Annual report of the Town of Hampton, New Hampshire

TOWN OF HAMPTON, NEW HAMPSHIRE
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
Account Groups
Account groups are not "funds." They are concerned only with the measurement of financial
position. They are not involved with measurement of results of operations. The Town uses the
following account groups:
General Fixed Assets Account Group - General fixed assets have been acquired for general
governmental purposes and have been recorded as expenditures in the fund making the expenditure.
These expenditures are required to be capitalized at historical cost in a General Fixed Asset
Account Group for accountability purposes. In accordance with the practices followed by most
other municipal entities in the State, the Town does not maintain such a record of its
general fixed
assets and, accordingly, a statement of general fixed assets, required by generally accepted
accounting principles, is not included in this financial report.
General Long-Term Debt Account Group - This account group is established to account for all
long-term debt of the Town.
C. Measurement Focus/Basis of Accounting
Governmental, Expendable Trust and Agency Funds use the modified accrual basis of accounting.
Under this method, revenues are recognized in the accounting period in which they become both
available and measurable (flow of current financial resources measurement focus).
Licenses and
permits, fines and forfeits, and miscellaneous revenues are recorded as revenues when received in
cash.
General taxes, intergovernmental revenues, charges for services, and investment earnings are
recorded when earned (when they are measurable and available).
Expenditures are recognized in
the accounting period in which the fund liability is incurred, if measurable, except expenditures for
debt service, prepayments, and other long-term obligations, which are recognized when due.
All Nonexpendable Trust Funds are accounted for using the accrual basis of accounting. Their
revenues are recognized when they are earned, and their expenses are recognized when they are
incurred (flow of economic resources measurement focus).
D. Budgetary Accounting
General Budget Policies
General governmental revenues and expenditures accounted for in budgetary funds are controlled
by a formal integrated budgetary accounting system in accordance with various legal requirements
which govern the Town's operations. At its annual meeting, the Town adopts a budget for the
current year for the General, Lane Memorial Library, Conservation Commission, Cemetery
Trustees and Beach Infrastructure Funds.
Project Funds.
accepted accounting principles.
Project-length financial plans are adopted for all Capital
Except as reconciled below, budgets are adopted on a basis consistent with generally