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TOWN OF MASHPEE, MASSACHUSETTS <br /> NOTES TO FINANCIAL STATEMENTS <br /> Year Ended June 30, 1984 3 , <br /> Basis of Accounting - The accompanying financial statements have been <br /> prepared, principally, on the modified accrual basis of accounting which <br /> recognizes revenue when measurable and available and expenses when the <br /> related liabilities are incurred. <br /> Revenue Recognition - Real estate and personal property <br /> tax levies are recorded as revenue when committed for <br /> collection. A reserve for estimated abatements and <br /> exemptions, called an overlay reserve, is provided for <br /> in the tax levy. The balance of this reserve has been <br /> classified as an allowance for uncollectible accounts in <br /> the accompanying combined financial statements. No <br /> provision is made for other possible uncollectible <br /> taxes. All other revenues are recognized when cash is <br /> constructively received. Accounts receivable balances, <br /> other than net real estate and personal property taxes <br /> receivable and other than receivables to the extent loan <br /> proceeds have been received in anticipation of <br /> reimbursement, are offset by a reserve entitled "Revenue <br /> Deferred Until Collected" in the accompanying combined <br /> balance sheet. <br /> I <br /> Expenditures are recorded throughout the year on the <br /> basis of cash disbursements. In addition, as allowed by <br /> the Massachusetts General Laws, expenditures made during <br /> the fifteen days following the close of each fiscal year <br /> which are related to the prior year are classified as <br /> expenditures and warrants payable at June 30. Teachers' <br /> payroll earned but unpaid at June 30 is also classified <br /> as an expenditure and payable at June 30. <br /> ii <br /> �I <br /> Inventories are considered to be expenditures at the time of receipt and <br /> payment. j <br /> Fixed Assets - Disbursements related to the acquisition of fixed assets are <br /> considered expenditures in the year payments are made. The uniform system <br /> does not provide for capitalizing such expenditures and does not require the <br /> Town to maintain historical records of its fixed assets. Accordingly, a <br /> statement of general fixed assets is not included in the accompanying i;- <br /> financial statements. L <br /> Long-Term Debt - All long-term debt is recorded in the long-term debt ! �, <br /> accounts. Interest on long-term debt is recognized when payable. Debt I' <br /> S <br /> � rt <br /> i <br /> I <br />