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• <br /> Exhibit M <br /> TOWN OF MASHPEE <br /> NOTES TO FINANCIAL STATEMENTS <br /> • YEAR ENDED JUNE 30, 1979 <br /> 1. ACCOUNTING POLICIES <br /> • a. Basis of Accounting - General governmental <br /> revenues and expenditures accounted for in <br /> the General Fund are controlled by a <br /> budgetary accounting system. Real estate <br /> and personal property taxes are recorded <br /> as revenue by the modified accrual method. <br /> • Other General Fund revenue, such as motor <br /> vehicle excise taxes and departmental <br /> revenue, are recorded as assets in the <br /> General Fund, but are fully reserved <br /> until collected. <br /> • Expenditures are recorded on the cash basis. <br /> However, the Town provides for commitments <br /> made out of the current year budget by <br /> setting aside funds as Encumbrances Outstanding. <br /> Expenditures relating to special appropriations <br /> • and grants are recorded when paid. <br /> The accounting systems of the Town are organized <br /> and operated through the use of self-balancing <br /> group of accounts. <br /> b. Fixed Assets - Fixed assets are not recorded in <br /> a general ledger balance sheet account at the <br /> time of acquisition. It is a common practice <br /> of municipalities in the Commonwealth of <br /> Massachusetts to not maintain general fixed <br /> • asset records. <br /> C. Inventories - Inventories are not recorded in <br /> a general ledger balance sheet account at the <br /> time of acquisition, but rather purchases of <br /> supplies are recorded as expenditures of <br /> • budgeted appropriations at the time the <br /> purchases are made. <br /> d. Investments - Investments are stated at cost. <br /> At June 30, 1979, the .market value of bonds and <br /> treasury notes in the Trust Fund was $21,532 <br /> • and $20, 1$5 respectively. <br /> • CHARLES E. DIPESA & CO.. BOSTON. MASS. (617) 423-3555 <br />