2019 Comprehensive Annual Financial Report (CAFR)

Fiduciary Funds - The City is the trustee, or fiduciary, for its LEOSSA Pension Trust, with all assets held and administered in a trust account invested with the State Treasurer. In addition, the Other Post- Employment (OPEB) Trust Fund was established as an irrevocable trust in FY 2009. The City is responsible for ensuring that the assets reported in these funds are used only for their intended purposes. All of the City’s fiduciary activities are reported in a separate statement of fiduciary net position and a statement of changes in fiduciary net position. We exclude these activities from the government-wide financial statements because the City cannot use these assets to finance its operations. The basic fiduciary fund financial statements can be found on pages 32-33 of this report. C. 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 starting on page 37a of this report. D. Required Supplementary Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City of Greensboro’s progress in funding its obligation to provide pension benefits and other post-employment benefits other than pensions to certain of its retirees. Required supplementary information can be found on pages 38-44 of this report. E. Other Supplementary Information The combining statements referred to earlier in connection with nonmajor governmental funds and Internal Service Funds are presented immediately following the required supplementary information on pensions and other post-employment benefits. Combining and individual fund statements and schedules can be found starting on page 45 of this report. GOVERNMENT-WIDE FINANCIAL ANALYSIS Net position may serve over time as a useful indicator of a government’s financial position. In the case of the City of Greensboro, assets and deferred outflows exceeded liabilities and deferred inflows by $1,066,070,292 at the close of June 30, 2019 compared to $977,071,088 before restatement in the previous year. The net position for the City as a whole increased 9.1% at June 30, 2019 or net $89 million of which approximately $57.8 million of the increase represents a prior period restatement for the inclusion of the newly formed GTAC in the FY 2019 financial statements whereby its predecessor, Greensboro Transit Authority, was reported as a separately presented discrete component unit for FY 2018 and prior. The remaining increase was due to the inclusion of GTAC in current fiscal year and investment income due to the increase of cash to fund project provided by bond issuances during the year. The largest portion of the City of Greensboro’s net position $939,371,090 (88.1%) represents its investment in capital assets (e.g. land, building, machinery, and equipment) less any related debt used to acquire those assets that are still outstanding. The resources needed to repay the debt must be provided from sources other than capital assets, since they cannot be used to liquidate the liabilities. An additional portion of the City of Greensboro’s net position $180,651,668 (16.9%), represents resources that are subject to enabling legislation or external restrictions on how they may be used. Unrestricted net position, the residual amount of assets that can be used without constraints established by debt covenants, enabling legislation, or other legal requirements changed from ($36,255,827) at June 30, 2018 to ($53,952,466) (-5.1%), down approximately $17.7 million at the end of this year, with the 2g