athens tn acfr fy2023

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CITY OF ATHENS, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
June 30, 2023
Note 1. Summary of Significant Accounting Policies (continued)

A, Financial Reporting Entity (continued)

Other Related Organizations: (continued)

E. G. Fisher Public Library

The City of Athens and McMinn County participate in the joint operation of E. G. Fisher Public
Library. The McMinn County Library Board is responsible for administering the joint library.
This Board consists of seven members, of which four are appointed by the County Commission
and three are appointed by the City Council. The Board directs all the internal affairs of the
library, and such assistants or employees as may be necessary.

Athens Health and Education Facilities Board

The Athens Health and Education Facilities Board’s activities include acquiring, owning,
leasing and disposing of property as well as issuing bonds to promote higher education and
health in Athens. The City is not liable for the debt of the Health and Education Facilities
Board nor does the City finance their deficits. The Board is directed by volunteer Board
members appointed by the City.

B. Basic Financial Statements, Presentation, Basis of Accounting and Measurement Focus
Government-wide Financial Statements:

The government-wide financial statements (i.e., the statement of net position and the statement
of activities) report information on all of the nonfiduciary activities of the City. As a general
rule, the effect of interfund activity has been eliminated from these statements. Activity which
represents services provided or used are not eliminated in the government-wide statements. The
statements distinguish between governmental and business-type activities. Governmental
activities generally are financed through taxes, intergovernmental revenues, and other
nonexchange revenues. Business-type activities rely to a significant extent on fees and charges
for services.

The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. This means that revenues are recorded
when earned and expenses are recorded when a liability is incurred, regardless of the timing of
the related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.

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