NJ CMFO Statutes Exam Review Questions With Complete Solutions
Every audit required by the Local Fiscal Affairs 40A:5-9 is required be completed by an accountant or
auditor who holds an uncanceled license as: - (ANSWER)Registered Municipal Accountant
Local Budget Law, N.J.S.A. 40A: 4-3.1 (b) requires any municipality deciding to convert to a State Fiscal
Year from Calendar Fiscal Year must apply to - (ANSWER)Local Finance Board
Local Budget Law 40A:4-3.2 Adoption of State fiscal year; when converting to a state fiscal year calendar
from a calendar year a municipality may do so by the following - (ANSWER)Ordinance
Local Budget Law 40A:4-4 Procedures for budget adoption; All budgets shall be introduced, approved,
amended and adopted by what vote & by which action of the governing body? - (ANSWER)By resolution
passed by not less than a majority of the full membership of the governing body
Local Budget Law 40A:4-5 Introduction and Approval; Statutory introduction dates for fiscal and
calendar year municipalities is as follows: - (ANSWER)Calendar year- February 10
State Fiscal Year - August 10
Local Budget Law 40A:4-6 Advertisement of budget; Every budget shall be advertised after approval and
at least how many days before the public hearing? - (ANSWER)10
Local Budget Law 40A:4-7 Time of public hearing; Public hearing post budget approval shall be held no
earlier than how many days for a county and municipality? - (ANSWER)18 and 28
Local Budget Law 40A:4-9 Ammendment to an introduced budget; an increase or decrease to any item
of appropriation by more than what percent would require a public hearing on said amendment? -
(ANSWER)Ten Percent
Local Budget Law 40A:4-13 Inclusion of amount required for school purposes; The amount to be raised
by taxes for school purposes, required to be certified to the governing body of a municipality for
inclusion in its budget, shall set forth in a separate section of the budget upon adoption and shall be
added to the amount to be raised by taxes is called what rate? - (ANSWER)School Tax Rate
, NJ CMFO Statutes Exam Review Questions With Complete Solutions
Local Budget Law 40A:4-19 temporary budget; The governing body may by resolution authorize
temporary budget Appropriations to provide for the period between the beginning of the fiscal year and
the adoption of the budget. The resolution shall be adopted within how many days of the beginning of
the fiscal year? - (ANSWER)Thirty Days
Local Budget Law 40A:4-20 emergency temporary appropriations; the governing body is prevented from
making appropriations during the last 10 days of the year preceding a new fiscal year for CIF purposes.
What appropriation is allowed? - (ANSWER)Debt Service Only
One tax point is equal to - (ANSWER)One ten-thousandth of the net valuation
Request to review vouchers must be released when - (ANSWER)Immediately
Financial Disclosure Forms should list the following - (ANSWER)Income greater than $2000, Gifts greater
than $400, property in NJ only
Three different bond ordinances are introduced at the same meeting. How many Supplemental Debt
Statements do you need? - (ANSWER)One
Which debt statement is due upon introduction of a bond ordinance - (ANSWER)Supplemental Debt
Statement
Federal Single Audit is required if Federal Grant expenditures equal or exceed what amount? -
(ANSWER)$750,000
When can the cash management plan be amended? - (ANSWER)Any time
Gross Debt - Deductions equals - (ANSWER)Net Debt
The Chairperson of the Local Finance Board holds what other title? - (ANSWER)Director of the Division
Local Government Services
Every audit required by the Local Fiscal Affairs 40A:5-9 is required be completed by an accountant or
auditor who holds an uncanceled license as: - (ANSWER)Registered Municipal Accountant
Local Budget Law, N.J.S.A. 40A: 4-3.1 (b) requires any municipality deciding to convert to a State Fiscal
Year from Calendar Fiscal Year must apply to - (ANSWER)Local Finance Board
Local Budget Law 40A:4-3.2 Adoption of State fiscal year; when converting to a state fiscal year calendar
from a calendar year a municipality may do so by the following - (ANSWER)Ordinance
Local Budget Law 40A:4-4 Procedures for budget adoption; All budgets shall be introduced, approved,
amended and adopted by what vote & by which action of the governing body? - (ANSWER)By resolution
passed by not less than a majority of the full membership of the governing body
Local Budget Law 40A:4-5 Introduction and Approval; Statutory introduction dates for fiscal and
calendar year municipalities is as follows: - (ANSWER)Calendar year- February 10
State Fiscal Year - August 10
Local Budget Law 40A:4-6 Advertisement of budget; Every budget shall be advertised after approval and
at least how many days before the public hearing? - (ANSWER)10
Local Budget Law 40A:4-7 Time of public hearing; Public hearing post budget approval shall be held no
earlier than how many days for a county and municipality? - (ANSWER)18 and 28
Local Budget Law 40A:4-9 Ammendment to an introduced budget; an increase or decrease to any item
of appropriation by more than what percent would require a public hearing on said amendment? -
(ANSWER)Ten Percent
Local Budget Law 40A:4-13 Inclusion of amount required for school purposes; The amount to be raised
by taxes for school purposes, required to be certified to the governing body of a municipality for
inclusion in its budget, shall set forth in a separate section of the budget upon adoption and shall be
added to the amount to be raised by taxes is called what rate? - (ANSWER)School Tax Rate
, NJ CMFO Statutes Exam Review Questions With Complete Solutions
Local Budget Law 40A:4-19 temporary budget; The governing body may by resolution authorize
temporary budget Appropriations to provide for the period between the beginning of the fiscal year and
the adoption of the budget. The resolution shall be adopted within how many days of the beginning of
the fiscal year? - (ANSWER)Thirty Days
Local Budget Law 40A:4-20 emergency temporary appropriations; the governing body is prevented from
making appropriations during the last 10 days of the year preceding a new fiscal year for CIF purposes.
What appropriation is allowed? - (ANSWER)Debt Service Only
One tax point is equal to - (ANSWER)One ten-thousandth of the net valuation
Request to review vouchers must be released when - (ANSWER)Immediately
Financial Disclosure Forms should list the following - (ANSWER)Income greater than $2000, Gifts greater
than $400, property in NJ only
Three different bond ordinances are introduced at the same meeting. How many Supplemental Debt
Statements do you need? - (ANSWER)One
Which debt statement is due upon introduction of a bond ordinance - (ANSWER)Supplemental Debt
Statement
Federal Single Audit is required if Federal Grant expenditures equal or exceed what amount? -
(ANSWER)$750,000
When can the cash management plan be amended? - (ANSWER)Any time
Gross Debt - Deductions equals - (ANSWER)Net Debt
The Chairperson of the Local Finance Board holds what other title? - (ANSWER)Director of the Division
Local Government Services
