CMFO EXAM QUESTIONS ANSWERS
PACKAGE 2026 CONFIRMED
⫸ A local government officer that serves on the agency that approves
development applications refers to a member of which board? Answer:
Planning Board
⫸ A payment process requires a purchase order system to have a
particular document as part of the purchase order and this same
document is the basis of payment. The document is: Answer: A voucher
(PO)
⫸ According to the Local Bond Law, BANs may be sold at what type of
sale? Answer: Private
⫸ Alternate calculation for the RUT Answer: Average of the prior three
years collection rates - allowable with a resolution of the governing body
⫸ Although there are exceptions, the Local Bond Law requires that the
sale of bonds shall be sold at which type of sale? Answer: Public
⫸ Amount of performance guarantee authorized by the Local Public
Contracts law Answer: 10% of the bid, not to exceed $20,000
⫸ An agency created to performa specific function or functions within a
municipal or county region. Must be self-liquidating. Budgets &
,operations are the responsibility of the governing body and its
management Answer: A municipal utility
⫸ An appropriation for "Cash deficit of preceding year" shall be raised
how? Answer: In full the immediate successive year of the deficit
⫸ An appropriation transfer would not be permited from:
a. Legal expenses
b. Public works s&w
c. Deferred Charges
d. All of the above
e. None of the above Answer: c. Deferred charges
⫸ An increase in anticipated revenue from a known and recurring
source will have what effect on the appropriation for the RUT Answer:
Would decrease the appropriation for the RUT
⫸ An obligation of funds by a local unit arising from the issuance of a
numerically controlled purchase order or contract. Said commitment of
funds reduces the amount that remains available for spending Answer:
Encumbrance
⫸ Any deficit in expenditures to which dedicated revenues are
applicable shall be provided for by an appropriation in which budget?
Answer: Current Fund
, ⫸ Any municipal utility that has cash receipts in a fiscal year sufficient
to meet operation and debt charges without recourse to general taxation
is considered to be: Answer: Self-liquidating
⫸ Appropriations CAP Answer: 2.5% or the index rate - whichever is
less
⫸ Cash management plan must be approved annual by the: Answer:
Governing Body
⫸ Contracts awarded by competitive contracting may not be for a term
exceeding what length of time? Answer: Five Years
⫸ Days required between approval and adoption of the budget Answer:
28 days
⫸ Deadline for adopting temporary budget Answer: 30 days from
beginning of the fiscal year
⫸ Deadline for corrective action plan to be submitted to DLGS Answer:
60 days from date the audit is received by the governing body
⫸ Deadline for the clerk to publish a synopsis of the audit with
recommendations Answer: 30 days from receipt of the audit
⫸ Deadline to award contract or reject all bids Answer: 60 days
PACKAGE 2026 CONFIRMED
⫸ A local government officer that serves on the agency that approves
development applications refers to a member of which board? Answer:
Planning Board
⫸ A payment process requires a purchase order system to have a
particular document as part of the purchase order and this same
document is the basis of payment. The document is: Answer: A voucher
(PO)
⫸ According to the Local Bond Law, BANs may be sold at what type of
sale? Answer: Private
⫸ Alternate calculation for the RUT Answer: Average of the prior three
years collection rates - allowable with a resolution of the governing body
⫸ Although there are exceptions, the Local Bond Law requires that the
sale of bonds shall be sold at which type of sale? Answer: Public
⫸ Amount of performance guarantee authorized by the Local Public
Contracts law Answer: 10% of the bid, not to exceed $20,000
⫸ An agency created to performa specific function or functions within a
municipal or county region. Must be self-liquidating. Budgets &
,operations are the responsibility of the governing body and its
management Answer: A municipal utility
⫸ An appropriation for "Cash deficit of preceding year" shall be raised
how? Answer: In full the immediate successive year of the deficit
⫸ An appropriation transfer would not be permited from:
a. Legal expenses
b. Public works s&w
c. Deferred Charges
d. All of the above
e. None of the above Answer: c. Deferred charges
⫸ An increase in anticipated revenue from a known and recurring
source will have what effect on the appropriation for the RUT Answer:
Would decrease the appropriation for the RUT
⫸ An obligation of funds by a local unit arising from the issuance of a
numerically controlled purchase order or contract. Said commitment of
funds reduces the amount that remains available for spending Answer:
Encumbrance
⫸ Any deficit in expenditures to which dedicated revenues are
applicable shall be provided for by an appropriation in which budget?
Answer: Current Fund
, ⫸ Any municipal utility that has cash receipts in a fiscal year sufficient
to meet operation and debt charges without recourse to general taxation
is considered to be: Answer: Self-liquidating
⫸ Appropriations CAP Answer: 2.5% or the index rate - whichever is
less
⫸ Cash management plan must be approved annual by the: Answer:
Governing Body
⫸ Contracts awarded by competitive contracting may not be for a term
exceeding what length of time? Answer: Five Years
⫸ Days required between approval and adoption of the budget Answer:
28 days
⫸ Deadline for adopting temporary budget Answer: 30 days from
beginning of the fiscal year
⫸ Deadline for corrective action plan to be submitted to DLGS Answer:
60 days from date the audit is received by the governing body
⫸ Deadline for the clerk to publish a synopsis of the audit with
recommendations Answer: 30 days from receipt of the audit
⫸ Deadline to award contract or reject all bids Answer: 60 days
