CITY OF NASHUA, NEW HAMPSHIRE
Notes to Financial Statements
Summary of Significant Accounting Policies
The accounting policies of the City of Nashua, New Hampshire (the City) conform to
generally accepted accounting principles (GAAP) as applicable to governmental units. The
following is a summary of the more significant policies:
Reporting Entity
The City is a municipal corporation governed by an elected Mayor and Board of Aldermen.
As required by generally accepted accounting principles, these financial statements present
the government and applicable component units for which the government is considered to
be financially accountable.
Fiduciary Component Unit
The Board of Public Works Retirement System (the System) was established to provide
retirement benefits exclusive to regular employees of the Board of Public Works (the
Board). The System is governed by a board of five trustees, comprised of one member of
the Board of Public Works, two representatives of the public works employees, one member
of the Board of Aldermen, and one member appointed by the Mayor. The System is
presented using the accrual basis of accounting and is reported as a pension trust fund in the
fiduciary fund financial statements. The System met the required GASB 14 (as amended)
criteria of a fiduciary component unit as the benefits provided are exclusively or almost
exclusively to the City or its employees. The System does not issue a separate financial
report.
Discretely Presented Component Units
In fiscal year 2021, it was determined that the Pennichuck Corporation and Nashua Airport
Authority met the required GASB 14 (as amended) criteria of discretely presented
component units.
Pennichuck Corporation (Pennichuck) is a holding company headquartered in Merrimack,
New Hampshire with five wholly owned operating subsidiaries. Pennichuck Water Works,
Inc., Pennichuck East Utility, Inc., and Pittsfield Aqueduct Company, Inc. are involved in
regulated water supply and distribution to customers in New Hampshire. Pennichuck Water
Service Corporation conducts non-regulated water-related services, while the Southwood
Corporation owns several parcels of undeveloped land. On January 25, 2012, the City
purchased all of the outstanding shares acquiring control of Pennichuck’s assets, liabilities,
and businesses. Pennichuck remains an independent corporation with the City as its sole
shareholder. Pennichuck meets the criteria as a discretely presented component unit as the
City owns a majority of the equity interest in Pennichuck, and the intent of the acquisition
was to enhance the control of water resources and watershed, along with providing stability
in water rates. Complete financial statements of Pennichuck Corporation may be obtained
from its corporate office at 25 Manchester Street, Merrimack, New Hampshire 03054.
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