Mid-Term Study Guide 2

Question 1

The basis for municipal budget in NJ is found in the

Answer 1

Local Budget Law

Question 2

The budget is coded by using the

Answer 2

Flexible Chart of Accounts (FCOA)

Question 3

The official permanent financial record of the local unit

Answer 3

The General Ledger

Question 4

Name of the parts of this statute: 40A:4-1

Answer 4

40A - Title
4 - Chapter
1 - Section

Question 5

Give two examples of coding

Answer 5

xx-xxx-1 (Salary & Wages)

xx-xxx-2 (Other Expenses)

Question 6

A request to the Director to approve in the budget of a local unit dedicated revenues anticipated to be received during the year

Answer 6

Dedication by Rider

Question 7

A municipality who switches to SFY needs to adopt a ____ for expenditures from ____ to ____.

Answer 7

Transitional Year Budget

January 1 through June 30

Question 8

Towns are allowed to issue _____ to finance the first 6 months of SFY

Answer 8

Fiscal Year Adjustment Bonds

Question 9

In regards to examining the budget, the Director examines what portion of the municipalities?

The other percentage of municipalities, which is ____, are eligible for examining their own, known as what type of process?

Answer 9

1/3

2/3

Self Examination Process

Question 10

A unit of information in a document, the official budget, shown on a separate line of its own. Its purpose is to provide a vehicle of controlling what is spent by a department or organization.

Answer 10

Line Item Budget

Question 11

Permitted during the last 2 months of the fiscal year and during the first 3 months of the succeeding year

Answer 11

Budget Transfers

Question 12

When are budget transfers permitted?

What percentage of the governing body must adopt a transfer resolution?

Answer 12

During the last 2 months of the fiscal year and during the first 3 months of the succeeding year

2/3 vote of the full membership

Question 13

A method of amending the budget that allows the Director to approve the insertion of any special item of revenue, such as grant funds, in the budget when the item is made available by law

Answer 13

Chapter 159s

Question 14

What must by adopted by municipality to cover the expenses in the beginning of the year?

Within how many days of the start of the year must this be adopted?

Answer 14

Temporary Budget

Within the first 30 days

Question 15

The total appropriations from the temporary budget cannot exceed what percentage of the total of all budget appropriations of the preceding year?

Which three appropriations are exceptions to this rule?

Answer 15

26.25%

Debt Service, Capital Improvement Fund, Public Assistance

Question 16

The budget must be introduced no later than what date?

How many copies must be filed with the Director of DLGS and within how many days?

Answer 16

February 10

3 copies within 3 days

Question 17

How many days prior to the public hearing must the budget be published?

How many days after approval should the public hearing for the budget be?

Answer 17

At least 10 days

At least 28 days

Question 18

What date can the budget be adopted by?

What percentage of the governing body must adopt the budget?

Answer 18

No later than March 20

A majority of the full membership

Question 19

How many certified copies of the adopted budget must be filed with the division?

How many certified copies must be filed with the county board of taxation?

Answer 19

3

1

Question 20

The governing body may amend the budget prior to, during, or after public hearing, but not in the following cases:

The amendment adds a new item of appropriation in an amount in excess of ___.

Increases or decreases an item by more than ___.

Increases amount to be raised by taxation more than ___.

Answer 20

1%

10%

5%

Question 21

TAD 85-1
TAD 85-2
TAD 85-3

Answer 21

Encumbrance Accounting
Fixed Asset Accounting
General Ledger