CPWM REVIEW QUESTIONS WITH COMPLETE
SOLUTIONS
Purpose of Budgets
Financial Control - Primary purpose, required by law
Policy Instrument - Focus priorities, policy reform
Management tool - Basis for management of operations
Economic tool - spending money in areas in need Amendments
are allowable
Amendments in budgets are allowable?
True
Know Types of Funds
Fill in
Current Fund - consists of general revenues, tax revenue,
appropriations- general gov't operation
Trust Funds - dedicated fund monies collected are used for that
activity -Dog Trust Fund, Assessment Fund
General Capital - Issuance of debt, BAN
Utility - specific service- water, sewer, electric, pool Funds
Include Assets, Expenditures, and Liabilities
State fiscal year
,July 1-June 30
Calendar year
jan -dec
appropration - revenues = taxes
Two Sides of the Budget Cash Based Budget System Raised by
Taxation Appropiatoins minus Revenues Revenues
Acknowledged When Realized Appropriations Charged When
Obligations are Incurred Encumbrances
temp budget Jan 1 - jan 15
Cost Accounting
Total Lost Time Sick Vacation Holidays Personal Military
Bereavement
Budget Transfers
N.J.S.A. 40A:4-58 permits appropriation transfers to be made
during last two months of the year
Also allows transfer during the first three months of succeeding
year.
Anticipated Revenue
Cant anticipate more than made last year
Emergency Appropriation
N.J.S.A. 40A:4-46
Provides for emergency appropriations
, Amount of appropriation must be raised by taxation in the
following year
It is financed by surplus at the time
Required to have 2/3 of full membership agree
fill in
Types of Emergency appropriation 3
Water Main Break Building Collapse Natural Disaster
Budget can be amended before or after adoption
yes
Types of taxes. ex sales tax
name three type of taxes in this country
fill in
Income Tax (Federal)
Income Tax (State)
Sales Tax
What factors in for Total Tax Rate. ex County tax
fill in
Municipal Tax
County Tax
School Tax
County Library Cost
, What is the minimum down payment
5%
Capital life of the project/equipment must be at least blank years
5
The capital plan is blank years for under 10,000 population
3
The capital plan is blank years for over 10,000 population
6
How much can be Retained for $100,000 or more project
Retainage 2% for $100,000 or more
What Does a Performance Bond do
Fill in
Leverage protection to complete project
ensure Satisfactorily Construct
Public Improvements
Paid Out Even If Contractor is Bankrupt
Financial Uses
5% Down Payment
100% Funding
Preliminary Expenses
Budget Schedule
Calendar Year
SOLUTIONS
Purpose of Budgets
Financial Control - Primary purpose, required by law
Policy Instrument - Focus priorities, policy reform
Management tool - Basis for management of operations
Economic tool - spending money in areas in need Amendments
are allowable
Amendments in budgets are allowable?
True
Know Types of Funds
Fill in
Current Fund - consists of general revenues, tax revenue,
appropriations- general gov't operation
Trust Funds - dedicated fund monies collected are used for that
activity -Dog Trust Fund, Assessment Fund
General Capital - Issuance of debt, BAN
Utility - specific service- water, sewer, electric, pool Funds
Include Assets, Expenditures, and Liabilities
State fiscal year
,July 1-June 30
Calendar year
jan -dec
appropration - revenues = taxes
Two Sides of the Budget Cash Based Budget System Raised by
Taxation Appropiatoins minus Revenues Revenues
Acknowledged When Realized Appropriations Charged When
Obligations are Incurred Encumbrances
temp budget Jan 1 - jan 15
Cost Accounting
Total Lost Time Sick Vacation Holidays Personal Military
Bereavement
Budget Transfers
N.J.S.A. 40A:4-58 permits appropriation transfers to be made
during last two months of the year
Also allows transfer during the first three months of succeeding
year.
Anticipated Revenue
Cant anticipate more than made last year
Emergency Appropriation
N.J.S.A. 40A:4-46
Provides for emergency appropriations
, Amount of appropriation must be raised by taxation in the
following year
It is financed by surplus at the time
Required to have 2/3 of full membership agree
fill in
Types of Emergency appropriation 3
Water Main Break Building Collapse Natural Disaster
Budget can be amended before or after adoption
yes
Types of taxes. ex sales tax
name three type of taxes in this country
fill in
Income Tax (Federal)
Income Tax (State)
Sales Tax
What factors in for Total Tax Rate. ex County tax
fill in
Municipal Tax
County Tax
School Tax
County Library Cost
, What is the minimum down payment
5%
Capital life of the project/equipment must be at least blank years
5
The capital plan is blank years for under 10,000 population
3
The capital plan is blank years for over 10,000 population
6
How much can be Retained for $100,000 or more project
Retainage 2% for $100,000 or more
What Does a Performance Bond do
Fill in
Leverage protection to complete project
ensure Satisfactorily Construct
Public Improvements
Paid Out Even If Contractor is Bankrupt
Financial Uses
5% Down Payment
100% Funding
Preliminary Expenses
Budget Schedule
Calendar Year
