Treasury management Exam 1 Questions With
Complete Solutions
/.No bond ordinance shall be adopted unless it appropriate to the purpose, or ratably to
the respective purposes to be financed, in addition to the obligations there by
authorized, a sum as down payment which is no less that what percent of the amount of
the obligations - Answer-✅5
/.The Local Bond Law permit the source of the downpayment to be made from which of
the following - Answer-✅CIF, moneys held by the local unit and previously contributed
for such purpose other than by the local unit, emergency appropriation
/.The Local Budget Law requires that all municipal budgets be advertised in full or in a
summary format prior to the date of a public hearing on said budget. The advertisement
shall be published at least how many days prior to the date of the public hearing -
Answer-✅10
/.The Local Fiscal Affairs Law required the Municipal Clerk to publish a synopsis of the
audit including recommendations in the official local newspaper. This must be done
within how many days after receipt of the annual audit? - Answer-✅30
/.The Local Fiscal Affairs Law grants authority for the approval of claims. The authority
is given to: - Answer-✅governing body
/.To the extent there is available surplus revenue collected by a municipality supplying a
utility service which is regulated by the BPU an amount not to exceed what percentage
of the annual costs of operation of the utility may be transferred from the accounts of the
municipal utility and included in the local budget as surplus revenue? - Answer-✅none
of the above
/.The Local Budget Law permits a local unit to anticipate as miscellaneous revenue the
total amount of all payment due and payable to the local unit during the fiscal year s a
result of the sale of property by the local until. The obligation to make such payment
must be entered into prior to which event? - Answer-✅prior to adoption of the budget
/.Within how many days of the beginning of the fiscal year shall a governing body adopt
temporary appropriations to provide for the period between the beginning of the fiscal
year and the adoption of the budget? - Answer-✅30
,/.The contents of a bond ordinance are specified by Local Bond Law. Which of the
following is required? - Answer-✅purpose of obligation, maximum amount of bonds or
notes, statement showing gross debt is increased by the authorization of obligation
/.A bond ordinance shall be finally adopted by what vote of the governing body? -
Answer-✅2/3 of full membership
/.The Local Bond Law specifies the minimum period of usefulness for any improvement
for which obligations are authorized, said time shall not be less that how many years? -
Answer-✅5
/.The Local Public Contracts Law authorizes the governing bodies of two or more
contracting units to enter into a joint agreement for the provisions of goods and services
for use by their respective jurisdictions. The agreement shall be entered into by
resolution of each jurisdiction and shall included which of the following? - Answer-
✅categories of good and services, manner of advertising, manner for awarding
/.What is the basic element of internal control in a finance office? - Answer-✅prompt
deposit of funds, no cashing of checks, periodic surprise cash counts
/.Statutory expenditures as contained in the budget may include payments to: - Answer-
✅pensions, social security, unemployement
/.In New Jersey the budget system followed is known as - Answer-✅cash basis
/.A corrective action plan must be submitted to the DLGS within __ days from the date
the audit is received by the governing body? - Answer-✅60
/.The corrective action plan should be referenced in which legal notice that is published
in the offical newspaper? - Answer-✅synopsis of audit report
/.The Local Public Contract Law provides exceptions to the requirement of public
advertisement for the award of agreements. Circumstances that would allow for the
negotiation of a contract award are: - Answer-✅two advertisements with no bids, two
times rejecting bids because prices was unreasonable, one with no bid and one with
unreasonable price
/.Multi-year lease agreements must contain a clause making the agreement subject to
the availability and appropriation annually of sufficient funds. - Answer-✅true
/.An award of a contract, except for professional services, may be awarded for a period
of how many consecutive months? - Answer-✅24
, /.All advertisement for bids on contracts for the collection and disposal of municipal solid
waste shall be published not less than how many days prior to the receipt of said bids? -
Answer-✅60
/.According to Local Bond Law, bond anticipation notes may be sold at what type of
sale? - Answer-✅private
/.When selling bonds, all bidders shall be required to deposit a certified or cashier's
check equal to not less than what percentage of the bonds? - Answer-✅2
/.The Local Bond Law limits the amount of premium bid for bonds, which shall not
exceed - Answer-✅1000
/.The legal depositories for public moneys are to be authorized by whom according to
the Local Fiscal Affairs Law? - Answer-✅majority of the full membership
/.The Local Fiscal Affairs Law requires certain employees to be bonded. Employees
may be covered by a blanket bond except for which of the following positions - Answer-
✅all may be covered by a blanket bond
/.Budgets are adopted by what vote of the governing body? - Answer-✅majority of the
full membership
/.The Local Budget Law permits the transfer of current year appropriations during what
time of the fiscal year? - Answer-✅last two and first three
/.What vote of the governing body is required to authorize the transfer of funds as
permitted by Local Budget Law? - Answer-✅2/3 of full membership
/.Which board is empowered to promulgate rules and regulation of the interpretation and
administration of state laws within the jurisdiction of the DLGS? - Answer-✅local
finance board
/.An agency created to perform a specific function or functions within a municipal county
or region. By law this agency is required to be self liquidating. Their budgets and
operations are responsibility of the elected governing body and its management. -
Answer-✅municipal utility
/.Every financial institution permitted to be a depository of public funds is reviewed
annually by the State of New Jersey Department of Banking, and recertified as to the
eligibility to act as a depository of public funds. What law requires this certification? -
Answer-✅governmental unit deposit protection act
Complete Solutions
/.No bond ordinance shall be adopted unless it appropriate to the purpose, or ratably to
the respective purposes to be financed, in addition to the obligations there by
authorized, a sum as down payment which is no less that what percent of the amount of
the obligations - Answer-✅5
/.The Local Bond Law permit the source of the downpayment to be made from which of
the following - Answer-✅CIF, moneys held by the local unit and previously contributed
for such purpose other than by the local unit, emergency appropriation
/.The Local Budget Law requires that all municipal budgets be advertised in full or in a
summary format prior to the date of a public hearing on said budget. The advertisement
shall be published at least how many days prior to the date of the public hearing -
Answer-✅10
/.The Local Fiscal Affairs Law required the Municipal Clerk to publish a synopsis of the
audit including recommendations in the official local newspaper. This must be done
within how many days after receipt of the annual audit? - Answer-✅30
/.The Local Fiscal Affairs Law grants authority for the approval of claims. The authority
is given to: - Answer-✅governing body
/.To the extent there is available surplus revenue collected by a municipality supplying a
utility service which is regulated by the BPU an amount not to exceed what percentage
of the annual costs of operation of the utility may be transferred from the accounts of the
municipal utility and included in the local budget as surplus revenue? - Answer-✅none
of the above
/.The Local Budget Law permits a local unit to anticipate as miscellaneous revenue the
total amount of all payment due and payable to the local unit during the fiscal year s a
result of the sale of property by the local until. The obligation to make such payment
must be entered into prior to which event? - Answer-✅prior to adoption of the budget
/.Within how many days of the beginning of the fiscal year shall a governing body adopt
temporary appropriations to provide for the period between the beginning of the fiscal
year and the adoption of the budget? - Answer-✅30
,/.The contents of a bond ordinance are specified by Local Bond Law. Which of the
following is required? - Answer-✅purpose of obligation, maximum amount of bonds or
notes, statement showing gross debt is increased by the authorization of obligation
/.A bond ordinance shall be finally adopted by what vote of the governing body? -
Answer-✅2/3 of full membership
/.The Local Bond Law specifies the minimum period of usefulness for any improvement
for which obligations are authorized, said time shall not be less that how many years? -
Answer-✅5
/.The Local Public Contracts Law authorizes the governing bodies of two or more
contracting units to enter into a joint agreement for the provisions of goods and services
for use by their respective jurisdictions. The agreement shall be entered into by
resolution of each jurisdiction and shall included which of the following? - Answer-
✅categories of good and services, manner of advertising, manner for awarding
/.What is the basic element of internal control in a finance office? - Answer-✅prompt
deposit of funds, no cashing of checks, periodic surprise cash counts
/.Statutory expenditures as contained in the budget may include payments to: - Answer-
✅pensions, social security, unemployement
/.In New Jersey the budget system followed is known as - Answer-✅cash basis
/.A corrective action plan must be submitted to the DLGS within __ days from the date
the audit is received by the governing body? - Answer-✅60
/.The corrective action plan should be referenced in which legal notice that is published
in the offical newspaper? - Answer-✅synopsis of audit report
/.The Local Public Contract Law provides exceptions to the requirement of public
advertisement for the award of agreements. Circumstances that would allow for the
negotiation of a contract award are: - Answer-✅two advertisements with no bids, two
times rejecting bids because prices was unreasonable, one with no bid and one with
unreasonable price
/.Multi-year lease agreements must contain a clause making the agreement subject to
the availability and appropriation annually of sufficient funds. - Answer-✅true
/.An award of a contract, except for professional services, may be awarded for a period
of how many consecutive months? - Answer-✅24
, /.All advertisement for bids on contracts for the collection and disposal of municipal solid
waste shall be published not less than how many days prior to the receipt of said bids? -
Answer-✅60
/.According to Local Bond Law, bond anticipation notes may be sold at what type of
sale? - Answer-✅private
/.When selling bonds, all bidders shall be required to deposit a certified or cashier's
check equal to not less than what percentage of the bonds? - Answer-✅2
/.The Local Bond Law limits the amount of premium bid for bonds, which shall not
exceed - Answer-✅1000
/.The legal depositories for public moneys are to be authorized by whom according to
the Local Fiscal Affairs Law? - Answer-✅majority of the full membership
/.The Local Fiscal Affairs Law requires certain employees to be bonded. Employees
may be covered by a blanket bond except for which of the following positions - Answer-
✅all may be covered by a blanket bond
/.Budgets are adopted by what vote of the governing body? - Answer-✅majority of the
full membership
/.The Local Budget Law permits the transfer of current year appropriations during what
time of the fiscal year? - Answer-✅last two and first three
/.What vote of the governing body is required to authorize the transfer of funds as
permitted by Local Budget Law? - Answer-✅2/3 of full membership
/.Which board is empowered to promulgate rules and regulation of the interpretation and
administration of state laws within the jurisdiction of the DLGS? - Answer-✅local
finance board
/.An agency created to perform a specific function or functions within a municipal county
or region. By law this agency is required to be self liquidating. Their budgets and
operations are responsibility of the elected governing body and its management. -
Answer-✅municipal utility
/.Every financial institution permitted to be a depository of public funds is reviewed
annually by the State of New Jersey Department of Banking, and recertified as to the
eligibility to act as a depository of public funds. What law requires this certification? -
Answer-✅governmental unit deposit protection act
