athens tn acfr fy2024

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CITY OF ATHENS, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
A - 25
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basic Financial Statements, Presentation, Basis of Accounting and Measurement Focus 
(Continued)
Governmental Funds (Continued)
The General Fund is the principal fund of the City and is used to account for the financial 
resources of the City which are not accounted for in other funds. The principal sources of 
revenues are taxes and state-shared revenue. Primary expenditures are for public safety, education 
and general administration.
The Special Revenue Funds are used to account for the proceeds of specific revenues which are 
legally restricted to finance specific functions or activities of the government and which, 
therefore, cannot be diverted to other uses. 
The City reports the following Special Revenue Funds:
The Drug Fund is established expressly to account for financial activities related to drug revenues 
and expenditures. This includes revenues for drug fines and forfeitures and expenditures for drug 
enforcement, education and treatment.
The General Purpose School Fund is used to account for the financial resources of the Board of 
Education, which are not accounted for in other Board of Education funds. The primary sources 
of revenues are taxes and state-shared revenue. Primary expenditures are for regular and special 
instruction, staff, and maintenance and operation of schools.
The Hotel/Motel Tax fund accounts for revenues and expenditures of the City's hotel/motel 
privilege tax. State law requires that hotel/motel taxes be used to promote tourism and tourism 
development.
The Federal Projects fund is used to account for federal awards received by the Board of 
Education.
The Centralized Cafeteria 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.
The Internal School Funds are used to account for the Board of Education's school activity funds.
Additionally, Capital Projects Funds account for resources designated for the construction or 
acquisition of major capital assets. Revenues are derived primarily from capital grants and 
investment income. 
The City reports the following Capital Projects funds:
(Continued)