athens tn acfr fy2021

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CITY OF ATHENS, TENNESSEE 
NOTES TO FINANCIAL STATEMENTS 
June 30, 2021 
Note 1. Summary of Significant Accounting Policies (continued) 
B. Basic Financial Statements, Presentation, Basis of Accounting and Measurement Focus 
(continued) 
Fund Financial Statements: (continued) 
Governmental Funds: (continued) 
Special Revenue Funds: (continued) 
Federal Projects Fund: This fund is used to account for federal awards received by the 
Board of Education. 
Centralized Cafeteria Fund: This 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. 
Internal School Funds: These funds are used to account for the Board of Education's 
school activity funds. 
Capital Projects Funds: Resources designated for the construction or acquisition of major 
capital assets are accounted for in these funds. Revenues are derived primarily from capital 
grants and investment income. 
Capital Improvement Fund: This fund is used to account for large capital projects as 
designated by City Council. 
Education Capital Projects Fund: This fund is used to account for the Board of 
Education's planned school construction and renovation to accommodate school 
consolidation. Resources consist of amounts committed by the School Board and 
amounts to be provided by the City through property tax and/or sales tax. 
School Construction Fund: This fund is used for the City to account for school 
construction activity. 
Permanent Fund: The Permanent Fund is used to account for resources that are restricted 
to the extent that only earnings, and not principal, may be used for purposes that support a 
specific government program. 
Cemetery Perpetual Care Fund: This trust fund was established to provide for future 
maintenance of the City's cemeteries. 
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