athens tn acfr fy2023

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

Note 4.

Note 5.

CITY OF ATHENS, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
June 30, 2023

Cash Deposits and Investments (continued)

Investments: (continued)

Primary Government (continued)

For the City, Level 1 investments are valued using prices quoted in active markets for those
investments. Level 2 investments are valued based on the investments relationship to benchmark
quoted prices. Level 3 investments are valued using either a discounted cash flow or market

comparable entities technique.

The methods described above may produce a fair value calculation that may not be indicative of net
realizable value or reflective of future fair values. Furthermore, while the City believes its valuation
methods are appropriate and consistent with other market participants, the use of different
methodologies or assumptions to determine the fair value of certain financial instruments could
result in a different fair value measurement at the reporting date.

The following table sets forth by level, within the fair value hierarchy, the City’s assets at fair value
as of June 30, 2023:

Investment type Fair Value Level 1 Level 2 Level 3

Athens Pension Trust Fund:
Cash and cash equivalents $ 356,109 $ 356,109 $ - $ -
Mutual funds 15,445,432 - 15,445,432 -
U.S Treasury Bonds 1,022,629 1,022,629 - -
16,824,170 1,378,738 15,445,432 -

Cemetery Perpetual Fund:

Money market funds - cash 24,668 24,668 - .
Mutual funds 336,175 - 336,175 -
360,843 24,668 336,175 -

$ 17,185,013 $ 1,403,406 $ 15,781,607 $=

——

Interfund Transactions

Interfund Balances:

At June 30, 2023, the General Purpose School Fund had interfund receivables that consist of
$430,000 due from the General Fund and $604,520 due from the Federal Projects Fund. The
General Purpose School Fund had an interfund payable of $5,317 due to the General Fund, and
$4,690 due to the Cafeteria Fund. The Capital Improvement Fund had an interfund receivable of
$305,396 due from the School Construction Fund.

- 49 -