2020 Comprehensive Annual Financial Report

Weighted Average Maturity (Year)

Valuation Measurement

Investment Type

Method

Reported/Fair Value

U.S. Government Agencies

Fair Value - Level 2 Fair Value - Level 2 Fair Value - Level 2 Fair Value - Level 2 Fair Value - Level 1 Fair Value - Level 2 Fair Value - Level 2 Fair Value - Level 1 Fair Value - Level 1 Fair Value - Level 1 Fair Value - Level 1

$

118,548,873 16,991,860 807,367 9,771,597 15,679,428

0.76976 0.05886 0.00164 0.01984 0.03183 0.00002 0.00603 0.00934 0.00111 0.00052 0.00407

Commercial Paper

OPEB - STIF OPEB - BIF OPEB - EIF

LEOSSA - STIF LEOSSA - BIF LEOSSA - EIF

8,738

2,970,832 4,601,066

NCCMT Government Portfolio

196,810,264 91,317,988

NCCMT TermFund

M&F Bank

2,002,373

US Bank Trust Account:

US Government Agencies

Fair Value - Level 2

26,086,484 485,596,870

0.05296

Total Fair Value

$

Portfolio Weighted Average Maturity

0.95598

All investments are measured using the market approach: using prices and other relevant information generated by market transactions involving identical or comparable assets or a group of assets. Level of fair value hierarchy: Level 1: Financial instruments are valued using directly observable, quoted prices (unadjusted) in active markets for identical assets. Level 2: Financial instruments are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ benchmark quoted prices. Interest Rate Risk In accordance with the formal approved City of Greensboro’s Charter, Article III, Section 4.71, the Investment Manager (Assistant Treasurer) prepares a memo describing investment transactions in detail as they are purchased. This memo is sent to the Mayor, the City Manager and the Finance Director (Treasurer) for signature approval and then returned to the Investment Manager. Although the investment policy has not been formally approved by the City Council, the City has an investment policy guideline, an internally approved Finance Department document that follows North Carolina General Statute 159-30. As a means of limiting the City’s exposure to declines in fair market values from rising interest rates, the City limits the weighted average maturity of its investments to less than 3.5 years. Also, the City purchases securities in a structured ladder with stated maturity dates to limit interest rate risk. The State Treasurer’s STIF is unrated and had a weighted average maturity of 1.3 years at June 30, 2020. The State Treasurer’s BIF is unrated and had an average maturity of 7.97 years at June 30, 2020. Credit Risk North Carolina General Statute 159-30 limits investments in U.S. Governmental Agencies and commercial paper to those with top ratings issued by NRSRS. The City has no formal investment policy regarding credit risk, however in practice, it follows NCGS 159-30, and in effect the City limits its investment types to those with top ratings issued by NRSRS. As of June 30, 2020, the City had investments in the NCCMT Government Portfolio, which is rated AAAm by Standard and Poor’s, and in U. S. Government Agencies, all of which were rated AAA by Standard and Poor’s. The City also had investments in the NCCMT Term Portfolio, which is not rated. Investments in commercial paper by the City are rated either A1/P1 by Standard and Poor’s or Moody’s Investors Service. The State Treasurer’s STIF is unrated and authorized under NC General Statute 147-69.1. The State Treasurer’s STIF is invested in highly liquid fixed income securities consisting primarily of short to intermediate term treasuries, agencies, and money market instruments. The BIF is unrated and authorized under NC General Statute 147-69.1 and 147-69.2. The State Treasurer’s BIF is invested in high quality debt securities eligible under G.S. 147-69.2(b)(1)-(6).

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