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) 
Fund Financial Statements: (continued) 
Fiduciary Funds: 
Fiduciary funds include trust and agency funds. The following is the City's fiduciary fund type: 
Trust Fund: This fund is used to account for assets held by the City in a trustee capacity. 
Athens Pension Trust Fund: This 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, Capital Improvement Fund, and 
General Purpose School Fund. The City's major proprietary funds are the Conference Center 
Fund and Sanitation Fund. 
C. Budgets and Budgetary Accounting 
The City follows these procedures in establishing the budgetary data reflected in the financial 
statements: 
1. The City holds budget hearings in April of each year with all department heads submitting 
requests. The operating budget includes proposed expenditures and the means of financing 
them. 
2. In early May, the City Manager and/or the Director of Finance makes a formal presentation 
to the City Council. 
3. Prior to July 1, the Council will pass on second reading an ordinance to adopt the budget 
and set the tax rate. 
4. Management may transfer budgeted amounts between line items within a department; 
however, any revision that alters the total expenditures of any department and/or fund must 
be approved by the City Council. 
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