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1
Q

5 Years

A

Minimum useful life of a capital item

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2
Q

40 years

A

Maximum useful life for a capital project

max bond maturity

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3
Q

5% down payment

A
  • Needed for bonds and notes authorized
  • a municipality can ask for a waiver from the LFB
  • appropriated in CF, CIP, Emergency
  • req on every bond ord unless you have a self-liquidating utility
  • CIF, Reserve, Emergency, Developers Contribution
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4
Q

TAD 85-1

A

Encumbrance Accounting System is required

every municipality must utilize a minimum purchasing system

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5
Q

TAD 85-2

A

DLGS requires each municipality to maintain a Fixed Assets

accounting system; threshold for fixed assets is $5,000 but can be less

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6
Q

TAD 85-3

A

DLGS requires each municipality to maintain a General Ledger for at least the current fund

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7
Q

NJSA 40A:2

A

Local Bond Law

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8
Q

NJSA 40A:4

A

Local Budget Law

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9
Q

NJSA 40A:5

A

Local Fiscal Affairs Law

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10
Q

NJSA 40A:11

A

Local Public Contracts Law

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11
Q

2%

A

County Debt Limit

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12
Q

3.5%

A

Municipal Debt Limit

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13
Q

Cash Management Plan

A

Designates banks, depositories and investments

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14
Q

$750,000

A

Single Audit required if the total of fed and state grants expended are $750,000or more

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15
Q

GUDPA - Governmental Unit Depository Protection Act

A

insurance plan,certificates June/Dec

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16
Q

February 10th

A

Annual Financial Statement due
Calendar year municipality
8/10 for SFY; 1/26 for County

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17
Q

January 31st

A

Annual Debt Statement Due; SFY 7/31-Gross Debt-deductions = net debt/equalized valuation for the last 3 yrs

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18
Q

Cap Transfers

A

In - Out Yes, In-In yes, Out - In no, Out - out no

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19
Q

26.25%

A

Temp budget - % of the total of all budget appropriations of the preceding year, excluding the appropriations for debt service, CIF and public assistance

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20
Q

$17,500

A

Threshold Pay to Play

Bid Threshold w/o QPA

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21
Q

$40,000

A

Bid threshold with QPA

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22
Q

Temporary Budget

A

26.25% of total of all budget appropriations of the preceding year. first 30 days to adopt or temp appropriations for debt service during the last 10 days of the preceding year

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23
Q

4 levels of local government

A

Municipality, County, special and school

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24
Q

Number of Counties

A

21

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25
Q

Classes of Counties

A

6

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26
Q

Number of municipalities

A

565

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27
Q

Type I School District

A

Debt is issued by the municipality and included in the

debt percentage

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28
Q

Division of Local Government Services DLGS

A

Provides oversight for municipal finance LFN

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29
Q

Largest source of revenue for local government units

A

Property Taxes

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30
Q

Title

A

40A 40A:2-1

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31
Q

Chapter

32
Q

Section

33
Q

Annual Financial Disclosure Statement due

34
Q

Local Finance Board

A

7 members; Director of DLGS serves as ex-officio chairperson, ethics, strongest power is supervision of financial affairs of municipalities

35
Q

Municipal Bond Team

A

Bond Counsel, auditor, CFO, Financial advisor, Administrator

36
Q

Flexible Chart of Accounts

A

Divided between S/W and O/E; County FCOA has 16 digits Municipal has 13 digits

37
Q

Self Liquidating

A

Utilities; Revenues = expenditures; 5% down pyment

deficit raised in the CF

38
Q

Local Finance Notice

A

Keep up to date

39
Q

General Ledger

A

Official financial permanent record of the municipality

40
Q

Transitional year budget

A

Calendar yr to fiscal year; Jan-June; fiscal year adjustment bonds

41
Q

Fiscal Year adjustment bonds

A

Municipality who switched to SFY needed to adopt a transitional year budget - towns were allowed to issue FYABS to finance the 6 months.

42
Q

1%-amendment

A

add a new item of appropriation more than 1% of the total of appropriations as stated in the approved budget

43
Q

10%-amendment

A

increase or decrease any of a line item appropriation by more than 10%

44
Q

5%-amendment

A

increase amt to be raised taxes by more than 5% unless including emergency appropriation

45
Q

Capital budget if population

46
Q

Capital budget if population > 10,000

47
Q

Fund

A

Self-balancing set of accounts

48
Q

20 days

A

estoppel period

49
Q

10days

A

estoppel period if fully funded ordinance

50
Q

OCBOA

A

Other Comprehensive Basis of Accounting
Modified Accrual Basis
Realize revenues when received in cash and expenditures when they are committed.

51
Q

accounting equation

A

Assets = liab + Fund Balance

52
Q

Bond Interest Due

A

Semi-annually

53
Q

Bond Principal due

54
Q

When notes are due in whole BAN

A

First day of the fifth month following the close of the 10th fiscal year; 3rd anniversary first installment

55
Q

15% of the bid threshold

A

Quote threshold

56
Q

Quote threshold with no QPA

57
Q

Quote threshold with a QPA

58
Q

Prior negative experience

A

Written notice of disqualification by governing body
Hearing before the governing body
Governing body can vote to disqualify
Disqualification period not to exceed 5 years
Do not get a hearing if suspended or disbarred by the state

59
Q

12 months

A

Duration of a professional service contract

60
Q

30

A

CEUs needed to renew license

61
Q

48 hours

A

time to deposit funds

62
Q

6 months

A

Audit filed within 6 months

63
Q

9 months

A

Single audit filed within 9 months

64
Q

Dedication by Rider

A

Fund designed for a special purpose

65
Q

Reserve for uncollected taxes

A

non spending appropriation-offset the difference between a full 100% collection and the actual collection of taxes

66
Q

cash basis

A

budget prepared on a cash basis

67
Q

3%

A

contingent 3% of total budget appropriations for operations

68
Q

Fund Balance (Surplus)

A

excess of quick assets-legal demands

69
Q

Tax anticipation notes

A

tax flow deficit - due 120 days after beg of next fiscal

year

70
Q

5 year special emergency

A

tax maps, revaluation, retirement if exorbitant

71
Q

Section 20 costs

A

soft costs

72
Q

Job Functions of a CFO

A 
Maintain purchasing system
maintain fixed asset system
implement local finance notices
Issue debt
prepare supplemental debt statement
prepare ordinances (salary ordinance)
prepare journal entries
reconcile bank accounts
make investments of idle funds
process payroll
develop budget
manage debt
Insurance management
implement and maintain internal controls and policies
contract negotiations
manage personnel
adopt cash management plan
Accounts Payable
Benefit Administration
Budget amendments
Financial reporting
73
Q

Annual Financial Disclosure Form

A

Sources of income greater than 2,000;gifts 400; fees/speeches 250; property

74
Q

Corrective Action Plan

A

Covers all findings and recommendations in the audit report as well as the status of all prior year findings; filed with clerk in 45 days from the date the audit is received by the governing body; needs to be submitted to DLGS no later than 60 days from the receipt of audit
Format - Findings/Conditions
Recommended Actions-why it occurred
Explanation/Corrective Action-procedures to be corrected
Implementation Date- no later than 6 months

75
Q

Implement a Local Finance Notice

A

Read It
Interpret It - What is it telling me?
Write a memo
Follow through and implement

Principles of Financial Management (1 decks)

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