06/30/2004-FISCAL AUDITS - Laserfiche WebLink

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Notes to Basic Financial Statements For the Fiscal Year Ended June 30,2004 ' F. Accounts Receivable ' Government-Wide and Fund Financial Statements The recognition of revenue related to accounts receivable reported in the government-wide financial statements and fund financial statements are reported under the accrual basis of accounting and the modified accrual basis of ' accounting,respectively. Real Estate Taxes,Personal Property Taxes and Tax Liens Real estate and personal property taxes are levied and based on values assessed on January 15t of every year. Assessed values are established by the Board of Assessor's for 100% of the estimated fair market value. Taxes are ' due on November 1st,February 1st,May 1st and August 1st and are subject to penalties and interest if they are not paid by the respective due date. Real estate and personal property taxes levied are recorded as receivables in the fiscal year of the levy. ' Real estate tax liens are processed approximately six months after the close of the valuation year on delinquent properties and are recorded as receivables in the fiscal year they are processed. ' Motor Vehicle and Other Excise Taxes Motor vehicle excise taxes are assessed annually for each vehicle registered in the Town and are recorded as ' receivables in the fiscal year of the levy. The Commonwealth is responsible for reporting the number of vehicles registered and the fair values of those vehicles to the Town. The tax calculation is the fair value of the vehicle multiplied by$25 per$1,000 of value. ' Landbank Surcharges Landbank surcharges are levied annually and at a rate of 3% of residents'real estate tax bills. The surcharge is ' due with the real estate tax on November 1st, February 1st,May lst and August 1st and are subject to penalties and interest if they are not paid by the respective due date. Overdue surcharges would be included on the tax liens processed on delinquent real estate taxes. Surcharges are recorded as receivables in the fiscal year of the levy. Departmental and Other t Departmental and other receivables represent amounts due from ambulance fees and other various departmental activities. These receivables are recorded when the service has been provided or the applicable agreement has been entered into. ' Intergovernmental Various state and federal operating and capital grants are applied for and received annually. For non- expenditure driven grants,revenue is recognized as soon as all eligibility requirements imposed by the provider have been met. For expenditure driven grants,revenue is recognized when the qualifying expenditures are incurred and all other grant requirements are met. ' Loans The Town administers various loan programs to residents that provide assistance to comply with Title V(related to septic systems)requirements. Loans are recorded as receivables upon issuance. 1 Town ofMashpee,Massachusetts 23 Basic Financial Statements