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i <br /> accounting principles. Interfund eliminations have not been made in the <br /> aggregation of this data. <br /> 2. Departures from Generally Accepted Accounting Principles <br /> The significant departures of the Town 's financial statements from generally <br /> accepted accounting principles are as follows: <br /> • General fixed asset acquisitions are not capitalized in a general fixed <br /> ss <br /> a etrou of accounts. <br /> 9 p <br /> 3. Stewardship, Compliance and Accountability <br /> A. Budgetary Information <br /> At the town meeting, the Finance Committee presents an operating and <br /> capital budget for the proposed expenditures of the fiscal year commenc- <br /> ing the following July 1. The budget, as enacted by the town meeting, <br /> establishes the legal level of control and specifies that certain appropri- <br /> ations are to be funded by particular revenues. The original budget is <br /> amended during the fiscal year at special town meetings as required by <br /> changing conditions. In cases of extraordinary or unforeseen expenses, <br /> the Finance Committee is empowered to transfer funds from the Reserve <br /> Fund (a contingency appropriation) to a departmental appropriation. <br /> "Extraordinary" includes expenses which are not in the usual line, or are <br /> great or exceptional. "Unforeseen" includes expenses which are not <br /> foreseen as of the time of the annual meeting when appropriations are <br /> voted. <br /> Departments are limited to the line items as voted. Certain items may <br /> exceed the line item budget as approved if it is for an emergency and for <br /> the safety of the general public. These itemsare limited b the next year's <br /> the Massa- <br /> chusetts General Laws and must be raised in y s tax rate. i <br /> Formal budgetary integration is employed as a management control j <br /> device during the year for the General Fund. Effective budgetary control <br /> is achieved for all other funds through provisions of the Massachusetts <br /> General Laws. <br /> At year end, appropriation balances lapse, except for certain unexpended <br /> capital items and encumbrances which will be honored during the subse- <br /> quent year. <br /> 12 <br />