athens tn acfr fy2025

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CITY OF ATHENS, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
A - 27
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basic Financial Statements, Presentation, Basis of Accounting and Measurement Focus 
(Continued)
The Employee Medical Benefits fund was established to account for the potential health insurance 
changes required under the Affordable Health Care Act. Funds may be used for premiums paid 
for fully insured health care coverage or to provide initial funding for claims paid through a self-
insured plan.
Additionally, Enterprise funds are used to account for the acquisition, operations and 
maintenance of City facilities and services which are entirely or predominantly self-supporting 
through user charges.
The City reports the following Enterprise funds:
The Conference Center fund was established to provide a facility for recreational, cultural and 
educational activities and to promote regional awareness.
The Sanitation fund was established expressly to account for financial activities related to the 
management of solid waste. This includes the collection, transportation and disposal of industrial, 
commercial and residential refuse.
Fiduciary Funds
Fiduciary funds include trust and agency funds. The following is the City's fiduciary fund type:
The Trust fund is used to account for assets held by the City in a trustee capacity. 
The Athens Pension Trust fund is used to account for the accumulation of resources for pension 
benefit payments to qualified City retirees.
Funds are classified as major funds or nonmajor funds within the statements. An emphasis is 
placed on major funds, with all nonmajor funds presented in total in one column on the 
governmental and proprietary funds financial statements.
The City's major governmental funds are the General Fund, General Purpose School Fund, 
Federal Projects Fund, General Obligation Bond Fund, Debt Service – Schools Fund, Capital 
Improvement Fund, School Construction Fund, and Education Capital Project Fund. The City's 
major proprietary funds are the Conference Center Fund and Sanitation Fund.
(Continued)