2022 Annual Comprehensive Financial Report

The project fund deficits are from current expenses that were incurred at the end of the fiscal year but reimbursement had not yet been received from the federal and state granting agencies. These project fund deficits will be eliminated with the future reimbursements of federal and state grants. The bond fund deficit will be addressed with the issuance of General Obligation Bonds in October 2022, scheduled to settle in November.

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 City’s agents in the City’s name. Under the Pooling Method, which is a collateral pool, all uninsured deposits are collateralized with securities held by the State Treasurer’s agent in the name of the State Treasurer. Since the State Treasurer is acting in a fiduciary capacity for the City, the deposits are considered to be held by the City’s agent in the City’s name. The amount of the pledged collateral is based on an approved averaging method for non-interest bearing deposits and the actual current balance for interest-bearing deposits. Depositories using the Pooling Method report to the State Treasurer the adequacy of their pooled collateral covering uninsured deposits. The State Treasurer does not confirm this information with the City or the escrow agent. Because of the inability to measure the exact amount of collateral pledged for the City under the Pooling Method, the potential exists for under collateralization, and the risk may increase in periods of high cash flows. However, the State Treasurer of North Carolina enforces strict standards of financial stability for each depository that collateralizes public deposits under the Pooling Method. The City does not have a formal investment policy regarding custodial credit risk for deposits. At June 30, 2022, the City’s deposits had a carrying amount of $5,582,957 and a bank balance of $10,612,566. Of the bank balance, $444,831 was covered by federal depository insurance and the remainder was covered by the collateral held under the Pooling Method. At June 30, 2022, the City had $153,999 cash on hand, included in the carrying amount above. Also included is $194,831 held with local banks for the Better Building program. The Greensboro ABC Board, a discretely presented component unit, held deposits in Pooling Method banks only. At June 30, 2022, the ABC Board’s carrying amount of deposits was $3,262,994 and the bank balance was $3,883,537. All of the bank balances were covered by federal depository insurance, as well. The Greensboro Housing Development Partnership, a discretely presented component unit, had a bank balance at June 30, 2022 of $45,512. All of the bank balance was covered by federal depository insurance. The Greensboro Redevelopment Commission, a discretely presented component unit, had a bank balance at June 30, 2022 of $31,165. All of the bank balance was covered by federal depository insurance. 2. Investments North Carolina General Statute 159-30 (c) authorizes the City to invest in obligations of the U. S. Treasury and obligations of certain federal agencies; prime quality commercial paper and bankers’ acceptances bearing the highest rating of the nationally recognized statistical rating services (NRSRS); repurchase agreements with respect to either direct obligations of the United States or obligations of which the principal and interest are guaranteed by the United States; and SEC-registered mutual funds certified by the N.C. Local Government Commission. The City typically holds investments to maturity in order to realize full book value and interest earnings. As required for periods beginning after June 15, 1997 by GASB Statement No. 31 , Accounting and Financial Reporting for Certain Investments and for External Investment Pools, the City’s investments with a maturity of more than one year at acquisition and non-money market investments are carried at fair value determined annually by quoted market prices, using the specific identification method. Money market instruments that have a remaining maturity at time of purchase of one year or less are reported at amortized cost. The securities of the NCCMT Government Portfolio, a SEC registered (2a-7) money market mutual fund, are valued at fair value, which is the NCCMT’s share price. Ownership interest of the State Treasurer’s Short Term Investment Fund (STIF) is determined on a fair market valuation basis as of fiscal year end in accordance with the STIF operating procedures. Valuation of the underlying assets is performed by the custodian.

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