06/30/2004-FISCAL AUDITS - Laserfiche WebLink

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' Notes to Basic Financial Statements For the Fiscal Year Ended June 30,2004 ' O. Long-term Debt ' Government-Wide Financial Statements Long-term debt is reported as liabilities in the government-wide statement of net assets. Material bond premiums ' and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Governmental Fund Financial Statements ' The face amount of governmental funds long-term debt is reported as other financing sources when the debt is issued. Bond premiums and discounts,as well as issuance costs,are recognized in the current period. Bond ' premiums are reported as other financing sources and bond discounts are reported as other financing uses. Issuance costs,whether or not withheld from the actual bond proceeds received,are reported as general government expenditures. ' P. Investment Income Excluding the permanent funds,investment income derived from major and nonmajor governmental funds is ' legally assigned to the general fund unless otherwise directed by Massachusetts General Law(MGL). Q. Compensated Absences ' Employees are granted vacation and sick leave in varying amounts based on collective bargaining agreements, state laws and executive policies. ' Government-Wide Financial Statements ' Vested or accumulated vacation and sick leave are reported as liabilities and expensed as incurred. Governmental Fund Financial Statements ' Vested or accumulated vacation and sick leave,which will be liquidated with expendable available financial resources,are reported as expenditures and fund liabilities. ' R. Post Retirement Benefits Government-Wide and Fund Financial Statements ' In addition to providing pension benefits,health insurance coverage is provided(on a pay-as-you-go basis)for retired employees and their survivors in accordance with MGL Chapter 32. These costs are recognized by recording the employer's 75% share of insurance premiums in the general fund in the fiscal year paid. For the ' fiscal year ended June 30,2004,this expenditure totaled approximately$444,000. There were approximately 69 participants eligible to receive benefits at June 30,2004. S. . Use of Estimates Government-Wide and Fund Financial Statements The preparation of basic financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure for contingent assets and ' liabilities at the date of the basic financial statements and the reported amounts of the revenues and expenditures/expenses during the fiscal year. Actual results could vary from estimates that were used. Town of Mashpee,Massachusetts 27 Basic Financial Statements