2020 Comprehensive Annual Financial Report

3. Financial Assistance Programs The City participates in a number of Federal and State financial assistance programs. For the Fiscal Year ended June 30, 2020 these programs were subject to audit in accordance with the Single Audit Act Amendments of 1996, the new Uniform Grant Guidance and the State Single Audit Implementation Act. The amount, if any, of expenditures which may be disallowed by the granting agencies resulting from this and other audits cannot be determined at this time, although the City expects such amounts if any, to be immaterial. 4. Operating Lease Agreement – ABC Board The Greensboro ABC Board has operating leases agreements for various store and office properties. Rental expense for the year ended June 30, 2020 totaled $579,060. Future lease payments, less payments under sublease agreement, are as follows:

Lease

Fiscal Year

Payments

2020-21 2021-22 2022-23 2023-24

$ 362,700

229,423 158,695

126,015 $ 876,833

Operating Lease Payments The City has operating lease payments for computers, printers, software/licenses, maintenance and workstations. Lease payments for the year ended June 30, 2020 totaled $899,147. Future lease payments are as follows:

Lease

Fiscal Year

Payments

2020-21 2021-22

$ 332,359 17,694 $ 350,053

5. Contingencies The City is involved in certain lawsuits with former members of the Greensboro Police Department. The City will defend these suits and claims vigorously, and although no assurances can be given as to the ultimate outcome of these matters, the City’s legal counsel is of the opinion that any possible liability of the City resulting from an adverse adjudication in such matters would not have a material adverse effect on the financial position of the City. During 2020 an outbreak of a novel strain of coronavirus (“COVID-19”) emerged globally. As a result of the spread of COVID- 19, economic uncertainties have arisen that could negatively impact the City’s revenue and operations for an indeterminable time period. Other financial impacts could occur that are unknown at this time. The CARES Act funding, related to COVID-19 requires that certain expenditures of this funding are subject to audit by the grantor, and the City is contingently liable to refund amounts received in excess of allowable expenditures. In the opinion of the management of the City, no material refunds will be required as a result of expenditures disallowed by grantors. D. Joint Venture Piedmont Triad Regional Water Authority (Authority) The City in conjunction with five other governmental entities formed the Authority in September 1987 to develop a regional water supply. The Authority’s board is composed of ten members, three of which are appointed by the City Council. The joint 37ii