1992-1998-FISCAL AUDITS - Laserfiche WebLink

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limited by the Massachusetts General Laws and must be raised in the next year's tax rate. j � j At year end, appropriation balances lapse, except for certain unexpended capital items and encumbrances which will be honored during the subse- quent year. Formal budgetary integration is employed as a management control device during the year for the General Fund. Effective budgetary control is achieved for all other funds through provisions of the Massachusetts General Laws. E. Assets, Liabilities and Fund Equitv Cash and Cash Equivalents Deposits with financial institutions consist primarily of demand deposits, certificates of deposits and savings accounts. The Town maintains a cash and investment pool that is available for use by all funds. Each fund's portion of this pool is reflected on the combined financial state- ments under the caption "cash and cash equivalents". The interest earn- ings attributable to each fund type is included under earnings on invest- ments. State and local statutes place certain limitations on the nature of deposits and investment available to the Town. Deposits in any one financial institution may not exceed certain levels within the financial institution. Investments can be made in securities issued or unconditionally guar- anteed by the U.S. Government or agencies that have a maturity of less than one year from the date of purchase and repurchase agreements guaranteed by such securities with maturity dates of no more than 90 days from the date of purchase. The Town's deposits at June 30, 1994 were not covered entirely by federal depository insurance or by collateral held by the financial institu- tion's trust department in the government's name. Receivables - The property taxes receivable shown on page 3 are presented net of an allowance for abatements and exemptions of $ 1,204,275. Warrants Payable - This represents fiscal year 1994 bills owed by the Town and paid during the first 15 days of fiscal year 1995. i i I li 9