CMFO LATEST 2026 EXAM QUESTIONS AND SOLUTIONS
RATED A+
✔✔Deadline for corrective action plan to be submitted to DLGS - ✔✔60 days from date
the audit is received by the governing body
✔✔The corrective action plan should be referenced in which legal notice that is
published in the official newspaper? - ✔✔Synopsis of audit report
✔✔Exemptions to the requirement of public advertisement for the award of agreements
- ✔✔Advertised twice - no bids
All bids rejected as unreasonable twice
No bids once, bids rejected once
✔✔T/F - In multi year lease agreements, unless excepted by statute, a clause is
required making the agreement subject to the availability and appropriation annually of
sufficient funds - ✔✔True
✔✔Maximum period for contracts - ✔✔24 months generally
12 months for professional services
✔✔How many days must bids for municipal solid waste disposal be published - ✔✔60
days prior to the receipt of bids
✔✔According to the Local Bond Law, BANs may be sold at what type of sale? -
✔✔Private
✔✔When selling bonds, all bidders shall be required to deposit a certified or cashiers
check equal to not less than what percentage of the bonds? - ✔✔2%
✔✔Maximum premium on bonds - ✔✔$1,000
✔✔Vote for resolution of legal depositories - ✔✔Majority of full membership
✔✔What position(s) may not be bonded under a blanket bond? - ✔✔None - all may be
covered by blanket bond
✔✔Vote for the adoption of the buget - ✔✔Majority vote of full membership
✔✔When can appropriation transfers be made - ✔✔Last two months of fiscal year/ First
three months of next fiscal year for approp. reserves
✔✔Vote for transfer of funds - ✔✔2/3 of full membership
, ✔✔Which Board promulgates rules and regs for the interpretation & administratino of
state laws within DLGS? - ✔✔Local Finance Board
✔✔An agency created to performa specific function or functions within a municipal or
county region. Must be self-liquidating. Budgets & operations are the responsibility of
the governing body and its management - ✔✔A municipal utility
✔✔What law requires all depositories to be reviewed be reviewed quarterly and
recertified as to eligibility to act as a depository of public funds? - ✔✔Governmental
Unity Deposit Protection Act
✔✔T/F - Municipalities may invest in government money market mutual funds - ✔✔True
✔✔How much and when must an emergency appropriation be appropriated by the
governing body? - ✔✔In full in the next succeeding fiscal year
✔✔An obligation of funds by a local unit arising from the issuance of a numerically
controlled purchase order or contract. Said commitment of funds reduces the amount
that remains available for spending - ✔✔Encumbrance
✔✔How may emergency appropriations be financed?
a. Bond Anticipation Notes
b. Surplus
c. Emergency Notes
d. a & c only
e. b & c only - ✔✔e. b & c only
✔✔Maximum % for temporary appropriations - ✔✔26.25%
✔✔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
demand liabilities - ✔✔Surplus
✔✔Threshold for capital plans - ✔✔Under 10,000 - 3 years
Over 10,000 - 6 years
✔✔Maximum appropriation for contingent expenses - ✔✔3% of total appropriations for
operating purposes
✔✔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: - ✔✔A voucher (PO)
RATED A+
✔✔Deadline for corrective action plan to be submitted to DLGS - ✔✔60 days from date
the audit is received by the governing body
✔✔The corrective action plan should be referenced in which legal notice that is
published in the official newspaper? - ✔✔Synopsis of audit report
✔✔Exemptions to the requirement of public advertisement for the award of agreements
- ✔✔Advertised twice - no bids
All bids rejected as unreasonable twice
No bids once, bids rejected once
✔✔T/F - In multi year lease agreements, unless excepted by statute, a clause is
required making the agreement subject to the availability and appropriation annually of
sufficient funds - ✔✔True
✔✔Maximum period for contracts - ✔✔24 months generally
12 months for professional services
✔✔How many days must bids for municipal solid waste disposal be published - ✔✔60
days prior to the receipt of bids
✔✔According to the Local Bond Law, BANs may be sold at what type of sale? -
✔✔Private
✔✔When selling bonds, all bidders shall be required to deposit a certified or cashiers
check equal to not less than what percentage of the bonds? - ✔✔2%
✔✔Maximum premium on bonds - ✔✔$1,000
✔✔Vote for resolution of legal depositories - ✔✔Majority of full membership
✔✔What position(s) may not be bonded under a blanket bond? - ✔✔None - all may be
covered by blanket bond
✔✔Vote for the adoption of the buget - ✔✔Majority vote of full membership
✔✔When can appropriation transfers be made - ✔✔Last two months of fiscal year/ First
three months of next fiscal year for approp. reserves
✔✔Vote for transfer of funds - ✔✔2/3 of full membership
, ✔✔Which Board promulgates rules and regs for the interpretation & administratino of
state laws within DLGS? - ✔✔Local Finance Board
✔✔An agency created to performa specific function or functions within a municipal or
county region. Must be self-liquidating. Budgets & operations are the responsibility of
the governing body and its management - ✔✔A municipal utility
✔✔What law requires all depositories to be reviewed be reviewed quarterly and
recertified as to eligibility to act as a depository of public funds? - ✔✔Governmental
Unity Deposit Protection Act
✔✔T/F - Municipalities may invest in government money market mutual funds - ✔✔True
✔✔How much and when must an emergency appropriation be appropriated by the
governing body? - ✔✔In full in the next succeeding fiscal year
✔✔An obligation of funds by a local unit arising from the issuance of a numerically
controlled purchase order or contract. Said commitment of funds reduces the amount
that remains available for spending - ✔✔Encumbrance
✔✔How may emergency appropriations be financed?
a. Bond Anticipation Notes
b. Surplus
c. Emergency Notes
d. a & c only
e. b & c only - ✔✔e. b & c only
✔✔Maximum % for temporary appropriations - ✔✔26.25%
✔✔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
demand liabilities - ✔✔Surplus
✔✔Threshold for capital plans - ✔✔Under 10,000 - 3 years
Over 10,000 - 6 years
✔✔Maximum appropriation for contingent expenses - ✔✔3% of total appropriations for
operating purposes
✔✔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: - ✔✔A voucher (PO)
