Budget Midterm Flashcards
NJ Municipalities, counties, fire districts and independent authorities must comply with the provisions of NJSA 40A:4-1 et seq which is also known as?
The Local Budget Law
What is 40A: called? 4-1?
Title, Chapter, Section
The budget is coded using what? which categorizes revenues and appropriations
Flexible Chart of Accounts
What is the CAFR code for S&W?
XX-XXX-01
What is the CAFR code for OE
XX-XXX-02
The major revenue items in the budget are:
Fund balance
Miscellaneous Revenues
Delinquent Taxes
Current Year Taxes
The amount of money required to be raised through property taxation is determined by subtracting anticipated revenues from the total appropriations in the budget. This is the….
equation for Amount to be raised by taxation
All local units shall maintain an encumbrance accounting system as per
TAD 85-1
It is important to maintain up-to-date inventories of all municipal assets for insurance coverage and to comply with the fixed assets directive________.
TAD 85-2
TAD 85-3 this is the official permanent financial record of the local unit which provides a summary of all financial transactions as they have been recorded in the books of original entry utilizing a double entry accounting system
General Ledger
when the revenue is not subject to reasonably accurate estimate in advance, may be included in said budget 40A:4-39
Dedication by Rider
A municipality who switch from calendar year to state fiscal year need to adopt _______ to account for the expenditures from ______________. The towns were allowed to issue ________________to finance the 6 months.
Transitional year budget
January 1 - June 30
Fiscal year adjustment bonds (FYABS)
The local budget law and rules adopted by the local finance board permit certain municipalities in sound fiscal condition to assume the responsibility, normally granted to the director of conducting the annual budget examination
Self - examination
The self-examination process is done on a rotating process with the director examining_______of municipal budgets and the other _________ being eligible for self-examination.
1/3
2/3
The __________ is the law which limits the amount of increase in appropriation from year to year to _____ of the previous year’s final appropriation or the municipal price deflator index, whichever is less. The director of DLGS must promulgate the _______which is based on the implicit price deflator for state and local gov’t.
Appropriation CAP - 1977 CAP Law
2.5%
COLA
A municipality may by ordinance, or a county by resolution, increase the COLA percentage up to _____ or bank, for up to two years, the difference between its final appropriations subject to the cap and 3.5%. _________ is not automatic.
3.5%
Cap banking
The official budget required to be adopted by local gov’t in NJ is a
Line Item Budget
NJSA 40A: 4-58 permits _____________to be made during the ____________of the fiscal year. NJSA 40A:4-59 permits transfers of approp reserves from the preceding year to be made during the __________ of the following fiscal year. By resolution adopted by ___________transfer funds.
budget transfers
last 2 months
first 3 months
2/3 vote of the full membership
Transfers may be made from______________ but not _______________
in -in and in - out
out - in and out - out
Since the official budget for the fiscal year is not adopted prior to the beginning of the year a ____________ must be adopted by resolution of the governing body ______________ of the beginning of the fiscal year covering the first quarter of the year. The total appropriations made by this resolution may not exceed _____________ of the total of all budget appropriations of the preceding year, less appropriations for _________, _____________, ___________. This limit applies to the full amount of the budget and not individual line items.
Temporary Budget
Within first 30 days
26.25%
Public Assistance, CIF, Debt Service
Municipal Budget Calendar:
Approval (Intro) by _________. File _________ Certified copies with the division ________ days after approval. Publication must be at least _______ days prior to hearing. Hearing must be at least ________ days after approval. Statutory Adoption date no later than ______________. Must file _________ certified complete copies with the division 3 days after adoption.
February 10th 3 copies 3 days after approval 10 days prior to public hearing 28 days after approval March 20 3 certified complete copies
When it is desired not to read the budget in full, the governing body must by resolution of not less than a_____________ determine that the budget shall be read by title and declare that these conditions have been meet.
Majority of the full membership
The budget may not be adopted without the certification of approval by the director. Final adoption is by resolution of the _________________, and maybe by title as previously indicated.
Majority of the full membership
A public hearing is required on any amendment that:
- adds a new item of appropriation in an amount in excess of _________ of the total amount of appropriation as stated in the approved budget, or
- increases or decreases any item of appropriation by more than __________, or
- increases the amount to be raised by taxes by more than __________, unless the same is made to include an emergency temporary approp only.
1%
10%
5%
Local budget law allows an appropriation for ___________ expenses in an amount not more than __________ of the total appropriation for operating purposes.
Contingent
3%
Capital improvements are financed through the current operating budget, by bonding, by federal aid or through the _________________. They require a __________ down payment and must have a useful life of at lease ________ and a maximum life of _________. If a local gov’t plans to incur costs of _________ or more in any one year for capital purposes, it must adopt a capital budget
Capital Improvement Fund
5%
5 years
40 years
$25,000
In municipalities with a population of 10,000 or more, the capital plan must be for _________, the current year plus five additional years. In municipalities with a population of less than 10,000, the capital plan must be for ________, the current year plus two additional years.
6 years
3 years
Debt service includes the payment of _________ and _________ on notes and bonds, as well as federal and state loans and improvement authority leases.
Principal
Interest
Payments due to various state pension systems including PERS, Consolidated PFRS, PFRS, DCRP, unemployment compensation and disability insurance and FICA are examples of ___________
Statutory expenditures
The payment of principal and interest on bonds and temporary notes for ______________ are included in the current fund appropriations of the muncipality.
Type 1 School District
The ______________ is a non-spending appropriation required by statute to ensure sufficient cash flow to cover the cash requirements of the school district, county and municipal obligations.
Reserve for uncollected taxes
____________is defined by NJSA 40A:4-24 as consisting of “the excess of quick assets including cash, investments, state or other public aid receivable, and deferred charges over legal and demand liabilities.:
Fund Balance
This law drastically changed who was eligible for pensions and how pension benefits are paid for and calculated. The legislation also required all state and local gov’t employees and some retirees to contribute to their health benefit costs. LFN 2011-20
PL 2011 Chapter 78
Preparation of tax maps, revaluation, revision and codification of ordinances, preparation of master plan, prep of drainage maps, prelim eng studies and planning necessary for the installation and construction of a sanitary sewer system, consolidation commission, contractually required severance liabilities resulting from layoff or retirement of emoloyees, prep of sanitary sewer map are examples of
5 year special emergenies
Damage to roads or bridges by snow, ice, frost or floods and public exigencies caused by civil disturbances are examples of
3 year special emergencies
Adopted in 2010 P.L. Law 2010, C.44 __________ imposes a ________ cap on the increase local gov’t tax levies subject to certain deductions.
Levy Cap - 2010 Cap Law
2%
_________ may be issued in an aggregate amount not exceeding the lesser of __________ or ______ of _________ of the equalized assessed valuation basis.
Capital notes
$200,000
1/2
1%
NJ municipalities us a _________ budgeting system and a ____________accounting system which is also referred to as _____________.
Cash Basis
Modified Accrual
OCBOA (other comprehensive basis of accounting)
The Annual Financial Statement is due
February 10th
The local property tax in NJ is considered an ___________.
Ad Valorem Tax
1 tax point is equal to _____________
one ten thousandth
The annual audit is due ___________ after the close of the fiscal year
180 days
The five major components of the DLGS are
- The Bureau of financial regulation
- The Bureau of Local Management Services
- The Bureau of Authority Regulation
- The office of Local Government Research
- The Local Finance Board
The Bureau of Financial Regulation
Provides fiscal oversight and essential services to municipal and county government
The Bureau of Local Management Services
Provides local government units with advisory and technical assistance on a variety of subjects and financial aid through several state budgeted programs
The bureau of Authority Regulation
supervises local public authorities and special districts on matters relating to budgeting, accounting and financial reportring
The office of local government research
provides local government units with assistance on information technology issues and state aid calculations
The local finance board
Is empowered to study the entire field of local government in NJ and promulgate rules and regulations for the interpretation and administration of state laws included within the jurisdiction of the DLGS as well as the method, scope and procedures of regular audits of local governments.
examples of miscellaneous revenues
CMPTRA, Licenses, fees and permits, fines and costs, int & costs on taxes, int & costs on assessments, Parking meter collections, replacement revenue - business personal property tax, bank corp business tax, int on investments, PILOT on state exempt property
examples of appropriations
19 - UEZ 20 - Government 21 - Land use admin 22 - Code enforcement 23 - Insurance 25 - Public Safety 26 - Public Works 27 - Health and Human services 28 - Parks and Recreation 29 - Education (incl library) 35 - Contingent 36 - Statutory Exp 37 - Judgements 40 - Private Revenues 41 - State and Federal Grants 43 - Municipal Court 45 - Debt service 50 - RUT
