06/30/1997-FISCAL AUDITS - Laserfiche WebLink

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Capital Project Funds - Transactions related to resources obtained and used for the acquisition, construction, or improvement of major capital facilities are accounted for in capital project funds. Such resources are derived principally from proceeds of general obligation bond issues and from Federal and State grants. Fiduciary Fund Types Fiduciary funds are used to account for assets held by the Town in a trustee capacity. The Town maintains the following fiduciary fund types: ' Expendable Trust Funds - These funds are accounted for in essentially the same manner as governmental funds. ' Nonexpendable Trust Funds - These funds are used to account for assets held by the Town in a trustee capacity. The principal balance cannot be spent; however, investment earnings may be spent for intended purposes: Agency Funds - These funds are custodial in nature (assets equal liabili- ties) and do not involve measurement of resuits of operations. Account Groups Account groups are used to establish accounting control and accountabil- ity for the Town's general long-term obligations. The following account group is maintained by the Town. General Lonq-Term Debt Account Group - This account group is used to account for all long-term obligations of the Town. C. Basis of Accounting The basis of accounting used for each fund is as follows: Modified Accrual Basis (Governmental Expendable Trust and Agency Funds The accounting and financial reporting treatment applied to a fund is ' determined by its measurement focus. All governmental and expend- able trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Oper- ating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other ' financing uses) in net current assets. 6