7998-R1_ML&P_Hollis_2020-2021_AnnualReport_Web

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

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Measurement Focus - Basic Financial Statements and Fund Financial Statements The financial transactions of the Town are reported in the individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund balances, revenues and expenditures/expenses. The various funds are reported by generic classification within the financial statements. The following fund types are used by the Town: 1. Governmental Funds: The focus of the governmental funds' measurement (in the fund statements) is upon determination of financial position (sources, uses and balances of financial resources) rather than upon net income. The following is a description of the governmental funds of the Town: Major Funds a. The General Fund is the general operating fund of the Town. It is used to account for all financial resources except those required to be accounted for in another fund. b. The Poland Spring TIF Fund is used to account for the revenues and expenditures associated with the Poland Spring TIF District. c. The Road Paving Projects Fund is used to account for financial resources including transfers from the general fund and bond proceeds to be used for the construction of roads. Nonmajor Funds d. Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. Fiduciary Funds: Fiduciary funds are used to report assets held in a trustee or custodial capacity for others and therefore are not available to support Town programs. The reporting focus is on net position and changes in net position and is reported using accounting principles similar to proprietary funds. The Town has no component units that are fiduciary in nature. 2.

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