NJ CMFO Statutes Exam Review
Questions And Correct Answers
Every audit required by the Local Fiscal Affairs 40A:5-9 is required be completed by an accountant or
auditor who holds an uncanceled license as: - CORRECT - ANSWERS Registered Municipal
Accountant
Local Budget Law, N.J.S.A. 40A: 4-3.1 (b) requires any municipality deciding to convert to a State Fiscal
Year from Calendar Fiscal Year must apply to - CORRECT - ANSWERS Local Finance Board
Local Budget Law 40A:4-3.2 Adoption of State fiscal year; when converting to a state fiscal year calendar
from a calendar year a municipality may do so by the following - CORRECT - ANSWERS Ordinance
Local Budget Law 40A:4-4 Procedures for budget adoption; All budgets shall be introduced, approved,
amended and adopted by what vote & by which action of the governing body? - CORRECT - ANSWERS
By resolution passed by not less than a majority of the full membership of the governing body
Local Budget Law 40A:4-5 Introduction and Approval; Statutory introduction dates for fiscal and
calendar year municipalities is as follows: - CORRECT - ANSWERS Calendar year- February 10
State Fiscal Year - August 10
Local Budget Law 40A:4-6 Advertisement of budget; Every budget shall be advertised after approval and
at least how many days before the public hearing? - CORRECT - ANSWERS 10
Local Budget Law 40A:4-7 Time of public hearing; Public hearing post budget approval shall be held no
earlier than how many days for a county and municipality? - CORRECT - ANSWERS 18 and 28
, Local Budget Law 40A:4-9 Ammendment to an introduced budget; an increase or decrease to any item
of appropriation by more than what percent would require a public hearing on said amendment? -
CORRECT - ANSWERS Ten Percent
Local Budget Law 40A:4-13 Inclusion of amount required for school purposes; The amount to be raised
by taxes for school purposes, required to be certified to the governing body of a municipality for
inclusion in its budget, shall set forth in a separate section of the budget upon adoption and shall be
added to the amount to be raised by taxes is called what rate? - CORRECT - ANSWERS School Tax
Rate
Local Budget Law 40A:4-19 temporary budget; The governing body may by resolution authorize
temporary budget Appropriations to provide for the period between the beginning of the fiscal year and
the adoption of the budget. The resolution shall be adopted within how many days of the beginning of
the fiscal year? - CORRECT - ANSWERS Thirty Days
Local Budget Law 40A:4-20 emergency temporary appropriations; the governing body is prevented from
making appropriations during the last 10 days of the year preceding a new fiscal year for CIF purposes.
What appropriation is allowed? - CORRECT - ANSWERS Debt Service Only
One tax point is equal to - CORRECT - ANSWERS One ten-thousandth of the net valuation
Request to review vouchers must be released when - CORRECT - ANSWERS Immediately
Financial Disclosure Forms should list the following - CORRECT - ANSWERS Income greater than
$2000, Gifts greater than $400, property in NJ only
Three different bond ordinances are introduced at the same meeting. How many Supplemental Debt
Statements do you need? - CORRECT - ANSWERS One
Which debt statement is due upon introduction of a bond ordinance - CORRECT - ANSWERS
Supplemental Debt Statement
Federal Single Audit is required if Federal Grant expenditures equal or exceed what amount? - CORRECT
- ANSWERS $750,000
Questions And Correct Answers
Every audit required by the Local Fiscal Affairs 40A:5-9 is required be completed by an accountant or
auditor who holds an uncanceled license as: - CORRECT - ANSWERS Registered Municipal
Accountant
Local Budget Law, N.J.S.A. 40A: 4-3.1 (b) requires any municipality deciding to convert to a State Fiscal
Year from Calendar Fiscal Year must apply to - CORRECT - ANSWERS Local Finance Board
Local Budget Law 40A:4-3.2 Adoption of State fiscal year; when converting to a state fiscal year calendar
from a calendar year a municipality may do so by the following - CORRECT - ANSWERS Ordinance
Local Budget Law 40A:4-4 Procedures for budget adoption; All budgets shall be introduced, approved,
amended and adopted by what vote & by which action of the governing body? - CORRECT - ANSWERS
By resolution passed by not less than a majority of the full membership of the governing body
Local Budget Law 40A:4-5 Introduction and Approval; Statutory introduction dates for fiscal and
calendar year municipalities is as follows: - CORRECT - ANSWERS Calendar year- February 10
State Fiscal Year - August 10
Local Budget Law 40A:4-6 Advertisement of budget; Every budget shall be advertised after approval and
at least how many days before the public hearing? - CORRECT - ANSWERS 10
Local Budget Law 40A:4-7 Time of public hearing; Public hearing post budget approval shall be held no
earlier than how many days for a county and municipality? - CORRECT - ANSWERS 18 and 28
, Local Budget Law 40A:4-9 Ammendment to an introduced budget; an increase or decrease to any item
of appropriation by more than what percent would require a public hearing on said amendment? -
CORRECT - ANSWERS Ten Percent
Local Budget Law 40A:4-13 Inclusion of amount required for school purposes; The amount to be raised
by taxes for school purposes, required to be certified to the governing body of a municipality for
inclusion in its budget, shall set forth in a separate section of the budget upon adoption and shall be
added to the amount to be raised by taxes is called what rate? - CORRECT - ANSWERS School Tax
Rate
Local Budget Law 40A:4-19 temporary budget; The governing body may by resolution authorize
temporary budget Appropriations to provide for the period between the beginning of the fiscal year and
the adoption of the budget. The resolution shall be adopted within how many days of the beginning of
the fiscal year? - CORRECT - ANSWERS Thirty Days
Local Budget Law 40A:4-20 emergency temporary appropriations; the governing body is prevented from
making appropriations during the last 10 days of the year preceding a new fiscal year for CIF purposes.
What appropriation is allowed? - CORRECT - ANSWERS Debt Service Only
One tax point is equal to - CORRECT - ANSWERS One ten-thousandth of the net valuation
Request to review vouchers must be released when - CORRECT - ANSWERS Immediately
Financial Disclosure Forms should list the following - CORRECT - ANSWERS Income greater than
$2000, Gifts greater than $400, property in NJ only
Three different bond ordinances are introduced at the same meeting. How many Supplemental Debt
Statements do you need? - CORRECT - ANSWERS One
Which debt statement is due upon introduction of a bond ordinance - CORRECT - ANSWERS
Supplemental Debt Statement
Federal Single Audit is required if Federal Grant expenditures equal or exceed what amount? - CORRECT
- ANSWERS $750,000
