New Jersey Certified Municipal Finance Officers (CMFO) Statutes Practice Exam

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• What is the purpose of the annual audit of municipal finances?
• The excess in Reserve for an Animal Control Fund is due to which fund and recorded as what kind of revenue?
• What is the required notice period for a public hearing on a municipal budget?
• What is a “tax sale” in New Jersey municipal finance?
• What is the function of the "Municipal Research and Services Center"?
• What are “improper funds” in municipal finance?
• What is the purpose of a cash management plan in municipal finance?
• What portion of the governing body must vote affirmatively to act on matters not requiring inclusion in a bond ordinance?
• What is the primary statute governing the responsibilities of a Certified Municipal Finance Officer (CMFO) in New Jersey?
• What is one requirement for municipal finance officers regarding financial reporting?
• What is the principal concern when increasing anticipated revenues in the municipal budget?
• Who is responsible for collecting property taxes in a municipality?
• What term refers to revenue amounts expected to be realized in cash during the fiscal year from known sources?
• What line item did the 2010 CAP eliminate the add-on increases for?
• The responsibility of local assessment receivable for each parcel of property falls on whom?
• What must local procedures follow for budget introduction and amendment?
• What actions are required if a municipality exceeds its tax levy limit?
• What is a “cap bank” in New Jersey municipal finance terminology?
• What financial document outlines a municipality's expected revenues and expenditures?
• What are the primary financial responsibilities of a CMFO?
• In the context of municipal finance, what does "transparency" refer to?
• What is an important step in the budget preparation process for municipalities?
• What is the legal limitation on municipal budget increases under the "2% cap" law?
• What is the primary purpose of maintaining a "Trust Fund" in municipal finance?
• What are "Improvement Bonds" generally used for?
• What is the responsibility of a CMFO when reviewing investment policies?
• Why is continuing education important for CMFOs?
• What does the acronym "CMFO" stand for?
• The period of usefulness for municipal assets can never exceed how many years?
• What term represents the true value of all taxable property in the municipality?
• How many days before the public hearing must a budget be advertised after approval?
• The Local Fiscal Affairs Law mandates that a Cash Management plan be approved annually by which entity?
• How often must CMFOs renew their certification through continuing education?
• Which type of audit is required for municipalities in New Jersey?
• Which document outlines the financial policies and procedures of a municipality?
• In terms of ethics management, what is primarily concerned in local government?
• What determines a municipality’s fiscal compliance?
• What must happen before a municipality can establish revenue from upcoming land sales in its budget?
• Which of the following is NOT a responsibility of a CMFO?
• What does "MODIFIED ACCRUAL BASIS" primarily focus on in local government accounting?
• What action is needed to implement a temporary budget during the fiscal year?
• Which type of revenue is expected to be realized from sources capable of anticipation?
• How long must the temporary budget resolution be adopted after the beginning of the fiscal year?
• The excess of quick assets such as cash and investments over legal and demand liabilities is referred to as what?
• What is an appropriation in municipal finance?
• What is the maximum amount of time a municipality can be in deficit before corrective action is required under New Jersey law?
• What must the budget be compared against to assess financial performance?
• When adopting a State Fiscal Year, what action does a municipality need to take?
• What does GASB stand for regarding municipal accounting standards?
• What must CMFOs retain to demonstrate financial transparency?
• Under what circumstances can a CMFO be suspended or removed from their position?
• Which of the following are classified as four classifications of revenue?
• Which of the following is a key responsibility of the CMFO related to budgeting?
• Which is the correct procedure to adopt a budget?
• What is the main objective of the "Tax Levy"?
• NJ Budget Law specifically requires that the budget includes what type of statement?
• Interest on Utility Assessment Debt must be appropriated in which budget?
• Why must Transitional Aid demonstrate that user fees have been established for discretionary services?
• Old Escrow Accounts escheat as unclaimed property to which entity?
• Under which statute are municipalities required to have an annual audit?
• What does the term "reserve" refer to in municipal finance?
• Who acts as the ethics board if a municipality does not have a local ethics board?
• What is one major factor that influences a municipality's credit rating?
• How does the CMFO assist in debt management for a municipality?
• How are "Emergency Appropriations" typically handled under New Jersey law?
• What financial metric is commonly used to measure a municipality's liquidity?
• Which financial statement provides a snapshot of a municipality’s assets and liabilities?
• Which statute addresses the requirements for competitive contracting in New Jersey?
• What is the threshold amount for Federal Grant expenditures that triggers a Federal Single Audit requirement?
• For what purpose can the Storm Recovery Reserve be used?
• What vote is required by the governing body for budget transfers?
• What is required for approval of miscellaneous revenues in the current fund budget?
• What is the name given to the amount raised by taxes for school purposes in a municipal budget?
• What is the purpose of municipal bonds?
• What role does the NJ State Division of Local Government Services play concerning municipal finance officers?
• What type of vote is required for budget adoption according to Local Budget Law?
• What is the required passing score for the CMFO exam in New Jersey?
• Which document is crucial for ensuring a budget meets statutory requirements?
• What law governs the financial disclosures required by local governments in New Jersey?
• What is the purpose of the Tax Collector's annual report?
• What happens if a municipality fails to adopt a budget by the statutory deadline?
• According to NJSA, what type of revenue source would a sinking fund cash surplus be classified as if approved?
• Which aspect of financial management is emphasized for CMFOs when dealing with municipal finances?
• What action must be taken regarding financial disclosure for gifts?
• How is debt service for municipal bonds typically funded?
• An increase in anticipated revenue for a known and recurring source may have what effect on the appropriation for the Reserve for Uncollected Taxes?
• How can municipalities in New Jersey increase local revenue aside from taxes?
• What type of financial analysis is essential before making investment decisions for municipal funds?
• What does Gross Debt minus Deductions give you?
• What might be a common tool used by municipal finance officers for financial oversight?
• If a budget amendment exceeds what percentage, a public hearing is required?
• What is the consequence of not adhering to the cash management plan amendment schedules?
• What financial document is used to detail a municipality’s estimated revenues?
• What is required for a municipality to engage in contracts for goods and services?
• What is the required vote to adopt a municipal budget?
• What does a "Certificate of Availability of Funds" signify?
• What role does the municipal bond counsel play?
• What financial information should be included on the municipality's website?
• Annual Financial Statements must be filed with which entity?
• Which New Jersey statute covers the mechanics of budget preparation?
• What document must specify school expenses when budgeting?
• What type of financial reports are CMFOs typically responsible for preparing?
• What is a common challenge faced by municipal finance officers?
• How many hours of continuing education are required for CMFOs every two years?
• What must a municipality do before it can raise funds through a bond issue?
• According to NJAC, what must be present on either the resolution and/or certification of funds when entering into any contract?
• What determines the financial practices of municipal finance officers in New Jersey?
• What is the role of the municipal finance officer in grant management?
• What is an "Interlocal Agreement"?
• Which of the following is an essential duty of municipal finance officers?
• What is the significance of tax levy limits for municipalities?
• What document must be prepared to request the expenditure of unanticipated revenue?
• Which type of budget accounts for both operating and capital expenses?
• Who must approve the municipal government’s budget?
• What type of planning process is involved when municipalities form shared services?
• What part of the budget process is typically done last?
• What is the term used for a local government officer that serves on a local government agency approving development applications?
• What is the significance of the Statement of Budgetary Comparison?
• How often must municipalities submit their annual financial statements for audit?
• What is the role of a “Budget Certification” in municipal finance?
• Who benefits from the financial oversight provided by a CMFO?
• What minimum income amount must be reported on Financial Disclosure Forms?
• What is the purpose of a budget message prepared by the CMFO?
• What financial statement is required to show the fiscal status of a municipality at year-end?
• What is the effective date of a bond ordinance following its adoption?
• What limits the anticipated miscellaneous revenues when preparing the budget?
• What type of grants do municipalities often seek to fund specific projects without incurring debt?
• What is one of the primary functions of reserves in municipal finance?
• When the tax collection rate has been affected by refunds and adjustments from successful tax appeals, Local Budget Law allows how many years to be used to calculate RUT?
• What should the budget message include?
• What should be included in the calculation for the amount to be raised by taxation?
• What is the purpose of reserves for uncollected taxes in municipal finance?
• What might an essential skill for a municipal finance officer include?
• What is a primary responsibility of the Certified Municipal Finance Officer (CMFO)?
• What is a primary reason for establishing a Storm Recovery Reserve?
• What is a legal recourse for a municipality that experiences financial difficulties?
• Which organization directly supports accountability for municipal finance officers in New Jersey?
• What document must be made available for public inspection during the budget process?
• Which of the following is an example of shared services?
• What role does the CMFO play during a municipal financial emergency?
• How is Net Debt calculated according to financial practices?
• Who is responsible for preparing the municipal budget in New Jersey?
• What must a municipality do to convert from a Calendar Fiscal Year to a State Fiscal Year?
• What is not permitted in the preparation of the municipal budget regarding anticipated revenues?
• Which pension funds can a Town Administrator be enrolled in?
• What type of appropriation is allowed during the last 10 days of the year preceding a new fiscal year, according to Local Budget Law?
• What is a potential consequence for a municipal finance officer found guilty of mismanagement?
• Which type of debt statement is due upon the introduction of a bond ordinance?
• What does the "Uniform Shared Services and Consolidation Act" promote?
• Which organization is responsible for administering the CMFO certification program in New Jersey?
• Which organization oversees the certification process for CMFOs in New Jersey?
• Who is responsible for ensuring compliance with the budget law in New Jersey municipalities?
• What role does the Local Finance Board play concerning municipalities?
• Where should you never apply a tax overpayment?
• Which fund is typically used to pay for current operating expenses in New Jersey municipalities?
• What are the minimum education requirements for a Certified Municipal Finance Officer in New Jersey?
• What is an encumbrance in municipal finance?
• Which action is a municipal finance officer expected to prioritize?
• What does the term "Encumbrance" refer to in the context of budgeting?
• What is the role of the CMFO regarding municipal funds?
• What type of bond is commonly used by municipalities to raise capital for projects?
• How frequently must a budget be advertised according to the Local Budget Law?
• What does "CIP" stand for in municipal finance?
• When is the local budget required to be submitted to the council for approval?
• Which bond detail is not required to be included in the bond ordinance?
• For which purpose is the governing body restricted from making appropriations during the last 10 days of the year?
• Payment of Utility Assessment Bond Principal is recorded as an expenditure in which fund?
• What must a CMFO do if they identify a potential over-expenditure?
• What is the fund balance?
• What does the "Debt Limit" refer to in municipal finance?
• Which items are NOT permitted to have budget transfers made during the last two months of the year?
• What is the primary objective of municipal financial management?
• What is the method of accounting for transactions called?
• Which budgetary element is primarily influenced by past financial performance?
• What records must a CMFO maintain regarding municipal funds?
• Emergency temporary appropriations not included in the budget are added by what action?
• What effect does an increase in revenue have on the RUT?
• What is a consequence of failing to address a potential budget over-expenditure?
• How are municipal finance officers held accountable for financial mismanagement?
• What term describes the total amount of money a municipality owes in the future?
• What is the "Fiscal Year" for municipalities in New Jersey?
• Municipal finance officers must ensure compliance with which of the following?
• Which guideline governs the management of employee pension funds in New Jersey?
• What is the typical duration for municipal bonds issued in New Jersey?
• Which of the following is a key responsibility of a CMFO?
• What must be approved by the Department of Local Government Services (DLGS)?
• What statutory obligation must be fulfilled when a municipality proposes a capital project?
• What laws govern vendor payments in New Jersey municipalities?
• How are anticipated miscellaneous revenues from the same source handled in relation to previous fiscal years?
• What is the purpose of a "Tax Anticipation Note"?
• Which of these best describes the function of the Tax Collector?
• When must the obligation to make payment occur to anticipate revenue from a land sale in the municipal budget?
• Implementation of a dedicated tax program for various trust fund taxing districts is authorized by what?
• What is the effect of the "Local Government Cap Law" on budgeting?
• What constitutes a "Deficit" in municipal finance?
• What is the importance of the "Local Budget Law"?
• What is the deadline for adopting a municipal budget in New Jersey?
• What is an example of a source of revenue for municipalities in New Jersey?
• What determines a municipality's debt limit according to statute?
• What is an “annual adopted budget” in municipal finance?
• What must be included in the municipality's annual budget as per state requirements?
• What does a municipal finance officer do during the fiscal year concerning budget modifications?
• On what basis is borrowing capacity assessed?
• How is local government revenue derived from state aid classified?
• What is the significance of merit system regulations in municipal finance?
• What does the term "Reserve" mean in municipal finance?
• How many Supplemental Debt Statements are needed if three different bond ordinances are introduced at the same meeting?
• How is one tax point defined in relation to net valuation?
• What is required for any long-term borrowing by a municipality?
• Which of the following best describes the purpose of the budget hearing?
• When can the cash management plan be amended?
• What can trigger the ability to anticipate revenues from land sales?
• Which authority must municipalities seek for approval when adopting a State Fiscal Year?
• What does "Fund Accounting" ensure in municipal finance?
• What is the official type of budget that must be adopted?
• How are municipal bonds typically validated in New Jersey?
• Who is required to complete audits as mandated by the Local Fiscal Affairs?
• How often must municipalities conduct a comprehensive audit in New Jersey?
• What is a key aspect of financial reporting for a CMFO?
• What type of financial report must be filed annually by a municipality?
• How many credits of continuing education are required every three years for CMFOs in New Jersey?
• What is the minimum educational requirement to become a CMFO in New Jersey?
• What is the statutory introduction date for calendar year municipalities?
• Which fund is typically used for capital improvement projects in a municipality?
• In the event of a municipal financial crisis, what is one of the first actions a CMFO should take?
• What is the purpose of the Utility Assessment Trust Fund?
• Which of the following best describes the responsibilities of a municipal finance officer?
• What is meant by “debt service” in municipal finance?
• What is the CMFO’s role in the public bidding process?
• What is the term for the public meeting where the municipal budget is introduced?
• When must a request to review vouchers be released?
• In which fund is gross utility debt reflected?
• How frequently must municipalities adjust their tax rates according to the Taxation Statutes?
• What is the primary statute governing the role of the Certified Municipal Finance Officer in New Jersey?
• What constitutes a “capital budget” in municipal finance?
• What financial policy is essential for effective budget preparation?
• When is private sale of Local Government Bonds prohibited?
• How do municipal finance officers contribute to local governance?
• How must municipalities disclose their financial status to the public?
• What is the primary role of the Office of the State Comptroller?
• Who is assigned the statutory responsibility for filing the Unaudited Annual Financial Statements?
• Which statement is true regarding the timing of the Supplemental Debt Statement?
• What is the minimum number of days after budget approval that a public hearing must take place for counties?
• What is the purpose of appropriations in the budget?