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Theory / Statutes Flashcards

1
Q

The local budget law permits the transfer of current year appropriations during what time of the fiscal year?

A. During last three months of fiscal year
B. During first two months of fiscal year
C. During last month of fiscal year
D. During last three month of fiscal year
E. None of the above

A

E - None of the above

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2
Q

What vote of the governing body is required to authorize the transfer of funds as permitted by the Local Budget Law?

A. Majority vote of the full membership of the governing body
B. Two-thirds vote of the full membership of the governing body
C. Majority vote of those present
D. Two-thirds vote of those present

A

B - Two thirds vote of the full membership of the governing body.

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3
Q

Which board is empowered to promulgate rules and regulations for the interpretation and administration of state laws within the jurisdiction of the Division of Local Government Services?

A. Local Treasury Management Team
B. Local Finance Board
C. State Building Commission
D. Board of Public Utilities
E. None of the above
A

B - Local Finance Board

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4
Q

Which of the following is described as:

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 the responsibility of the elected governing body and its management.

A. A Municipal Utility
B. A Special District
C. An Authority
D. A Non-Profit Agency

A

A - A Municipal Utility

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5
Q

Every Financial institution permitted to be a depository of public funds is reviewed annually by the state of NJ Dept of Banking, and recertified as to their eligibility to act as a depository of public funds. What law requires this certification?

A. Notification of Eligibility Act
B. Governmental Unit Deposit Protection Act
C. Federal Deposit Insurance Protection Act
D. Cash Management Act
E. US Banking and Securities Act

A

B - Governmental Unit Deposit Protection Act

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6
Q

40A:2 Bond

The Maximum number of annual installments in which obligations for special assessments may be paid cannot exceed how many years.

A. One year
B. Ten years
C. The period of usefulness
D. Twenty years
E. None of the above

40A: 2-14 Local Improvement Obligtions

A

D - Twenty Years

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7
Q

40A:2 Bond

According to the Local Bond Law N.J.S.A. 40A: 2-12, a bond ordinance shall contain in substance which of the following:

A. An authorization for the issuance of obligations
B. An authorization for the assumption by the local unit of the obligations of an authority to be dissolved
C. A determination of the period of usefulness
D. All of the above
E. None of the above

40A: 2-12 Bond Ordinance; contents

A

D - All of the Above

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8
Q

40A: 2 Bond

The Local Bond Law, N.J.S.A. 40A: 2-10, requires a down payment to be appropriated for the purpose authorized in the respective bond ordinace. Said down payment shall not be less than 5% of the amount of the obligations authorized. The down payment must be made available prior to the final adoption of the bond ordinance and the source of the down payment may be from moneys previously contributed for such purpose as included in the bond ordinance.

A. True
B. False

40A: 2-11 Down Payment

A

A - True

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9
Q

A bond ordinance adopted by the governing body should include authorization to provide for short term borrowing. According to the local bond law N.J.S.A. 40A:2-8 the short term borrowing instruments is known as Bond Anticipation Notes and these notes may not be issued for a period of time exceeding:

A. One Year
B. Three Years
C. Five Years
D. Ten Years

A

A - One Year

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10
Q

N.J.S.A. 40A:2-8 further stipulates that all bond anticipation notes shall mature and be paid not later that which anniversary of the date of the original notes?

A. One Year
B. Three Years
C. Five Years
D. Ten Years

A

D - Ten Years

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11
Q

The local bond law N.J.S.A. 40A: 2-10 requires that “prior to the passage on first reading of any bond ordinance, or ordinance amending a bond ordinance, exept amending as to matters which are not required to be contained in a bond ordinance or which does not increase the total amount of the obligations authorized by such bond ordinance”, the financial officer shall file with the office of the clerk which document?

A. Certification of the availability of funds
B. Annual Debt Statement
C. Supplemental Debt Statement
D. Both A & B
E. Both A & C
A

C - Supplemental debt statement

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12
Q

The local public contracts law, specifically N.J.S.A. 40A: 11-6 permits contracts to be entered into that exceed the bidding threshold if the situation effects which of the following:

A. Sole source availability
B. The public health, safety or welfare of the community
C. compliance with specifications by low bidder
D. All of the above
E. A & B only

A

B - The public health, safety or welfare of the community

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13
Q

40A: 4 Budget Law

Which of the following would meet the standard to qualify as a dedicated revenue as described in the previous question?

A. Animal Control Fund
B. Sinking Fund for term bonds
C. A bequest
D. Motor vehicle fines dedicated to road repairs
E. All of the above
A

E - All of the above

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14
Q

40A: 4 Budget Law

An appropriation for “cash deficit of preceding year” Shall be raised how?

A. One-fifth per year for five years
B. In full the immediate successive year of the deficit
C. Does not need to appear in the budget as an appropriation
D. None of the above

A

B - In full the immediate successive year of the deficit

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15
Q

40A: 4 Budget Law

N.J.S.A. 40A: 4-45.2a authorizes that amounts of revenue generated by an increase in its valuations based solely on applying the preceding year’s local purposes tax rate of the municipality to the assessed value of new construction or improvements will result in which of the following?

A. Increase the “CAP” base
B. Decrease in the amount to raised by taxation
C. Increase the reserve for uncollected taxes
D. None of the above

40A: 4-45.2 Limitation on increase of appropriations

A

A - Increase the “CAP” base

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16
Q

40A:2 Bond

A capital budget would be best described as:

A. A spending authorization
B. A plan for capital project
C. An authorization of debt
D. All of the above

A

B - A plan for capital projects

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17
Q

40A:2 Bond

The local unit official charged with the legal responsibility of filing the annual debt statement is whom?

A. The municipal clerk
B. The chief executive officer
C. The chief financial officer
D. The registered municipal accountant

40A: 2-40 Annual Debt Statement

A

C - The Chief Financial Officer

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18
Q

All matters not required to be contained in a bond ordinance may be acted on by subsequent resolutions passed by the affirmative votes of a majority of the full membership of the governing body.

A. True
B. False

A

A - True

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19
Q

An increase in anticipated revenue may have what effect on the reserve for uncollected taxes?

A. Would decrease the reserve for uncollected taxes
B. Would increase the reserve for uncollected taxes
C. Would have no effect

A

A - Would decrease the reserve for uncollected taxes

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20
Q

Implementation of a dedicated tax program for open space, recreation, farmland and historic preservation trust fund taxing districts are authorized by which of the following:

A. Governing body resolution
B. State law
C. Referendum
D. None of the above

A

C - Referendum

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21
Q

The local budget law NJSA 40A: 4-41(c)(1) permits the tax collection rate used to compute the reserve for uncollected taxes to be based on an average when the tax collection rate has been affected by tax refunds or adjustments from successful property tax appeals. The previous number of years included in the average are:

A.  Two
B.  Three
C.  Four
D.  All of the above
E. None of the above
A

B - Three

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22
Q

The limitation of a municipalities debt is regulated by the local bond law, specifically NJSA 40A: 2-6. It states that the limit shall be a percentage of the average of the preceeding three years equalized assessed valuation. That percentage limit is which of the following:

A.  Two percent
B.  Two and one-half percent
C.  Three percent
D.  Three and one-half percent
E.  None of the above
A

D - Three and one-half percent

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23
Q

The corrective action plan should be referenced in which legal notice that is published in the official newspaper?

A. Annual reorganization notice
B. Synopsis of audit report
C. Award of professional service contract
D. Hearing on the budget

A

B - Synopsis of audit report

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24
Q

40A: 11 Public Contracts Law

A NJ municipality has a fleet of police cars exceeding fifty vehicles. One of the vehicles is damaged beyond repair in a motor vehicle accident. The police chief recommends authorizing the purchase of a replacement vehicle as an ‘‘emergency purchase”, which purchases are authorzed by 40A: 11-6. Since this vehicle is used for public safety it may be purchased without public bidding or prior governing body approval.

A. True
B. False

40A: 11-6 Emergency purchases and contracts

A

B - False

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25
Q

40A: 11 Public Contracts Law

The governing body of a NJ municipality has appointed a purchasing agent holding a QPA certificate and authorized a local bidding threshold of $29,000. The purchasing agent wishes to award a professional service agreement for $15,000. Pursuant to NJSA 40A: 11-3 b the contract period may not exceed what length of time?

A. Twelve months
B. Twenty-four months
C. Thirty-six months
D. None of the above

NJSA 40A: 11-3 Purchases, contracts or agreements not required to be advertised: adjustment t threshold amount

A

A - Twelve months

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26
Q

40A: 2 Bond

If a local unit shall require moneys for the purpose of assuring against adopting a budget which sets forth a deficit, the director may recommend that the Local Finance Board authorize the local unit to issue debt. This debt shall be considered as an anticipated revenue applicable to the expenditure for which appropriations are made in a transition year budget. This debt instrument would be known as:

A. Fiscal year adjustment bonds
B. Tax anticipation notes
C. Bond anticipation notes
D. Revenue bonds

40A: 2-51.2 Local unit authorized to issue bonds

A

A - Fiscal year adjustment bonds

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27
Q

40A: 2 Bond

The local bond law NJSA 40A: 2-52, authorizes refunding bonds and requires which of the following?

A. refunding ordinance, supplemental debt statement and down payment
B. refunding ordinance, no supplemental debt statement and no down payment
C. refunding resolution, no supplemental debt statement and no down payment
D. none of the above

40A: 2-52 Authorization of refunding bonds

A

B - Refunding ordinance, no supplemental debt statement and no down payment

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28
Q

The same section of the Local Bond Law permits the source of the down payment to be made available from which of the following:

A. By provision in a previously adopted budget or budgets of the local unit for down payment or for capital improvement purposes.
B. From moneys actually held by the local unit and previously contributed for such purpose other than by the local unit
C. By emergency appropriation
D. A & C only
E. All of the above

A

E - All of the above

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29
Q

Although there are exceptions for specific situations, the Local Bond Law, NJSA 40A: 2-27, requires that the sale of bonds shall be sold at which type of sale.

A. Private
B. Public
C. Negotiated
D. None of the above

A

B - Public

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30
Q

NJ Local Finance Notice 92-15 requires that a corrective action plan be prepared in accordance with OMB requirements and submitted to the DLGS no more than how many days from the date the audit is received by the governing body?

A. Thirty days
B. Fourty-five days
C. Fifty days
D. Sixty days
E. None of the above
A

D - Sixty days

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31
Q

40A: 11 Public Contracts Law

A local contracting unit has advertised for the same good or services on two occasions. On one occasion no bids were received and on one occasion all bids were rejected because of price. The local contracting unit is now permitted to proceed in which of the following manner?

A. Re-bid same good or service until bids are acceptable
B. Negotiate and award contract by majority vote of governing body
C. Negotiate and award contract by a two-thirds affirmative vote of the governing body

40A: 11-5 Exceptions

A

C - Negotiate and award contract by a two-thirds affirmative vote of the governing body

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32
Q

Contained in the NJ Budget Law NJSA 40A: 4-22 is the requirement that the budget shall consist of a tabulated statement of:

A. All CAP calculations
B. All debt calculations
C. All anticipated revenues applicable to expenditures for which appropriations are made
D. None of the above
E. All of the above
A

C - All anticipated revenues applicable to expenditures for which appropriations are made

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33
Q

40A: 2 Bonds

BANs issued in compliance with the requirements of NJSA 40A: 2-8.1 requires no principal payments until the notes obtain their maximum number of renewals permitted by law.

A. True
B. False

40A: 2-8.1 BANs; rules and regulations

A

B - False

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34
Q

NJSA 40A: 2-11 requires that no bond ordinance shall be finally adopted unless it appropriates to the purpose, or ratably to the respective purposes to be financed, in addition to the obligations thereby authorized, a sum as a down payment which is no less than what percent of the amount of the obligations.

A. Two percent
B. Three percent
C. Four percent
D. Five percent

A

D - Five percent

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35
Q

The local government CAP law 40A: 4-45.1 et seq. addresses the permitted transfer of current and reserve year appropriations. The statute prohibits the transfer of funds authorized by NJSA 40A: 4-58 and 40A: 4-59 from an appropriation that is not subject to limitation to an appropriation that is subject to limitation.

A. True
B. False

A

A - True

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36
Q

40A: 11 Public Contracts Law

Local units entering into contracts in excess of $100,000 for the improvement of real property are permitted to withhold a percentage of partial payments if agreed to by the contractor. The maximum amount that may be withheld pursuant to NJSA 40A: 11-16.3 is:

A. One percent
B. Two percent
C. Three percent
D. Four percent
E. Five percent

NJSA 40A: 11-16.3 Withholding of payment from partial payment; release within 45 days of final acceptance date; maintenance security

A

B - Two percent

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37
Q

40A: 11 Public Contracts Law

NJSA 40A:11-23 prescribes the general requirements for the advertisement for the receipt of bids. Per this section the minimum requirements that must be satisfied are:

A. The official that should be contacted for specifications
B. Certification of availability of funds
C. The manner of submitting and receiving bids, including the time and place the bids will be received
D. All of the above
E. None of the above

NJSA 40A: 11-23 Advertisements for bids; bids; general requirements

A

C - The manner of submitting and receiving bids, including the time and place the bids will be received

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38
Q

40A: 11 Public Contracts Law

A local contracting unit has accepted bids. The bids must be reviewed by the appropriate officials. The length of time to conclude this process is uncertain. The prospective contractors submitted bid guarantees. What is the number of days that the local unit must return said bid guarantees to all but the three apparent lowest responsible bidders?

A. Five days, Sundays and Holidays excepted
B. Seven days, Sundays and Holidays excepted
C. Ten days, Sundays and Holidays excepted
D. Fourteen days, Sundays and Holidays excepted

40A: 11-24 Time for making awards; deposits returned

A

C - Ten days, Sundays and Holidays excepted

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39
Q

40A: 11 Public Contracts Law

By resolution of the governing body a contracting unit may sell personal property not needed for public use and the sale is by sealed bid or public auction. The threshold for determining if the property, provided it is neither livestock nor perishable goods, is to be sold at public auction is what amount?

A. $2500
B. 15% of the bid threshold
C. 15% of the original purchase price
D. 15% of fair market value
E. None of the above

40A: 11-36 Sale or other disposition of personal property

A

B - 15% of the bid threshold

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40
Q

NJAC 5:34-3.2

The NJAC 5:34-3.2 (a) requires that all leases and services agreements authorized by the local public contracts law shall be subject to competitive bidding if the amount of the lease exceeds the bid threshold for what period of time.

A. During any twelve-month period
B. During any fiscal year period
C. During the duration of a multi-year lease
D. None of the above

NJAC 5:34-3.2 Application of bidding requirements

A

C - During the duration of a multi-year lease

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41
Q

A change order would not be permitted to change the number of units or items originally advertised and contracted for, even though unit prices were sought in the original specifications.

A. True
B. False

5:30-11.3 General requirements for all change orders

A

B - False

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42
Q

NJAC 5:34

The assertion that a service can only be provided by a single contractor shall be sufficient to justify avoidance of competitive bidding as an extraordinary, unspecificable service.

A. True
B. False

NJAC 5:34-2.2 General requirements limiting the use of the exception (extraordinary unspecifiable services)

A

B - False

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43
Q

The local bond law specifies the minimum period of usefulness for any improvement for which obligations are authorized, said time shall not be less than how many years?

A. Two
B. Five
C. Ten
D. Fifteen
E. None of the above
A

B - Five

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44
Q

When a municipality or county adopt to operate under the State Fiscal Year, that period of time from January 1 through June 30 is known as:

A. The adjustment year
B. The transition year
C. The fiscal year
D. The fiscal year adjustment year
E. None of the above
A

B - The Transition Year

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45
Q

What is the basic element of internal control in a finance office?

A. Prompt deposit of all funds
B. Prohibition against cashing employee checks
C. Periodic surprise cash counts
D. A & B only
E. All of the above
A

E - All of the above

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46
Q

Statutory expenditures as contained in the budget may include payments to:

A. Pensions
B. Social Security System
C. Unemployment Compensation and Temporary Disability Funds
D. None of the above
E. All of the above
A

E - All of the above

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47
Q

In NJ the budget system followed is known as:

A. Modified cash basis
B. Cash basis
C. Accrued basis
D. Modified accrued basis
E. None of the above
A

B - Cash basis

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48
Q

Emergency Authorizations are regulated by the local budget law, NJSA 40A: 4-47. This section requires what amount of the regular emergency authorization to be appropriated by the governing body?

A. One-third of the emergency amount in the next three budgets
B. One-fifth of the emergency amount in the next five budgets
C. The full amount in the next succeeding fiscal year
D. None of the above

A

C - The full amount in the next succeeding fiscal year

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49
Q

Which of the following terms is described as:

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.

A. Encumbrance
B. Adjusting Journal Entry
C. Certification of Funds
D. None of the above

A

A - Encumbrance

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50
Q

40A: 4 Budget Law

The Local budget law, NJSA 40A: 4-3.1 (b) requires any municipality deciding to convert to a state fiscal year from a calendar fiscal year perform the following:

A. Apply to the DLGS
B. Apply to the local finance board
C. Apply to the commissioner of the DCA
D. All of the above 
E. None of the above

40A:4-3.1 Municipalities, operation under state, calendar fiscal year

A

B - Apply to the local finance board

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51
Q

40A: 4 Local Budget Law

When converting to a state fiscal year calendar from a calendar year a municipality may do so by which of the following?

A. Ordinance
B. Resolution

40A: 4-3.2 Adoption of State fiscal year

A

A - Ordinance

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52
Q

40A: 4 Budget Law

All budgets shall be introduced, approved, amended and adopted by what vote and by which action of the governing body?

A. By resolution passed by not less than a 2/3rds vote of present governing body members
B. By resolution passed by not less than a 2/3rds vote of the full membership of the governing body
C. By resolution passed by not less than a majority vote of the present governing body memebers
D. By resolution passed by not less than a majority vote of the full membership of the governing body

40A: 4-4 Procedures for adoption of budget

A

D - By resolution passed by not less than a majority vote of the full membership of the governing body

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53
Q

40A: 11 Public Contracts Law

Every contract for goods and services that in the aggregate exceeds the bid threshold shall be awarded to the lowest responsible bidder. NJSA 40A: 11-4 permits the governing body to reject the lowest bidder if the governing body is made aware of “prior negative experience” with any local contracting unit in NJ.

A. True
B. False

NJSA 40A: 11-4 Contracts and agreements required to be advertised

A

B - False

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54
Q

40A: 11 Public Contracts Law

NJSA 40A: 11-4.1 authorizes the use of competitive contracting in lieu of public bidding. Competitive contracting may be used for all types of goods and services.

A. True
B. False

NJSA 40A: 11-4.1 Competitive contracting; use in lieu of public bidding

A

B - False

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55
Q

40A: 11 Public Contracts Law

When competitive contracting is authorized by a resolution of the governing body, it is necessary to pass a resolution each time specialized goods or services are desired.

A. True
B. False

NJSA 40A: 11-4.3 Resolution authorizing use of competitive contracting; process

A

A - True

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56
Q

The NJAC 5:34-5.2 outlines the procedure for the certification of availability of funds. It is required that no resolution authorizing the entering into any contract shall be enacted unless it shall recite that such a certificate showing the availability of funds has been provided.

In addition it requires:
A. The resolution state the name and address of the vendor
B. The resolution specify the date bids or quotes were received
C. The resolution designate the individual as certifying officer
D. The resolution specify the exact line item appropriation or ordinance to be charged
E. None of the above

A

D - The resolution specify the exact line item appropriation or ordinance to be charged

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57
Q

The four classifications of revenue as stipulated by the local budget law 40A: 4-23 is which of the following?

A. Surplus anticipated, miscellaneous revenues, federal/state revenues, taxes
B. Surplus anticipated, non-cash surplus, miscellaneous revenues, taxes
C. Surplus anticipated, federal/state with off-setting appropriations, receipt from delinquent taxes, amount to be raised by taxes
D. Surplus anticipated, miscellaneous revenues, receipt from delinquent taxes, amount to be raised by taxes
E. None of the above

A

D - Surplus anticipated, miscellaneous revenues, receipt from delinquent taxes, amount to be raised by taxes

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58
Q

Within how many days of the beginning of the fiscal year shall a governing body adopt temporary appropriations to provide for the period between the beginning of the fiscal year and the adoption of the budget?

A. Thirty days
B. Thirty-three days
C. Thirty-five days
D. None of the above

A

A - Thirty days

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59
Q

The contents of a bond ordinance are specified by The Local Bond Law NJSA: 40A: 2-12. Which of the following is required?

A. The purpose of the obligations
B. The maximum amount of bonds or notes
C. That such statement shows that the gross debt is increased by the authorization of such obligations
D. All of the above
E. None of the above
A

D - All of the above

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60
Q

40A: 4 Budget Law

NJSA 40A: 4-5 sets the introduction dates for the municipal budget for both a calendar year and state fiscal year community. The statutory introduction dates are as follows:

A. Calendar year - February 10; State fiscal year August 10
B. Calendar year - February 20; State fiscal year August 20
C. Calendar year - February 10; State fiscal year August 20
D. Calendar year - February 10; State fiscal year September 10

40A: 4-5 Introduction and approval

A

A - Calendar year - February 10; State fiscal year August 10

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61
Q

40A: 4 Budget Law

A municipal governing body has introduced their town budget on Thursday, February 6 and will hold a public hearing on said budget on Thursday, March 6 (a non-leap year). The advertisement giving notice of the public hearing shall not be published later than which date?

A. February 20
B. February 27
C. February 24
D. March 1

40A: 4-6 Advertisement of budget

A

C - February 24

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62
Q

40A: 4 Budget Law

A municipal governing body has introduced their town budget on Thursday, February 6 and will hold a public hearing on said budget on Thursday, March 6 (a non-leap year). The advertisement giving notice of the public hearing shall not be published later than which date?

A. February 20
B. February 27
C. February 24
D. March 1

Using the identical dates as presented in above question, would the number of days required between approval and adoption been satisfied as stipulated in the local budget law 40A: 4-7 (time of public hearing)

A

requirement satisfied

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63
Q

40A: 4 Budget Law

According to NJSA 40A: 4-9, concerning amendments to an introduced budget. An increase or decrease to any item of appropriation by more than 5% would require a public hearing on said amendment.

A. True
B. False

40A: 4-9 Amendments to budget

A

B - False

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64
Q

40A: 4 Budget Law

The amount to be raised by taxes for school purposes, required to be certified to the governing body of a municipality for inclusion in its budget, shall set forth in a separate section of the budget upon adoption and shall be added to the amount to be raised by taxes by which of the following?

A. Special district tax rate
B. School tax rate
C. Municipal tax rate
D. None of the above

40A: 4-13 Inclusion of amount required for school purposes

A

B - School tax rate

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65
Q

40A: 4 Budget Law

The governing body may by resolution authorize temporary budget appropriations to provide for the period between the beginning of the fiscal year and the adoption of the budget. The resolution shall be adopted within how many days of the beginning of the fiscal year?

A. Thirty days
B. Forty days
C. Forty-five days
D. Sixty days
E. None of the above

40A: 4-19 Temporary appropriations

A

A - Thirty days

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66
Q

40A: 4 Budget Law

Unless emergency expenditures are eligible for bonding pursuant to the local bond law, said expenditures shall be provided in full by the governing body as a deferred charge in the budget of the next succeeding fiscal year.

A. True
B. False

40A: 4-47 Emergency appropriations provided for in next budget

A

A - True

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67
Q

40A: 4 Budget Law

A resolution authorizing the adoption of an emergency appropriation shall be adopted by what vote of the municipal governing body?

A. Majority vote of those present
B. Majority vote of the full membership of the governing body
C. Two-thirds vote of those present
D. Two-thirds vote of the full membership of the governing body

40A: 4-48 Emergency appropriations not exceeding , with other appropriations 3% of the operating budget

A

D - Two-thirds vote of the full membership of the governing body

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68
Q

40A: 5 Fiscal affairs / Ethics

An audit of the fiscal books of a local unit is required to be completed within what period of time according to NJSA 40A: 5-4, the fiscal affairs law.

A. Prior to completion of the fiscal year
B. Prior to completion of subsequent fiscal year
C. Within six months of the end of the fiscal year
D. Within five months of the end of the fiscal year

A

C - Within six months of the end of the fiscal year

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69
Q

40A: 5 Fiscal affairs / Ethics

The local fiscal affairs law, NJSA 40A: 5-11, has audit services as an exception to public bidding.

A. True
B. False

A

A - True

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70
Q

40A: 5 Fiscal affairs / Ethics

The local fiscal affairs law, NJSA 40A: 5-17.1, permits a governing body to authorize and employee to issue tax refunds automatically if the amount is less than:

A. $5.00
B. $10.00
C. $20.00
D. $25.00

A

B - $10.00

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71
Q

40A: 5 Fiscal affairs / Ethics

Every municipal tax assessor, prior to what date, shall notify by mail each taxpayer of the current assessment and preceding year’s taxes.

A. January 1
B. February 1
C. March 1
D. April 1

A

B - February 1

72
Q

NJAC 5:34-7.3

Two or more contracting units may join together to form what type of system for the provision and performance of goods and services.

A. Municipal finance pool
B. Shared Service Agreements
C. Interlocal Services Agreement
D. Cooperative / Joint purchasing agreement

A

D - Cooperative / Joint purchasing agreement

73
Q

The local bond law NJSA 40A: 2-36 requires which of the following to be supplied to the governing body in the event of lost or destroyed bonds.

A. Proof of ownership
B. Proof of loss or destruction
C. Adequate surety bond
D. Payment of cost of preparation of new obligations
E. All of the above
A

E - All of the above

74
Q

The effective date of a bond ordinance as stipulated by NJSA 40A: 2-18 is what length of time?

A. Twenty days after first publication
B. Twenty days after adoption
C. Twenty days after the first publication after adoption
D. Twenty days after the first publication after introduction
E. None of the above

A

C - Twenty days after the first publication after adoption

75
Q

Local Bond Law limits NJ Counties to what debt percentage?

A. 2%
B. 2 1/2%
C. 3%
D. 3 1/2%
E. None of the above
A

A - 2%

76
Q

The legal depositories for public moneys are to be authorized by whom according to section 14 of the Local Fiscal Affairs Law?

A. Majority vote of the full membership of the governing body
B. The Chief Financial Officer
C. The Local Finance Board
D. The NJ Dept of Banking

A

A - Majority vote of the full membership of the governing body

77
Q

40A: 2 Bond

Bidders for the sale of bonds shall be required to deposit a certified or cashier’s or treasurer’s check for what amount?

A. Ten percent of the bids, but not in excess of $20,000
B. Equal to not less than 1% of the bonds
C. Equal to not less than 2% of the bonds
D. Equal to not less than 5% of the bonds
E. None of the above

40A: 2-32 sale of bonds

A

C - Equal to not less than 2% of the bonds

78
Q

Which of the following is an appropriation that would not be subject to limitation as provided by the NJ “Cap” law?

A. Audit Fees
B. Police salaries & Wages
C. Utilities
D. All of the above
E. None of the above
A

E - None of the above

79
Q

The local bond law NJSA 40A: 2-17 Stipulates the amount of time required for the advertisement of an introduced bond ordinance to appear prior to the public hearing and consideration for adoption. The amount of time necessary is:

A. Advertised within 7 days but at least 3 days prior to public hearing
B. Advertised within 14 days but at least 10 days prior to public hearing
C. Advertised within 10 days but at least one week prior to public hearing
D. None of the above

A

D - None of the above

at least 7 days prior to public hearing

80
Q

The anticipated revenues from the operation of any utility or enterprise owned or operated by a local unit and the appropriations to be made therefor shall be set forth how in a municipal budget?

A. In a separate section of the budget
B. In the dedicated revenue section of the budget
C. Within the current fund budget section
D. In a completely separate budget from other operations

A

A - In a separate section of the budget

81
Q

The issuance of Tax Anticipation Notes are permitted, but also limited as to amount and maturity, by the local budget law. 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 the beginning of the succeeding fiscal year.

A. Ninety days
B. One-hundred twenty days
C. One-hundred eighty days
D. None of the above

A

B - One-hundred twenty days

82
Q

The process for the requirements mandating a public hearing for the amending of an approved budget are provided by NJSA 40A: 4-9. One of the criterion requiring a public hearing would be if the budget amendment increases or decreases any item of appropriation by more than 1%.

A. True
B. False

A

B - False

83
Q

The minimum number of days for the advertisement for the receipt of bids is?

A. Five days
B. Seven days
C. Seven days but not less than ten days
D. Ten days
E. None of the above
A

D - Ten days

84
Q

Which of the terms below are described as:

The total structure of records and procedures which discover, record, classify and report information on the financial position and operations of a governmental unit or any of its funds, balanced account groups and organizational components.

A. General ledger
B. Accounting system
C. Accrual basis of accounting
D. Budget document
E. Internal control
A

B - Accounting system

85
Q

Technical Accounting Directive Number 85-2 sets the threshold for “non-expendable, tangible personal property” at what amount for both municipalities and counties?

A. $1,000
B. $2,000
C. $3,000
D. $4,000
E. $5,000
A

E - $5,000

86
Q

A payment process requires a purchase order system to have a particular document as part of the purchase order and this same document is the basis of payment.

The document is?

A. A voucher
B. A receiving slip
C. An invoice
D. A billing statement

A

A - A voucher

87
Q

The Local Budget Law NJSA 40A: 4-32 allows an appropriation for contingent expenses in an amount not more than what percentage of the total appropriations for operating purposes?

A. 1%
B. 2%
C. 3%
D. 4%
E. 5%
A

C - 3%

88
Q

The following definition applies to what according to the local budget law NJSA 40A: 4-24. In the current section of accounts shall consist of the excess of quick assets such as cash, investments, state or other public aid receivables, and deferred charges over legal and demand liabilities.

A. Amount to be raised by taxation
B. Surplus
C. Reserve for uncollected taxes
D. Non-cash surplus
E. Non of the above
A

B - Surplus

89
Q

The local budget law permits temporary budget appropriations NJSA 40A: 4-19. Although, the total temporary appropriations may not exceed a certain percentage of the total of the appropriations made for all purposes in the budget for the preceding year, with a few exclusions. The maximum percentage is what amount?

A. 5%
B. 25%
C. 25.25%
D. 26%
E. None of the above
A

E - None of the above

90
Q 
The local bond law NJSA 40A:2-32 limits the amount of premium bid for bonds, which shall not exceed:
A. One Percent
B. No limit
C. $1,000
D. $2,000
E. None of the above
A

C - $1,000

91
Q 
When selling bonds, all bidders shall be required to deposit a certified or cashier's check equal to not less than what percentage of the bonds?
A - One percent
B - Two percent
C - Three percent
D - Five percent
E - None of the above
A

B - Two percent

92
Q

According to the Local Bond Law NJSA 40A:2028, bond anticipation notes may be sold at what type of sale?
A - Public sale
B - Private Sale
C - Either type of sale

A

B - Private Sale

93
Q

40A:5 Fiscal Affairs/Ethics

Tax Anticipation Notes shall mature in the case of County not  later than:
A - June 1
B - February 10
C - June 30
D - March 20
A

C - June 30

94
Q 
As permitted by the New Jersey Budget Law NJSA 40A:4-50 emergency appropriations may be financed from which of the following?
A - Bond Anticipation Notes
B - Surplus
C - Emergency Notes
D - A & C only
E - B & C only
A

E - B & C only

95
Q 
1998 amendments to the Single Audit Act have raised the threshold amounts of funding for recipients, including state and local governments, to:
A - $25,000
B - $100,000
C - $200,000
D - $300,000
E - None of the above
A

E - None of the above

$500,000

96
Q

The Local Fiscal Affairs Law permits the establishment of petty cash funds. NJSA 40A:5021 describes with whom the authority rests for approval and/o0r disapproval of the petty cash fund. The person that has said authority, which must be received prior to activation of the petty cash fund, is:
A - The Directory of Division of Local Goverment Services
B - The Municipal Auditor
C - The Chief Financial Officer
D - The Municipal Manager

A

A - The Director of Division of Local Government Services

97
Q 
The State Fiscal Year Change Law required municipalities that exceeded a certain population threshold to convert their fiscal year from a calendar year to the State Fiscal year.  That population threshold was:
A - Twenty-five thousand
B - Thirty thousand
C - Forty thousand
D - Forty-five thousand
E - None of the above
A

E - None of the above

98
Q

The New Jersey Administrative Code, The Local Public Contract Law Rules, specifically NJAC 5:34-4.2 lists the general requirements for all change orders one of those requirements is that:
A - All change orders be approved by the Engineer
B - Responsibility for change orders lies with the governing body
C - The total amount of change orders cannot exceed the original contract amount by more than 10%
D - All of the above
E - A & B

A

B - Responsibility for change orders lies with the governing body

99
Q

Which of the following statements would be true according to NJSA 40A:2017 (The Local Bond Law)?
A - A bond ordinance shall be introduces in full test and approved by a 2/3rds affirmative vote of the full membership of the governing body
B - A bond ordinance shall be introduced by title and approved by a 2/3rds affirmative vote of the fill membership of the governing body
C - A bond ordinance shall be introduced in full test and approved by a majority vote of the full membership of the governing body
D - A bond ordinance may be introduced by title and approved by a majority vote of the fill membership of the governing body

40A:2017 Adoption of bond ordinance, procedures

A

D - A bond ordinance may be introduced by title and approved by a majority vote of the full membership of the governing body

100
Q

40A:2 Bond
The requirement per NJSA 40A:2-31 regarding the contents for the notive of sale of bonds are; the terms and conditions of such public sale only.
A - True
B - False

40A:2-31 Contents of notice

A

B - False

101
Q

Subsection (d) of NJAC 5:34-3.3 requires multi-year lease agreements, unless excepted by statute, to contain a clause making the agreement subject to the availability and appropriation annually of sufficient funds.
A - True
B - False

A

A - True

102
Q 
All advertisements for bids on contract for the collection and disposal of municipal solid waste shall be published not less than how many days prior to the receipt of said bids?
A - Ten
B - Thirty
C - Forty-five
D - Sixty
A

D - Sixty

103
Q 
Statue section 40A:5-17 grants authority for the approval of claims. The authority is given to:
A - The governing body
B - The Municipal Manager/Administrator
C - The Chief Financial Officer
D - The Mayor
A

A - The governing body

104
Q

40A:5 Fiscal Affairs/Ethics

The Local Government Ethics Law provides that a municipality may have a Local Ethics Board or may have which of the following rule on possible violations:
A - Governing Body
B - Local Finance Board
C - Public Employees Relations Committee
D - Director of Division of Local Goverment Services

A

B - Local Finance Board

105
Q

40A:5 Fiscal Affairs/Ethics

The financial disclosure statements required by the Local Ethics Law are to be submitted no later than:
A - January 30
B - April 30
C - June 30
D - July 1
A

B - April 30

106
Q 
The Local Fiscal Affairs Law required that a local unit adopt a Cash Management Plan and it further required reporting by the CFO to the Governing Body of investment activities how often.
A - Quarterly
B - Annually
C - Monthly
D - Semi-annually
A

C - Monthly

107
Q

40A:2 Bond

The Local Bond Law prohibits the issuance of certain agreements from being authorized as it relates to the issuance of sale of obligations.One such prohibited agreement addresses the restriction on the deposit of any moneys received from such sale.
A - True
B - False

40A:2-38 Prohibited agreements

A

A - True

108
Q

The Local Public Contracts Law provides exceptions to the requirement of public advertisement for the award of agreements. Circumstances that would allow for the negotiation of a contract award are:
A - The contracting unit has advertised for bids on two occasions and on both occasions received no bids.
B - The governing body has rejected bids on two occasions because prices were determined unreasonable
C - On one occasion there were no bids and on another occasion process were determined unreasonable
D - All the above
E - None of the above

A

D - All the above

109
Q 
The Local Fiscal Affairs Law required the Municipal Clerk to publish a synopsis of audit including recommendations in the official newspaper.  This must be done within how many days after receipt of the annual audit.
A - Fourteen days
B - Twenty-one days
C - Thirty Days
D - Forty-five Days
A

C - Thirty days

110
Q 
To the extent there is available surplus revenue collected by a municipality supplying a utility service which is regulated by the Board of Public Utilities an amount not to exceed what percentage of the annual costs of operation of the utility may be transferred from the accounts of the municipal utility and included in the local budget as surplus revenue?
A - Two percent
B - Three percent
C - Four percent
D - None of the above
A

D - None of the above

111
Q

40A:4 Budget Law

Which of the following groups of appropriations are exceptions to the budget “CAP”, or also known as outside “CAP”appropriations.
A - Debt service, capital expenditures, amounts expended to fund a free public library
B - Reserve for uncollected taxes, social security federal grants, amounts to meet New Jersey Public Employees’Occupational Safety and Health Act
C - Public Employees Retirement System, expenditures resulting from the impact of a hazardous waste facility, municipal court operations
D - All the above

40A:4-45.3 Municipalities; budget limitation exceptions

A

A - Debt service, capital expenditures, amounts expended to fund a free public library

112
Q

40A:5 Fiscal Affairs/Ethics

The Local Fiscal Affairs Law NJSA 40A:5-7 requires that a synopsis of audit along with recommendations shall be published by whom and within how many days of the receipt of audit.
A - By the CFO within thirty days
B - By the Clerk within thirty days
C - By the CFP within forty-five days
D - By the Clerk within forty-five days
A

B - By the Clerk within Thirty Days

113
Q 
The Annual Audit is required to be completed within how many months of the end of the fiscal year according to the Local Fiscal Affairs Law, NJSA 40A:5-4?
A - Four Months
B - Five Months
C - Six Months
D - Seven Months
A

C - Six months

114
Q 
According to section 45 of the Local Bond Law, any municipal public utility that has cash receipts in a fiscal year sufficient to meet operating and debt charges without recourse to general taxation is considered to be:
A - Self-sufficient
B - Self-regulated
C - Self-liquidating
D - None of the above
A

C - Self-liquidating

115
Q 
The Local Bond Law NJSA 40A:2-40 mandates the Chief Financial Officer of each local unit, that before the end of the first month of each fiscal year, the officer shall make and file in the office of the Clerk and of the Director, under oath and as of the last day of the preceding fiscal year which of the following documents?
A - Annual Debt Statement
B - Unaudited Annual Financial Statement
C - Cash Flow statement
D - Supplemental Debt Statement
A

A - Annual Debt Statement

116
Q

The Local Bond Law permits the sale of bonds at one time or in installments.
A - True
B - False

A

A - True

117
Q 
Public Law 1997, chapter 99 authorized municipalities to have the ability to "sell"its property tax levy to an outside investor.  The proceeds would allow a municipality to substantially reduce which appropriation?
A - Amount to be raised by taxation
B - Debt service
C - Reserve for uncollected taxes
D - Both A & B
E - All the above
A

C - Reserve for uncollected taxes

118
Q 
An appropriation transfer as permitted by the Local Budget Law, specifially NJSA 40A:4-58 would not permit a transfer from an appropriation for:
A - Legal expenses
B - Landfill costs
C - Deferred charges
D - All of the above
E - None of the above
A

C - Deferred Charges

119
Q 
The Local Budget Law required a public hearing on the municipal budget. The public hearing shall not be held less than how many days after the approval of the budget in the case of a municipality.
A - Ten
B - Fourteen
C - Twenty
D - Thirty
E - None of the above
A

E - None of the above

120
Q

40A:4 Budget Law

A Capital Budget adopted by the governing body authorizes the expenditure of public funds.
A - True
B - False

40A:4-43 Capital budgets, definition

A

B - False

121
Q

The Local Fiscal Affairs Law, NJSA 40A:5-15.1 allows municipalities and counties to invest in Government money market mutual funds.
A - True
B - False

A

A - True

122
Q

The three methods used by a tax assessor to determine values of real property are: sales approach, replacement approach and the income approach.
A - True
B - False

A

A - True

123
Q 
The Local Budget Law NJSA 40A:4-78(b) authorized the Local Finance Board to adopt rules that permit municipalities to conduct annual local examination of the annual budget.  The first phase of the process is determination of eligibility by the Division of Local Government Services.  The second phase is program qualification.  Qualification is determined by whom:
A - Chief Financial Officer
B - Governing Body
C - Municipal Auditor
D - Municipal Manager
D - None of the above
A

A - Chief Financial Officer

124
Q

The Local Government CAP Law NJSA 40A:4-45.2 places a limitation of increases of municipal budget appropriations. The limit is:
A - Five percent
B - Five percent or the index rate
C - Five percent or the index rate whichever is less
D - None of the above

A

D - None of the above

125
Q

Multipurpose bond ordinances are permitted by the Local Bond Law NJSA 40A:2-13. Multipurpose bond ordinance obligations may be provided for in a single issue of obligations.
A - True
B - False

A

A - True

126
Q 
The Local Bond Law NJSA 40A:2-7 permits adoption of a bond ordinance in excess of the statutory debt limit for which of the following:
A - Fire, Flood, other disaster
B - Creation of a utility
C - Creation of debt service reserves
D - All the above
E - None of the above
A

A - Fire, Flood, other disaster

127
Q 
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 to bid, but in no case more than how many days?
A - Thirty days
B - Forty-five days 
C - Fifty days
D - Ninety days
E - None of the above
A

E - None of the above

128
Q 
The Local Public Contracts Law authorizes a guarantee to accompany a bid.  The guarantee is payable to the contract unit.  When an a bid award is made the bidder will furnish any performance bond or other security as a guarantee or indemnification.  The guarantee shall be in which of the following amount(s)?
A - Five percent of the bid
B - Ten percent of the bid
C - Not in excess of $10,000
D - Not in excess of $20,000
E - Both B & D
A

E - Both B & D

129
Q 
Which term below is described as: This 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 of the taxable property within a municipality.  The process relies heavily on an analysis of sales of property in the municipality.
A - Assessed value
B - Market value
C - Equalized value
D - Appraised value
A

C - Equalized Value

130
Q 
The Capital Improvement Program is either a three-year or six-year plan and schedule for capital projects showing projected costs and revenue sources.  What is the population threshold that would require adoption of six-year plan?
A - Under 10,000
B - Over 10,000
C - Under 20,000
D - Over 20,000
E - None of the above
A

B - Over 10,000

131
Q

Budgets are adopted by what vote of the governing body?
A - Two-thirds of full membership of governing body
B - Majority vote of those present
C - Two-thirds vote of those present
D - Majority vote of the full membership of the governing body
E - None of the above

A

D - Majority vote of the full membership of the governing body

132
Q 
What is the dollar amount threshold that must be exceeded in order for a property owner to file a complaint directly with the tax court in the appealing of property assessments?
A - $250,000
B - $500,000
C - $750,000
D - None of the above
A

D - None of the Above

1,000,000

133
Q 
The statutory deadline date for the filing of the Unaudited Annual Financial for a State Fiscal Year municipality is:
A - July 25
B - August 1
C - August 10
D - August 20
A

C - August 10

134
Q

40A:2 Bond
The Local Bond Law, specifically 40A:2-20 permits the inclusion of expenses associated with the purpose of a capital project. Some of those expenses are architect’s fees, accounting, engineering and inspection costs. IN addition it is permitted to include the interest on obligations until the end of the fiscal year in the year of issue.
A - True
B - False

40A:2-20 Expenses included in cost

A

A - True

135
Q 
40A:2 Bond
When a governing body has concluded that the limitation as to maturities as stipulated by NJSA 40A:2026 will adversely affect the financial position of the local unit.  The limitation causing the adverse condition, is that no annual installment for debt service shall exceed the more than what percentage the smallest prior installment?
A - Twenty-five percent
B - Fifty percent
C - One hundred percent
D - None of the above

40A:2-26 Maturities of bonds

A

C - One hundred percent

136
Q

40A:2 Bond
Which of the following is a permitted exception for permitting bonds to be sold at a private sale?
A - If all or part of an authorized issue is $1,000,000 or less
B - If sold to a local School District
C - If no bids were received at the public offering and the private sale is within 30 days after the advertised date for public bidding
D - All of the above
E - None of the above

40A:2-27 Sale of Bonds

A

D - All of the above

137
Q

40A:2 Bond

This statement must be filed in the Office of the Clerk by the financial officer prior to the passage on first reading of any bond ordinance or ordinance amending a bond ordinance except if the ordinance does not increase the total amount of the obligations authorized.  Said statement is know as:
A - Annual Debt Statement
B - Certification of Down Payment
C - Supplemental Debt Statement
D - Certification of Proceedings
E - None of the above

40A:2-10

A

C - Supplemental Debt Statement

138
Q

A bond ordinance shall be finally adopted by what vote of the governing body?
A - Affirmative vote of the majority of those present
B - Affirmative vote of the majority of the full membership of the governing body
C - Affirmative vote of at lease 2/3rds of those present
D - Affirmative vote of at least 2/3rds of the full membership of the governing body

A

D - Affirmative vote of at least 2/3rds of the full membership of the governing body

139
Q

40A:4 Budget Law

To the extent there is available surplus revenue collected by a municipality for supplying a utility service which is regulated by the Board of Public Utilities an amount of this utility surplus may be transferred annually and included in the local municipal budget.  This amount of surplus to be utilized may not exceed what percentage of the annual costs of operation of the utility?
A - Two percent
B - Three percent
D - Five percent
D - Limited to amount held in cash

40A: 4-35.1 Transfer of surplus revenue

A

C - Five percent

140
Q

40A:5 Fioscal Affairs/Ethics

The following employees are prohibited from being covered by a “blanket bond”.
A - The CFO and Municipal Manager/Administrator
B - The Tax Collector and Municipal Manager/Adminjistrator
C - The Tax Collector and Municipal Clerk
D - The Tax Collector and Treasurer

A

D - The Tax Collector and Treasurer

141
Q

40A:4 Budget Law

NJSA 40A:4-30 describes the amount to be raised by taxes as be the amount required to be levied by taxation for support of the municipal budget. It is the difference between the total of all general municipal budget appropriations, including chapter 6 school debt service, and such deferred charges and statutory expenditures for chapter 6 schools as are required to be raised in the municipal budget, less the total anticipated revenues.
A - True
B - False

NJSA 40A:4-30 Amount to be raised by taxes to support municipal budget

A

A - True

142
Q

40A:4 Budget Law

When a municipality has a sinking fund cash surplus, such surplus may, upon written application by the sinking fund commission and the approval of the director, be used, in whole or in part, as which of the following according to NJSA 40A:4-28.
A - Reserve for future debt service
B - General Capital Fund surplus
C - An anticipated miscellaneous review in current fund budget
D - None of the above

40A:4-28 Miscellaneous revenues; sinking fund surplus

A

C - An anticipated miscellaneous review in current fund budget

143
Q

40A:4 Budget Law
A Municipal governing body has determined that a parcel of land is no longer required for public use and so concluded that said parcel be sold at auction. The parcel of land will generate sale proceeds that would benefit town property owners if anticipated in the municipal budget as a revenue. In order for the proceeds to be an anticipated revenue in the budget the obligation to make payment to the municipality must be entered into:
A - At any time
B - Prior to the filing of the Annual Financial Statements
C - Prior to introduction of the budget
D - Prior to adoption of the budget
E - None of the above

40A:4027 Miscellaneous revenues; sales of property

A

D - Prior to Adoption of the Budget

144
Q

40A:4 Budget Law

Miscellaneous revenues when being anticipated in the municipal budget are regulated by NJSA 40A:4-26. This section of the statue limits anticipated revenues to the amount:
A - Held in cash reserves
B - Governing body estimates
C - Certified by the Division of Local Government
D - Actually realized in cash from the same source in the next preceding fiscal year

NJSA 40A:4-26 Miscellaneous revenues limited to cash receipts; exemption

A

D - Actually realized in cash from the same source in the next preceding fiscal year

145
Q

40A:4 Budget Law

Which of the following is known as; revenue amounts that may reasonably be expected to be realized in cash during the fiscal year from know and regular sources, or from sources reasonably capable of anticipation.
A - Miscellaneous Revenues Not Anticipated
B - Miscellaneous Revenues Anticipated
C - Grant Revenue
D - Trust Account Revenues
E - None of the above

NJSA 40A:4-25 Revenues

A

B - Miscellaneous Revenues Anticipated

146
Q

40A:4 Budget Law

When emergency temporary appropriations are adopted after the introduction and approval of the budget and were not included in the budget as approved, the temporary emergency appropriation shall be included in amendment.
A - True
B - False

40A:4-20 Emergency temporary appropriations

A

A - True

147
Q

40A:4 Budget Law

Nothing in the Local Budget Law, specifically as stated in NJSA 40A:4-19, shall prevent or relive the governing body from making appropriations during the last 10 days of the year preceding the beginning of the fiscal year for all capital improvement fund purposes.
A - True
B - False

A

B - False

148
Q 
The Municipal Public Defenders Law, NJSA 2B:24-1 et. seq. contains a requirement for the accounting of application fees that are collected.  It is required that the funds collected shall be deposited where?
A - Current Fund
D - Dedicated Trust Fund
C - Grant Fund
D - Municipal Court Fund
E - None of the above
A

B - Dedicated Trust Fund

149
Q

The Interlocal Services Act, specifically 40:8A-4, permits the authorization of an agreement if such party is a municipality by which of the following actions.
A - Adoption of Resolution
B - Adoption of Ordinance

A

A - Adoption of Resolution

150
Q 
In addition to the ex-officio chairperson of the Local Finance Board there are how many additional members.
A - Three
B - Four
C - Five
D - Seven
E - None of the above
A

D - Seven

151
Q

All debt service, including that of a Type I school district is excluded from “CAP” limitations?
A - True
B - False

A

A - True

152
Q

40A:11 Public Contracts Law

Contracts awarded by competitive contracting may not be for a term exceeding what length of time, unless there is an authorized exception?
A - One year
B - Two years
C - Three Years
D - Four Years
E - None of the above

NJSA 40A:11-4.2 Five year term for certain contracts

A

E - None of the above

5 Years

153
Q

The amounts of revenue generated by an increase in its valuations based solely on applying the preceding year’s local purposes tax rate of the municipality 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?
A - True
B - False

A

B - False

154
Q

Who must adopt the Cash Management Plan annually.
A - The Chief Administrative Officer
B - Chief Financial Officer
C - Division of Local Government Services
D - Governing Body
E - All the above

A

G - Governing Body

155
Q 
The Unaudited Annual Financial Statements are required to be files by what date for a County operating on a calendar fiscal year.
A - January 10
B - January 26
C - February 10
D - February 20
E - None of the above
A

B - January 26

156
Q 
The statutory responsibility for the filing of the Unaudited Annual Financial Statements is assigned to whom by NJSA 40A:5-12?
A - Chief Administrative Officer
B - Chief Financial Officer
C - Registered Municipal Accountant
D - None of the above
E - All the above
A

B - Chief Financial Officer

157
Q 
Every audit required by the Local Fiscal Affairs Law NJSA 40A:5-9 is required to be competed by an accountant or auditor who holds an uncanceled license as:
A - Certified Public Accountant
B - Public School Accoutant
C - Registered Municipal Accounting
D - Certified Municipal Finance Officer
E - None of the above
A

C - Registered Municipal Accountant

158
Q

40A:2 Bond

The Local Bond Law, specifically NJSA 40A:2-4, authorizes a local unit to pay any and all bonds and notes issued by it. The limit is:
A - Unlimited
B - Subject to the “CAP”Law
C - Restricted to a percentage of the average of the three preceding years equalized assessed valuation
D - None of the above

NJSA 40A:2-4 Payment of obligations

A

A - Unlimited

159
Q

40A:2 Bond

In the case of a municipality, the Local Bond Law NJSA 40A:2-6 sets the debt limit at an amount not to exceed what percentage of the average of the preceding three years equalized assessed valuation:
A - Two percent
B - Two and one-half percent
C - Three percent
D - Three and on-half percent

NJSA 40A:2-6 Debt limitation

A

D - Three and one-half percent

160
Q

The Local Government Ethics Law requires the filing of an annual financial disclosure statement. The disclosure statement shall include the name, address and each source of income earned by the local government employee and member of their immediate family. This disclosure statement is a public document.
A - True
B - False

A

A - True

161
Q 
The Local Budget Law requires that all municipal budgets be advertised in full or in a summary format prior to the date of a public hearing on said budget.  The advertisement shall be published at lease how many days prior to the date of the public hearing.
A - Seven Days
B - Ten days
C - Fourteen days
D - Twenty-eight days
A

B - Ten Days

162
Q

40A:2 Bond

Any municipal public utility shall be deemed to be a _____________________________ purpose if the cash receipts from fees, rents or other charges in a fiscal year are sufficient to meet operating and maintenance costs and interest and debt redemption charges payable or accruing in such year without recourse to general taxation.

40A: 2045

A

Self-Liquidating

163
Q

40A:11 Public Contract Law

The methodology used in the evaluation of proposals submitted under the process of competitive contracting must include the following:
A - Technical criteria
B - Cost related criteria
C - Management
D - B & C only
E - All the above

40A:11-4.4 Request for proposals documentation

A

E - All the above

164
Q

40A:4 Budget Law

Dedicated revenues stated in the budter shall be classifed accoring to their respective sources and shall be stated in a separate section of the budget, together with the appropriations to the purpose to which such dedicated revenues are applicable.  The total of anticipated revenues must equal the total of appropriations.  This definition would describe which of the following:
A - Trust Fund accounts
B - Escrow Accounts
C - "Chapter 159" Resolutions
D - None of the above

40A: 4-36 Dedicated revenues; general definition

A

A - Trust Fund Accounts

165
Q

40A:4 Budget Law

Which of the following is known as, in the current section of accounts shall consist of the excess of quick assets such as cash, investments, State of other public aid receivable, and deferred charges over legal and demand liabilities.
A - Statutory Charges
B - Operation Account
C - Surplus
D - Reserve for Receivables
E - None of the above

NJSA 40A:2-24 Surplus

A

C - Surplus

166
Q 
An award of a contract, except for professional services, may be awarded for a period of how many consecutive months?
A - Remaining months of the fiscal year
B - Twelve months
C - Eighteen months
D - Twenty months
E - None of the above
A

E - None of the Above

24 months

167
Q

40A:11 Public Contracts Law

Currently the City of Trenton operates a public water utility. Due to budget considerations the City would like to solicit proposals for the operation of the utility using competitive contracting. As required by the Local Public Contracts Law the City will be required to do which of the following regarding affected employees.
A - Determine the cost of layoffs
B - Notify affected employees
C - Notify NJ Department of Personnel of layoffs
D - All the above
E - None of the above

NJSA 40A:11-4.5 Competitive contract proposals; solicitation process

A

B - Notify affected employees

168
Q

An encumbrance accounting system shall be maintained for which of the following funds:
A - current fund only
B - current fund, capital fund
C - current fund, capital fund, utility fund
D - current fund, capital fund, trust fund, utility fund

5:30-5.1 et. seq. Encumbrance Accounting

A

D - current fund, capital fund, trust fund, utility fund

169
Q

40A:11 Public Contracts Law

All construction contract documents entered into in accordance with the provision of the Local Public Contracts Law shall provide that disputes arising under the contract shall be submitted to a process of resolution pursuant to alternative dispute resolution practices prior to being submitted to a court of adjudication.
A - True
B - False

NJSA 40A:11-59 Construction contracts; alternative dispute resolution; joinder of parties

A

A - True

170
Q

40A:11 Public Contracts Law

When required by the bid plans and specifications, there is documentation considered as mandatory when submitting the bid proposal. Failure to submit any one of the mandatory items shall be deemed a fatal defect that shall render the bid proposal unresponsive and that cannot be cured by the governing body. Which of the following are considered as a mandatory item?
A - Bid guarantee
B - Statement for corporate ownership
C - Document acknowledge bidders receipt of any notice or revisions
D - All the above
E - A & B only

40A:11-23.2 Mandatory requirements

A

D - All the Above

171
Q

40A:11 Public Contracts Law

When a Local Unit is publicly bidding construction or improvements to real property and the total price will exceed $100,000 the bidder shall furnish a bid guarantee. The amount of said guarantee shall be in the amount of:
A - Ten percent, but not in excess of $20,000
B - Twenty percent, but not in excess of $10,000
C - Ten Percent, but not in excess of $10,000
D - Twenty percent, but not in excess of $20,000

40A: 11-21 Guarantee to accompany bid; amount

A

A - Ten percent, but not in excess of $20,000

172
Q

40A:11 Public Contracts Law

The Township of Lawrence is having plans prepared for the construction of a new police facility.  According to NJSA 40A:11-16 when the entire cost of this type of project will exceed the bid threshold separate plans and specifications may be prepared for which of the following:
A - Electrical work
B - Structural steel work
C - Plumbing work
D - All the above
E - None of the above

NJSA 40A:11-16 Separate plans for various types of work; bids; contracts

A

D - All the above

173
Q

40A:11 Public Contracts Law

A contracting unit may reject all bids for which of the following reasons:
A - The governing body of the contacting unit decides to abandon the project
B - The governing body of the contracting unit decides to use the State authorized contact
C - The lowest bid substantially exceeds the contracting unit’s appropriation
D - All the above
E - None of the above

40A:11-13.2 Rejection of bids by a contracting unit

A

D - All the above

174
Q

40A:11 Public Contracts Law

When preparing specifications for the provision of goods or performance of services no specifications under the Local Public Contract Law NJSA 40A:11-13 may:
A - Stipulate a residency requirement
B - Stipulate a standard not directly related to the purpose of the contract being bid
C - Stipulate the furnishing of any “brand name”
D - All the above
E - None of the above

40A:11-13 Specifications

A

D - All the above

175
Q

40A:11 Public Contracts Law

When in excess of the bid threshold, and after documented effort by the contracting agent to secure competitive quotations, a contract for extraordinary unspecifiable services may be awarded upon a determination in writing by the contracting agent that the solicitation of competitive quotations are impracticable. Any such contract shall be awarded by resolution of the governing body.
A - True
B - False

40A:11-6.1 Award of purchases, contracts of agreements

A

A - True

176
Q

40A:2 Bond

A local unit, in anticipation of the issuance of bonds, may borrow money and issue notes if the bond ordinance or subsequent resolution so provides. Such notes shall be designated as a "bond anticipation note" and all such notes shall mature and be paid not later than the first day of the fifth month following the close of which fiscal year.
A - The first fiscal year
B - The third fiscal year
C - The fifth fiscal year
D - The tenth fiscal year

40A:2-9.1 Bond anticipation notes; rules and regulations

A

D - The tenth fiscal year

177
Q 
How much does your wife love and believe in you?
A - to the moon and back
B - infinity squared
C - more than words can describe
D - any of the above
E - all of the above
A

A, B, C, D, E, F, G, H…….X, Y, Z

There is no wrong answer!!!

Just remember the PLUS ONE!!!
Love ya honey,
Mrs Me

CFO Exam (5 decks)

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