Annual report of the Town of Hampton, New Hampshire

TOWN OF HAMPTON
NOTES TO
THE FINANCIAL STATEMENTS
DECEMBER 31, 1991
Interfund Receivables and Payables
During the course of normal operations, the Town has numerous
transactions between funds, including expenditures and transfers of
resources to provide services and fund capital outlay. The
accompanying governmental and fiduciary fund financial statements
reflect such transactions as transfers. To the extent that certain
transactions have not been paid or received as of December 31,
balances of interfund amounts receivable or payable have been
recorded.
Long-Term Li abiliti es
All governmental funds and expendable trust funds are accounted for
on a spending or "financial flow" measurement focus. This means
that only current assets and current liabilities are generally
included on their balance sheets. Their reported fund balance (net
current assets) is considered a measure of "available spendable
resources". Governmental fund operating statements present
increases (revenues and other financing sources) and decreases
(expenditures and other uses) in net current assets. Accordingly,
they are said to present a summary of sources and uses of available
spendable resources during a period.
General obligation bonds and other forms of long-term debt supported
by general revenues are obligations of the Town as a whole.
Accordingly, such unmatured obligations of the Town are accounted
for in the General Long-Term Debt Group of Accounts.
It is the Town's policy to permit employees to accumulate a limited
amount of earned but unused vacation benefits, which will be paid to
employees upon separation from the Town's service. In Governmental
Fund Types, the cost of vacation benefits is recognized when
payments are made to employees. A long-term liability of $453,441
of accrued vacation and sick leave benefits at December 31, 1991 has
been recorded in the General Long-Term Debt Group of Accounts,
representing the Town's commitment to fund such costs from future
operations.
Fund Equity
The portion of fund balance which has been legally segregated for a
specific future use, or which indicates that a portion is not
appropriable for expenditures, is shown as reserved. The following
reserves were used by the Town during the year:
Reserved for Endowments - represents the balance of Nonexpendable
Trust Funds of which the principal must be held for investment and
for which only the income may be expended for specific purposes.
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