2019 Comprehensive Annual Financial Report (CAFR)

H. Annual Leave and Sick Leave The City’s policy permits employees to accumulate up to 30 days of earned but unused annual leave, which would be paid to employees upon separation from the City. Accumulated annual leave at June 30, 2019 amounted to $15,900,049 of which $13,466,252 relates to Governmental Activities and $2,433,797 relates to Business-Type Activities. Changes in accumulated annual leave are as follows:

Balance 7/1/2018

Current Year

Balance 6/30/2019

Due Within One Year

Fund Type

Increase

Decrease

$ (8,452,248)

$ 13,466,252 $ 7,601,101

$

8,771,946 1,878,959 10,650,905

Governmental Activities Business-Type Activities

$ 13,146,554 2,402,281 $ 15,548,835

(1,847,443)

2,433,797

1,493,936

$ (10,299,691)

$ 15,900,049 $ 9,095,037

$

Greensboro ABC Board employees may accumulate up to 30 days earned leave. The balance of the accumulated leave liability is not considered to be material. Operations of the GHDP are performed by employees of the City. Accordingly, there is no recorded liability for employee leave amounts for GHDP at June 30, 2019. City employees had accumulated sick leave benefits of $69,086,809 at June 30, 2019, based on compensation rates in effect on that date. Sick leave does not vest, but any unused sick leave accumulated at the time of retirement may be used in the determination of length of service for retirement benefit. Since the City has no obligation for the accumulated sick leave until it is actually taken, no accrual has been made for sick leave. The same policy is followed by the Greensboro ABC Board. V. Other Information A. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City protects itself from potential loss through a combination of purchased commercial insurance for primary and/or excess liability coverage and self-funded risk retention. Self-funded risks are primarily for health, employee workers’ compensation, general, professional, law enforcement, vehicle and underground storage tank liabilities. The City purchases Flood Insurance coverage through the Blanket Property insurance policy with an annual aggregate flood limit of $100,000,000 with deductibles ranging from $100,000 to $500,000 per location depending on the size and location of the facility. One location is covered solely by the City’s self-funded insurance plan. The City has not had a flood loss in the past 30 plus years that amounted to more than $100,000. Bonding in the following amounts is held for City employees involved in financial transactions: Finance Officer, $100,000, Tax Collector, $100,000, and Employee Blanket Bond, $100,000. All operating funds of the City participate in the risk management program and make payments to the Employee Risk Retention Fund and the General Risk Retention Fund based on the funds’ historical claims experience. Payments are for prior and current year claims and to establish a reserve for catastrophic losses. Claims liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but are not reported (IBNR’s), based on actuarial computations. Settled claims have not exceeded self–retained or purchased insurance coverage in any of the past three fiscal years. 1. Employee Risk Retention The City provides for health, dental, life and workers’ compensation benefits in its Employee Risk Retention Fund. The City’s health plan currently offers two plan options through a self-funded program, and a dental plan and vision plan is administered for employees and their covered dependents, supplemented by employee contributions.

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