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Reserved for Continuing Appropriations - Represents balance remaining in non-lapsing special articles. Reserved for Encumbrances - An account used to segregate that portion of fund balance committed for expenditure of financial resources upon vendor performance. 17. General Fund Undesignated Fund Balance The undesignated general fund balance reported on the balance sheet is stated in accordance with generally accepted accounting principles (GAAP), which differs in certain respects from the Massachusetts Uniform Municipal ' Accounting System (UMAS). The following paragraphs summarize the major differences. Massachusetts general laws include provisions to allow municipalities to overexpend certain appropriations if they are incurred in an emergency situation and for the safety of the public. The most common example involves the "snow and ice" appropriation. All such overexpenditures, however, must be funded in the subsequent year's tax rate. Massachusetts General Laws require that non-property tax revenue budget shortfalls, net of appropriation turnbacks, be funded in the subsequent year. The same treatment is also applied to the excess of actual property tax abatements and exemptions over the provision for abatements and exemp- tions (overlay). The following summarizes the specific differences between GAAP basis and statutory basis of reporting the general fund undesignated fund balance: GAAP basis balance $ 4,150,423 Over/under assessments 12,487 Appropriation deficit 18,825 ' Overlay deficit 424 Statutory (UMAS) balance $ 4 182 159 18. Subsequent Events Subsequent Budget Authorization The financial statements for the Town as of June 30, 1999 do not reflect the fiscal 2000 annual budget authorized in May 1999. The amount authorized in May 1999 (all funds) totaled $ 29,137,536 20