Municipal Finance Administration -
Exam review 2026 Questions and
Answers Graded A+
N.J.S.A. 40A:2 - Correct answer-Bond Law
N.J.S.A 40A:4 - Correct answer-Budget Law
N.J.S.A. 40A:5 - Correct answer-Fiscal Law
N.J.S.A. 40A:11 - Correct answer-Local Public Contracts Law
N.J.S.A. 40A:12 - Correct answer-Public Lands & Buildings Law
TAD 85-1 - Correct answer-Encumbrance
TAD 85-2 - Correct answer-Fixed Assets
TAD 85-3 - Correct answer-General Ledger
The DLGS requires the adoption of a capital budget where the cumulative cost of
such items will exceed - Correct answer-$25,000 with a useful life of at least 5
years
,Equalized valuation represents - Correct answer-The true value of all taxable
property in the municipality
Special improvement district budgets must be approved by - Correct answer-The
governing body
Additions to the budget after adoption are generally referred to as - Correct
answer-Chapter 159 amendments
Special items of revenue are - Correct answer-Chapter 159 resolutions
Informal quotes must be received for like or similar goods in the excess of -
Correct answer-15% of the bid threshold
Municipal bonds must be - Correct answer-in registered form
Auditors of financial statements are primarily retained to - Correct answer-offer
and opinion on the reasonableness of an entity's financial reports
Prior to any purchase of goods certification of available funds must be made by -
Correct answer-The CFO
NJSA 40A:5-14 requires that every local governing body pass a resolution,
annually, establishing - Correct answer-A cash management plan
If a capital budget affects the municipality's Master Plan, it must be referred to the
Planning Board - Correct answer-45 days prior to the adoption of the ordinance
, The debt limit of a municipality may not exceed what percentage of the prior three
years equalized assessed real property valuations - Correct answer-3.5%
Bond Anticipation Notes may be issued for a period not exceeding - Correct
answer-One year
Special Assessment Notes may be issued to finance - Correct answer-Sewer Lines
A municipality that experiences cash flow problems may issue - Correct answer-
Tax anticipation notes (TANS)
Bonds may be sold at private sale except when the total amount of bonds is more
than - Correct answer-$1,000,000
Bonds paid from a municipality's state aid are known as - Correct answer-Qualified
bonds
TANS must mature not later than - Correct answer-120 days of the succeeding of
the fiscal year
Emergency appropriations must be adopted by - Correct answer-No less than 2/3 of
the full governing body
The amount to be deposited as a bid guarantee as required by state law shall be -
Correct answer-10% not exceeding $20,000
Exam review 2026 Questions and
Answers Graded A+
N.J.S.A. 40A:2 - Correct answer-Bond Law
N.J.S.A 40A:4 - Correct answer-Budget Law
N.J.S.A. 40A:5 - Correct answer-Fiscal Law
N.J.S.A. 40A:11 - Correct answer-Local Public Contracts Law
N.J.S.A. 40A:12 - Correct answer-Public Lands & Buildings Law
TAD 85-1 - Correct answer-Encumbrance
TAD 85-2 - Correct answer-Fixed Assets
TAD 85-3 - Correct answer-General Ledger
The DLGS requires the adoption of a capital budget where the cumulative cost of
such items will exceed - Correct answer-$25,000 with a useful life of at least 5
years
,Equalized valuation represents - Correct answer-The true value of all taxable
property in the municipality
Special improvement district budgets must be approved by - Correct answer-The
governing body
Additions to the budget after adoption are generally referred to as - Correct
answer-Chapter 159 amendments
Special items of revenue are - Correct answer-Chapter 159 resolutions
Informal quotes must be received for like or similar goods in the excess of -
Correct answer-15% of the bid threshold
Municipal bonds must be - Correct answer-in registered form
Auditors of financial statements are primarily retained to - Correct answer-offer
and opinion on the reasonableness of an entity's financial reports
Prior to any purchase of goods certification of available funds must be made by -
Correct answer-The CFO
NJSA 40A:5-14 requires that every local governing body pass a resolution,
annually, establishing - Correct answer-A cash management plan
If a capital budget affects the municipality's Master Plan, it must be referred to the
Planning Board - Correct answer-45 days prior to the adoption of the ordinance
, The debt limit of a municipality may not exceed what percentage of the prior three
years equalized assessed real property valuations - Correct answer-3.5%
Bond Anticipation Notes may be issued for a period not exceeding - Correct
answer-One year
Special Assessment Notes may be issued to finance - Correct answer-Sewer Lines
A municipality that experiences cash flow problems may issue - Correct answer-
Tax anticipation notes (TANS)
Bonds may be sold at private sale except when the total amount of bonds is more
than - Correct answer-$1,000,000
Bonds paid from a municipality's state aid are known as - Correct answer-Qualified
bonds
TANS must mature not later than - Correct answer-120 days of the succeeding of
the fiscal year
Emergency appropriations must be adopted by - Correct answer-No less than 2/3 of
the full governing body
The amount to be deposited as a bid guarantee as required by state law shall be -
Correct answer-10% not exceeding $20,000
