1969-1987-FISCAL AUDITS - Laserfiche WebLink

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TOWN OF MASHPEE, MASSACHUSETTS NOTES TO FINANCIAL STATEMENTS JUNE 30, 1987 made and data in these columns do not present financial position or represent consolidated information. E. Revenue Recognition. Real estate and personal property tax levies are recognized when they become available. Available means due or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period. Such time thereafter shall not exceed sixty days. A reserve for estimated abatements and exemptions is provided for in the levy. No provision is made for possible uncollectible taxes. In applying the susceptible to accrual concept to intergovernmental revenues, the legal and contractual requirements of the numerous individual pro- grams are used as guidance. There are, however, essentially two types of these revenues. In one, monies must be expended for the specific purpose or on the specific project before any amounts will be paid to the town; therefore, revenues are recognized based upon the expenditures recorded. In the other, monies are virtually unrestricted as to purpose of expenditure and are usually revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenues at the time of receipt or earlier if the susceptible to accrual criteria is met. 2. Departures From Generally Accepted Accounting Principles The town prepares its financial statements on the basis of accounting practices prescribed by the Commonwealth of Massachusetts. These practices differ in many significant respects from G.A.A.P. 20 JE