Annual report of the Town of Hampton, New Hampshire

TOWN OF HAMPTON
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 1991
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Town of Hampton, New Hampshire was incorporated in 1639 and operates under
a Selectmen form of government.
The financial statements of the Town have been prepared in conformity with
generally accepted accounting principles (GAAP) as applied to the governmental
units. The Governmental Accounting Standards Board (GASB) is the accepted
standard-setting body for establishing governmental accounting and financial
reporting principles. The more significant of the government's accounting
policies are described below.
A. Governmental Reporting Entity
For financial reporting purposes, in conformity with the National Council
on Governmental Accounting Statement Number 3, "Defining the Governmental
Reporting Entity," the Town of Hampton includes all funds, account
groups, agencies, boards, commissions and authorities that are controlled
by or dependent on the Town's executive or legislative branches. Control
by or dependence on the Town is determined on the basis of budget
adoption, taxing authority, outstanding debt secured by revenues or
general obligations of the Town, obligation of the Town to finance any
deficits that may occur, or receipt of significant subsidies from the
Town.
Based on the foregoing criteria, the following organizations are included
in the Town's annual financial report:
Lane Memorial Library
Hampton Cemetery Trustees
The following organizations are not part of the Town and are excluded
from the accompanying financial report:
Hampton School District
Hampton Waterworks Company
Hampton Beach Village Precinct
B. Basis of Presentation
The accounts of the Town are organized on the basis of funds or account
groups, each of which is considered a separate accounting entity. The
operations of each fund are accounted for with a separate set of selfbalancing
accounts that comprise its assets, liabilities, fund equity,
revenues, and expenditures/expenses, as appropriate. Governmental
resources are allocated to and accounted for in individual funds based
upon the purposes for which they are to be spent and the means by which
spending activities are controlled. The various funds are grouped by
type in the financial statements. The following fund types and account
groups are used by the Town:
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