7998-R1_ML&P_Hollis_2020-2021_AnnualReport_Web

TOWN OF HOLLIS, MAINE NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021

NOTE 15 - CONTINGENCIES With regard to pending legal claims or any unasserted claims, it is not feasible at this time to predict or determine their outcome. Management believes, however, that settlement amounts, if any, will not have a material adverse effect on the Town’s financial position. The Town participates in various intergovernmental grant programs which may be subject to future program compliance audits by the grantors or their representatives. Accordingly, the Town’s compliance with applicable grant requirement may be established at some future date. The amount, if any, of any liabilities arising from the disallowance of expenditures or ineligibility of grant revenues cannot be determined at this time. NOTE 16 - RESTATEMENT In 2021, the Town determined that certain capital asset transactions had been recorded twice. Therefore, a restatement to the Town’s governmental net position was required. The net position of the governmental activities was restated to correct capital assets by an amount of $3,203,033. The resulting restatement decreased net position from $19,752,414 to $16,549,381.

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