NJ CMFO Statutes Exam Review

NJ CMFO Statutes Exam Review 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: - ✔✔Registered Municipal Accountant Local ...

NJ CMFO Statutes Exam Review 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: - ✔✔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 - ✔✔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 - ✔✔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? - ✔✔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: - ✔✔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? - ✔✔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? - ✔✔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? - ✔✔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? - ✔✔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? - ✔✔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? - ✔✔Debt Service Only One tax point is equal to - ✔✔One ten-thousandth of the net valuation Request to review vouchers must be released when - ✔✔Immediately Financial Disclosure Forms should list the following - ✔✔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? - ✔✔One Which debt statement is due upon introduction of a bond ordinance - ✔✔Supplemental Debt Statement Federal Single Audit is required if Federal Grant expenditures equal or exceed what amount? - ✔✔$750,000 When can the cash management plan be amended? - ✔✔Any time Gross Debt - Deductions equals - ✔✔Net Debt The Chairperson of the Local Finance Board holds what other title? - ✔✔Director of the Division Local Government Services Old Escrow Accounts escheat as unclaimed property to whom? - ✔✔State of NJ Interest on Utility Assessment Debt is appropriated in which budget? - ✔✔Utility Operating Budget Vote required by the governing body for budget transfers? - ✔✔2/3 Majority of Full Membership A municipality carries a statutory excess in Reserve for an Animal Control Fund at year end; Excess is due to what fund and recorded as what kind of revenue? - ✔✔Excess is due to Current Fund and recorded as MRNA The number of miles of roads paved in terms of expenditures would be an example of which type of budgeting? - ✔✔Performance Based Budgeting A bond detail that does not need to be included in the bond ordinance? - ✔✔Bond Maturity Schedule The statutory responsibility for filing the Unaudited Annual Financial Statements is assigned to which local government official? - ✔✔The CFO Financial Information on your Municipality Website should include the following: - ✔✔Best Practices, 3 years of adopted budgets, current year proposed budget, audit and recent financial statements The true value of all taxable property in the municipality is represented by what term? - ✔✔Equalized Valuation The period of usefulness can never exceed how many years? - ✔✔40 years As defined in the "Local Government Ethics Law" a local government officer that serves on a local government agency that approves development applications would refer to a member of which board? - ✔✔Planning Board Budget Transfers during the last two months of the year may NOT be made to: ? - ✔✔Deferred Charges, RUT, Down Payment on Improvements and CIF Items that must be approved by the DLGS include: - ✔✔Petty Cash, Change in Title and Text, Dedication by Rider and Emergent Appropriations in excess of 3% of operating appropriations Borrowing capacity is based on gross debt or net debt? - ✔✔Net Debt Local Government Bonds may be sold privately, except? - ✔✔When the total of bonds is MORE than $1,000,000 Examples of shared services - ✔✔Joint Tax Collection, Joint Municipal Court, Joint Solid Waste Collection/Disposal The budget message should contain the following: - ✔✔Explanation of appropriation, levy CAPS, and a listing of appropriation split by CAP Correct Procedure to adopt a budget: - ✔✔1. Introduction &Approval 2. Public Advertisement 3. Public Hearing 4. Amendments if needed 5. Advertising & Public Hearing on Ammendments 6. Adoption If a municipality does not have a local ethics board, who would act as their ethics board - ✔✔Local Finance Board What is the official type of budget required to be adopted? - ✔✔Line Item Budget Payment of Utility Assessment Bond Principal is recorded as an expenditure in what fund? - ✔✔Utility Assessment Trust Fund Where should you never apply a tax overpayment? - ✔✔Amount to be Raised by Taxation Pension fund(s) a Town Administratoe can be enrolled in? - ✔✔PERS and DCRP 2010 CAP eliminated the add-on increases to what line item? - ✔✔Reserve for Uncollected Taxes Why must Transitional Aid demonstrate that user fees have been established for discretionary services? - ✔✔To ensure taxpayers are not subsidizing nonessential propgrams What can Storm Recovery Reserve be used for? - ✔✔Salt and Sand purchases, snow removal, salaries and wages The responsibility of the local assessment receivable for each parcel of property falls on whom? - ✔✔The Tax Collector In what fund is gross utility debt reflected? - ✔✔Utility Capital Fund Method of accounting for transactions is called? - ✔✔Modified Accrual Basis Annual Financial Statements must be filed with? - ✔✔EMMA The Local Fiscal Affairs Law mandates that a Cash Management plan be approved annually by? - ✔✔The Governing Body The effective date of a bond ordinance is at what length of time? - ✔✔Twenty days after the first publication after adoption An increase in anticipated revenue for a known and recurring source may have what affect on the appropriation for the Reserve for Uncollected Taxes? - ✔✔Decrease the appropriation for RUT NJAC outlines the procedure to certify funds when entering into any contract. what must be present on either the resolution and/or certification of funds? - ✔✔exact line item appropriation or ordinance to be charged NJ Budget Law specifically requires that the budget shall consist of a tabulated statement of what? - ✔✔All anticipated revenues applicable to expenditures for which appropriations are made Four classifications of revenue are: - ✔✔Surplus Anticipated, Misc. Revenues, Receipts for Delinquent Taxes and 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 what? - ✔✔Referendum held at a general or special election When the tax collection rate has been affected by refunds and adjustments from successful tax appeals, Local Budget Law allows an average of how many years to be used to calculate RUT? - ✔✔Three Emergency temporary appropriations not included in the budget due to adoption post budget approval, the ETA is added by what action - ✔✔Amendment The excess of quick assets such as cash, investments, state or other public Aid Receivable, and deferred charges over legal and demand liabilities is called - ✔✔Surplus Revenue amounts that may reasonable be expected to be realized in cash during the fiscal year from known and regular sources, or from sources reasonably capable of anticipation are called what? - ✔✔Miscellaneous Revenues Anticipated Miscellaneous Revenues Anticipated are limited by what when preparing the budget? - ✔✔limited by actual realized cash from same source in preceding fiscal year In order to anticipate revenue from a land sale in the municipal budget when must the obligation to make payment occur? - ✔✔Prior to the adoption of the budget NJSA 40A:4-28 Misc. revenues, sinking fund surplus; a sinking fund cash surplus would be what revenue source and in which budget if approved by the sinking fund commission and the director? - ✔✔Miscellaneous Revenues anticipated in the current fund budget Matters not required to be contained in a bond ordinance may be acted on in subsequent resolutions passed by the affirmative votes of what portion of the governing body? - ✔✔Majority of the full membership of the governing body An increase in Revenue does what to RUT - ✔✔Decreases it A municipality's debt limit shall be a percentage of the average of the preceding 3 years equalized assessed valuation - ✔✔