Misc Questions - Statutes Review Flashcards
Statutory responsibility for filing AFS
CFO
Cash Management Plan approved by
Governing Body
Maturities of bonds shall be determined by bond ordinance or subsequent resolution within the following limitations
- Mature within average period of usefulness
- mature in annual installments
- governing body may provide for a single or combined bond issue
-Effective Date of Bond Ordinance
-20 days after first publication after adoption
True/False: All matters not required to be contained in a bond ordinance may be acted upon by subsequent resolutions passed by majority of full
True
Increase in anticipated revenue has what effect on RUT
-Decreases RUT
Certification of Availability of Funds must include
-Exact line item of appropriation or ordinance to be charged
Budget Law requires that the budget shall consist of
-All anticipated revenues applicable to expenditures for which appropriations are made
4 classifications of revenue
- Surplus Anticipated
- Misc Rev Anticipated
- Rec Delinquent Taxes
- Amount to be raised by taxation
Dedicated tax program (open space, recreation) authorized by
Referendum
Tax Collection rate used to compute RUT based on average when tax collection rate has been affected by tax refunds or adjustments from successful property taxes. How may years?
3
Municipalities Debt Limitation
3.5%
BANs issued for time not to exceed?
1 year
BANs mature and paid not later than which anniversary date of the original note
10 years
LPCL permits contracts to be entered into that exceed bid threshold if situation effects:
-public health, safety or welfare of community
Minimum number of days to advertise receipt of bids
10 days
Requirement of Change Order
-Responsibility of Governing Body
Anticipated Deficit in expenditures which dedicated revenues are applicable are included in which budget?
Current Fund
AFS due date for state fiscal year muni.
August 10
Threshold for tax appeals in NJ Tax Court
$1,000,000
Authority to approve Petty Cash Fund prior to activation
Director DLGS
Responsible for billing special assessment levy
Tax Collector
Tax Levy Cap
2%
Municipal Public Defenders Law requires funds collected and deposited where?
Dedicated Trust Fund
Appropriations not subject to limitation of NJ CAP law
-None of the above: Audit Fees, Police S&W, Utilities
Financial Disclosure Statement shall include name, address and each source of income earned by employee or immediate family member in excess of what amount?
$2,000
Source of down payment on bonds
- Provision in previously adopted budget or budgets of local unit for down payment or capital improvement purposes
- From money actually held by local unit and previously contributed for purpose other than by the local unit
- By emergency appropriation
Advertisement of budget how many days prior to date of public hearing?
10
Clerk to publish synopsis of audit including recommendations in official newspapers how may days after receipt of audit?
30
Authority to approve claims
Governing body
Surplus of utility regulated by BPU included in C/F budget as surplus revenue - what % not to exceed annual cost of operation of utility?
5%
Budget Law permits a local unit to anticipate as misc revenue the total amount of all payments due and payable to the local unit during the fiscal year as a result of sale of property by local unit. The obligation to make such payment must be entered into prior to which event?
Adoption of Budget
How many days to adopt temporary appropriations?
30 days
Contents of Bond Ordinance
- Purpose of Obligation
- Max amount of Bonds or Notes
- Statement show that gross debt increased by authorization of such obligations
Bond Ordinance adopted by what vote
2/3 of full membership
Minimum Period of Usefulness
5 years
Resolution for Joint agreements for provisions of goods ad services should include?
- Categories of Goods & Services
- Manner of advertising for bids
- manner for awarding contracts
Basic elements of internal controls
- prompt deposits
- prohibition against cashing employees paychecks
- periodic surprise cash counts
Statutory expenditures in the budget includes
- pensions
- Social Security
- Unemployment Compensation and Temporary Disability Funds
NJ Budget system followed is
Modified accrued basis
Submit Corrective Action Plan to Division no more than how many days from the date the audit is received by governing body?
60
The Corrective Action Plan should be referenced in which legal notice that is published in official newspaper?
Synopsis of audit report
Circumstances that allow for negotiation of contract award:
- Advertised for bids on two occasions and no bids received
- Governing body rejected bids on two occasions because prices were determined unreasonable
- On one occasion there were no bids and on another occasion prices were determined unreasonable
Multi-year lease agreements, unless excepted by statute, to contain clause making the agreement subject to the availability and appropriation annually of sufficient funds. True/False
True
Contracts, except professional services awarded for how may months
24 months
How many days prior to receipt of bids to advertise for collection of solid waste?
60
BANs sold at what type of sale
Private
When selling bonds, all bidders are required to deposit a certified or cashier’s check equal to not less thank what percentage of bonds
2%
Amount of premium bid for bonds shall not exceed:
$1,000
Legal depositories for public moneys are to be authorized by whom according to Section 14 of Local Fiscal Affairs Law
Majority vote of full membership
Employees may be covered by a blanket bod except for which of the following positions
-All covered by blanket bond: Tax Collector and Treasurer, Tax Collector & Assessor, Treasurer and Municipal Court Judge, Municipal Court Judge and Tax Collector
Budget are adopted by what vote of governing body?
Majority vote of the full membership
What vote of governing body is required to authorize the transfer of funds?
Majority vote of the full membership
Which board is empowered to promulgate rules and regulations for the interpretation and administration of state laws within jurisdiction of DLGS?
Local Finance Board
An agency created to perform a specific function or functions within a municipal county or region, By law this agency is required to be self-liquidating. Their budgets and operations are responsibility of the elected governing body and its management.
A municipal utility
Every financial institution permitted to be a depository of public funds is reviewed annually by NJ Dept of Banking & Insurance and re-certified as to their eligibility to act as a depository of public funds. What law requires this certification?
Governmental Unit Deposit Protection Act (GUDPA)
True/False: Municipalities and Counties can invest in government money market mutual funds.
True
What amount of regular emergency authorizations to be appropriated by the governing body?
Full amount next succeeding fiscal year
An obligation of funds by a local unit arising from the issuance of a numerically controlled purchase order or contract. Said commitment of funds reduces the amount that remains available for spending.
Encumbrance
Emergency appropriations can be financed from which of the following?
-Surplus and Emergency Notes
Maximum percentage of temporary appropriations, with exception of statutory exclusions
26.25%
In the current section of accounts shall consist of excess of quick assets such as cash, investments, state and other public aid receivable and deferred charges over legal and demand liabilities.
Surplus
Appropriation for contingent expenses in an amount not more than what percentage of total appropriations for operating purposes?
3%
Capital Plan: What is the population threshold that would require adoption of a six year plan?
Over 10,000
A payment process requires a purchase order system to have a particular document as part of the purchase order and this same amount is the basis of payment. The document is?
Voucher
The value is calculated for each municipality by the State Division of Taxation. It is intended to represent, as nearly as possible, the true value of all taxable property within a municipality. The process relies heavily on an analysis of sales of property in the municipality,
Equalized Value
When a bid award is made the bidder will furnish a performance bond or other security as a guarantee or indemnification. The guarantee shall be in which of the following amounts?
10% of bid not to exceed $20,000
Without taking action to authorize an exception, a contracting unit shall award the contract or reject all bids within such time as specified in the invitation of bids, but in no case more than how many days
60
Local Bond Law permits adoption of a bond ordinance in excess of statutory debt limit for which of the following
Fire, Flood, or Other Disaster
True/False: Multi purpose bond ordinance obligation may be provided for in a single issue of obligations
True
Appropriations Cap Limit
2.5% or index rate, whichever is less
Qualification is determined by whom for local examination of budget
CFO
Fixed Asset Threshold
$5000
Total structure of records and procedures which discover, record, classify and report information on the financial position and operations of a government unit or any of its funds, balanced account groups and organizational components
Accounting System
True/False: Three methods used by tax assessor to determine values of real property are: Sales approach, replacement approach, income approach
True
True/False: Dedicated revenues requires any anticipated deficit in expenditure to which dedicated revenues are applicable shall be provided for by an appropriation in the operating budget
True
Local Budget public hearing shall not be held less than how many days after the approval of the budget in the case of municipality
28 days
True/False: One criterion requiring a public hearing would be if the budget amendment increases or decreases any item or appropriation by more than 1%
False - 10%
An appropriation transfer would not permit a transfer from an appropriation for
Deferred Charges
TANs may be renewed from time to time, but all such notes and any renewals thereof shall mature in the case of a municipality within how many days after beginning of succeeding fiscal year
120 days
Municipal Public Defenders Law requires DLGS as part of their budget review to determine if the amount of money in a dedicated trust fund exceeded by what % the amount expended for providing public defender services during the preceding year. The excess of that % shall be remitted by the municipality to the NJ Criminal Disposition and Review Collection Fund. What is the %
25%
Tax Point is equal to
One ten thousandth of net valuation taxable
True/False: Local Bond Law permits the sale of bonds at one time or in installments
True
CFO before the end of the first month of each fiscal year, the officer shall make and file in the office of the Clerk and the Director which document
Annual Debt Statement
Public Utility that has cash receipts in a fiscal year sufficient to meet operation and debt charges without recourse to general taxation is considered
Self-Liquidating
Annual Audit Due
6 months at the end of fiscal year
True/False: The amount of revenue generated by an increase in a municipalities valuations based solely on applying the preceding year’s local purposes tax rate to the assessed value of new construction or improvements, or on applying the preceding year’s county tax rate to the apportionment valuation of new construction or improvements has no effect on the CAP base of either.
False
True/Falseded All debt service, including that of Type 1 school districts in excluded from “CAP” limitations
True
True/False: Implementation of ESIP if it is determined that the savings generated from reduced energy use from the program will be sufficient to cover the cost of the program’s energy conservation measures in an energy savings program.
True
