Municipal Budget Process Practice Test

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• According to the Local Bond Law, what is the minimum useful life of a capital item?
• Which body must pass a resolution authorizing an accelerated tax lien sale?
• What might a municipality face if it does not have its budget approved by the County Board of Taxation?
• During the transition year budget, what is the appropriations limit based on?
• Which issue might trigger Local Finance Board intervention in a municipality?
• What is the primary purpose of sending a copy of the municipal budget to the County Board of Taxation?
• What typically triggers the need for municipalities to conform to a debt schedule?
• According to the Local Bond Law, what is the required down payment on most capital ordinances?
• What are the four major categories of revenues anticipated in a municipal budget?
• Is it true that the amount of a regular emergency appropriation must be raised by taxation in full in the subsequent year's budget?
• One tax point equals what fraction of the net valuation taxable?
• What action must the governing body take regarding a Corrective Action Plan?
• Where must a deficit in a municipal utility be raised?
• What do Dedication by Rider resolutions allow a local unit to do?
• Which of the following statements is true about miscellaneous revenues in the budget?
• Are appropriations for accumulated absence liability considered an in-cap expense?
• Can preliminary expenses for a capital project be financed through the Capital Improvement Fund?
• What happens to remaining uncommitted appropriation reserves at the end of the second budget year?
• What is a requirement of municipal authority finances?
• What does Chapter 159 amendments typically address?
• What are assessment lien bonds and notes related to?
• What does MRNA stand for in terms of municipal revenue?
• Is it true that the expenditure of capital funds can be authorized by resolution?
• How is the useful life of capital expenditures typically defined for budget purposes?
• Can unspent appropriations be canceled to surplus by the CFO during the same budget year?
• Are preliminary expenses for a capital project allowed to be dispensed from the Capital Improvement Fund account?
• Type I School District debt is included in which part of the municipality?
• What is the significance of a budget transmission to the county board of taxation?
• Is the full annual increase in health benefit premiums exempt from the tax levy cap?
• Which fund is used to manage donations and other contributions?
• What happens to appropriations at the end of the fiscal year unless cancelled?
• What is the basis of municipal accounting in New Jersey?
• Employees in local government units that require gubernatorial advice and consent must become members of which retirement program?
• Are utility budgets subject to the appropriations cap?
• Which key factor influences the determination of a municipal tax rate?
• Can the Local Finance Board provide waivers to the Tax Levy Cap?
• How is the maximum amount of delinquent taxes anticipated determined?
• The final principal payment in a municipal bond schedule should not exceed how many times the first payment?
• What may a municipality issue when it experiences cash flow problems?
• What happens to the budgets of all funds at the end of the budget year?
• What is the limit on contingent budgets in a municipal budget as a percentage of total operations?
• What does equalized valuation represent in a municipality?
• What is the correct response for accumulated absences not covered by prior years' appropriations?
• What are additions to the budget after adoption typically referred to as?
• When must Tax Anticipation Notes (TANs) mature by?
• Is property purchased for a sewer system charged to the general capital fund of the municipality?
• What is the function of 'CAP' in the municipal budget context?
• How many days after budget adoption must a certified copy of the budget be transmitted to the county board of taxation?
• When must the Chief Finance Officer receive an audit for a First Aid Organization?
• When must the Corrective Action Plan be approved by the governing body?
• What can happen to unexpended funds in a capital ordinance?
• How are health benefits costs calculated in relation to employee contributions?
• For what reason may municipal budgets allow for anticipated revenues from library funding?
• Current Fund appropriations for accumulated absence liabilities must be:
• (True/False) Any appropriation in the current budget for accumulated absence liability is considered an in-cap expense.
• A municipality with a population of 7,350 is required to adopt a capital budget program for how many years?
• The Flexible Chart of Accounts (FCOA) serves as a coding system for what elements in a budget?
• Regulations concerning fiscal controls in New Jersey are established under which code?
• What does FCOA stand for in the context of municipal budgets?
• What is the purpose of NJSA 40A:2?
• What must the budget summary publication include regarding the previous year?
• Which category below is primarily responsible for covering cash flow requirements?
• True or False: Contractually required severance liabilities from layoffs may be funded through a special emergency appropriation.
• What could be a consequence of not adhering to the standard limits on principal payments in a municipal bond?
• Regulations concerning New Jersey municipal budget matters can be found in which legal code?
• Which of the following statements about public hearings for budget amendments is true?
• Is it necessary for the budget summary publication to mention the amounts paid in principal and interest in the previous year's budget?
• What can monies transferred from the municipal free public library be used for in the municipal budget?
• Local budget processes must comply with which of the following?
• What are the two categories into which appropriations must be divided?
• The Local Budget Law is cited under which statute?
• A governing body may increase its appropriations cap up to what percentage by passing a cost of living adjustment ordinance?
• What is the implication of a lower estimated tax collection rate?
• Can unspent appropriations be canceled to surplus by the CFO within the same budget year?
• Which of the following may be financed with special emergency notes?
• Which entity must municipalities apply to if they seek to exceed their debt limit?
• How many days prior to adoption must a capital budget affecting the municipality's Master Plan be referred to the Planning Board?
• How should the municipal tax levy be limited during a transition year budget?
• By what date must the Annual Debt Statement be submitted to NJ DLGS?
• How does the municipal governing body manage surplus funds from the previous budget?
• How much can an item of appropriations be increased or decreased without a public hearing?
• Each municipality must adopt temporary appropriations equal to what percentage of the total budget appropriations from the previous year?
• Current fund appropriations related to accumulated absences must not exceed:
• Which of the following is true regarding the funding of employee severance liabilities?
• What does budget transfers pertain to in a municipal budget process?
• Can unspent appropriations be canceled to surplus by the CFO in the same budget year?
• Which of the following is NOT a reason the Local Finance Board can take over the supervision of a municipality?
• What type of audit is required for contributions above a certain amount to First Aid Organizations?
• Which of the following is NOT one of the five funds utilized in New Jersey Governmental Accounting?
• What is the primary focus of the Local Public Land and Buildings legislation?
• In what amount may the budget amount to be raised by taxation be increased without a public hearing?
• True or False: Budget transfers are permitted between library and tax collector accounts in the last 2 months of the budget year.
• What three directives must all New Jersey municipalities comply with for all funds?
• What is the maximum amount a governing body can raise for any fire district or volunteer fire company?
• Which office must approve a non-conforming debt schedule for a municipality?
• An unexpended funded improvement authorization with a useful life of ten years may be amended for what purpose?
• Which revenue calculation involves subtracting surplus anticipated and miscellaneous revenues from total general appropriations?
• Can contractually required severance liabilities from layoffs be funded through a special emergency appropriation?
• Where are application fees collected for public defender services deposited?
• Which law pertains to the regulation of local public contracts?
• Are miscellaneous revenues anticipatable in an amount greater than what was received in cash the preceding year when supported by documentation?
• The difference between the amount of appropriations for the budget year and the anticipated revenues is known as what?
• What must be provided by the CFO or RMA before the governing body adopts the budget for an accelerated tax lien sale?
• What are the two primary categories into which debt service must be divided?
• What happens if a municipality does not maintain a general ledger accounting system for the current fund?
• What does one tax point equal in terms of net valuation taxable?
• How are health benefits costs calculated in relation to employee contributions?
• Which of the following best describes a 'non-conforming debt schedule'?
• What happens to a municipality's eligibility for local budget examination if they lack a general ledger accounting system?
• Current Fund appropriations for accumulated absence liabilities must be deposited in what type of fund?
• True or False: The budgets of all funds are closed out at the end of the budget year.
• When are budget transfers between appropriation reserves permitted for a given budget year?
• For a resolution authorizing an accelerated tax lien sale, what must be provided to the governing body?
• Why is it important for municipalities to establish a striking tax rate?
• What is indicated by NJSA 40A:5?
• Which fund is utilized for operating expenses in the same manner as the current fund?
• Are utility surplus appropriations dependent on council approval every budget year?
• What is a primary purpose of publishing a budget summary?
• What is the maximum debt limit a municipality can have based on the prior three years' equalized assessed real property valuations?
• The four major categories of revenues anticipated in a municipal budget include all EXCEPT:
• What is the role of the governing body in a municipality concerning the budget?
• Monies transferred to a municipality by the board of trustees of a municipal free public library may be anticipated in the municipal budget for what purpose?
• The Reserve for Uncollected Taxes is intended to cover what requirement?
• How can a municipality calculate the current year reserve for uncollected taxes?
• Is the establishment of a reserve for uncollected taxes based on prior year adjustments due to adjudicated tax appeals allowed?
• What requirement must be met for an amendment of the budget to become effective?
• The assumption regarding uncollected taxes directly impacts which aspect of the municipal budget?
• What does equalized valuation represent in a municipality?
• What is used to establish the estimated tax levy range for a municipality reverting to a calendar fiscal year?
• Can a municipality adopt a COLA ordinance if its budget cap referendum fails?
• What must happen to the full balance remaining in the appropriation at the end of a budget year?
• What is the maximum appropriation of fund balance from an authority or utility to the local governmental unit?
• What is the minimum annual appropriation required by taxes for Free Public Libraries based on assessable property?
• What type of budget does a New Jersey Municipal Budget typically represent?
• What is the purpose of emergency appropriations in municipal budgeting?
• Which of the following is a common challenge municipalities may face regarding finances?
• What does an appropriations cap generally limit?
• How many days prior to the public hearing must the municipal budget be published?
• What is the purpose of a capital budget?
• How can a municipality operating under the state fiscal year revert to a calendar fiscal year?
• What is the maximum percent increase in appropriations allowed without a public hearing?
• What should a governing body do if it wants to shift funds from one appropriation to another?
• What can unexpended funds in a capital ordinance be cancelled to?
• What must happen to the total accumulated absences before they can be appropriated in the budget?
• Which of the following is NOT one of the four major categories of revenues anticipated in a municipal budget?
• True or False: Municipal revenues may be anticipated above the amount collected in the previous year.
• Can budget transfers be made between library and tax collector accounts during the last months of the budget year?
• Are funds collected for public defender services considered part of the current fund?
• Unless canceled by resolution, what happens to the full balance in a line item appropriation at the end of the budget year?
• In the context of municipal budgets, which entity plays a critical role in tax rate determination?
• What is the minimum cumulative cost of items for which a capital budget must be adopted?
• What does dedication by Rider resolutions allow a local unit to do?
• What does MRNA represent in a municipal budget context?
• Must municipalities establish a dedicated trust account for off-duty police details?
• Local Fiscal Affairs Law is represented by which statute?
• What percentage of votes is required for a public referendum to exceed the tax levy cap to pass?
• Is it mandatory for the municipal budget to be published in its entirety?
• Which document may provide essential insights into a municipality's budgetary performance?
• Which document is essential for a municipality to receive funding from state programs?
• For what type of expenses can emergency appropriations be used?
• Where are dedicated by rider revenues accounted for in the municipal budget?
• What does a municipality need to do if it wishes to alter the terms of its scheduled bond payments?
• In general, what do budgets represent for organizations?
• How many years is the minimum useful life of a capital item according to the Local Bond Law?
• When can miscellaneous revenues be greater than funds received in the preceding year?
• What is the deadline for submitting the Annual Budget to NJ DLGS?
• What is the Flexible Chart of Accounts?
• Funds from property owners for improvements need to be pledged to which financial instrument first?
• What is the correct order for addressing comments in an audit within a corrective action plan?
• What is the required time gap between the introduction of the municipal budget and the public hearing?
• What is one of the primary functions of the Local Finance Office regarding municipal budgets?
• In municipal budgeting, what typically happens to funds that remain unexpended in a capital project?
• Special emergency notes are utilized for which of the following?
• What type of debt schedule must a municipality obtain approval for if it wants to exceed the standard principal payment limits?
• How are over-expenditures of appropriations required to be raised in a municipal budget?
• The final principal payment in a municipal bond schedule of maturity may not exceed how many times the first payment without approval?
• What must a municipality with a low estimated tax collection rate prepare?
• Is the full annual increase in health benefit premiums exempt from the tax levy cap?
• What is the consequence of failing to provide public access to budget supporting documents on time?
• What must be done before cash from local improvement assessments can be used?
• Is it true that utility surplus may be appropriated by the governing body for use in the general municipal budget?
• What is the cumulative cost threshold for adopting a capital budget as required by the Division of Local Government Services?
• What fraction of the full governing body must adopt emergency appropriations?
• Who approves the anticipation of revenues in the municipal budget?
• By what percentage can a governing body increase its appropriations cap through a cost of living adjustment ordinance?
• What is the role of the governing body in a resolution concerning accelerated tax lien sales?
• A municipal budget comprises which two essential functions of authority?
• True or False: The Local Finance Board may grant waivers to Tax Levy Cap.
• What percentage of the governing body's full membership is required to authorize the transfer of appropriations?
• The certification of new construction or improvements increases what in the context of local taxes?
• What is required for local government units concerning their ADS, AFS, and Annual Budget Document?
• What does the Corrective Action Plan aim to address?
• What happens to any remaining uncommitted appropriation reserves at the end of the second budget year?
• What does the Annual Financial Statement provide in local government?
• What is prohibited when a municipality reverts to a calendar fiscal year?
• In which budget must a deficit in a municipal utility be raised?
• When must local units provide supporting documents regarding revenue or appropriation to the public?
• What is the difference between the amount of appropriations for the budget year and the anticipated revenues known as?
• Which accounting method is typically used by New Jersey municipalities?
• What is typically included in a budget document?
• Is it true or false that a bill received for sand and salt incurred on December 29, 2007 can be charged to the 2008 budget?
• Which standard may require municipalities to seek financing alternatives if they exceed normal debt limits?
• A municipality is allowed to anticipate the proceeds from the sale of municipal property if the property will not be sold during the budget year.
• What must the budget summary publication include regarding the principal municipal building?
• What is necessary for a local unit to anticipate revenues during the budgeting year?
• What type of vote is required for resolutions authorizing the transfer of appropriations?
• Can municipalities directly publish detailed budgets without prior public notification?
• The budgetary authority to tax is intended to provide revenue for what purpose?
• The debt limit of a municipality may not exceed what percentage of the prior three years equalized assessed real property valuations?
• Are Credit Unions allowed to be depositories for municipal funds under the Governmental Unit Deposit Protection Act?