athens tn acfr fy2019 text edition

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CITY OF ATHENS, TENNESSEE 
NOTES TO FINANCIAL STATEMENTS 
June 30, 2019 
Note 1. Summary of Significant Accounting Policies (continued) 
B. Basic Financial Statements, Presentation, Basis of Accounting and Measurement Focus 
(continued) 
Government-wide Financial Statements: (continued) 
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. 
The statement of activities demonstrates the degree to which the direct expenses of a given 
function or activity are offset by program revenues. Direct expenses are those that are clearly 
identifiable with a specific function or activity. The City does not allocate indirect expenses to 
functions or activities in the statement of activities. Program revenues include: (1) charges to 
individuals who purchase, use or directly benefit from goods, services, or privileges provided 
by a given function, and (2) grants and contributions that are restricted to meeting the 
operational or capital requirements of a particular function or activity. Taxes and other items 
not considered program revenues are reported as general revenues. When both restricted and 
unrestricted resources are available for use, the City's policy is to use restricted resources first. 
Fund Financial Statements: 
Fund financial statements of the reporting entity are organized into funds, each of which are 
considered to be separate accounting entities. Each fund is accounted for by providing a 
separate set of self-balancing accounts, which constitute its assets, deferred outflows, liabilities, 
deferred inflows, equity, revenues, and expenditures/expenses. 
Separate financial statements are provided for governmental funds, proprietary funds, and 
fiduciary funds, even though the latter are excluded from the government-wide fmancial 
statements. Major individual governmental funds and major individual proprietary funds are 
reported as separate columns in the fund financial statements. 
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