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13. General Fund Undesignated Fund Balance <br /> ' The undesignated general fund balance reported on the balance sheet is <br /> stated in accordance with generally accepted accounting principles (GAAP), <br /> which differs in certain respects from the Massachusetts Uniform Municipal <br /> Accounting System (UMAS). The following paragraphs summarize the major <br /> differences. <br /> Massachusetts general laws include provisions to allow municipalities to <br /> overexpend certain appropriations if they are incurred in an emergency <br /> situation and for the safety of the public. The most common example <br /> involves the "snow and ice" appropriation. All such overexpenditures, <br /> ' however, must be funded in the subsequent year's tax rate. <br /> Massachusetts General Laws require that non-property tax revenue budget <br /> shortfalls, net of appropriation turnbacks, be funded in the subsequent <br /> year. The same treatment is also applied to the excess of actual property <br /> tax abatements and exemptions over the provision for abatements and <br /> exemptions (overlay). <br /> The following summarizes the specific differences between GAAP basis and <br /> statutory basis of reporting the general fund undesignated fund balance: <br /> GAAP basis balance $ 3,774,405 <br /> Over/under assessments 15,526 <br /> Other deficits 3,864 <br /> Statutory (UMAS) balance $ 3.793.795 <br /> ' 14. Commitments and Contingencies <br /> Outstanding Lawsuits - There are several pending lawsuits in which the <br /> ' Town is involved. The Town 's management is of the opinion that the poten- <br /> tial future settlement of such claims would not materially affect its financial <br /> statements taken as a whole. <br /> Grants -Amounts received or receivable from grantor agencies are subject to <br /> audit and adjustment by grantor agencies, principally the federal government. <br /> Any disallowed claims, including amounts already collected, may constitute <br /> a liability of the applicable funds. The amount of expenditures which may <br /> be disallowed by the grantor cannot be determined at this time, although the <br /> Town expects such amounts, if any, to be immaterial. <br /> ' 18 <br />