athens tn acfr fy2021

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City of Athens, Tennessee 
Management's Discussion and Analysis 
June 30, 2021 
Fund, the School Construction Fund and the Education Capital Projects Fund which are considered to be 
major funds. Data from the other five 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 103. 
The City of Athens adopts an annual appropriated budget for its governmental funds. A budgetary 
comparison statement has been provided for the General Fund and the General Purpose School Fund to 
demonstrate compliance with this budget. 
The basic governmental fund financial statements can be found on pages 6-9 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 108. 
The basic proprietary fund financial statements can be found on pages 15-17 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 18 and 19 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 20-91 of this report. 
Other information. In addition to the basic financial statements and accompanying notes, this report also 
presents certain required supplementary information concerning the City of Athens' progress in funding its 
obligation to provide pension benefits to its employees. Required supplementary information can be found 
on pages 92-102 of this report. The combining statements referred to earlier in connection with nonmajor 
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