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

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TOWN OF MASHPEE, MASSACHUSETTS NOTES TO FINANCIAL STATEMENTS JUNE 30, 1990 E. 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. During 1983, 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 �1 narrowed. Yi 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 an acceptable actuarial cost method (See, 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 accounts. C. Purchases for materials and supplies inventories are recorded as expenditures rather than assets at the time of purchase. d. The Town has riot determined or recorded the accumulated cost of the vested vacation or sick leave benefits for Town employees. (See Note 7). F. Budgets and Budgetary Accounting An annual operating budget is adopted for the Town' s General Fund and certain Special Revenue Funds. Although legislative authority is ry required for acceptance of certain grants, capital projects, and bor- rowing authorizations, annual budgets are not prepared for any othert,�� funds and therefore, comparison of budget to actual is only presented t for the General Fund. The Town prepares its financial statements on the basis of ac- counting practices prescribed by the Commonwealth of Massachusetts. 13