Municipal Finance Administration with correct answers 2025
Special improvement district budgets must be approved by - correct answersThe governing
body
Special District Budgets are approved by - correct answersb) The voters
The method of providing needed school capital facilities and equipment as an alternative to
bond referendums is: - correct answersLease purchase financing
In self balancing accounts: - correct answersAssets must equal liabilities plus fund balance.
Special Assessment Notes may be issued to finance - correct answersSewer lines.
Municipal Authority finances must be - correct answersa) Self-Liquidating
Fire Districts and Authorities must submit their budgets to the director of DLGS at least
_________prior to the
beginning of their fiscal year - correct answers60 days
Increases in the tax levies of Fire Districts are - correct answersrestricted to 2% of the prior
year's tax levy
Special improvement Districts must make an annual report to the municipal governing body
within - correct answerswithin 30 days of the end of their fiscal year
Fire District Audits must be completed by an RMA, LPA or CPA within - correct answers4 months
of the close of its fiscal year
,The audit of the Fire district must be filed with the governing body which created the fire
district within - correct answers5 days of filing with the district
Special improvement district budgets must be approved by - correct answersThe governing
body
Special District Budgets are approved by: - correct answersb) The voters
T/F School districts may use part of the municipal borrowing margin with the approval of the
Municipal
Governing Body - correct answersFALSE
T/F - The governing body of a municipality may change the type of school district by ordinance. -
correct answersFALSE
T/F - A school audit must be filed within six months of the close of the budget year. - correct
answersFALSE
T/F - Utility surplus may be appropriated by the governing body for use in the general municipal
budget. - correct answersTRUE
T/F - Utility and authority budgets are subject to the municipal appropriations cap law. - correct
answersFALSE
T/F - A fire district may appropriate surplus to the local municipal budget - correct answersFALSE
T/F - An authority may refuse the request by a municipality to appropriate undesignated fund
balance to the Municipal Governing Body. - correct answersTRUE
T/F - A board of education may appeal the cuts made by the governing body to the
Commissioner of Education
,within 15 days of the certification of the governing body - correct answersTRUE
T/F - School districts do not have to provide a 5% down payment on the amount of bonds to be
sold for capital
projects - correct answersTRUE
T/F - Any appropriation of fund balance from an authority to the local governmental unit may
not exceed 5% - correct answersTRUE
T/F - Municipal authorities may be created by resolution of the governing body - correct
answersFALSE
T/F - Schools debt limit is based on the district's grade configuration. - correct answersTRUE
T/F - All Type II school district budgets are subject to referendum in April of each year. - correct
answersFALSE
T/F - All Type II school district Board Members are elected for three year terms each April. -
correct answersFALSE
T/F - School debt is reported on the municipality's annual debt statement. - correct
answersTRUE
The General Ledger is the: - correct answersPermanent financial record of the local unit
The method of accounting for recording transactions which is used by NJ municipalities is called:
- correct answersa) Modified accrual basis
The interest paid by a bank on Developer Escrows accounts must be: - correct answersSplit 2/3
to the developer, 1/3 to the municipality if the deposit is in excess of $5000
, Corrective Action Plans must be approved by the governing body and filed with the Director of
the Division of Local Government Services within: - correct answerssixty days after the receipt of
the audit
Technical Accounting Directive Number 85-2 mandates: - correct answersThe use of a fixed
assets recording system
GASB Statement 45 requires local governing bodies to disclose: - correct answersthe liability and
cost of post retirement health benefits.
Auditors of financial statements are primarily retained to - correct answersoffer an opinion on
the reasonableness of an entity's financial reports
Interest on utility debt assessment is appropriated in the - correct answersUtility fund
In self balancing accounts: - correct answersAssets must equal liabilities plus fund balance
The difference between income and expenditures is an organization's: - correct answersNet
cash flow
The comments and recommendation section of the audit must be - correct answersRead by the
governing body
. In self balancing accounts: - correct answersAssets must equal liabilities plus fund balance.
A municipal audit must comply with the federal requirements of the Single Audit Act of 1984
when the municipality has state and federal grants totaling - correct answers$750,000 or more
The corrective action plan must be received by the Division of Local Government Services _____
within receipt of the audit. - correct answers60 days
Special improvement district budgets must be approved by - correct answersThe governing
body
Special District Budgets are approved by - correct answersb) The voters
The method of providing needed school capital facilities and equipment as an alternative to
bond referendums is: - correct answersLease purchase financing
In self balancing accounts: - correct answersAssets must equal liabilities plus fund balance.
Special Assessment Notes may be issued to finance - correct answersSewer lines.
Municipal Authority finances must be - correct answersa) Self-Liquidating
Fire Districts and Authorities must submit their budgets to the director of DLGS at least
_________prior to the
beginning of their fiscal year - correct answers60 days
Increases in the tax levies of Fire Districts are - correct answersrestricted to 2% of the prior
year's tax levy
Special improvement Districts must make an annual report to the municipal governing body
within - correct answerswithin 30 days of the end of their fiscal year
Fire District Audits must be completed by an RMA, LPA or CPA within - correct answers4 months
of the close of its fiscal year
,The audit of the Fire district must be filed with the governing body which created the fire
district within - correct answers5 days of filing with the district
Special improvement district budgets must be approved by - correct answersThe governing
body
Special District Budgets are approved by: - correct answersb) The voters
T/F School districts may use part of the municipal borrowing margin with the approval of the
Municipal
Governing Body - correct answersFALSE
T/F - The governing body of a municipality may change the type of school district by ordinance. -
correct answersFALSE
T/F - A school audit must be filed within six months of the close of the budget year. - correct
answersFALSE
T/F - Utility surplus may be appropriated by the governing body for use in the general municipal
budget. - correct answersTRUE
T/F - Utility and authority budgets are subject to the municipal appropriations cap law. - correct
answersFALSE
T/F - A fire district may appropriate surplus to the local municipal budget - correct answersFALSE
T/F - An authority may refuse the request by a municipality to appropriate undesignated fund
balance to the Municipal Governing Body. - correct answersTRUE
T/F - A board of education may appeal the cuts made by the governing body to the
Commissioner of Education
,within 15 days of the certification of the governing body - correct answersTRUE
T/F - School districts do not have to provide a 5% down payment on the amount of bonds to be
sold for capital
projects - correct answersTRUE
T/F - Any appropriation of fund balance from an authority to the local governmental unit may
not exceed 5% - correct answersTRUE
T/F - Municipal authorities may be created by resolution of the governing body - correct
answersFALSE
T/F - Schools debt limit is based on the district's grade configuration. - correct answersTRUE
T/F - All Type II school district budgets are subject to referendum in April of each year. - correct
answersFALSE
T/F - All Type II school district Board Members are elected for three year terms each April. -
correct answersFALSE
T/F - School debt is reported on the municipality's annual debt statement. - correct
answersTRUE
The General Ledger is the: - correct answersPermanent financial record of the local unit
The method of accounting for recording transactions which is used by NJ municipalities is called:
- correct answersa) Modified accrual basis
The interest paid by a bank on Developer Escrows accounts must be: - correct answersSplit 2/3
to the developer, 1/3 to the municipality if the deposit is in excess of $5000
, Corrective Action Plans must be approved by the governing body and filed with the Director of
the Division of Local Government Services within: - correct answerssixty days after the receipt of
the audit
Technical Accounting Directive Number 85-2 mandates: - correct answersThe use of a fixed
assets recording system
GASB Statement 45 requires local governing bodies to disclose: - correct answersthe liability and
cost of post retirement health benefits.
Auditors of financial statements are primarily retained to - correct answersoffer an opinion on
the reasonableness of an entity's financial reports
Interest on utility debt assessment is appropriated in the - correct answersUtility fund
In self balancing accounts: - correct answersAssets must equal liabilities plus fund balance
The difference between income and expenditures is an organization's: - correct answersNet
cash flow
The comments and recommendation section of the audit must be - correct answersRead by the
governing body
. In self balancing accounts: - correct answersAssets must equal liabilities plus fund balance.
A municipal audit must comply with the federal requirements of the Single Audit Act of 1984
when the municipality has state and federal grants totaling - correct answers$750,000 or more
The corrective action plan must be received by the Division of Local Government Services _____
within receipt of the audit. - correct answers60 days
