athens tn acfr fy2025

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CITY OF ATHENS, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
A - 22
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Other Related Organizations (Continued)
Athens Health and Education Facilities Board
The Athens Health and Education Facilities Board's activities include acquiring, owning, leasing 
and disposing of property as well as issuing bonds to promote higher education and health in 
Athens. The City is not liable for the debt of the Health and Education Facilities Board nor does 
the City finance their deficits. The Board is directed by volunteer Board members appointed by 
the City.
Basic Financial Statements, Presentation, Basis of Accounting and Measurement Focus
The Basic Financial Statements consist of the following:
1) Government-wide financial statements;
2) Fund financial statements;
3) Notes to the basic financial statements.
Government-wide Financial Statements 
The government-wide financial statements (i.e., the statement of net position and the statement of 
activities) report information on all of the nonfiduciary activities of the City. As a general rule, 
the effect of interfund activity has been eliminated from these statements. Activity which
represents services provided or used are not eliminated in the government-wide statements. The
statements distinguish between governmental and business-type activities. Governmental
activities generally are financed through taxes, intergovernmental revenues, and other
nonexchange revenues. Business-type activities rely to a significant extent on fees and charges for 
services.
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. This means that revenues are recorded
when earned and expenses are recorded when a liability is incurred, regardless of the timing of
the related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements 
imposed by the provider have been met.
In applying the "susceptible to accrual" concept to intergovernmental revenues pursuant to GASB 
Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions (the City 
may act as either provider or recipient), the provider should recognize liabilities and expenses,
and the recipient should recognize receivables and revenues when the applicable eligibility 
requirements, including time requirements, are met. Resources transmitted before the eligibility 
requirements are met should be reported as advances by the provider and unearned revenue by the 
recipient. Certain nonexchange transactions where revenues are collected by other governments 
are not recognized in the statement of activities because they are not measurable at year end. The 
statement of activities reflects these transactions (bank excise tax and gross receipts tax) on the 
same basis as the fund financial statements.
(Continued)