06/30/2004-FISCAL AUDITS - Laserfiche WebLink

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Notes to Basic Financial Statements For the Fiscal Year Ended June 30,2004 Fund Financial Statements Separate financial statements are provided for governmental funds and fiduciary funds,even though fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. Nonmajor funds are aggregated and displayed in a single column. Fiduciary funds are reported by fund type. D. Measurement Focus,Basis of Accounting and Basis of Presentation ' Government-Wide and Fund Financial Statements The government-wide financial statements apply all applicable Financial Accounting Standards Board(FASB) ' pronouncements issued on or prior to November 30,1989,unless those pronouncements conflict with or contradict GASB pronouncements. ' Government-Wide Financial Statements The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under this method,revenues are recorded when earned and expenses are recorded when the liabilities are incurred. Real estate and personal property taxes are recognized as revenues in the fiscal year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The statement of activities demonstrates the degree to which the direct expenses of a function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include the following: ➢ Charges to customers or applicants who purchase,use,or directly benefit from goods,services,or ' privileges provided by a given function or segment. ➢ Grants and contributions that are restricted to meeting the operational requirements of a specific function or segment. ➢ Grants and contributions that are restricted to meeting the capital requirements of a specific function or segment. Taxes and other items not identifiable as program revenues are reported as general revenues. The effect of interfund activity has been eliminated from the government-wide financial statements. 1 Fund Financial Statements ' Governmental funds financial statements are reported using the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting,revenues are recognized when susceptible to accrual(i.e.,measurable and available). Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to pay liabilities of the current period. Expenditures are recorded when the related fund liability is incurred,except for unmatured interest on general long-term debt which is recognized when due,and certain compensated absences and landfill closure costs which are recognized when the obligations are expected to be liquidated with current expendable available resources. Town of Mashpee,Massachusetts 21 Basic Financial Statements