. What is the number of days that the
local unit must return said bid guarantees to all but the three
apparent lowest responsible bidders? Correct Answers Ten
days, Sundays and Holidays excepted
A local contracting unit has advertised for the same good or
service on two occasions. On one occasion no bids were
,received and on one occasion all bids were rejected because of
price. The local contracting unit is now permitted to proceed in
which of the following methods? Correct Answers Negotiate
and award contract by a two-thirds affirmative vote of the
governing body
A local unit, in anticipation of the issuance of bonds, may
borrow money and issue notes if the bond ordinance or
subsequent resolution so provides. Such notes shall be
designated as a "bond anticipation note" and all such notes shall
mature and be paid not later than the first day of the fifth month
following the close of which fiscal year. Correct Answers The
tenth fiscal year
A municipal governing body has determined that a parcel of
land is no longer required for public use and so concluded that
said parcel be sold at auction. The parcel of land will generate
sale proceeds that would benefit town property owners if
anticipated in the municipal budget as a revenue. In order for the
proceeds to be an anticipated revenue in the budget the
obligation to make payment to the municipality must be entered
into: Correct Answers Prior to adoption of the budget
A municipal governing body has introduced their town budget
on Thursday, February 6 and will hold a public hearing on said
budget on Thursday, March 6 (a non-leap year). The
advertisement giving notice of the public hearing shall not be
published later than which date? Correct Answers February 24
A municipal governing body has introduced their town budget
on Thursday, February 6 and will hold a public hearing on said
, budget on Thursday, March 6 (a non-leap year). Would the
minimum number of days required between approval and
adoption been satisfied as stipulated in the Local Budget Law,
40A:4-7? Correct Answers Requirement satisfied
A municipality may adjust the maturity schedule of bonds up or
down by _____% up to ____hours before the receipt of bids
Correct Answers 10%
24 hours
A municipality may adjust the maturity scheudle of bonds up or
down by _____________ up to ___________ before the receipt
of bids Correct Answers 10%
24 Hours
A resolution authorizing the adoption of an emergency
appropriation shall be adopted by what vote of the municipal
governing body? Correct Answers Two-thirds vote of the full
membership of the governing body
A service transfer from another local goverment unit or a utility
to Anytown NJ results in: Correct Answers An increase to the
Anytown's cap base
A service transfer from anytown nj to another local government
unit or utility results in: Correct Answers A decrease to the
transferring unit's cap base
According to the Local Bond Law N.J.S.A. 40A:2-12, a bond
ordinance shall contain in substance which of the following:
a) An authorization for the issuance of obligations
Solutions
1st publication of bond ordinance Correct Answers At least one
week prior to the date of further consideration which must be at
least 10 days after introduction
5 Key Credit Factors Correct Answers Financial Performance
Debt Factors
Legal Structure
Economy
Management
8 Contents of a bond ordinance Correct Answers Authorization
to issue debt
Purpose (or multi-purpose)
Maximum amount of debt
Estimated Cost
Useful Life (or Average)
Suplemental debt statement to be filed
Increase in % of debt
Section 20 costs
A bank wishing to do business with a local governiment in NJ
must have a headquarters in ___________ and posess a
______________ issued by ________________ Correct
Answers NJ
GUDPA Certificate
Department of Banking & Insurance
,A capital budget is required where the cumulative cost of such
items will exceed: Correct Answers $25,000 with a useful life
of at least 5 years
A capital budget would best be described as Correct Answers A
plan for capital projects
A certificate of surety is required on all local public construction
contracts in excess of: Correct Answers $100,000
A contracting unit may reject all bids for which of the following
reasons:
a) The governing body of the contracting unit decides to
abandon the project
b) The governing body of the contracting unit decides to use the
State authorized contract
c) The lowest bid substantially exceeds the contracting unit's
appropriation
d) All the above
e) None of the above Correct Answers d) All the above
A local contracting unit has accepted bids. The bids must be
reviewed by the appropriate officials. The length of time to
conclude this process is uncertain. The prospective contractors
submitted bid guarantees. What is the number of days that the
local unit must return said bid guarantees to all but the three
apparent lowest responsible bidders? Correct Answers Ten
days, Sundays and Holidays excepted
A local contracting unit has advertised for the same good or
service on two occasions. On one occasion no bids were
,received and on one occasion all bids were rejected because of
price. The local contracting unit is now permitted to proceed in
which of the following methods? Correct Answers Negotiate
and award contract by a two-thirds affirmative vote of the
governing body
A local unit, in anticipation of the issuance of bonds, may
borrow money and issue notes if the bond ordinance or
subsequent resolution so provides. Such notes shall be
designated as a "bond anticipation note" and all such notes shall
mature and be paid not later than the first day of the fifth month
following the close of which fiscal year. Correct Answers The
tenth fiscal year
A municipal governing body has determined that a parcel of
land is no longer required for public use and so concluded that
said parcel be sold at auction. The parcel of land will generate
sale proceeds that would benefit town property owners if
anticipated in the municipal budget as a revenue. In order for the
proceeds to be an anticipated revenue in the budget the
obligation to make payment to the municipality must be entered
into: Correct Answers Prior to adoption of the budget
A municipal governing body has introduced their town budget
on Thursday, February 6 and will hold a public hearing on said
budget on Thursday, March 6 (a non-leap year). The
advertisement giving notice of the public hearing shall not be
published later than which date? Correct Answers February 24
A municipal governing body has introduced their town budget
on Thursday, February 6 and will hold a public hearing on said
, budget on Thursday, March 6 (a non-leap year). Would the
minimum number of days required between approval and
adoption been satisfied as stipulated in the Local Budget Law,
40A:4-7? Correct Answers Requirement satisfied
A municipality may adjust the maturity schedule of bonds up or
down by _____% up to ____hours before the receipt of bids
Correct Answers 10%
24 hours
A municipality may adjust the maturity scheudle of bonds up or
down by _____________ up to ___________ before the receipt
of bids Correct Answers 10%
24 Hours
A resolution authorizing the adoption of an emergency
appropriation shall be adopted by what vote of the municipal
governing body? Correct Answers Two-thirds vote of the full
membership of the governing body
A service transfer from another local goverment unit or a utility
to Anytown NJ results in: Correct Answers An increase to the
Anytown's cap base
A service transfer from anytown nj to another local government
unit or utility results in: Correct Answers A decrease to the
transferring unit's cap base
According to the Local Bond Law N.J.S.A. 40A:2-12, a bond
ordinance shall contain in substance which of the following:
a) An authorization for the issuance of obligations
