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TOWN OF MASHPEE, MASSACHUSETTS <br /> NOTES TO FINANCIAL STATEMENTS <br /> JUNE 30, 1 ggo <br /> p,, Assets. Liabilities and Fund Equity <br /> Cash. Cash balances from all funds, except those required to be <br /> segregated by law, are combined Vo form a pool of cash. Cash balances <br /> are invested to the extent available and interest income is recognized <br /> in the General Fund. Certain special revenue funds, proprietary funds `'^ <br /> and fiduciary funds cash are segregated and investment income becomes ;S <br /> a part of those funds. , <br /> Accounts Receivable. Accounts receivable are recorded when billed. <br /> Allowances for bad debts, abatements and exemptions are estimated <br /> based on historical trends. <br /> Interfund Receivables and Payables. Due from/Due to Other Funds arise <br /> during the course of operations from the pooling of cash and as funds <br /> provide services to each other_ <br /> Due From Other Governments. Due from other governments include <br /> amounts due from grantor agencies for specific programs and capital <br /> projects. Revenues and the related receivables are recorded when the <br /> reimbursable costs are incurred. <br /> Reserve for Abatements and Exemptions. Provisions for property tax <br /> abatements and exemptions are established for each annual tax levy as <br /> prescribed by statute. The primary intent is to provide for these <br /> potential refunds or allowances during the year in which the tax would <br /> be due and collected. Excessive amounts no longer necessary are to be <br /> transferred to a reserve account to be used for extraordinary or un- <br /> foreseen <br /> n -foreseen expenses as prescribed by the Massachusetts General Laws. <br /> Reserve far Encumbrances. Encumbrance accounting, under which pur- <br /> chase orders, contracts and other commitments for the expenditure of <br /> funds are recorded in order to reserve that portion of the applicable <br /> appropriation, is employed in governmental funds. Open encumbrances <br /> at year end are reported as reservations of fund balances. En- <br /> cumbrances do not constitute expenditures or liabilities. <br /> Appropriations which are carried over to the ensuing fiscal year are <br /> also reported as encumbrances. Continuing appropriations represent <br /> amounts authorized by Town meeting for specific projects or programs <br /> Which were not completed during the fiscal year. ,. <br /> ii'• <br /> i <br /> i <br /> 15 <br />