06/30/2004-FISCAL AUDITS - Laserfiche WebLink

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Notes to Basic Financial Statements For the Fiscal Year Ended June 30,2004 Real estate and personal property tax revenues are considered available if they are collected within 60-days after ' the end of the fiscal year. Investment income is susceptible to accrual. Other receipts and tax revenues become measurable and available when the cash is received and are recognized as revenue at that time. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria is met. Expenditure driven grants recognize revenue when the qualifying expenditures are incurred and all other grant requirements are met. The following major governmental funds are reported: The general fund is the primary operating fund. It is used to account for all financial resources,except those required to be accounted for in another fund. The stabilization fund is a special revenue fund used to account for the accumulation of resources to provide t general and/or capital reserves. Use of this fund is subject to Town Meeting approval. The landbank fund is a special revenue fund used to account for the accumulation of resources to acquire land for ' conservation and recreational purposes. The nonmajor governmental funds consist of other special revenue,capital projects and permanent funds that are aggregated and presented in the nonmajor governmental funds column on the governmental funds financial statements. The following describes the general use of these fund types: The special revenue fund is used to account for the proceeds of specific revenue sources(other than capital projects ' funds or permanent funds)that are restricted by law or administrative action to expenditures for specified purposes. The capital projects fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities. ' The permanent fund is used to account for financial resources that are legally restricted to the extent that only earnings,and not principal,may be used for purposes that support the governmental programs. Fiduciary fund financial statements are reported using the flow of economic resources measurement focus and use the accrual basis of accounting. Fiduciary funds are used to account for assets held in a trustee capacity for others that cannot be used to support the government's programs. ' The following fiduciary fund type is reported: The agency fund is used to account for assets held in a custodial capacity. Such assets consist mainly of planning , board and other escrow deposits. Agency funds do not present the results of operations or have a measurement focus. E. Cash and Investments ' Government-Wide and Fund Financial Statements , Cash and cash equivalents are considered to be cash on hand,demand deposits and short-term investments with an original maturity of three months or less from the date of acquisition. Investments are carried at fair value. Town of Mashpee,Massachusetts 22 Basic Financial Statements