CMFO Review Exam Questions and
Answers Graded A+
Every audit required by the Local Fiscal Affairs Law is required to be completed
by an accountant or auditor who holds an uncanceled license as: - Correct answer-
registered municipal accountant
The statutory responsibility for the filing of the Unaudited Annual Financial
Statements is assigned to which local government official - Correct answer-cfo
A local government officer that serves on a local government agency that approved
development applications would refer to a member of which board - Correct
answer-planning board
The "Local Fiscal Affairs Law" mandates that the Cash Management Plan be
approved annually by the: - Correct answer-governing body
The Local Bond Law stipulates that the maturities of all bonds shall be as
determined by the bond ordinance or by subsequent resolution and be within the
following limitations: - Correct answer-all bonds shall mature within the period of
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,usefulness, all bonds shall mature in annual installments, the governing body may
provide for a single or combined issue
The effective date of a bond ordinance is what length of time? - Correct answer-20
days after the first publication after adoption
All matters not required to be contained in a bond ordinance may be acted on by
subsequent resolutions passed by the affirmative votes of a majority of the
governing body - Correct answer-true
An increase in anticipated revenue from a known and recurring source may have
what effect on the appropriation for the Reserve for Uncollected Taxes? - Correct
answer-decrease the RUT
No resolution authorizing the entering into any contract shall be enacted unless it
shall recite that such a certificate showing the availability of funds has been
provided. In addition it requires: - Correct answer-the resolution specify the exact
line item appropriation or ordinance to be charged
The New Jersey Budget Law requires that the budget shall consist of a tabulated
statement of: - Correct answer-all anticipated revenues applicable to expenditures
for which appropriations are made
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,The four classifications of revenue are: - Correct answer-surplus anticipated,
miscellaneous revenues, receipts from delinquent taxes, amount to be raised by
taxation
Implementation of a dedicated tax program for open space, recreation, farmland
and historic preservation trust fund taxing districts are authorized by which of the
following: - Correct answer-referendum held at a general or specific election
The Local Budget Law permits the tax collection rate used to compute the RUT to
be based on an average when the tax collection rate has been affected by tax
refunds or adjustments from successful property tax appeals. The number of years
included in the calculation of the average is: - Correct answer-3
The limitation of a municipality's debt is regulated by the Local Bond Law. It stats
that the limit shall be a percentage of the average of the preceding three years
equalized assessed valuations. That percentage limit is which of the following: -
Correct answer-3.5
What is the value threshold established by the "Pay to Play" law, at which a
contract cannot be awarded by a New Jersey government entity - Correct answer-
17500
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, According to Local Bond Law the short term borrowing instruments are known as
Bond Anticipation Notes and these notes may not be issued for a period of time
exceeding: - Correct answer-1 year
All bond anticipation notes shall mature and be paid not later that which
anniversary of the date of the original notes? - Correct answer-10 years
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 - Correct answer-supplemental debt statement
The Local Public Contracts Law permits contacting to be entered into that exceed
the bidding threshold if the situation effects which of the following - Correct
answer-the public health, safety or welfare
The minimum number of days for the advertisement for the receipt of bids is: -
Correct answer-10 days
The NJAC, The Local Public Contracts Law Rules lists the general requirements
for all change orders one of those requirements is that: - Correct answer-
responsibility for change orders lies with the governing body
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
Answers Graded A+
Every audit required by the Local Fiscal Affairs Law is required to be completed
by an accountant or auditor who holds an uncanceled license as: - Correct answer-
registered municipal accountant
The statutory responsibility for the filing of the Unaudited Annual Financial
Statements is assigned to which local government official - Correct answer-cfo
A local government officer that serves on a local government agency that approved
development applications would refer to a member of which board - Correct
answer-planning board
The "Local Fiscal Affairs Law" mandates that the Cash Management Plan be
approved annually by the: - Correct answer-governing body
The Local Bond Law stipulates that the maturities of all bonds shall be as
determined by the bond ordinance or by subsequent resolution and be within the
following limitations: - Correct answer-all bonds shall mature within the period of
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,usefulness, all bonds shall mature in annual installments, the governing body may
provide for a single or combined issue
The effective date of a bond ordinance is what length of time? - Correct answer-20
days after the first publication after adoption
All matters not required to be contained in a bond ordinance may be acted on by
subsequent resolutions passed by the affirmative votes of a majority of the
governing body - Correct answer-true
An increase in anticipated revenue from a known and recurring source may have
what effect on the appropriation for the Reserve for Uncollected Taxes? - Correct
answer-decrease the RUT
No resolution authorizing the entering into any contract shall be enacted unless it
shall recite that such a certificate showing the availability of funds has been
provided. In addition it requires: - Correct answer-the resolution specify the exact
line item appropriation or ordinance to be charged
The New Jersey Budget Law requires that the budget shall consist of a tabulated
statement of: - Correct answer-all anticipated revenues applicable to expenditures
for which appropriations are made
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,The four classifications of revenue are: - Correct answer-surplus anticipated,
miscellaneous revenues, receipts from delinquent taxes, amount to be raised by
taxation
Implementation of a dedicated tax program for open space, recreation, farmland
and historic preservation trust fund taxing districts are authorized by which of the
following: - Correct answer-referendum held at a general or specific election
The Local Budget Law permits the tax collection rate used to compute the RUT to
be based on an average when the tax collection rate has been affected by tax
refunds or adjustments from successful property tax appeals. The number of years
included in the calculation of the average is: - Correct answer-3
The limitation of a municipality's debt is regulated by the Local Bond Law. It stats
that the limit shall be a percentage of the average of the preceding three years
equalized assessed valuations. That percentage limit is which of the following: -
Correct answer-3.5
What is the value threshold established by the "Pay to Play" law, at which a
contract cannot be awarded by a New Jersey government entity - Correct answer-
17500
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, According to Local Bond Law the short term borrowing instruments are known as
Bond Anticipation Notes and these notes may not be issued for a period of time
exceeding: - Correct answer-1 year
All bond anticipation notes shall mature and be paid not later that which
anniversary of the date of the original notes? - Correct answer-10 years
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 - Correct answer-supplemental debt statement
The Local Public Contracts Law permits contacting to be entered into that exceed
the bidding threshold if the situation effects which of the following - Correct
answer-the public health, safety or welfare
The minimum number of days for the advertisement for the receipt of bids is: -
Correct answer-10 days
The NJAC, The Local Public Contracts Law Rules lists the general requirements
for all change orders one of those requirements is that: - Correct answer-
responsibility for change orders lies with the governing body
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
