2019 Comprehensive Annual Financial Report (CAFR)

The following schedule provides management and citizens with information on the portion of General Fund balance that is available for appropriation:

Total Fund Balance - General Fund

$70,865,071

Less: Inventories

1,194,881 394,095 32,000,861 4,853,059 4,970,310 27,451,865

Prepaid Expenditures

Stabilization by State Statute

Appropriated Fund Balance in 2020 Budget

Capital Projects

Working Capital/Fund Balance Policy

Budgets are adopted at a fund level and are amended as necessary during the Fiscal Year in one of two ways. First, the City Manager, as delegated by City Council, may make line-item transfers within individual fund budgets with subsequent monthly notice to City Council. Such transfers can neither increase nor decrease the overall budget at the fund level. Secondly, the budget may be increased or decreased at the fund level as changing circumstances dictate, subject to City Council approval. The legal level of budgetary control (the level at which expenditures may not legally exceed appropriations) is the fund level. As required by North Carolina General Statutes, appropriations in Governmental Funds are encumbered upon issuance of purchase orders, contracts or other forms of legal commitments. Even though goods and services have not been received, the transactions are accounted for as a reservation of fund balance in the year that the commitment is made. While appropriations lapse at the end of the Fiscal Year, the succeeding year’s budget ordinance specifically provides for the re-appropriation of year-end encumbrances. The outstanding encumbrances are amounts needed to pay any commitments related to purchase orders and contracts that remain unperformed at year-end are as follows:

Encumbrances

General Fund

Debt Service Fund

Non-Major Funds

$

81,891,146

$

3,689,130

$

6,600

$

78,195,416

Supplemental budgetary amendments increased the General Fund appropriation by $384,864 for programs being funded by additional revenues from FEMA reimbursements. No expenditures exceeded appropriations at the legal level of control during Fiscal Year 2019. B. Deficit Fund Equity The following funds report deficit fund balances as of June 30, 2019:

Workforce Investment Act State, Federal and Other Grants Fund Transportation Bond Fund-Series 2016 Water Resources Bond Fund - Series 2018

$

(5,473) (1,382,085) (171,248) (82,107)

These deficits will be eliminated with future reimbursements of federal and state grants and with proceeds from future bond issuances. IV. Detailed Notes on all Funds A. Deposits and Investments 1. Deposits All deposits of the City of Greensboro are either insured or collateralized by using one of the two methods. Under the Dedicated Method, all deposits that exceed the federal depository insurance coverage level are collateralized with securities held by the 37o