Acton-Boxborough Regional School District Notes to Basic Financial Statements Year Ended June 30, 2024
Q. Use of Estimates
Government-Wide and Fund Financial Statements
The preparation of basic financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure for contingent assets and liabilities at the date of the basic financial statements and the reported amounts of the revenues and expenditures/expenses during the year. Actual results could vary from estimates that were used.
R. Total Column
Fund Financial Statements
The total column on the fund financial statements is presented only to facilitate financial analysis. Data in this column is not the equivalent of consolidated financial information.
NOTE 2 – CASH AND INVESTMENTS
A cash and investment pool is maintained that is available for use by all funds. Each fund type’s portion of this pool is displayed on the combined balance sheet as “Cash and Cash Equivalents”. The deposits of the trust funds are held separately from those of other funds. Statues authorize the investment in obligations of the U.S. Treasury, agencies, and instrumentalities, certificates of deposit, repurchase agreements, money market accounts, bank deposits, and the State Treasurer’s Investment Pool (Pool). The Treasurer may also invest trust funds in securities, other than mortgages or collateral loans, which are legal for the investment of funds of savings banks under the laws of the Commonwealth. The Pool meets the criteria of an external investment pool. The Pool is administered by the Massachusetts Municipal Depository Trust (MMDT), which was established by the Treasurer of the Commonwealth who serves as Trustee. The fair value of the position in the Pool is the same as the value of the Pool shares.
Custodial Credit Risk- Deposits
In the case of deposits, this is the risk that in the event of a bank failure, the District’s deposits may not be returned to it. The District’s policy allows for unlimited bank deposits or certificates of deposit (up to three-year maturities from date of purchase) in financial institutions that are fully collateralized or fully insured by Federal Depository Insurance or the Depository Insurance Fund. For insured bank accounts
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