{CMFO}Certified Government Finance Officer Verified
Multiple Choice and Conceptual Actual Emended
Exam Questions With Reviewed 100% Correct
Detailed Answers
Guaranteed Pass!!Current Update
Jensen Index - ANSWER An index that uses the capital asset pricing model to
determine whether a money manager outperformed a market index
Return on equity (ROE) - ANSWER An indicator of profitability. Determined by
dividing net income for the past 12 months by common stockholder equity
(adjusted for stock splits). Investors use ROE as a measure of how a company is
using its money.
Return on investment (ROI) - ANSWER Generally, book income as a
proportion of net book value
ARC - ANSWER Annual Required Contribution, expense that a government
would report in its accrual-based financial statements
Average Final Compensation - ANSWER One-twelfth (1/12) of the average
annual compensation of the 5 best years of the last 10 years of creditable service
Local Law Plan - ANSWER Local law plan is a defined benefit pension plan,
Can override statutes, Statute can cover public safety officers that include officers
responsible for both police and fire
,Firefighters Pension Trust Fund - ANSWER A special fund that records
additions and deductions.
NPL - Net Pension Liability - ANSWER The difference between the present
value of pension benefits earned by plan members and the assets accumulated to
pay those benefits.
Covered payroll - ANSWER The total salary paid to employees in the plan as
defined by GASB 67 & 68.
Pensionable payroll - ANSWER The amount of pay used to calculate pension
benefit contributions.
Board of Trustees - ANSWER A governing body consisting of two full-time
firefighters, five members, two legal residents appointed by a governing body, and
one chosen by majority of the other four members.
Term of Board Members - ANSWER Each member serves a two-year term and
may succeed him/herself.
Combined plan - ANSWER A plan that includes one fire and one police
member.
, Board Responsibilities - ANSWER A legal entity that maintains retirement
plan assets, requiring employer deposits quarterly and employee deposits
immediately.
State excise tax - ANSWER A tax of 1.85% on real and personal property
insurance that must be deposited with the trust within 5 days of receipt.
Investment Income - ANSWER Income generated from investments that must
meet at least quarterly.
Board Duties - ANSWER Investing not more than 5% in common stock from
any one company and not more than 25% in foreign securities.
Trust Fund Professionals - ANSWER Professionals paid from the trust fund,
including actuaries, legal counsel, technical advisors, and money managers.
Retirement Age - ANSWER Eligibility for retirement at 10 years of service at
age 55 or 25 years of service at age 52.
Retirement Benefit Calculation - ANSWER Calculated as 2.75% times years of
credited service times average final compensation.
Local Law Impact on Retirement - ANSWER Local law can exceed 2.75%, but if
less, no excise tax funds are received by the plan.
, Retirement Income Options - ANSWER Options that may reduce monthly
income, payable based on the option selected.
Death Before Eligible - ANSWER If a member dies before eligibility,
contributions equal 100% of employee contributions.
Separation Before Eligible - ANSWER If a member separates before 10 years,
they receive 100% of employee contributions; if greater than 10 years, they
become eligible after age 50.
Impairment of Health - ANSWER Conditions such as disease in line of duty or
accidents that are presumed to be work-related.
Annual Report - ANSWER A report sent to the Division of Retirement
including an actuarial valuation report every 3 years.
Actuarial Impact - ANSWER Must be presented to the State (DMS) before the
second and final reading of the ordinance.
Pension Investment Policy - ANSWER A policy for long-term investors that
articulates specific goals regarding the maturity and funding status of the plan.
Florida Retirement System (FRS) - ANSWER A system where assets are
managed by Florida PRIME, providing annual Pension Actuarial Statements for Net
Pension Liability.
Multiple Choice and Conceptual Actual Emended
Exam Questions With Reviewed 100% Correct
Detailed Answers
Guaranteed Pass!!Current Update
Jensen Index - ANSWER An index that uses the capital asset pricing model to
determine whether a money manager outperformed a market index
Return on equity (ROE) - ANSWER An indicator of profitability. Determined by
dividing net income for the past 12 months by common stockholder equity
(adjusted for stock splits). Investors use ROE as a measure of how a company is
using its money.
Return on investment (ROI) - ANSWER Generally, book income as a
proportion of net book value
ARC - ANSWER Annual Required Contribution, expense that a government
would report in its accrual-based financial statements
Average Final Compensation - ANSWER One-twelfth (1/12) of the average
annual compensation of the 5 best years of the last 10 years of creditable service
Local Law Plan - ANSWER Local law plan is a defined benefit pension plan,
Can override statutes, Statute can cover public safety officers that include officers
responsible for both police and fire
,Firefighters Pension Trust Fund - ANSWER A special fund that records
additions and deductions.
NPL - Net Pension Liability - ANSWER The difference between the present
value of pension benefits earned by plan members and the assets accumulated to
pay those benefits.
Covered payroll - ANSWER The total salary paid to employees in the plan as
defined by GASB 67 & 68.
Pensionable payroll - ANSWER The amount of pay used to calculate pension
benefit contributions.
Board of Trustees - ANSWER A governing body consisting of two full-time
firefighters, five members, two legal residents appointed by a governing body, and
one chosen by majority of the other four members.
Term of Board Members - ANSWER Each member serves a two-year term and
may succeed him/herself.
Combined plan - ANSWER A plan that includes one fire and one police
member.
, Board Responsibilities - ANSWER A legal entity that maintains retirement
plan assets, requiring employer deposits quarterly and employee deposits
immediately.
State excise tax - ANSWER A tax of 1.85% on real and personal property
insurance that must be deposited with the trust within 5 days of receipt.
Investment Income - ANSWER Income generated from investments that must
meet at least quarterly.
Board Duties - ANSWER Investing not more than 5% in common stock from
any one company and not more than 25% in foreign securities.
Trust Fund Professionals - ANSWER Professionals paid from the trust fund,
including actuaries, legal counsel, technical advisors, and money managers.
Retirement Age - ANSWER Eligibility for retirement at 10 years of service at
age 55 or 25 years of service at age 52.
Retirement Benefit Calculation - ANSWER Calculated as 2.75% times years of
credited service times average final compensation.
Local Law Impact on Retirement - ANSWER Local law can exceed 2.75%, but if
less, no excise tax funds are received by the plan.
, Retirement Income Options - ANSWER Options that may reduce monthly
income, payable based on the option selected.
Death Before Eligible - ANSWER If a member dies before eligibility,
contributions equal 100% of employee contributions.
Separation Before Eligible - ANSWER If a member separates before 10 years,
they receive 100% of employee contributions; if greater than 10 years, they
become eligible after age 50.
Impairment of Health - ANSWER Conditions such as disease in line of duty or
accidents that are presumed to be work-related.
Annual Report - ANSWER A report sent to the Division of Retirement
including an actuarial valuation report every 3 years.
Actuarial Impact - ANSWER Must be presented to the State (DMS) before the
second and final reading of the ordinance.
Pension Investment Policy - ANSWER A policy for long-term investors that
articulates specific goals regarding the maturity and funding status of the plan.
Florida Retirement System (FRS) - ANSWER A system where assets are
managed by Florida PRIME, providing annual Pension Actuarial Statements for Net
Pension Liability.
