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Exhibit M <br /> TOWN OF MASHPEE <br /> NOTES TO FINANCIAL STATEMENTS <br /> YEAR ENDED JUNE 30, 1979 <br /> �. ACCOUNTING POLICIES <br /> a, Basis of Accounting - General governmental <br /> revenues and expenditures accounted for in j <br /> the General Fund are controlled by a <br /> budgetary accounting system. Real estate <br /> and peisonal property taxes are recorded <br /> as revenue by the modified accrual method. <br /> Other General Fund revenue, such. as motor <br /> vehicle excise taxes and departmental <br /> revenue, are recorded as assets in the j <br /> General Fund, but are fully reserved <br /> until collected. <br /> Expenditures are recorded on the cash basis. <br /> However, the Town provides for commitments <br /> made out of the current year budget by i <br /> setting aside funds as Encumbrances Outstanding. j <br /> Expenditures relating to special appropriations „f <br /> and grants are recorded when paid. <br /> The accounting systems of the Town are organized <br /> and operated through the use of self-balancing <br /> group of accounts. <br /> b. Fixed Assets Fixed assets are not recorded in <br /> a general ledger balance sheet account at the <br /> time of acquisition. It is a common practice IJN r <br /> of municipalities in the Commonwealth of <br /> Massachusetts to not maintain general fixed ��I'nff�pl siC <br /> asset records. <br /> c. Inventories - Inventories are not recorded in <br /> a general ledger balance sheet account at the <br /> time of acquisition, but rather purchases of <br /> supplies are recorded as expenditures ofj <br /> budgeted appropriations at the time the I � <br /> purchases are made. <br /> d. Investments - Investments are stated at cost. <br /> At June 30, 1979, the market value of bonds and <br /> treasury notes in the Trust Fund was $21,532 <br /> and $20, 1$5 respectively. <br /> CHARLES E. DIPESA & CO„ BOSTON, MASS, (617) 423-3555 <br />