athens tn acfr fy2025

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CITY OF ATHENS, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
A - 26
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basic Financial Statements, Presentation, Basis of Accounting and Measurement Focus 
(Continued)
Governmental Funds (Continued)
The Capital Improvement fund is used to account for large capital projects as designated by the 
City Council.
The General Obligation Bond fund is used to account for the proceeds of bonds issued in 2021.
The Education Capital Projects fund is used to account for the Board of Education's planned 
school construction and renovation to accommodate school consolidation. Resources consist of 
amounts committed by the School Board and amounts to be provided by the City through 
property tax and/or sales tax.
The School Construction fund is used for the City to account for school construction activity.
Additionally, The Permanent Fund is used to account for resources that are restricted to the extent 
that only earnings, and not principal, may be used for purposes that support a specific government 
program.
The City reports the following Permanent Fund:
The Cemetery Perpetual Care Fund is a trust fund that was established to provide for future 
maintenance of the City's cemeteries.
The two Debt Service funds account for the payment of principal and interest on the City's 
general obligation long-term debt for school and city projects.
Proprietary Funds
Proprietary Funds include the Internal Service Funds and Enterprise Funds. The measurement 
focus is upon determination of net income, financial position, and changes in financial position. 
The generally accepted accounting principles used are those applicable to similar businesses in 
the private sector and, accordingly, these funds are maintained on the accrual basis of accounting.
The City reports the following Proprietary Fund types:
The Internal Service funds account for operations that provide service to other departments or 
agencies of the government, or to other governments, on a cost reimbursement basis.
The City reports the following Internal Service funds:
The Fleet Management fund is used to account for the acquisition and depreciation of motorized 
vehicles and equipment used by the City.
(Continued)