1969-1987-FISCAL AUDITS - Laserfiche WebLink

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i TOWN OF MASHPEE, MASSACHUSETTS NOTES TO FINANCIAL STATEMENTS JUNE 30, 1987 on general long-term debt on a special assessment indebtedness which are recognized when due. Liabilities are not considered current until they are normally expected to be liquidated with expendable available financial resources. Liabilities incurred in the current period not expected to be liquidated with expendable available financial resources are recorded in the General Long-Term Debt Account Group. Agency funds are also maintained following the modified accrual basis of accounting. The accrual basis of accounting is followed in proprietary funds, non- expendable trust funds and pension trust funds. Revenues are recognized when earned and expenses are recorded when incurred. An annual operating budget is adopted for the town's General Fund and Federal Revenue Sharing. Although legislative authority is required for acceptance of certain grants, capital projects, and borrowing authorizations, annual budgets are not prepared for any other funds and therefore, comparison of budget to actual is only presented for the General Fund and Federal Revenue Sharing. The town's annual budget is adopted on a statutory basis that differs in some respects from Generally Accepted Accounting Principles (GAAP). The major differences are that Real and Personal Property Taxes are recognized as revenue when levied and that encumbrances are treated as budgetary expenditures in the year the commitment is made. Also, certain appropriations, known as special articles, do not lapse and are treated as budgetary expenditures in the year they are authorized. Budgets are prepared by town officials, reviewed by the finance committee, by the selectmen, and submitted to town meeting for approval. The town must establish its property tax rate each year so that the property tax rate levy will comply with the limits established by Proposition 2 1/2, as amended, and also 16