CMFO EXAM PREP 2026 PRACTICE
QUESTIONS ACCURATE
⫸ retirement of serial bonds. Answer: Trust Assessment Fund cash is
first pledged to:
⫸ quarterly basis. Answer: Municipal Library Levy is paid on a
⫸ True. Answer: T/F: budget transfers from Capital Improvement Fund
are not permitted
⫸ Corrective Action Plan. Answer: Finding/Condition;
Recommendation; explanation & corrective action; implementation date
⫸ tax collector. Answer: ___________ mails out local assessment bills
⫸ Department of Treasury. Answer: Oversight of PERS & PFRS is the
⫸ 60 days. Answer: Corrective action must be adopted within
_________ of receipt of the audit reports
⫸ $1000. Answer: Developer's Escrow monthly chargers greater than
________. The CFO must provide an accounting statement to the
developer on a monthly basis.
,⫸ Local Finance Board intervention. Answer: Default on bonds, Tax
Collection Rate is less than 70%, Cash Deficit of the tax levy in excess
of 4% for 2 consecutive years
⫸ immediately. Answer: 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
⫸ $2000, $400, NJ. Answer: Finance Disclosure forms are required for
Income greater than________, gifts greater than ______, property within
_________
⫸ False. Answer: T/F: The Supplemental Debt Statement must be filed
between the 1st and 2nd reading of a bond ordinance.
⫸ True. Answer: T/F: Three Different Bond ordinances are introduced
at a public meeting only 1 supplemental debt statement is required.
⫸ False. Answer: T/F: The anticipated revenue for Receipts from
Delinquent Taxes is limited to the amount of revenue realized in the
previous year
⫸ False. Answer: T/F: The Annual Debt Statement is due upon
introduction of a bond ordinance.
,⫸ $750000. Answer: Federal Single Audit is required if Federal Grant
expenditures equals or exceeds
⫸ True. Answer: T/F: The cash management plan can be amended at
any time.
⫸ Net Debt. Answer: Gross Debt - Deductions =
⫸ liquidity. Answer: Security can be converted into cash
⫸ Director of DLGS. Answer: Chairperson of the Local Finance Board
is
⫸ State of NJ as unclaimed property. Answer: Old escrow accounts
escheat to
⫸ False. Answer: T/F: Interest on Utility Assessment Debt is
appropriated in the Current Fund
⫸ 2/3 of governing body. Answer: Budget Transfers need a vote of
⫸ False. Answer: 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
, ⫸ False. Answer: T/F: In regard to use of P-cards, under no
circumstances may a transaction exceed 15% of a municipality bid
threshold.
⫸ True. Answer: 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.
⫸ True. Answer: T/F: Director does not approve budget transfers.
⫸ False. Answer: T/F: The unexpended balance of debt service must be
cancelled by resolution.
⫸ False. Answer: T/F: Capital Budget must be adopted by a majority of
the governing body.
⫸ True. Answer: T/F: Municipalities are permitted to negotiate with a
vendor, after 2 attempts, responses to bids were too high and no bids
were submitted.
⫸ True. Answer: T/F: If Trust Assessment Fund cash is less than the
required budgeted amount to retire debt service, a required appropriation
in the Current Fund budget is necessary to cover the deficit.
⫸ performance based budgeting. Answer: The number miles of roads in
terms of expenditures would be an example of
QUESTIONS ACCURATE
⫸ retirement of serial bonds. Answer: Trust Assessment Fund cash is
first pledged to:
⫸ quarterly basis. Answer: Municipal Library Levy is paid on a
⫸ True. Answer: T/F: budget transfers from Capital Improvement Fund
are not permitted
⫸ Corrective Action Plan. Answer: Finding/Condition;
Recommendation; explanation & corrective action; implementation date
⫸ tax collector. Answer: ___________ mails out local assessment bills
⫸ Department of Treasury. Answer: Oversight of PERS & PFRS is the
⫸ 60 days. Answer: Corrective action must be adopted within
_________ of receipt of the audit reports
⫸ $1000. Answer: Developer's Escrow monthly chargers greater than
________. The CFO must provide an accounting statement to the
developer on a monthly basis.
,⫸ Local Finance Board intervention. Answer: Default on bonds, Tax
Collection Rate is less than 70%, Cash Deficit of the tax levy in excess
of 4% for 2 consecutive years
⫸ immediately. Answer: 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
⫸ $2000, $400, NJ. Answer: Finance Disclosure forms are required for
Income greater than________, gifts greater than ______, property within
_________
⫸ False. Answer: T/F: The Supplemental Debt Statement must be filed
between the 1st and 2nd reading of a bond ordinance.
⫸ True. Answer: T/F: Three Different Bond ordinances are introduced
at a public meeting only 1 supplemental debt statement is required.
⫸ False. Answer: T/F: The anticipated revenue for Receipts from
Delinquent Taxes is limited to the amount of revenue realized in the
previous year
⫸ False. Answer: T/F: The Annual Debt Statement is due upon
introduction of a bond ordinance.
,⫸ $750000. Answer: Federal Single Audit is required if Federal Grant
expenditures equals or exceeds
⫸ True. Answer: T/F: The cash management plan can be amended at
any time.
⫸ Net Debt. Answer: Gross Debt - Deductions =
⫸ liquidity. Answer: Security can be converted into cash
⫸ Director of DLGS. Answer: Chairperson of the Local Finance Board
is
⫸ State of NJ as unclaimed property. Answer: Old escrow accounts
escheat to
⫸ False. Answer: T/F: Interest on Utility Assessment Debt is
appropriated in the Current Fund
⫸ 2/3 of governing body. Answer: Budget Transfers need a vote of
⫸ False. Answer: 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
, ⫸ False. Answer: T/F: In regard to use of P-cards, under no
circumstances may a transaction exceed 15% of a municipality bid
threshold.
⫸ True. Answer: 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.
⫸ True. Answer: T/F: Director does not approve budget transfers.
⫸ False. Answer: T/F: The unexpended balance of debt service must be
cancelled by resolution.
⫸ False. Answer: T/F: Capital Budget must be adopted by a majority of
the governing body.
⫸ True. Answer: T/F: Municipalities are permitted to negotiate with a
vendor, after 2 attempts, responses to bids were too high and no bids
were submitted.
⫸ True. Answer: T/F: If Trust Assessment Fund cash is less than the
required budgeted amount to retire debt service, a required appropriation
in the Current Fund budget is necessary to cover the deficit.
⫸ performance based budgeting. Answer: The number miles of roads in
terms of expenditures would be an example of
