2020 Comprehensive Annual Financial Report

NOTES TO THE FINANCIAL STATEMENTS CITY OF GREENSBORO, NORTH CAROLINA JUNE 30, 2020

I. Summary of Significant Accounting Policies The accounting policies of the City of Greensboro (City) and its component units conform to US Generally Accepted Accounting Principles (“GAAP”) as applicable to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the more significant accounting policies of the City: A. The Financial Reporting Entity The City is a municipal corporation governed by an elected Mayor and eight–member Council. As required by GAAP, these financial statements present the City (the primary government) and its component units (entities for which the City is considered to be financially accountable). Criteria used to establish financial accountability include appointment of a voting majority of the component unit’s governing board and imposition of will or a financial benefit/burden relationship, fiscal dependency or other significant operational and financial relationships. Discretely Presented Component Units The component unit column in the basic financial statements includes the financial data of the City’s other component units. The units are reported in a separate column to emphasize that they are legally separate from the City. Separate statements of net position and activities for the component units are presented in Exhibits A-15 and A-16. Greensboro Housing Development Partnership, Inc (GHDP) provides first-time buyers, with low to moderate income, affordable financing. GHDP also serves as a conduit to sell surplus land to builders to develop affordable housing for City citizens. The City appoints the voting majority of the Board and guarantees support for any deficits for certain programs and loan obligations. The City also influences the operations of the GHDP by providing loan initiatives and rehabilitation of properties. City Neighborhood Development program transactions support many of the same initiatives as GHDP. The Greensboro Redevelopment Commission (Commission) conducts studies, formulates plans, purchases and sells properties and oversees redevelopment projects in the City. The Commission performs legislative duties such as defining a redevelopment area and carries out delegated activities, subject to the consent, approval and policies of the City. The governing board is composed of five residents of the City who are appointed by City Council. No property transactions may be taken without City approval. City Council must agree before any expenditures or contracts are made by the board or any debt entered into for which the City could be liable. Budgets for the Commission are set by City Council and any changes require City approval through normal budget procedures. The City provides all staff and other resources necessary for operations and administration of the Commission. All funding is derived from City sources and federal grants and loans. The Commission’s inventory of properties and associated notes receivable are recorded as “Assets Held for Resale” and “Accounts, Notes and Mortgages” and “Unearned Revenues”. The Commission’s financial activity is recorded in the Housing Partnership Revolving Fund. The Commission is considered to almost exclusively benefit the City even though it does not provide services directly to it. Greensboro ABC Board operates alcoholic beverage stores, regulates the sale of such beverages and enforces alcoholic beverage laws in the City. Members of the governing body are appointed by City Council. Financial benefit is provided to the City as a portion of the Greensboro ABC Board’s profits are distributed to the City, quarterly. Each of the discretely presented component units has a June 30 year-end. Complete financial statements for the GHDP and Greensboro ABC Board component units may be obtained at their respective administrative offices. Financial transactions of the Commission are reported and audited during the City’s annual audit. No separate financial statements are prepared for this entity.

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