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Notes to Basic Financial Statements For the Fiscal Year Ended June 30,2004 ' T. Total Column ' Fund Financial Statements , The total column presented on the fund financial statements is presented only to facilitate financial analysis. Data in this column is not the equivalent of consolidated financial information. ' NOTE 2-STEWARDSHIP,COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information ' Municipal Law requires the adoption of a balanced budget that is approved by Town Meeting vote. The Finance ' Committee presents an annual budget to Town Meeting,which includes estimates of revenues and other financing sources and recommendations of expenditures and other financing uses. Town Meeting,which has full authority to amend and/or reject the budget or any line item,adopts the expenditure budget by majority vote. ' Increases or transfers between and within departments subsequent to the approval of the annual budget,requires majority Board approval via Special Town Meeting. The majority of appropriations are non-continuing which lapse at the end of each fiscal year. Others are ' continuing appropriations for which the governing body has authorized that an unspent balance from a prior fiscal year be carried forward and made available for spending in the current fiscal year. These carry forwards , are included as part of the subsequent fiscal year's original budget. Generally,expenditures may not exceed the level of spending(salaries,expenses and capital)authorized for an ' appropriation account. However,the Town is statutorily required to pay debt service,regardless of whether such amounts are appropriated. An annual budget is adopted for the general fund in conformity with the guidelines described above. The ' original fiscal year 2004 approved budget for the general fund authorized approximately$40,044,917 in appropriations and other amounts to be raised. During fiscal year 2004,supplemental appropriations totaling $487,805 were authorized. ' The Accountant's office has the responsibility to ensure that budgetary control is maintained. Budgetary control is exercised through the accounting system. , B. Budgetary-GAAP Reconciliation For budgetary financial reporting purposes,the Uniform Massachusetts Accounting System basis of accounting ' (established by the Commonwealth)is followed,which differs from the GAAP basis of accounting. A reconciliation of budgetary-basis to GAAP-basis results for the general fund for the fiscal year ended June 30, 2004,is presented below: ' Town of Mashpee,Massachusetts 28 Basic Financial Statements