CMFO LATEST 2026 TEST PAPER QUESTIONS AND
SOLUTIONS RATED A+
✔✔An appropriation transfer would not be permited from:
a. Legal expenses
b. Public works s&w
c. Deferred Charges
d. All of the above
e. None of the above - ✔✔c. Deferred charges
✔✔When must TANs mature? - ✔✔120 days after the beginning of the succeeding
fiscal year
✔✔Where must the revenues and appropriations of a utility be reflected in the budget? -
✔✔In a seperate section of the budget
✔✔When must public defender fees be remitted to the NJ Criminal Disposition and
Review Collection Fund? - ✔✔When the trust fund balance is more than 25% of the
preceeding years expenses paid
✔✔What is a tax point? - ✔✔1 ten thousandth (1/10,000) of net valuation taxable
✔✔T/F - Bonds may be sold at one time or in installments - ✔✔True
✔✔The Local Bond Law mandates the CFO before the end of the first month of each
fiscal year to make and file in the office of the clerk & Director, and as of the last days of
the preceding fiscal year what document? - ✔✔Annual Debt Statement
✔✔Any municipal utility that has cash receipts in a fiscal year sufficient to meet
operation and debt charges without recourse to general taxation is considered to be: -
✔✔Self-liquidating
✔✔When must the annual audit be complete - ✔✔Within 6 months after the close of the
fiscal year
✔✔What effect does new construction have on the CAP Base - ✔✔It increases or adds
to the CAP Base
✔✔T/F - All debt service, including that of Type I school district is excluded from CAP
limitations - ✔✔True
✔✔T/F - An energy savings improvement program (ESIP) is permitted if the savings
generated will be sufficient to cover the cost of the program - ✔✔True
, ✔✔What days can bids NOT be received - ✔✔Mondays or the day following a state or
federal holiday
✔✔To whom must a municipality apply to convert from state fiscal year to calendar
year? - ✔✔Local Finance Board
✔✔What must be adopted in order to apply to the local finance board to convert from
SFY to CY? - ✔✔An ordinance
✔✔Vote to introduce, approve, amend and adopt the budget - ✔✔Majority of the full
membership
✔✔Statutory date to introduce the budget - ✔✔February 10
✔✔When must the notice of public hearing of the budget be published? - ✔✔At least 10
days prior to the hearing
✔✔Days required between approval and adoption of the budget - ✔✔28 days
✔✔How is the amount to be raised for Type I school budgets required to be raised -
✔✔With the school tax rate
✔✔Deadline for adopting temporary budget - ✔✔30 days from beginning of the fiscal
year
✔✔T/F - Nothing in the Local budget law shall prevent or relieve the governing body
from making appropriations during the last 10 days of the year preceding the beginning
of the fiscal year for all capital improvement fund purposes - ✔✔False
✔✔T/F - When emergency temporary appropriations are adopted after the introduction
and approval of the budget and were not included in the budget as approved, the
temporary emergency appropriation shall be included by amendment - ✔✔True
✔✔Definition - Revenue amounts that may reasonably be expected to be realized in
cash during the fiscal year from known and regular sources, or from sources reasonably
capable of anticipation - ✔✔Miscellaneous Revenues Anticipated
✔✔How much may be budgeted for miscellaneous revenues - ✔✔No more than actually
realized in cash from the same source in the next preceding fiscal year
✔✔When a municipality has a sinking fund cash surplus, such surplus may, upon
written application by the sinking fund commision and the approval of the director, be
SOLUTIONS RATED A+
✔✔An appropriation transfer would not be permited from:
a. Legal expenses
b. Public works s&w
c. Deferred Charges
d. All of the above
e. None of the above - ✔✔c. Deferred charges
✔✔When must TANs mature? - ✔✔120 days after the beginning of the succeeding
fiscal year
✔✔Where must the revenues and appropriations of a utility be reflected in the budget? -
✔✔In a seperate section of the budget
✔✔When must public defender fees be remitted to the NJ Criminal Disposition and
Review Collection Fund? - ✔✔When the trust fund balance is more than 25% of the
preceeding years expenses paid
✔✔What is a tax point? - ✔✔1 ten thousandth (1/10,000) of net valuation taxable
✔✔T/F - Bonds may be sold at one time or in installments - ✔✔True
✔✔The Local Bond Law mandates the CFO before the end of the first month of each
fiscal year to make and file in the office of the clerk & Director, and as of the last days of
the preceding fiscal year what document? - ✔✔Annual Debt Statement
✔✔Any municipal utility that has cash receipts in a fiscal year sufficient to meet
operation and debt charges without recourse to general taxation is considered to be: -
✔✔Self-liquidating
✔✔When must the annual audit be complete - ✔✔Within 6 months after the close of the
fiscal year
✔✔What effect does new construction have on the CAP Base - ✔✔It increases or adds
to the CAP Base
✔✔T/F - All debt service, including that of Type I school district is excluded from CAP
limitations - ✔✔True
✔✔T/F - An energy savings improvement program (ESIP) is permitted if the savings
generated will be sufficient to cover the cost of the program - ✔✔True
, ✔✔What days can bids NOT be received - ✔✔Mondays or the day following a state or
federal holiday
✔✔To whom must a municipality apply to convert from state fiscal year to calendar
year? - ✔✔Local Finance Board
✔✔What must be adopted in order to apply to the local finance board to convert from
SFY to CY? - ✔✔An ordinance
✔✔Vote to introduce, approve, amend and adopt the budget - ✔✔Majority of the full
membership
✔✔Statutory date to introduce the budget - ✔✔February 10
✔✔When must the notice of public hearing of the budget be published? - ✔✔At least 10
days prior to the hearing
✔✔Days required between approval and adoption of the budget - ✔✔28 days
✔✔How is the amount to be raised for Type I school budgets required to be raised -
✔✔With the school tax rate
✔✔Deadline for adopting temporary budget - ✔✔30 days from beginning of the fiscal
year
✔✔T/F - Nothing in the Local budget law shall prevent or relieve the governing body
from making appropriations during the last 10 days of the year preceding the beginning
of the fiscal year for all capital improvement fund purposes - ✔✔False
✔✔T/F - When emergency temporary appropriations are adopted after the introduction
and approval of the budget and were not included in the budget as approved, the
temporary emergency appropriation shall be included by amendment - ✔✔True
✔✔Definition - Revenue amounts that may reasonably be expected to be realized in
cash during the fiscal year from known and regular sources, or from sources reasonably
capable of anticipation - ✔✔Miscellaneous Revenues Anticipated
✔✔How much may be budgeted for miscellaneous revenues - ✔✔No more than actually
realized in cash from the same source in the next preceding fiscal year
✔✔When a municipality has a sinking fund cash surplus, such surplus may, upon
written application by the sinking fund commision and the approval of the director, be
