1988-1990-FISCAL AUDITS AND REPORT OF EXAMINATION - MASHPEE INDIAN MUSEUM

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TOWN OF MASHPE£, MASSACHUSETTS NOTES TO FINANCIAL STATEMENTS JUNE Sts, 1990 E. DeDartures From Generally Accepted Accounting Principles The Town prepares its financial statements or, the basis of accounting practices prescribed by the Commonwealth of Massachusetts. These practices differ in marry significant respects from G.A.A.P. During 1581, the Commonwealth of Massachusetts issued a revised uniform municipal accounting system entitled "U.M.A.S. " The depar- tures from G.A.A. P. under this revised system have been significantly narrowed. We have prepared the Town* s financial statement for this year ended in conformity with generally accepted accounting principles. The significant departures from G.A.A.P. included in the Town of Mashpee' s financial statements are: a. retirement benefits are provided for on a "pay-as-you-go basis rather, than art acceptable actuarial cost method iSee Note 8). b. General fund fixed asset acquisitions are recorded as ex- penditures at the time purchases are made rather than being capitalized in a general fixed asset group of account s. C. Purchases for materials and supplies inventories are recorded as expenditures rather than assets at the time of purchase. d. The Town has not determined or recorded the accumulated cost of the vested vacation or sick leave benefits for Town, employees. (See Note 7). F. Budsgets and Budgetary Accounting An annual operating budget is adopted for the Town' s General Fund and certain Special Revenue Funds. Although legislative authority is required for acceptance of certain, grants, capital projects, and bor- rowing authorizations, annual budgets are not prepared for any other funds and therefore, comparison of budget to actual is only presented 1y� fpr the General Fund. ' The Town prepares its financial statements on the basis of ac- eaunting practices prescribed by the Commonwealth of Massachusetts. 13