Text · page 58 of 115
Read the whole document on one page (all 115 pages, each with its own heading)
Program Financial Condition Asset Reconciliation Balance at January 1, 2024 $ 646,058 Changes during the year: Add: Plan contributions 8,155 Interest 84,565 Less: Participant distributions (47,590) Balance at December 31, 2024 $ 691,188 Contributions and Administrative Fees The actuary determined that the Town contributions owed during the 2024 calendar year totaled $8,155. Administrative and Trustee Fees taken out of the account during the year ending December 31, 2024 were $4,600 with an additional $42,990 of distributions made to beneficiaries. Plan Assets The Town accounts for service award program assets within its Ambulance Fund. The fair value of these program assets as of December 31, 2024 is $691,188. 9. LEASES Lease Receivables—The Town recognizes a lease receivable and a deferred inflow of resources for a noncancellable lease of buildings measured at the present value of the remaining lease payments expected to be received during the lease terms. At the commencement of a lease, the Town initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. Key estimates and judgments related to leases include how the Town determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The Town uses its estimated incremental borrowing rate as the discount rate for leases. The lease terms include the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee. - 36 -