Annual report of the Town of Hampton, New Hampshire

HAMPTON BEACH VILLAGE DISTRICT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Financial Reporting Entity
Hampton Beach Village District is a municipal corporation organized and designated as a District under the laws
of the State of New Hampshire. The District is governed by an elected three member board of commissioners. The
purpose of the District is to provide general government services, certain public safety services and culture and recreation
benefits for Hampton Beach Village District.
The District is located within the Town of Hampton, New Hampshire.
Types and Purposes of Funds
A. General funds are intended to provide recurring general services. They are controlled by a budget approved by the
voters. All general tax revenues and other receipts that are not allocated by law or contractual agreement to another
fund are accounted for in this fund. From the fund are paid general/operation expenditures, fixed charges, and
capital costs not paid through other funds.
B. Capital Projects Funds are used to account for financial assets obtained and used for the acquisition or improvement
of major capital facilities.
The District's Capital Projects Funds include the following:
1. The General Capital Improvements Fund consists of moneys voted in 1981 for capital improvements as the result
of the sale of the saltwater protective system. The original voted amount was $75,000. As of 12/31/98, the
balance of the fund was $9,528.70 including interest. Interest for 1998 was $459.72.
2. The Fire Equipment Capital Fund voted in March of 1995 and March of 1996 for the purpose of purchasing
major fire equipment in subsequent years. As of 12/31/98, the balance of the fund was $2,672.76, including
interest. Interest for 1998 was $276.95.
C. Fiduciary Fund Types account for financial assets held by the district in a trustee or agency capacity for individuals
or private organizations. The District's Fiduciary Funds consist of the following:
1. Ross Trust Fund, designated for subsequent years children's benefit programs. The balance of this account
at 12/31/98 was $896.00. Interest for 1998 amounted to $20.06.
2. Hampton Beach Playground Contribution Fund, an agency fund, established for subsequent years playground
additions. The balance of this fund at 12/31/98 was $2,760.28. Interest for 1998 amounted to $67.17.
Basis of Accounting
The accounting policies of the Hampton Beach Village District conform to generally accepted accounting
principles for local governmental units except as indicated hereinafter.
Governmental funds utilize the modified accrual basis whereby revenues are recorded when measurable and
available.
Expenditures are recorded when the liability is incurred (accrual basis) except:
A. Disbursements for inventory items (materials and supplies) are considered expenditures at the time of purchase.
B. Prepaid expenses are not normally recorded.