CMFO MAIN EXAMIATION 2026 QUESTIONS AND
SOLUTIONS RATED A+
✔✔26.25% - ✔✔The Local Budget Law permits temporary budget appropriations.
Although, total temporary appropriations may not exceed a certain percentage of the
total of the appropriations made for all purposes in the budget for the preceding year,
with exception of statutory exclusions. The maximum percentage is what
✔✔surplus - ✔✔In the current section of accounts shall consist of the excess of quick
assets such as cash, investments, state or other public aid receivable and deferred
charges over legal and demand liabilities
✔✔3% - ✔✔The Local Budget Law allows an appropriation for contingent expenses in
an amount not more than what percentage of the total appropriations for operating
purposes?
✔✔Over 10,000 - ✔✔The capital improvement program is either a 3 year or 6 year plan
and schedule for capital projects showing projected costs and revenue sources. What is
the population threshold that would require adoption of a 6 year plan?
✔✔Voucher - ✔✔A payment process requires a purchase order system to have a
particular document as part of the purchase order and this same document is the basis
of payment. The document is
✔✔Equalized value - ✔✔This value is calculated for each municipality by the state
Division of Taxation. It is intended to represent, as nearly as possible, the true value of
all of the taxable property within a municipality. The process relies heavily on an
analysis of sales of property in the municipality
✔✔10% not in excess of $20000 - ✔✔The Local Public Contracts Law authorizes a
guarantee to accompany a bid of what amount
✔✔60 days - ✔✔Without taking action to authorize an exception, a contracting unit shall
award the contract or reject all bids within such time as specified in the invitation to bid,
but in no case more than how many day?
✔✔15% of the bid threshold - ✔✔With exceptions considered, the sale must be
authorized by governing body action and the property sold at public sale if the value of
the property is in excess of what amount
✔✔debt limit exceptions - ✔✔fire, flood, other disaster, creation of a utility, creation of
debt service reserves
✔✔True - ✔✔T/F: Multipurpose bond ordinance obligations may be provided for in a
single issue of obligations.
, ✔✔2.5% or the index rate whichever is less - ✔✔A statutorily permitted amount to be
added to the CAP base is which of the following
✔✔Chief Financial Officer - ✔✔The Local Budget Law authorized the Local Finance
Board to adopt rules that permit municipalities to conduct annual local examination of
the annual budget. The second phase of the program is qualification. Qualification is
determined by whom
✔✔$5000 - ✔✔Technical Accounting Directive requiring the accounting for fixed assets
sets the threshold for "nonexpendable, tangible personal property" at what amount for
both municipalities and counties?
✔✔Accounting system - ✔✔The total structure of records and procedures which
discover, record, classify and report information on the financial position and operations
of a governmental unit or any of its funds, balanced account groups and organizational
components.
✔✔True - ✔✔T/F: The 3 methods used by a tax assessor to determine values of real
property are: sales approach, replacement approach and the income approach
✔✔True - ✔✔T/F: Any anticipate deficit in expenditures to which dedicated revenues
are applicable shall be provided for by an appropriation in the operating budget
✔✔28 - ✔✔The public hearing of the budget shall not be held less than how many days
after the approval of the budget in the case of a municipality
✔✔False - ✔✔T/F: One of the criterion requiring a public hearing would be if the budget
amendment increases or decreases any item or appropriation by more than 1%
✔✔120 days - ✔✔TANS may be renewed from time to time, but all such notes and any
renewals shall mature in the case of a municipality within how many days after the
beginning of the succeeding fiscal year
✔✔25% - ✔✔The Municipal Public Defenders law requires the DLGS to determine if the
amount of money in a dedicated trust fund exceeded by what percentage the amount
expended for providing public defender services during the preceding year. The excess
of that percentage shall be remitted by the municipality to the NJ Criminal Disposition &
Review Collection Fund. What %?
✔✔One-ten thousandth - ✔✔A tax point is equal to _______________ of net valuation
taxable
✔✔True - ✔✔T/F: The local bond law permits the sale of bonds at one time or in
installments
SOLUTIONS RATED A+
✔✔26.25% - ✔✔The Local Budget Law permits temporary budget appropriations.
Although, total temporary appropriations may not exceed a certain percentage of the
total of the appropriations made for all purposes in the budget for the preceding year,
with exception of statutory exclusions. The maximum percentage is what
✔✔surplus - ✔✔In the current section of accounts shall consist of the excess of quick
assets such as cash, investments, state or other public aid receivable and deferred
charges over legal and demand liabilities
✔✔3% - ✔✔The Local Budget Law allows an appropriation for contingent expenses in
an amount not more than what percentage of the total appropriations for operating
purposes?
✔✔Over 10,000 - ✔✔The capital improvement program is either a 3 year or 6 year plan
and schedule for capital projects showing projected costs and revenue sources. What is
the population threshold that would require adoption of a 6 year plan?
✔✔Voucher - ✔✔A payment process requires a purchase order system to have a
particular document as part of the purchase order and this same document is the basis
of payment. The document is
✔✔Equalized value - ✔✔This value is calculated for each municipality by the state
Division of Taxation. It is intended to represent, as nearly as possible, the true value of
all of the taxable property within a municipality. The process relies heavily on an
analysis of sales of property in the municipality
✔✔10% not in excess of $20000 - ✔✔The Local Public Contracts Law authorizes a
guarantee to accompany a bid of what amount
✔✔60 days - ✔✔Without taking action to authorize an exception, a contracting unit shall
award the contract or reject all bids within such time as specified in the invitation to bid,
but in no case more than how many day?
✔✔15% of the bid threshold - ✔✔With exceptions considered, the sale must be
authorized by governing body action and the property sold at public sale if the value of
the property is in excess of what amount
✔✔debt limit exceptions - ✔✔fire, flood, other disaster, creation of a utility, creation of
debt service reserves
✔✔True - ✔✔T/F: Multipurpose bond ordinance obligations may be provided for in a
single issue of obligations.
, ✔✔2.5% or the index rate whichever is less - ✔✔A statutorily permitted amount to be
added to the CAP base is which of the following
✔✔Chief Financial Officer - ✔✔The Local Budget Law authorized the Local Finance
Board to adopt rules that permit municipalities to conduct annual local examination of
the annual budget. The second phase of the program is qualification. Qualification is
determined by whom
✔✔$5000 - ✔✔Technical Accounting Directive requiring the accounting for fixed assets
sets the threshold for "nonexpendable, tangible personal property" at what amount for
both municipalities and counties?
✔✔Accounting system - ✔✔The total structure of records and procedures which
discover, record, classify and report information on the financial position and operations
of a governmental unit or any of its funds, balanced account groups and organizational
components.
✔✔True - ✔✔T/F: The 3 methods used by a tax assessor to determine values of real
property are: sales approach, replacement approach and the income approach
✔✔True - ✔✔T/F: Any anticipate deficit in expenditures to which dedicated revenues
are applicable shall be provided for by an appropriation in the operating budget
✔✔28 - ✔✔The public hearing of the budget shall not be held less than how many days
after the approval of the budget in the case of a municipality
✔✔False - ✔✔T/F: One of the criterion requiring a public hearing would be if the budget
amendment increases or decreases any item or appropriation by more than 1%
✔✔120 days - ✔✔TANS may be renewed from time to time, but all such notes and any
renewals shall mature in the case of a municipality within how many days after the
beginning of the succeeding fiscal year
✔✔25% - ✔✔The Municipal Public Defenders law requires the DLGS to determine if the
amount of money in a dedicated trust fund exceeded by what percentage the amount
expended for providing public defender services during the preceding year. The excess
of that percentage shall be remitted by the municipality to the NJ Criminal Disposition &
Review Collection Fund. What %?
✔✔One-ten thousandth - ✔✔A tax point is equal to _______________ of net valuation
taxable
✔✔True - ✔✔T/F: The local bond law permits the sale of bonds at one time or in
installments
