athens tn acfr fy2020

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Note 1.

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

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. ‘lhe following is the City’s fiduciary tund 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.

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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