06/30/1997-FISCAL AUDITS - Laserfiche WebLink

Home Browse Search

Town of Mashpee, Massachusetts Notes to General Purpose Financial Statements Summary of Significant Accounting Policies The accounting policies of the Town of Mashpee (the Town) conform to generally accepted accounting principles (GAAP) as applicable to govern- mental units, except as indicated in Note 2. The following is a summary of the more significant policies: A. Reporting Entit The government is a municipal corporation governed by an elected Board of Selectmen. As required by generally accepted accounting principles, these financial statements present the government and applicable com- ponent units for which the government is considered to be financially accountable. In fiscal year 1997, it was determined that no entities met the required GASB-14 criteria of component units. B. Basis of Presentation - Fund Accounting For reporting purposes, the financial activities of the Town are accounted for through the use of several funds and account groups. Each fund is a separate accounting entity with self-balancing accounts. The following types of funds and account groups are used by the Town: Governmental Fund Types Governmental funds are those through which most governmental func- tions of the Town are financed. The acquisition, use, and balances of the Town's expendable financial resources and the related liabilities (except those accounted for in fiduciary funds) are accounted for through govern- mental funds. The measurement focus is based upon determination of changes in financial position, rather than upon net income determination. The following are the Town's governmental fund types: General Fund - To account for all financial activities of the Town, except those required to be accounted for in another fund. Most revenues and expenditures of a general governmental nature are accounted for in this fund. Special Revenue Funds - To account for the proceeds of specific revenue sources (other than expendable trusts or for major capital projects) that are legally restricted to expenditures for special purposes. 5