CMFO EVALUATION EXAM 2026 QUESTIONS AND
SOLUTIONS RATED A+
✔✔Who has the authority to approve the establishment of a petty cash fund? - ✔✔The
Director of the DLGS
✔✔Who is responsible to bill the special assessment levy - ✔✔Tax Collector
✔✔Levy Cap - ✔✔2%
✔✔The municipal public defenders law contains a requirement for the accounting of
application fees that are collected. It is required that the funds collected should be
deposited where? - ✔✔Dedicated trust fund
✔✔Which of the following is an appropriation that would not be subject to limitation as
provided by the NJ CAP law?
a. Audit Fees
b. Police S&W
c. Utilities
d. All of the above
e. None of the above - ✔✔e. None of the above
✔✔T/F - The Local Government CAP law prohibits the transfer of funds authorized from
an appropriation that is not subject to limitation to an appropriation that is subject to
limitation - ✔✔True
✔✔The annual financial disclosure statement requires reporting of each source of
income earned in excess of what amount? - ✔✔$2,000
✔✔Although there are exceptions, the Local Bond Law requires that the sale of bonds
shall be sold at which type of sale? - ✔✔Public
✔✔Required down payment for debt - ✔✔5%
✔✔Down payment for debt may be made available from:
a. By provision in a previously adopted budget or budgets of the local unit for down
payment or for Capital Improvement purposes
b. From monies actually held by the local unit and previously contributed for such
purpose other than by the local unit
c. By emergency appropriation
d. a&c only
e. a, b & c - ✔✔e. a,b&c
, ✔✔What must be filed with the office of the clerk prior to the passage on first reading of
any bond ordinance - ✔✔Supplemental Debt Statement
✔✔The Local Public Contracts law permits contracts to be entered into that exceed the
bid threshold if the situation effects: - ✔✔The public health, safety or welfare of the
community
✔✔Minimum number of days for the advertisement for the receipt of bids - ✔✔10 days
✔✔Statutory Deadline for AFS - State Fiscal Year - ✔✔August 10th
✔✔How many days prior to the date of the public hearing must the budget be
advertised? - ✔✔10 days
✔✔Deadline for the clerk to publish a synopsis of the audit with recommendations -
✔✔30 days from receipt of the audit
✔✔Who has authority to approve claims? - ✔✔Governing Body
✔✔What is the limit of available surplus a municipality may anticipate as revenue from a
utility regulated by the board of public utilities - ✔✔5% of the annual costs of operation
of the utility
✔✔When must an obligation for purchase of municipal property be entered into in order
to anticipate the revenue in the municipal budget - ✔✔Prior to adoption of the budget
✔✔When must the temporary budget be in place? - ✔✔Within 30 days of the beginning
of the fiscal year
✔✔Which of the following must be included in the bond ordinance:
a. The purpose of the obligation
b. The maximum amount of bonds or notes
c. That such statement shows that hte gross debt is increased by the authorization of
such obligations
d. All of the above
e. None of the above - ✔✔d. All of the above
✔✔Vote to adopt a bond ordinance - ✔✔2/3 of the full membership
✔✔Minimum period of usefulness for debt authorized - ✔✔5 years
SOLUTIONS RATED A+
✔✔Who has the authority to approve the establishment of a petty cash fund? - ✔✔The
Director of the DLGS
✔✔Who is responsible to bill the special assessment levy - ✔✔Tax Collector
✔✔Levy Cap - ✔✔2%
✔✔The municipal public defenders law contains a requirement for the accounting of
application fees that are collected. It is required that the funds collected should be
deposited where? - ✔✔Dedicated trust fund
✔✔Which of the following is an appropriation that would not be subject to limitation as
provided by the NJ CAP law?
a. Audit Fees
b. Police S&W
c. Utilities
d. All of the above
e. None of the above - ✔✔e. None of the above
✔✔T/F - The Local Government CAP law prohibits the transfer of funds authorized from
an appropriation that is not subject to limitation to an appropriation that is subject to
limitation - ✔✔True
✔✔The annual financial disclosure statement requires reporting of each source of
income earned in excess of what amount? - ✔✔$2,000
✔✔Although there are exceptions, the Local Bond Law requires that the sale of bonds
shall be sold at which type of sale? - ✔✔Public
✔✔Required down payment for debt - ✔✔5%
✔✔Down payment for debt may be made available from:
a. By provision in a previously adopted budget or budgets of the local unit for down
payment or for Capital Improvement purposes
b. From monies actually held by the local unit and previously contributed for such
purpose other than by the local unit
c. By emergency appropriation
d. a&c only
e. a, b & c - ✔✔e. a,b&c
, ✔✔What must be filed with the office of the clerk prior to the passage on first reading of
any bond ordinance - ✔✔Supplemental Debt Statement
✔✔The Local Public Contracts law permits contracts to be entered into that exceed the
bid threshold if the situation effects: - ✔✔The public health, safety or welfare of the
community
✔✔Minimum number of days for the advertisement for the receipt of bids - ✔✔10 days
✔✔Statutory Deadline for AFS - State Fiscal Year - ✔✔August 10th
✔✔How many days prior to the date of the public hearing must the budget be
advertised? - ✔✔10 days
✔✔Deadline for the clerk to publish a synopsis of the audit with recommendations -
✔✔30 days from receipt of the audit
✔✔Who has authority to approve claims? - ✔✔Governing Body
✔✔What is the limit of available surplus a municipality may anticipate as revenue from a
utility regulated by the board of public utilities - ✔✔5% of the annual costs of operation
of the utility
✔✔When must an obligation for purchase of municipal property be entered into in order
to anticipate the revenue in the municipal budget - ✔✔Prior to adoption of the budget
✔✔When must the temporary budget be in place? - ✔✔Within 30 days of the beginning
of the fiscal year
✔✔Which of the following must be included in the bond ordinance:
a. The purpose of the obligation
b. The maximum amount of bonds or notes
c. That such statement shows that hte gross debt is increased by the authorization of
such obligations
d. All of the above
e. None of the above - ✔✔d. All of the above
✔✔Vote to adopt a bond ordinance - ✔✔2/3 of the full membership
✔✔Minimum period of usefulness for debt authorized - ✔✔5 years
