06/30/1999-FISCAL AUDITS - Laserfiche WebLink

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1 2. Departures from Generally Accepted Accounting Principles ' The only significant departure of the Town 's financial statements from generally accepted accounting principles is as follows: • General fixed asset acquisitions are not capitalized in a general fixed asset group of accounts. 3. Stewardship, Compliance and Accountability ' A. Budgetary Information ' At the town meeting, the Finance Committee presents an operating and capital budget for the proposed expenditures of the fiscal year commencing the following July 1. The budget, as enacted by the town ' meeting, establishes the legal level of control and specifies that certain appropriations are to be funded by particular revenues. The original budget is amended during the fiscal year at special town meetings as ' required by changing conditions. In cases of extraordinary or unforeseen expenses, the Finance Committee is empowered to transfer funds from ' the Reserve Fund (a contingency appropriation) to a departmental appro- priation. "Extraordinary" includes expenses which are not in the usual line, or are great or exceptional. "Unforeseen" includes expenses which ' are not foreseen as of the time of the annual meeting when appropriations are voted. ' Departments are limited to the line items as voted. Certain items may exceed the line item budget as approved if it is for an emergency and for the safety of the general public. These items are limited by the Massachusetts General Laws and must be raised in the next year's tax rate. ' Formal budgetary integration is employed as a management control device during the year for the General Fund. Effective budgetary control is achieved for all other funds through provisions of the Massachusetts ' General Laws. At year-end, appropriation balances lapse, except for certain unexpended capital items and encumbrances which will be honored during the subse- quent year. 11