06/30/2004-FISCAL AUDITS - Laserfiche WebLink

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Notes to Basic Financial Statements For the Fiscal Year Ended June 30,2004 1 G. Allowance for Uncollectible Accounts ' The allowance for uncollectible accounts is estimated based on historical trends and specific account analysis for , the following accounts receivable: ➢ Personal property taxes ➢ Motor vehicle and other excise taxes , ➢ Departmental and other The following types of accounts receivable are secured via the lien process and are considered 100% collectible. Accordingly,an allowance for uncollectible accounts is not reported. ➢ Real estate taxes ' ➢ Tax liens ➢ Landbank surcharges ➢ Loans Intergovernmental receivables are considered 100% collectible. H. Inventories ' Government-Wide and Fund Financial Statements Inventories are recorded as expenditures at the time of purchase. Such inventories are not material in total to the , government-wide and fund financial statements and therefore are not reported. I. Restricted Assets ' Government-Wide and Fund Financial Statements Assets are reported as restricted when limitations on their use change the nature of the availability of the asset. ' Such constraints are either externally imposed by creditors,contributors,grantors,or laws of other governments, or are imposed by law through constitutional provisions or enabling legislation. ' J. Capital Assets Government-Wide and Proprietary Fund Financial Statements ' Capital assets,which consist of land,construction in progress,buildings and improvements,machinery,vehicles and equipment,and infrastructure,are reported in the governmental activities column of the government-wide , financial statements. Pursuant to GASB Statement No.34,the Town is eligible to defer,until fiscal year 2007,the requirement to record and depreciate its governmental funds infrastructure assets (i.e.roads,sidewalks,etc.) acquired before the effective implementation date. Therefore,infrastructure acquired prior to July 1,2002 has not ' been reported. Capital assets are recorded at historical cost or at estimated historical cost if actual historical cost is not available. , Donated capital assets are recorded at the estimated fair market value at the date of donation. Construction period interest is not capitalized on constructed capital assets. All purchases and construction costs in excess of$5,000 are capitalized at the date of acquisition or construction, ' respectively,with expected useful lives of greater than one year. Town of Mashpee,Massachusetts 24 Basic Financial Statements