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Management's Discussion and Analysis For the Fiscal Year Ended June 30,2004
<br /> Fund Financial Statement Ana lysis
<br /> As noted earlier,the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal
<br /> requirements.
<br /> Governmental funds
<br /> The focus of the governmental funds is to provide information on near-term inflows,outflows,and balances of
<br /> expendable resources. Such information is useful in assessing the Towns financing requirements. In particular,
<br /> unreserved fund balance may serve as a useful measure of a governments net resources available for spending at ,
<br /> the end of the fiscal year.
<br /> At the end of the current fiscal year,the governmental funds reported combined ending fund balances totaling
<br /> $15,350,206,an increase of$6,198,147 in comparison with the prior year. Approximately 78.5% of this total
<br /> amount($12,053,539),represents undesignated fund balance of the general fund,special revenue fund and
<br /> permanent fund. The capital projects fund deficit of$450,659 will be funded through the issuance of long-term
<br /> debt in future fiscal years. The remainder of fund balance is designated or reserved to indicate that it is not '
<br /> available for new spending because it has already been committed to:
<br /> ➢ Liquidate contracts and purchase orders of the prior period($1,199,419) '
<br /> ➢ Title V septic loans($284,610)
<br /> ➢ Perpetual permanent funds($45,052)
<br /> ➢ Other specific purposes($1,072,245) ,
<br /> ➢ Fund a portion of the fiscal year 2005 budget($1,146,000)
<br /> The general fund is the chief operating fund of the Town. At the end of the current fiscal year,undesignated fund '
<br /> balance of the general fund totaled$3,752,510,while total fund balance was$6,097,929. As a measure of the
<br /> general fund's liquidity,it may be useful to compare both undesignated fund balance and total fund balance to
<br /> total general fund expenditures. Undesignated fund balance represents 9.8% of total general fund expenditures,
<br /> while total fund balance represents 15.9% of that same amount. ,
<br /> The balance of the Town's general fund increased by$1,701,582 during the current fiscal year. Although the
<br /> Town recognized an approximate$3,540,000 budgetary surplus(budget vs. actual activity),approximately ,
<br /> $2,150,000 of reserves was utilized for spending during fiscal year 2004.
<br /> Financial highlights of the Towns other major governmental funds are as follows: ,
<br /> The fund balance of the stabilization fund(special revenue)decreased by$706,380 during the current fiscal year.
<br /> This is primarily attributable to an operating transfer out to the general fund totaling$750,000.
<br /> The fund balance of the landbank fund(special revenue)increased by$3,984,764 during the current fiscal year. ,
<br /> This is primarily attributable to the receipt of$3,564,600 in long-term bond proceeds.
<br /> Town of Mashpee,Massachusetts 8 Required Supplementary Information '
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