06/30/1999-FISCAL AUDITS - Laserfiche WebLink

Home Browse Search

H. Accrued Employee Benefits Town employees are granted vacation and sick leave in varying amounts. Upon retirement, termination, or death, certain employees are compen- sated for unused sick and vacation leave which is (subject to certain ' limitations) at their then current rates of pay. The cost of this unused sick and vacation leave; which is expected to be paid from future financial resources, is accounted for as a liability of the general long-term debt account group for governmental fund types. 1. Fund Eguitv ' Reservations of fund balance represent amounts that are not appropri- able or are legally segregated for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. J. Encumbrance Accounting and Reporting Encumbrance accounting is employed in governmental funds. Encum- brances (e.g., purchase orders, contracts) outstanding at year end are reported as reservations of fund balances and do not constitute ' expenditures or liabilities. K. Nonexpendable Trust Funds The accompanying general purpose financial statements do not report statements of revenues, expenses and cash flows for nonexpendable ' trust funds since there was no fiscal year 1999 activity. L. Memorandum Only- Total Columns ' Total columns on the general purpose financial statements are captioned ' as "memorandum only" because they do not represent consolidated finan- cial information and are presented only to facilitate financial analysis. The columns do not present information that reflects financial position, ' results of operations, or cash flows in accordance with generally accepted accounting principles. Intertund eliminations have not been made in the aggregation of this data. 10