athens tn acfr fy2021

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CITY OF ATHENS, TENNESSEE 
NOTES TO FINANCIAL STATEMENTS 
June 30, 2021 
Note 15. Commitments and Contingencies (continued) 
The City is subject to lawsuits and claims arising out of its business nature. Management, after 
review and consultation with counsel, believes that any liability, not covered by insurance, from 
these lawsuits would not materially affect the financial position of the City. 
The City has received several federal and state grants for specific purposes which are subject to 
review by the grantor agencies. Such reviews could lead to a request for reimbursement to the 
grantor agencies for any expenditures disallowed under the terms of the grants. Management 
believes that such disallowed costs, if any, would be immaterial. 
Note 16. Subsequent Event 
The City issued $7,350,000 of General Obligation Bonds in October, 2021. The Bonds will fund 
street improvements related to the new school building, and purchases, construction and 
improvements to facilities for a new animal shelter, public works, fire training, and City Hall. 
Note 17. Risk Management 
In March 2020, the World Health Organization declared a pandemic related to the rapidly 
spreading coronavirus (COVID-19) outbreak, which has led to a global health emergency. Events 
that unfold as a part of the COVID-19 pandemic could materially impact the City's net position, 
however, the ultimate impact, if any, cannot be reasonably estimated at this time. 
The City is exposed to various risks of loss to torts; theft of, damage to and destruction of assets; 
errors and omissions; injuries to employees; and natural disasters for which the government carries 
commercial insurance or participates in the Public Entity Partners Risk Management Pool. The 
Public Entity Partners Risk Management Pool is a public entity risk pool which provides coverage 
for a variety of risks to Tennessee governments. The City does not retain the risk of loss under 
coverages with the pool. There have been no significant reductions in insurance coverage and 
settlement amounts have not exceeded insurance coverage for the current year or the three prior 
years. 
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