athens tn acfr fy2022

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Note 1.

CITY OF ATHENS, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
June 30, 2022

Summary of Significant Accounting Policies (continued)

B. Basic Financial Statements, Presentation, Basis of Accounting and Measurement Focus
(continued)

Fund Financial Statements: (continued)
Governmental Funds: (continued)
Special Revenue Funds: (continued)

Federal Projects Fund: This fund is used to account for federal awards received by the
Board of Education.

Centralized Cafeteria Fund: This fund is used to account for the Board of Education’s
food services provided to preschool and school children. A substantial portion of the
Centralized Cafeteria Fund’s resources are derived from federal and state funding for

child nutrition.

Internal School Funds: These funds are used to account for the Board of Education’s
school activity funds.

Capital Projects Funds: Resources designated for the construction or acquisition of major
capital assets are accounted for in these funds. Revenues are derived primarily from capital
grants and investment income.

Capital Improvement Fund: This fund is used to account for large capital projects as
designated by City Council.

General Obligation Bond Fund: This fund is used to account for the proceeds of bonds
issued in 2021.

Education Capital Projects Fund: This 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.

School Construction Fund: This fund is used for the City to account for school
construction activity.

Permanent Fund: 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.

Cemetery Perpetual Care Fund: This trust fund was established to provide for future
maintenance of the City’s cemeteries.

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