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1 <br /> Town of Mashpee, Massachusetts <br /> Notes to General Purpose Financial Statements <br /> Summary of Significant Accounting Policies <br /> The accounting policies of the Town of Mashpee (the Town) conform to <br /> generally accepted accounting principles (GAAP) as applicable to govern- <br /> mental units, except as indicated in Note 2. The following is a summary of <br /> ' the more significant policies: <br /> A. Reporting Entity <br /> 1 The government is a municipal corporation governed by an elected Board <br /> of Selectmen. As required by generally accepted accounting principles, <br /> ' these financial statements present the government and applicable com- <br /> ponent units for which the government is considered to be financially <br /> accountable. In fiscal year 1997, it was determined that no entities met <br /> 1 the required GASB-14 criteria of component units. <br /> B. Basis of Presentation - Fund Accounting <br /> For reporting purposes, the financial activities of the Town are accounted <br /> for through the use of several funds and account groups. Each fund is a <br /> separate accounting entity with self-balancing accounts. The following <br /> types of funds and account groups are used by the Town: <br /> Governmental Fund Types <br /> Governmental funds are those through which most governmental func- <br /> tions of the Town are financed. The acquisition, use, and balances of the <br /> Town's expendable financial resources and the related liabilities (except <br /> those accounted for in fiduciary funds) are accounted for through govern- <br /> mental funds. The measurement focus is based upon determination of <br /> changes in financial position, rather than upon net income determination. <br /> The following are the Town's governmental fund types: <br /> 1 General Fund - To account for all financial activities of the Town, except <br /> those required to be accounted for in another fund. Most revenues and <br /> 1 expenditures of a general governmental nature are accounted <br /> for in this fund. <br /> Special Revenue Funds - To account for the proceeds of specific revenue <br /> ' sources (other than expendable trusts or for major capital projects) that <br /> are legally restricted to expenditures for special purposes. <br /> i <br /> 1 5 <br />