1992-1998-FISCAL AUDITS - Laserfiche WebLink

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i Modified Accrual Basis (Governmental, Expendable Trust and Agency Funds The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental and expend- able trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Oper- ating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. j The modified accrual basis of accounting is applied in all governmental, j expendable trust and agency fund types. Accordingly, revenues are recorded when susceptible to accrual, that is, both measurable and avail- able to finance expenditures of the current period. Available means col- lectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The Town considers property tax revenue available if received within 60 days after the close of the fiscal year. All other amounts not received during that period are deferred and recognized in future accounting periods. In applying the susceptible to accrual concept to intergovernmental revenues, the legal and contractual requirements of the numerous indi- vidual programs are used as guidance. There are essentially two types of these revenues: (1) revenues recognized based upon the expenditures recorded, and (2) revenues recognized at the time of receipt or earlier, if the susceptible to accrual criteria is met. Other revenues (except investment earnings) are recorded as revenues 9 ) ( p I when received in cash because they are generally not measurable until actually received. Investment earnings are recorded as earned since they are measurable and available. except Expenditures, t for interest on long-term debt which is recorded p p when due, landfill closure and postclosure costs, and vacation, sick and pension costs because these amounts are not expected to be relieved within the current accounting period, are recorded when the related fund liability is incurred. Accrual Basis (ProprietarV and Nonex endable Trust Funds All proprietary and nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Proprietary fund type operat- 9