athens tn acfr fy2023

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City of Athens, Tennessee

Management’s Discussion and Analysis
June 30, 2023

The City of Athens maintains thirteen individual governmental funds. Information is presented separately
in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures,
and changes in fund balances for the General Fund, the General Purpose School Fund, the Federal Projects
Fund, the Capital Improvement Fund, the School Construction Fund and the Education Capital Projects
Fund which are considered to be major funds. Data from the other seven governmental funds are combined
into a single aggregated presentation. Individual fund data for each of these nonmajor governmental funds
is provided in the form of combining and individual statements later in this report beginning on page 106.

The City of Athens adopts an annual appropriated budget for its governmental funds. A budgetary
comparison statement has been provided for the General Fund, the General Purpose School Fund and the

Federal Projects Fund to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 7-10 of this report.

Proprietary funds. The City of Athens maintains two different types of proprietary funds: enterprise funds
and internal service funds. Enterprise funds are used to report the same functions presented as business-
type activities in the government-wide financial statements. The City of Athens uses enterprise funds to
account for its Southeast Tennessee Trade and Conference Center operations and sanitation services.
Internal service funds are an accounting device used to accumulate and allocate costs internally among the
City of Athens’ various functions. The City of Athens uses one internal service fund to account for its fleet
of vehicles and another for employee medical benefits. Because these services predominantly benefit
governmental rather than business-type functions, they have been included within governmental activities in

the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only
in more detail. The proprietary funds financial statements provide separate information for the Southeast
Tennessee Trade and Conference Center operations and the Sanitation Fund, both of which are considered
to be major funds of the City of Athens. The internal service funds are presented in the proprietary fund
financial statement. Individual data for each of the internal service funds is provided in the form of
combining statements later in this report beginning on page 111.

The basic proprietary fund financial statements can be found on pages 17-1 9 of this report.

Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside
the government. Fiduciary funds are not reflected in the government-wide financial statement because the
resources of those funds are not available to support the City of Athens’ own programs. The accounting
used for fiduciary funds is much like that used for proprietary funds. Athens Pension Trust Fund is the one
fiduciary maintained by the City and is shown on pages 20 and 21 of this report.

Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes to the
financial statements can be found on pages 22-94 of this report.