CMFO COMPREHENSIVE EXAM 2026 QUESTIONS AND
SOLUTIONS RATED A+
✔✔When must the temporary budget for capital expenses be adopted? - ✔✔During the
last 10 days of the prior fiscal year
✔✔Statutory dates for the budget - ✔✔Introduction - February 10th
Adoption - March 20th
✔✔When must the introduced budget be sent to the director? - ✔✔Within 3 days after
introduction
✔✔With whom must the adopted budget be filed and by what time? - ✔✔With the
director and the county board of taxation within 15 days of adoption
✔✔When must the advertisement for bids be published? - ✔✔At least 10 days prior to
the receipt of bids
✔✔When must the advertisement for budget amendments be published? - ✔✔At least 3
days prior to public hearing
✔✔When must the corrective action plan be filed and to whom? - ✔✔Within 60 days
from receipt of the audit to the Clerk & the Director
✔✔How long does the governing body have to review the audit? - ✔✔45 days
✔✔When must the synopsis of audit be published - ✔✔Within 60 days of receipt of
audit
✔✔What must be included in the synopsis of audit report publication - ✔✔Corrective
action plan
✔✔T/F - Any document filed with DLGS is subject to OPRA - ✔✔True - only once
submitted
✔✔T/F - You can advertise for a bond sale electronically - ✔✔True
✔✔T/F - With DLGS approval, you may anticipate the amount due from the state for
seniors & vets as surplus anticipated over the "cash surplus" reported on the AFS -
✔✔True
✔✔Requirement to reappropriate unexpended funds from an improvement authorization
- ✔✔Must be used for a project of like or lesser useful life
,✔✔T/F - The governing body approves the budget for special districts - ✔✔False
✔✔T/F - DLGS must approve budget transfers - ✔✔False
✔✔Chair of the Local Finance Board - ✔✔The Director of DLGS
✔✔T/F - The maturity schedule must be included in the bond ordinance - ✔✔False
✔✔Requirements on Financial Disclosure Statement - ✔✔Income over $2000
Gifts over $450
All Real Property
✔✔T/F - Explanation for the increase in the tax rate is required in the budget message -
✔✔False
✔✔Continuing Education for CFO certificate - ✔✔30 CEUs in 2 years
✔✔General contents of Annual Debt Statement - ✔✔Gross Debt - deductions = Net
debt
✔✔Three facts about dedication by rider - ✔✔Accounted for in trust fund
Revenues not reasonably estimated in advance
Set aside for a specific purpose
✔✔Where do excess funds in the animal control trust account go? - ✔✔To Current as
MRNA
✔✔Format of Corrective Action Plan - ✔✔Finding/Condition
Recommendation
Explanation/Corrective Action
Implementation Date
✔✔An increase in the collection rate equals a(n) _________________ in the RUT
appropriation - ✔✔Decrease
✔✔HB Waiver calculation - ✔✔Up to 25% of amount saved by municipality or $5,000,
whichever is less
✔✔T/F - A municipality may adopt their own pay to play policy by resolution - ✔✔False -
ordinance
✔✔T/F - Overtime is pensionable - ✔✔False
✔✔Example of performance based budgeting - ✔✔Miles of roads paved
, ✔✔Escrow reporting requirements - ✔✔Expenses over $1,000 - Monthly
Balance over $5,000 - Quarterly
✔✔T/F - AFS Must be filed on EMMA - ✔✔True
✔✔What documents must be published on the municipal website? - ✔✔Current budget
& 3 years prior budgets
Most Recent - AFS
Most Recent - ADS
Most Recent - Audit
✔✔Single audit threshold - ✔✔$750,000 in federal funds expended
✔✔Who must approve the creation of an authority? - ✔✔Local Finance Board
✔✔What is required to create a utility? - ✔✔An ordinance
✔✔T/F - Use of a procurement card over quote threshold is never allowed - ✔✔False
✔✔T/F - Calculation of receipt of delinquent taxes is based on prior year cash receipts -
✔✔False
✔✔Alternate RUT calculation - ✔✔Prior three years average collection rate
Resolution required prior to introduction
✔✔Deadline for new hire to file financial disclosure statement - ✔✔Within 30 days from
appointment
✔✔How often is the Internet report of contributions filed? - ✔✔Quarterly (IROC)
✔✔How often must library payments be made? - ✔✔Quarterly
✔✔Supplemental debt statment must be filed before __________________ -
✔✔Introduction of a bond ordinance
✔✔What is a tax point? - ✔✔1/10,000 (.0001) of net valuation
✔✔Where and when does the adopted budget get filed? - ✔✔With the director & the
county board of taxation within 15 days from adoption
✔✔Cash raised for trust assessments are first pledged to: - ✔✔Assessment liens bonds
& notes
SOLUTIONS RATED A+
✔✔When must the temporary budget for capital expenses be adopted? - ✔✔During the
last 10 days of the prior fiscal year
✔✔Statutory dates for the budget - ✔✔Introduction - February 10th
Adoption - March 20th
✔✔When must the introduced budget be sent to the director? - ✔✔Within 3 days after
introduction
✔✔With whom must the adopted budget be filed and by what time? - ✔✔With the
director and the county board of taxation within 15 days of adoption
✔✔When must the advertisement for bids be published? - ✔✔At least 10 days prior to
the receipt of bids
✔✔When must the advertisement for budget amendments be published? - ✔✔At least 3
days prior to public hearing
✔✔When must the corrective action plan be filed and to whom? - ✔✔Within 60 days
from receipt of the audit to the Clerk & the Director
✔✔How long does the governing body have to review the audit? - ✔✔45 days
✔✔When must the synopsis of audit be published - ✔✔Within 60 days of receipt of
audit
✔✔What must be included in the synopsis of audit report publication - ✔✔Corrective
action plan
✔✔T/F - Any document filed with DLGS is subject to OPRA - ✔✔True - only once
submitted
✔✔T/F - You can advertise for a bond sale electronically - ✔✔True
✔✔T/F - With DLGS approval, you may anticipate the amount due from the state for
seniors & vets as surplus anticipated over the "cash surplus" reported on the AFS -
✔✔True
✔✔Requirement to reappropriate unexpended funds from an improvement authorization
- ✔✔Must be used for a project of like or lesser useful life
,✔✔T/F - The governing body approves the budget for special districts - ✔✔False
✔✔T/F - DLGS must approve budget transfers - ✔✔False
✔✔Chair of the Local Finance Board - ✔✔The Director of DLGS
✔✔T/F - The maturity schedule must be included in the bond ordinance - ✔✔False
✔✔Requirements on Financial Disclosure Statement - ✔✔Income over $2000
Gifts over $450
All Real Property
✔✔T/F - Explanation for the increase in the tax rate is required in the budget message -
✔✔False
✔✔Continuing Education for CFO certificate - ✔✔30 CEUs in 2 years
✔✔General contents of Annual Debt Statement - ✔✔Gross Debt - deductions = Net
debt
✔✔Three facts about dedication by rider - ✔✔Accounted for in trust fund
Revenues not reasonably estimated in advance
Set aside for a specific purpose
✔✔Where do excess funds in the animal control trust account go? - ✔✔To Current as
MRNA
✔✔Format of Corrective Action Plan - ✔✔Finding/Condition
Recommendation
Explanation/Corrective Action
Implementation Date
✔✔An increase in the collection rate equals a(n) _________________ in the RUT
appropriation - ✔✔Decrease
✔✔HB Waiver calculation - ✔✔Up to 25% of amount saved by municipality or $5,000,
whichever is less
✔✔T/F - A municipality may adopt their own pay to play policy by resolution - ✔✔False -
ordinance
✔✔T/F - Overtime is pensionable - ✔✔False
✔✔Example of performance based budgeting - ✔✔Miles of roads paved
, ✔✔Escrow reporting requirements - ✔✔Expenses over $1,000 - Monthly
Balance over $5,000 - Quarterly
✔✔T/F - AFS Must be filed on EMMA - ✔✔True
✔✔What documents must be published on the municipal website? - ✔✔Current budget
& 3 years prior budgets
Most Recent - AFS
Most Recent - ADS
Most Recent - Audit
✔✔Single audit threshold - ✔✔$750,000 in federal funds expended
✔✔Who must approve the creation of an authority? - ✔✔Local Finance Board
✔✔What is required to create a utility? - ✔✔An ordinance
✔✔T/F - Use of a procurement card over quote threshold is never allowed - ✔✔False
✔✔T/F - Calculation of receipt of delinquent taxes is based on prior year cash receipts -
✔✔False
✔✔Alternate RUT calculation - ✔✔Prior three years average collection rate
Resolution required prior to introduction
✔✔Deadline for new hire to file financial disclosure statement - ✔✔Within 30 days from
appointment
✔✔How often is the Internet report of contributions filed? - ✔✔Quarterly (IROC)
✔✔How often must library payments be made? - ✔✔Quarterly
✔✔Supplemental debt statment must be filed before __________________ -
✔✔Introduction of a bond ordinance
✔✔What is a tax point? - ✔✔1/10,000 (.0001) of net valuation
✔✔Where and when does the adopted budget get filed? - ✔✔With the director & the
county board of taxation within 15 days from adoption
✔✔Cash raised for trust assessments are first pledged to: - ✔✔Assessment liens bonds
& notes
