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CMFO Theory > CMFO THEORY > Flashcards

CMFO THEORY Flashcards

1
Q

True or False: Due from the state of NJ for senior citizen deductions can be anticipated as a revenue in the current fund budget as non cash surplus

A

True

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2
Q

Trust assessment fund cash is first pledged to what?

A

The retirement of bonds.

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3
Q

The municipal library is paid on what basis?

A

Quarterly basis

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4
Q

True or False: Budget transfer from Capital Improvement Fund are not permitted

A

True it is out of the cap

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5
Q

What consists of the Corrective Action Plan?

A

Find/Condition
Recommendation
Explanation and Corrective Action
Implementation Date

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6
Q

Who mails out the Local Assessment Bills?

A

Tax Collector

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7
Q

Who oversees PERS and PFRS?

A

NJ Department of Treasury

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8
Q

When must the corrective action plan be adopted?

A

60 days of receipt of the audit report

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9
Q

When a developer escrow is over 1,000 what is the CFO required to do?

A

Provide accounting statement to the developer on a monthly basis.

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10
Q

What does one tax point equal?

A

One ten-thousandth of the net value

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11
Q

When can the Local Finance Board intervene with a municipality?

A

Default on bonds
Tax collection rate is less than 70%
Cash deficit of the tax levy in excess of 4% for 2 consecutive years

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12
Q

True or False: resident request to inspect vouchers that were approved for payment at the most recent meeting.
Inspection of vouchers must be made available for inspection immediately.

A

True

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13
Q

Financial Disclosure Forms requirements

A

Income> 2,000
Gifts> 400
Property within the state of NJ

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14
Q

True or False: The Supplemental Debt Statement is field between the 1st and 2nd reading of a bond ordinance?

A

False: Prior to introduction

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15
Q

True or False: Three different bond ordinances are introduced at one public meeting only one supplemental debt statement is required

A

True

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16
Q

True or False: The anticipated revenue for Receipts from Delinquent Taxes is limited to the amount of revenue in the previous year.

A

False: Sheet 26

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17
Q

True or False: The Annual Debt Statement is due upon introduction of the a bond ordinance

A

False Supplemental Debt Statement

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18
Q

True of False: Federal Single Audit is required if federal grant expenditures equals or exceeds 750,000

A

True

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19
Q

Net Debt equals

A

Net= Gross Debt- Deductions

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20
Q

What is liquidity?

A

Security that can be converted into cash

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21
Q

What is the chairperson of the local finance board

A

Director of the Division of Local Government Services

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22
Q

What do old escrow accounts escheat to?

A

State of NJ as unclaimed property

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23
Q

True or False: Interest on utility assessment debt is appropriated in the current fund

A

False: Utility

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24
Q

What vote is required or budget transfer?

A

2/3 majority

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25
True or false: use of p cards under no circumstances may a transaction exceed 15% of a municipal bid threshold
False
26
True or False: Local budget law municipalities are permitted to over spend a legal line item appropriation if the overall current fund budget remains in a surplus position
False
27
True or False: Cash Management plan can be amended at any time
True
28
True or False: mun. that carries a statutory excess for an animal control fund at year end, the excess is due to current and recorded as MRNA
True
29
What does not approve budget transfer
Director
30
True or False: the unexpended balance of debt service must be cancelled by resolution
False: lapse to operations
31
True or False: an emergency note can be issued in anticipation of the collection of taxes in a fiscal year
False: tax anticipation notes
32
What vote is required for a Capital Budget
2/3 of full membership
33
True or false: muni. are permitted to negotiate with a vendor after 2 attempts, responses to bids were too high and no bids were submitted
True
34
True or False: if the trust assessment fund cash is less than the required budgeted amount to retire debt service a required approp. in the current fund is necessary to cover the deficit
True
35
The number of miles of roads paved in terms of expenditures would be an example of which type of budgeting?
Performance Based Budgeting
36
What does not have to be included in a bond ordinance
Maturity schedule of bonds
37
Budget approp. transfers during the last two months of the calendar year requires which of the following votes?
2/3 full membership
38
Which of the following would not be included in specifications for banking services
DLGS approval of specificiations
39
Which does not create a deferred charge
prepaid taxes applied to taxes receivable
40
What are the best practices on a muni. website
Past 3 years of adopted budget Current year proposed budget Most recent financial statements and audit
41
What does equalized valuation represent
The true value of all taxable property in the muni.
42
True or False: derivatives is not a permissible investment
True
43
Budget transfer during the last two months may not be made to
Deferred Charges RUT Down Payment on Improvements Capital Improvement Fund
44
What is the period of usefulness that can never exceed
40 years
45
The DLGS must approve
Petty Cash Fund Change in Title and Text Dedication by Rider Emergency Approp. in excess of 3% of operating approp.
46
Borrowing capacity is based on
Net Debt
47
True or False: Patrol Cars are not bondable assets
True useful life is less than 5 years
48
True or False: local government bonds may be sold privately except when the total of bonds is more than 1,000,000
True
49
What are eligible shared services
Joint collection of taxes Joint municipal court Joint solid waste collection/disposal
50
True or False: dedication by rider must be accounted for in the current fund
False Trust Fund
51
True or False: Special improvement district budgets must be approved by the governing body
True
52
True or False: the budget message should contain explanation of approp. and levy CAPS and a listing of approp. split by CAP
True
53
What is the correct procedure to adopt a budget
``` Introduction and Approval Public Advertisement Public Hearing Amendments Advertising and Public Hearing on Amendments if necessary Adoption ```
54
True or False: if a muni. does not have an ethics board the local finance board would act as the ethics board
True
55
What is the official budget required to be adopted
Line Item Budget
56
True or False: payment of utility assessment bond principal is recorded as an expenditure in the utility assessment trust fund
True
57
What is a not a proper way to distribute a tax overpayment?
apply to the amount to be raised by taxation
58
True or False: town administrator can be enrolled in DCRP as opposed to PERS
True
59
True or False: 2010 CAP eliminated the add on increases for the RUT
True
60
True or False: Transitional aid must be demonstrate that user fees have been est. for discretionary services, so that taxpayers are nor subsidizing nonessential programs
True
61
True or False: Unexpended bond proceeds may not be appropriated to fund additional capital improvement projects with a shorter useful life.
True
62
True or False: Storm recovery reserve can be used for salt, sand purchases, snow removal and salaries and wages
True
63
The local assessment receivable for each parcel of property falls on who
Tax Collector
64
What is the true assessment cash first pledged to?
Retirement of bonds
65
In what fund is gross utility debt reflected in?
Water Capital Fund
66
What is a dedication by rider?
Amount of dedicated revenue is not subject to a reasonably accurate estimate in advanced.
67
What is the method of accounting transactions?
Modified Accrual Basis
68
What is the minimum budget requirement?
Explanation of the tax rate not required to be explained.
69
What must the annual financial statements be filed with?
EMMA
70
True or false: Overtime is not part of the pensionable salary
True
71
What accounts can payroll cost be apart of?
``` Current Fund Utility Operating Trust Gen Capital Grants ```
72
True or False: Utility assessment bond principal is appropriated in the utility trust assessment fund
True
73
True or False: Tax overpayments are not appropriated to the Amount to be raised by taxation
True

CMFO Theory (1 decks)

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