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CMFO Theory > HOMMA > Flashcards

HOMMA Flashcards

1
Q

TRUE or FALSE:

Due from State of NJ for Sr. Cit. deductions can be anticipated as a revenue in the current fund budget as non-cash surplus

A

TRUE

Need approval from DLGS for non-cash surplus.

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2
Q

Trust assessment fund cash is first pledged to:

A
  1. Retirement of serial bonds
  2. General capital
  3. General taxpayers
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3
Q

Municipal Library is paid on a ______ Basis

A

Quarterly Basis

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4
Q

TRUE OR FALSE

Budget transfers from the Capital Improvement Fund are not permitted.

A

True.

Capital improvement is outside CAP, can’t transfer our or in.

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5
Q

Corrective Action Plan Consists of:

A

Finding/Condition; Recommendation; Explanation; Corrective action; Implementation Date

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6
Q

When must the Corrective Action Plan must be completed?

A

60 days of receipt of the audit report

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7
Q

Who mails out Local Assessment Bills

A

Tax Collector

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8
Q

Who is the oversight of PERS and PFRS

A

NJ Department of Treasury

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9
Q

Developer escrows with monthly charges over $1,000, CFO is required to:

A

Provide an accounting statement to the developer on a monthly basis.

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10
Q

One tax point is equal to

A

One tenth-thousandth of the valuation (move decimal over 4 decimal places)

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11
Q

LFB can intervene when:

A

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

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12
Q

TRUE OR FALSE

Resident requesting 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 if:

A

Income > 2000
Gifts > 400
Property

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14
Q

TRUE OR FALSE:

The supplemental debt statement is filed b/w the 1st and 2nd reading of a bond ordinance:

A

FALSE

Prior to introduction of the bond ordinance

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15
Q

TRUE OR FALSE:

3 different bond ordinances are introduced at 1 public meeting only one supplemental debt statement 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 realized in the previous year.

A

FALSE

It is based on sheet 26

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17
Q

TRUE OR FALSE:

ADS is due upon introduction of a bond ordinance.

A

FALSE

SDS is due upon introduction of a bond ordinance

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18
Q

TRUE OR FALSE

Fed single audit is required if fed grant expenditures => 750000.

A

TRUE

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19
Q

TRUE OR FALSE

Cash management plan can be ammended any time

A

TRUE

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20
Q

Net debt =

______ - _______

A

Gross debt - deductions

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21
Q

Liquidity is: security that can be converted into _____

A

Cash

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22
Q

Chairperson of the LFB

A

Director of DLGS

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23
Q

Old escrow accounts escheat to :

A

State as unclaimed property

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24
Q

TRUE OR FALSE

Interest on Utility Assessment Debt is appropriated in the current fund

A

FALSE

Raised in the utility operating fund

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25
Q 
2/3 majority vote is required for which of the following: 
     A.Cancelation of appropriations
     B. Chapter 159
     C. Budget Transfer
     D.Petty cash.
A

C. Budget Transfers

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26
Q

TRUE OR FALSE

In regard to use of PC-Cards, under no circumstances may a transaction exceed 15% of municipality bid threshold

A

FALSE

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27
Q

TRUE OR FALSE:
Pursuant to budget law, municipalities are permitted to overspend a legal line item appropriation if the overall current fund budget remains in a surplus position.

A

FALSE

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28
Q

When a Municipality that carries statutory excess in reserve for an animal control fund @ YE, what happens to excess?

A

Excess is due to current fund and recorded as MRNA

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29
Q

TRUE OR FALSE:

Director approves Budget

A

FALSE

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30
Q

NJSA 40A:2-27

A

Public Sale (review statute)

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31
Q

TRUE OR FALSE:

The unexpended balance of debt service must be cancelled by resolution and no bids were submitted.

A

FALSE

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32
Q

TRUE OR FALSE:

An emergency note can be issued in anticipation of the collection of taxes in a fiscal year

A

FALSE

TANs are not emergency notes

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33
Q

TRUE OR FALSE:

Capital Budget must be adopted by a majority of the governing body.

A

FALSE

2/3’s (look into, he’s not sure)

34
Q

TRUE OR FALSE:

Municipalities are permitted to negotiate with a vendor, after 2 attempts, responses to bids were too high

35
Q

TRUE OR FALSE:
If trust assessment fund cash is less than the required budgeted amount to retire debt service, a required appropriation in the CF budget is necessary to cover the deficit.

36
Q

The number of miles of roads paved in terms of expenditure would be an example of which type of budgeting:

A

Performance based budgeting

37
Q

Maturity schedule for bonds does not have to be included in a bond ordinance?

A

True
(this is a multiple choice question on test, not true false)
(know contents of bond ordinance)

38
Q

Budget appropriation transfers during the last 2 months of yr, requires what vote:

A

2/3 of full membership

39
Q

TRUE OR FALSE:

DLGS approval does not need to be included in specs for banking services

A

True

this is a multiple choice question on test, not true false

40
Q

Prepaid Taxes does not create a deferred charge?

A

True

this is a multiple choice question on test, not true false

41
Q

Best practices which goes on municipal website?
A. Past 3 years of adopted budgets
B.CY proposed Budget and most recent financial statements and audits.
C. All

42
Q

Equalized valuation represents:

A

The true value of all taxable property in the municipality.

43
Q

TRUE OR FALSE:

Derivatives not a permissible investment.

44
Q

Budget transfers during last 2 months may not be made to:

A

Deferred charges, RUT, DP on improvements and CIF

45
Q

Period of usefulness can never exceed:

46
Q

Borrowing capacity is based on:

47
Q

TRUE OR FALSE:

Patrol cars are bondable assets.

A

FALSE

But, Patrol SUVs are.

48
Q

Local Government Bonds may be sold privately, except when the total of bonds is greater than $________

49
Q

Eligible Shared services include:

A

Joint collection of taxes, joint municipal court, joint solid waste collection/disposal, health services

50
Q

TRUE OR FALSE
DLGS must approve: Petty Cash, Change in title and text, dedicated by rider & emergency appropriations in excess of 3% of operating appropriations

51
Q

T or F: Dedicated by rider must be accounted for in the current fund.

52
Q

T or F: Special improvement district budgets must be approved by the gov body.

53
Q

T or F:The budget message does not need to contain an explanation of appropriation and levy caps and a listing of appropriation split by CAP.

A

False

this was a multiple chouce

54
Q

Correct procedure to adopt a budget:

A

Intro & Approval, Pub adv, pub hearing, amendments, adv & public hearing on amend (if necessary), adoption

55
Q

If a muni does not have an ethics board:

A

Local finance board would act as ethics board

56
Q

What is the official budget required to be adopted?

A

Line item budget

57
Q

T or F: Payment of utility assessment bond principal is recorded as an expenditure in the utility assessment trust fund

58
Q

Which is not a proper way to distribute a tax overpayment? Apply to the amount to be raised by taxation

A

Apply to the amount to be raised by taxation

59
Q

T or F: Town administrator can be enrolled in defined contribution retirement plan (DCRP) as opposed to PERS

60
Q

2010 CAP eliminated the add-on increases for the RUT
Transitional Aid must demonstrate that user fees have been established for ______ _______, so that taxpayers are not subsidizing ___________ _________.

A

Discretionary Services

Nonessential Programs

61
Q

T or F: Unexpended bond proceeds may not be appropriated to fund additional capital improvement projects with a shorter useful life

62
Q

T OR F: Storm recovery reserve can be used for salt and sand purchases, snow removal and salaries and wages.

63
Q

The local assessment receivable for each parcel of property falls on the:

A

tax collector

64
Q

Trust assessment cash is first pledged to:

A

The retirement of bonds and notes.

65
Q

In what fund is gross utility debt reflected in?

A

Water capital

66
Q

Method of accounting for transactions:

A

Modified accrual basis

67
Q

When recording budget entry to set up budget, appropriations are :

68
Q

T or F: Dedication by rider added to a municipality’s budget must be accounted for in the current fund as opposed to the trust fund

69
Q

T or F: Capital budget must be adopted by the majority of the gov body present

70
Q

T or F: The summary of notice of a bond sale may not be advertised electronically

71
Q

T OR F: Cancelation of a improvement authorization funded completely from the CIF may be returned to the fund balance account

72
Q

T or F: 3 lowest bidders security must be returned within 60 days

73
Q

Unexpended bond proceeds may not be appropriated to fund additional capital improvement projects with a ______ useful life

74
Q

A dedication by rider can be made to budget based upon

A

The amount of revenue could not be reasonably estimated in advance

75
Q

Regulations concerning fiscal controls are established in:

76
Q

Vote required To adopt budget

A

Majority vote of full membership of gov body

77
Q

Vote required to pass bond ordinance

A

2/3 full membership of gov body

78
Q

Vote required for budget transfer

A

2/3 full membership of gov body

79
Q

Appropriations CAP %

A
  1. 5 % or index rate, whichever is higher.

3. 5% if resolution passed by gov body

80
Q

When if first BAN payment due?
Formula for first BAN Payment?
Latest BANs can Mature by?

A

Due third anniversary date
Principal/(life*2)-1
1st day, 5th month, following close of the 10th year
(10/1/06 –> 5/1/17)

81
Q

Bond Ordinance Vote

A

2/3 vote of members of the governing body

CMFO Theory (5 decks)

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