portions of fund balance that are legally segregated for a specific future use or which do
not represent available, spendable resources and therefore, are not available for
appropriation or expenditure. Unassigned fund balance indicates that portion of fund
balance that is available for appropriation in future periods. The General Fund is the only
fund that reports a positive unassigned fund balance.
When an expenditure is incurred that would qualify for payment from multiple fund
balance types, the City uses the following order to liquidate liabilities: restricted,
committed, assigned, and unassigned.
Net Position
Net position represents the difference between assets/deferred outflows of resources and
liabilities/deferred inflows of resources. Net position invested in capital assets, net of
related debt, consist of capital assets, net of accumulated depreciation, reduced by the
outstanding balances of any borrowing used for the acquisition, construction or
improvement of those assets. Net position is reported as restricted when there are
limitations imposed on their use either through the enabling legislation adopted by the City
or through external restrictions imposed by creditors, grantors, or laws or regulations of
other governments. The remaining net position is reported as unrestricted.
Use of Estimates
The preparation of basic financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosures 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 fiscal year. Actual results could vary from
estimates that were used.
Stewardship, Compliance, and Accountability
Budgetary Information
The Mayor presents an operating and capital budget for the proposed expenditures of the
fiscal year commencing the following July 1. The budget, as enacted by the Board of
Aldermen, establishes the legal level of control and projects the particular revenues that will
fund certain appropriations. The original budget may be amended, by supplemental
appropriations or transfers, during the fiscal year at Board of Aldermen meetings as required
by changing conditions. The Financial Services Department may transfer appropriations
between operating categories within departmental budgets at the request of department
heads, but expenditures may not legally exceed budgeted appropriations in total.
Formal budgetary integration is employed as a management control device during the year
for the general fund and proprietary funds. Effective budgetary control is achieved for all
other funds through provisions of the New Hampshire statutes.
At year-end, appropriation balances lapse, except for multi-year grants, certain unexpended
capital items, and encumbrances which will be honored during the subsequent year.
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