Laserfiche WebLink
s <br /> FIDUCIARY FUNDS <br /> Trust and Aaencv Funds - Trust and Agency Funds are used to account <br /> for assets held by the Town in a trustee capacity or as an agent for <br /> individuals, private organizations, other governments and/or other funds. <br /> These include Expendable Trust, Nonexpendable Trust and Agency <br /> Funds. Nonexpendable Trust Funds are accounted for in a manner that <br /> permits the periodic measurement of revenues earned, expenses incurred <br /> and/or net income in order to demonstrate maintenance of capital. <br /> Expendable Trust Funds are accounted for in essentially the same <br /> manner as governmental funds. Agency funds are custodial in nature <br /> (assets equal liabilities) and do not involve measurement of results of <br /> operations. <br /> ACCOUNT GROUP <br /> Long-Term Debt and Liabilities - Long-term liabilities expected to be <br /> financed from governmental funds are accumulated in the General Long- <br /> Term Debt Group of Accounts. This account group is not a fund. It is <br /> only concerned with the measurement of financial position, and therefore <br /> is not involved with a measurement of the results from any operations. <br /> B. Basis of Accounting <br /> The Town's Nonexpendable Trust Funds are accounted for using the <br /> accrual basis of accounting. All other Town funds have been prepared <br /> using the modified accrual basis of accounting. This method recognizes <br /> revenues when they become measureable and available. Property taxes, <br /> motor vehicle excise and certain intergovernmental revenues are the <br /> significant revenue sources considered susceptible to accrual. The Town <br /> accrues as revenue the amount of property taxes due to the Town prior to <br /> year-end and collected within sixty days after the end of its fiscal year. All <br /> other revenues are recognized when cash is received. <br /> Expenditures are generally recognized under the modified accrual basis <br /> of accounting when obligations are incurred. The significant exceptions <br /> to this general rule include interest on long-term debt, accumulated <br /> vacation, sick pay and other employee benefits which are considered <br /> expenditures when paid. <br /> - 7 - <br />