CMFO Exam Q & As (Verified Answers)
2026 Update
T/F: Due from State of New Jersey for Senior citizen
Deductions can be anticipated as a revenue in the current
fund budget as non-cash surplus - Correct Answers ✅True
Trust Assessment Fund cash is first pledged to: - Correct
Answers ✅retirement of serial bonds
Municipal Library Levy is paid on a - Correct Answers
✅quarterly basis
T/F: budget transfers from Capital Improvement Fund are not
permitted - Correct Answers ✅True
Finding/Condition; Recommendation; explanation & corrective
action; implementation date - Correct Answers
✅Corrective Action Plan
___________ mails out local assessment bills - Correct
Answers ✅tax collector
Oversight of PERS & PFRS is the - Correct Answers
✅Department of Treasury
Corrective action must be adopted within _________ of receipt
of the audit reports - Correct Answers ✅60 days
,CMFO Exam Q & As (Verified Answers)
2026 Update
Developer's Escrow monthly chargers greater than ________.
The CFO must provide an accounting statement to the
developer on a monthly basis. - Correct Answers ✅$1000
Default on bonds, Tax Collection Rate is less than 70%, Cash
Deficit of the tax levy in excess of 4% for 2 consecutive years
- Correct Answers ✅Local Finance Board intervention
Resident requested to inspect vouchers that were approved
for payment at the most recent governing body meeting.
Inspection of vouchers must be made available for inspection
- Correct Answers ✅immediately
Finance Disclosure forms are required for Income greater
than________, gifts greater than ______, property within
_________ - Correct Answers ✅$2000, $400, NJ
T/F: The Supplemental Debt Statement must be filed between
the 1st and 2nd reading of a bond ordinance. - Correct
Answers ✅False
T/F: Three Different Bond ordinances are introduced at a
public meeting only 1 supplemental debt statement is
required. - Correct Answers ✅True
,CMFO Exam Q & As (Verified Answers)
2026 Update
T/F: The anticipated revenue for Receipts from Delinquent
Taxes is limited to the amount of revenue realized in the
previous year - Correct Answers ✅False
T/F: The Annual Debt Statement is due upon introduction of a
bond ordinance. - Correct Answers ✅False
Federal Single Audit is required if Federal Grant expenditures
equals or exceeds - Correct Answers ✅$750000
T/F: The cash management plan can be amended at any time.
- Correct Answers ✅True
Gross Debt - Deductions = - Correct Answers ✅Net Debt
Security can be converted into cash - Correct Answers
✅liquidity
Chairperson of the Local Finance Board is - Correct Answers
✅Director of DLGS
Old escrow accounts escheat to - Correct Answers ✅State
of NJ as unclaimed property
, CMFO Exam Q & As (Verified Answers)
2026 Update
T/F: Interest on Utility Assessment Debt is appropriated in the
Current Fund - Correct Answers ✅False
Budget Transfers need a vote of - Correct Answers ✅2/3 of
governing body
T/F: Pursuant to Local Budget Law municipalities are
permitted to overspend a legal line item appropriation if the
overall Current Fund Budget remains in a surplus - Correct
Answers ✅False
T/F: In regard to use of P-cards, under no circumstances may
a transaction exceed 15% of a municipality bid threshold. -
Correct Answers ✅False
T/F: Municipalities that carries a statutory excess in Reserve
for an Animal Control Fund at year end excess is Due to
Current Fund and recorded as MRNA. - Correct Answers
✅True
T/F: Director does not approve budget transfers. - Correct
Answers ✅True
T/F: The unexpended balance of debt service must be
cancelled by resolution. - Correct Answers ✅False
2026 Update
T/F: Due from State of New Jersey for Senior citizen
Deductions can be anticipated as a revenue in the current
fund budget as non-cash surplus - Correct Answers ✅True
Trust Assessment Fund cash is first pledged to: - Correct
Answers ✅retirement of serial bonds
Municipal Library Levy is paid on a - Correct Answers
✅quarterly basis
T/F: budget transfers from Capital Improvement Fund are not
permitted - Correct Answers ✅True
Finding/Condition; Recommendation; explanation & corrective
action; implementation date - Correct Answers
✅Corrective Action Plan
___________ mails out local assessment bills - Correct
Answers ✅tax collector
Oversight of PERS & PFRS is the - Correct Answers
✅Department of Treasury
Corrective action must be adopted within _________ of receipt
of the audit reports - Correct Answers ✅60 days
,CMFO Exam Q & As (Verified Answers)
2026 Update
Developer's Escrow monthly chargers greater than ________.
The CFO must provide an accounting statement to the
developer on a monthly basis. - Correct Answers ✅$1000
Default on bonds, Tax Collection Rate is less than 70%, Cash
Deficit of the tax levy in excess of 4% for 2 consecutive years
- Correct Answers ✅Local Finance Board intervention
Resident requested to inspect vouchers that were approved
for payment at the most recent governing body meeting.
Inspection of vouchers must be made available for inspection
- Correct Answers ✅immediately
Finance Disclosure forms are required for Income greater
than________, gifts greater than ______, property within
_________ - Correct Answers ✅$2000, $400, NJ
T/F: The Supplemental Debt Statement must be filed between
the 1st and 2nd reading of a bond ordinance. - Correct
Answers ✅False
T/F: Three Different Bond ordinances are introduced at a
public meeting only 1 supplemental debt statement is
required. - Correct Answers ✅True
,CMFO Exam Q & As (Verified Answers)
2026 Update
T/F: The anticipated revenue for Receipts from Delinquent
Taxes is limited to the amount of revenue realized in the
previous year - Correct Answers ✅False
T/F: The Annual Debt Statement is due upon introduction of a
bond ordinance. - Correct Answers ✅False
Federal Single Audit is required if Federal Grant expenditures
equals or exceeds - Correct Answers ✅$750000
T/F: The cash management plan can be amended at any time.
- Correct Answers ✅True
Gross Debt - Deductions = - Correct Answers ✅Net Debt
Security can be converted into cash - Correct Answers
✅liquidity
Chairperson of the Local Finance Board is - Correct Answers
✅Director of DLGS
Old escrow accounts escheat to - Correct Answers ✅State
of NJ as unclaimed property
, CMFO Exam Q & As (Verified Answers)
2026 Update
T/F: Interest on Utility Assessment Debt is appropriated in the
Current Fund - Correct Answers ✅False
Budget Transfers need a vote of - Correct Answers ✅2/3 of
governing body
T/F: Pursuant to Local Budget Law municipalities are
permitted to overspend a legal line item appropriation if the
overall Current Fund Budget remains in a surplus - Correct
Answers ✅False
T/F: In regard to use of P-cards, under no circumstances may
a transaction exceed 15% of a municipality bid threshold. -
Correct Answers ✅False
T/F: Municipalities that carries a statutory excess in Reserve
for an Animal Control Fund at year end excess is Due to
Current Fund and recorded as MRNA. - Correct Answers
✅True
T/F: Director does not approve budget transfers. - Correct
Answers ✅True
T/F: The unexpended balance of debt service must be
cancelled by resolution. - Correct Answers ✅False
