CMFO CORE EXAM TEST 2026 QUESTIONS AND SOLUTIONS
RATED A+
✔✔10 years - ✔✔NJSA 40A:2-8 stipulates that all bond anticipation notes hall mature
and be paid not later than which anniversary of the date of the original notes?
✔✔Supplemental debt statement - ✔✔The Local Bond law requires that "prior to the
passage on first reading of any bond ordinance, or ordinance amending a bond
ordinance, except amending as to matters which are not required to be contained in a
bond ordinance or which does not increase the total amount of the obligations
authorized by such bond ordinance," the financial officer shall file with the office of the
clerk which document.
✔✔the public health, safety or welfare of the community - ✔✔The Local Public
Contracts Law, specifically permits contracts to be entered into that exceed the bidding
threshold if the situation effects which of the following:
✔✔10 days - ✔✔The minimum number of days for the advertisement for the receipt of
bids is
✔✔Responsibility lies with governing body - ✔✔The New Jersey Administrative Code,
The Local Public Contract Law rules, the general requirements for all change orders
one of those requirements is that:
✔✔Current fund budget - ✔✔Section 36 of the Local Budget Law requires that any
anticipated deficit in expenditures to which dedicated revenues are applicable shall be
provided for by an appropriation in the budget. The appropriation of the anticipated
deficit would be included in which budget?
✔✔August 10 - ✔✔The statutory deadline for the filing of the unaudited annual financial
statement for a state fiscal year municipality is
✔✔$1000000 - ✔✔What is the dollar amount threshold that must be exceeded in order
for a property owner to file a complaint directly with the NJ Tax Court in the appealing of
property assessments?
✔✔the director of DLGS - ✔✔The local Fiscal Affairs Law permits the establishment of
petty cash funds. The person that has authority to approve/disapprove of the petty cash
fund is
✔✔Tax collector - ✔✔Which public official is statutorily responsible for the billing of a
special assessment levy
✔✔2% - ✔✔A NJ municipality is prohibited from increasing its' tax levy by what
percentage rate before permitted exclusions are added to the tax levy?
,✔✔Trust Fund - ✔✔The Municipal Public Defenders Law contains a requirement for the
accounting of application fees that are collected. It is required that the funds collected
shall be deposited where?
✔✔Capital improvements - ✔✔Which of the following is an appropriation that would not
be subject to limitation as provided by the NJ CAP law?
✔✔True - ✔✔T/F: The Local Government CAP Law addresses the permitted transfer of
current year appropriations and reserve year appropriations. The statute prohibits the
transfer of funds from an appropriation that is not subject to limitation to an
appropriation that is subject to limitation.
✔✔$2000 - ✔✔The Local Government Ethics Law requires the filing of an annual
financial disclosure statement. The disclosure statement shall include the name,
address and each source of income earned by the local government employee or
member of their immediate family in excess of what amount.
✔✔Public - ✔✔Although there are exceptions for specific situations, the Local Bond
Law, requires that the sale of bonds shall be sold at which type of sale.
✔✔5% - ✔✔No bond ordinance shall be finally adopted unless it appropriates to the
purpose, or ratably to the respective purposes to be financed, in addition to the
obligations thereby authorized, a sum as a down payment which is no less than what
percent of the amount of the obligations.
✔✔down payment sources - ✔✔Previously adopted budget or budgets for down
payment or capital improvement, from moneys actually held by the local unit and
previously contributed for such purpose or by emergency appropriation
✔✔10 days - ✔✔The Local Budget Law requires that all municipal budgets be
advertised in full or in a summary format prior to the date of a public hearing on said
budget. The advertisement shall be published at lease how many days prior to the date
of the public hearing?
✔✔30 days - ✔✔The Local Fiscal Affairs Law requires the Municipal Clerk to publish a
synopsis of audit including recommendations in the official newspaper. This must be
done within how many days after receipt of the annual audit?
✔✔the governing body - ✔✔The Local Fiscal Affairs law grants authority for the
approval of claims. The authority is given to:
✔✔5% - ✔✔To the extent there is available surplus revenue collected by a municipality
supplying a utility service which is regulated by the Board of Public Utilities an amount
not to exceed what percentage of the annual costs of operation of the utility may be
, transferred from the accounts of the municipal utility and included in the local budget as
surplus revenue?
✔✔Prior to adoption of the budget - ✔✔The Local Budget Law permits a local unit to
anticipate as miscellaneous revenue the total amount of all payments due and payable
to the local unit during the fiscal year as a result of the sale of property by the local unit.
The obligation to make such payment must be entered into prior to which event?
✔✔Thirty days - ✔✔Within how many days of the beginning of the fiscal year shall a
governing body adopt temporary appropriations to provide for the period between the
beginning of the fiscal year and the adoption of the budget?
✔✔Purpose, maximum amount of debt, gross debt - ✔✔The contents of a bond
ordinance are specified by the Local Bond Law. Which are required?
✔✔2/3 of full membership - ✔✔A bond ordinance shall be finally adopted by what vote
of the governing body?
✔✔5 - ✔✔The Local Bond Law specifies the minimum period of usefulness for any
improvement for which obligations are authorized, said time shall not be less than how
many years?
✔✔Categories of goods and services, advertising manner, & contract award manner -
✔✔The Local Public Contracts Law authorizes the governing bodies of 2 or more
contracting units to enter into a joint agreement for the provision of goods and services
for use by their respective jurisdictions. The agreement shall be entered into by
resolution of each jurisdiction and shall include which of the following?
✔✔internal control elements - ✔✔Prompt deposit of all funds, prohibition against
cashing employee's checks, periodic surprise cash counts
✔✔statutory expenditures - ✔✔Pensions, social security systems, & unemployment
compensation and temporary disability funds
✔✔cash basis - ✔✔In NJ the budget system followed is known as
✔✔60 days - ✔✔NJ Local Finance Notice 92-15 requires that a corrective action plan
be prepared in accordance with OMB requirements and submitted to the DLGS no more
than how many days from the date the audit is received by the Governing body
✔✔Synopsis of audit report - ✔✔The corrective action plan should be referenced in
which legal notice that is published in the official newspaper?
RATED A+
✔✔10 years - ✔✔NJSA 40A:2-8 stipulates that all bond anticipation notes hall mature
and be paid not later than which anniversary of the date of the original notes?
✔✔Supplemental debt statement - ✔✔The Local Bond law requires that "prior to the
passage on first reading of any bond ordinance, or ordinance amending a bond
ordinance, except amending as to matters which are not required to be contained in a
bond ordinance or which does not increase the total amount of the obligations
authorized by such bond ordinance," the financial officer shall file with the office of the
clerk which document.
✔✔the public health, safety or welfare of the community - ✔✔The Local Public
Contracts Law, specifically permits contracts to be entered into that exceed the bidding
threshold if the situation effects which of the following:
✔✔10 days - ✔✔The minimum number of days for the advertisement for the receipt of
bids is
✔✔Responsibility lies with governing body - ✔✔The New Jersey Administrative Code,
The Local Public Contract Law rules, the general requirements for all change orders
one of those requirements is that:
✔✔Current fund budget - ✔✔Section 36 of the Local Budget Law requires that any
anticipated deficit in expenditures to which dedicated revenues are applicable shall be
provided for by an appropriation in the budget. The appropriation of the anticipated
deficit would be included in which budget?
✔✔August 10 - ✔✔The statutory deadline for the filing of the unaudited annual financial
statement for a state fiscal year municipality is
✔✔$1000000 - ✔✔What is the dollar amount threshold that must be exceeded in order
for a property owner to file a complaint directly with the NJ Tax Court in the appealing of
property assessments?
✔✔the director of DLGS - ✔✔The local Fiscal Affairs Law permits the establishment of
petty cash funds. The person that has authority to approve/disapprove of the petty cash
fund is
✔✔Tax collector - ✔✔Which public official is statutorily responsible for the billing of a
special assessment levy
✔✔2% - ✔✔A NJ municipality is prohibited from increasing its' tax levy by what
percentage rate before permitted exclusions are added to the tax levy?
,✔✔Trust Fund - ✔✔The Municipal Public Defenders Law contains a requirement for the
accounting of application fees that are collected. It is required that the funds collected
shall be deposited where?
✔✔Capital improvements - ✔✔Which of the following is an appropriation that would not
be subject to limitation as provided by the NJ CAP law?
✔✔True - ✔✔T/F: The Local Government CAP Law addresses the permitted transfer of
current year appropriations and reserve year appropriations. The statute prohibits the
transfer of funds from an appropriation that is not subject to limitation to an
appropriation that is subject to limitation.
✔✔$2000 - ✔✔The Local Government Ethics Law requires the filing of an annual
financial disclosure statement. The disclosure statement shall include the name,
address and each source of income earned by the local government employee or
member of their immediate family in excess of what amount.
✔✔Public - ✔✔Although there are exceptions for specific situations, the Local Bond
Law, requires that the sale of bonds shall be sold at which type of sale.
✔✔5% - ✔✔No bond ordinance shall be finally adopted unless it appropriates to the
purpose, or ratably to the respective purposes to be financed, in addition to the
obligations thereby authorized, a sum as a down payment which is no less than what
percent of the amount of the obligations.
✔✔down payment sources - ✔✔Previously adopted budget or budgets for down
payment or capital improvement, from moneys actually held by the local unit and
previously contributed for such purpose or by emergency appropriation
✔✔10 days - ✔✔The Local Budget Law requires that all municipal budgets be
advertised in full or in a summary format prior to the date of a public hearing on said
budget. The advertisement shall be published at lease how many days prior to the date
of the public hearing?
✔✔30 days - ✔✔The Local Fiscal Affairs Law requires the Municipal Clerk to publish a
synopsis of audit including recommendations in the official newspaper. This must be
done within how many days after receipt of the annual audit?
✔✔the governing body - ✔✔The Local Fiscal Affairs law grants authority for the
approval of claims. The authority is given to:
✔✔5% - ✔✔To the extent there is available surplus revenue collected by a municipality
supplying a utility service which is regulated by the Board of Public Utilities an amount
not to exceed what percentage of the annual costs of operation of the utility may be
, transferred from the accounts of the municipal utility and included in the local budget as
surplus revenue?
✔✔Prior to adoption of the budget - ✔✔The Local Budget Law permits a local unit to
anticipate as miscellaneous revenue the total amount of all payments due and payable
to the local unit during the fiscal year as a result of the sale of property by the local unit.
The obligation to make such payment must be entered into prior to which event?
✔✔Thirty days - ✔✔Within how many days of the beginning of the fiscal year shall a
governing body adopt temporary appropriations to provide for the period between the
beginning of the fiscal year and the adoption of the budget?
✔✔Purpose, maximum amount of debt, gross debt - ✔✔The contents of a bond
ordinance are specified by the Local Bond Law. Which are required?
✔✔2/3 of full membership - ✔✔A bond ordinance shall be finally adopted by what vote
of the governing body?
✔✔5 - ✔✔The Local Bond Law specifies the minimum period of usefulness for any
improvement for which obligations are authorized, said time shall not be less than how
many years?
✔✔Categories of goods and services, advertising manner, & contract award manner -
✔✔The Local Public Contracts Law authorizes the governing bodies of 2 or more
contracting units to enter into a joint agreement for the provision of goods and services
for use by their respective jurisdictions. The agreement shall be entered into by
resolution of each jurisdiction and shall include which of the following?
✔✔internal control elements - ✔✔Prompt deposit of all funds, prohibition against
cashing employee's checks, periodic surprise cash counts
✔✔statutory expenditures - ✔✔Pensions, social security systems, & unemployment
compensation and temporary disability funds
✔✔cash basis - ✔✔In NJ the budget system followed is known as
✔✔60 days - ✔✔NJ Local Finance Notice 92-15 requires that a corrective action plan
be prepared in accordance with OMB requirements and submitted to the DLGS no more
than how many days from the date the audit is received by the Governing body
✔✔Synopsis of audit report - ✔✔The corrective action plan should be referenced in
which legal notice that is published in the official newspaper?
