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CMFO EXAM QUESTIONS AND ANSWERS
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CMFO EXAM QUESTIONS AND ANSWERS
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CMFO EXAM QUESTIONS AND ANSWERSEvery audit required by the Local Fiscal Affairs NJSA 40A5-9 is required to completed
by an accountant or auditor who holds and uncanceled license as? - Answers-
Registered Municipal Accountant
The statutory responsibility for the filing of the "Unaudited Annual Financial Statements
is assigned to which local government official by NJSA 40A:5-12? - Answers- Chief
Financial Officer
As defined in the "Local Government Ethics Law" specially, NJSA 40A:9-22.3, a "Local
Government Officer" that serves on a local government agency that approves
development applications would refer to a member of which of the following boards? -
Answers- Planning Board
The "Local Fiscal Affairs Law" mandates that the Cash Management Plan be approved
annually by the? - Answers- Governing Body (majority vote)
The "Local Bond Law" specially NJSA 40A:2-26, stipulates that the maturities of all
bonds shall be determined by the bond ordinance or by the subsequent resolution and
be within the following limitations? - Answers- 1.All bonds shall mature within the period
or average period of usefulness; 2. All bonds shall mature in annual installments; 3. The
governing body may provide for a single and combined bond issue
The effective date of a bond ordinance as stipulated by NJSA 40A:2-18 is what length of
time? - Answers- 20 days after 1st publication "after" adoption
All matters not required to be contained in a bond ordinance may be acted on by
subsequent resolutions passed by the affirmative votes of a "majority of the full
membership of the governing body"? TRUE OR FALSE - Answers- TRUE
An increase in anticipated revenue from a known and recurring source may have what
effect on the appropriation for the "Reserve for Uncollected Taxes"? - Answers- would
Decrease the appropriation for the Reserve of Uncollected Taxes NOTE: Higher
Revenue = Lower RUT & Lower Revenue = High RUT
The New Jersey Administrative Code 5:34-5.2 outlines the procedure for the certification
for the availability of funds. It is required that no resolution authorizing the entering into
any contract shall be enacted unless it shall recite that such a certificate showing the
availability of funds has been provided. In addition it requires? - Answers- the resolution
specify the exact line item appropriation or Ordinance to be charged
The New Jersey Budget Law NJSA40A:4-22 requires that the budget shall consist of a
tabulated statement of? - Answers- all Anticipated Revenues applicable to Expenditures
for which appropriations are made
, The four classifications of revenue described by the "Local Budget Law" NJSA 40A:4-
23? - Answers- Surplus Anticipated, Miscellaneous Revenue, Receipts from Delinquent
Taxes, Amount to be Raised by Taxation
Implementation of a dedicated tax program for open space, recreation, farmland and
historic preservation trust fund taxing districts are authorized by which of the following? -
Answers- Referendum held at a General or Special Election
Local Budget Law NJSA 40A:4-41 (c)1 permits the tax collection rate used to compute
the reserve for uncollected taxes to be based on an average when the tax collection
rate has been affected by tax refunds or adjustments from successful property tax
appeals. The number of years included in the calculation of the average is? - Answers-
3 year average
The limitation of municipality's debt is regulated by the "Local Bond Law" NJSA 40A:2-6.
It states that the limit shall be a percentage of the average of the preceding 3 years
equalized assessed valuation . That percentage limit is which of the following? -
Answers- 3.5 percent for municipal
What is the value threshold established by the "Pay to Play" law, NJSA 19:44A-20.4 at
which the contract cannot be awarded by a New Jersey Government entity? - Answers-
$ 17,500 is threshold
A bond ordinance adopted by the governing should include authorization to provide for
short-term borrowing? According to the Local Bond Law NJSA 40A:2-8 the short term
borrowing instruments are known as Bon Anticipation Notes and these notes may not
be issued for a period of time exceeding: - Answers- One (1) year
NJSA 40A:2-8 further stipulates that all Bond Anticipation Notes shall mature and be
paid not later than which anniversary of the date of the original notes? - Answers- Ten
(10) years
1st day of 5th month of the 10th fiscal year following the date of the original note
Local Bond Law NJSA 40A:2-10 requires that "prior to the passage on 1st reading of
any bond ordinance, ordinance amending a bond ordinance, except amending as to
matters which are not required to be contained in a bond ordinance or which des not
increase the total amount of the obligations authorized by such bond ordinance" the
financial officer shall file with the office of the clerk which document? - Answers-
Supplemental Debt Statement
Local Public Contracts Law, NJSA 40A:11-6 permits contracts to be entered into that
exceed the bidding threshold if the situation effects which of the following? - Answers-
The public health, safety, or welfare of the community
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