athens tn acfr fy2020

Machine-read OCR text; verify every number, name, and layout against the original page.

CITY OF ATHENS, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
June 30, 2020

Note 1. 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.

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.

Education Capital Projects Fund: This fund is used to account for the planned school
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.

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.

Debt Service Fund: This fund accounts for the payment of principal and interest on the
City’s general obligation long-term debt.

Fee