2023 Annual Comprehensive Report

A. Government-Wide Financial Statements The government-wide statements report both short-term and long-term information about the financial condition of the City as a whole, focusing on the government’s operational accountability. The accounting methods of these statements reflect that of private sector companies in that all governmental and business-type activities are consolidated into columns that add to a total for the primary government. The statement of net position reports the City’s net position and includes all, both current and non-current, assets, deferred outflows of resources, liabilities and deferred inflows of resources of the government. The difference between the two is reported as net position. Over time, increases or decreases in the City’s net position are one indicator of whether its financial health is improving or deteriorating. You will also need to consider other non-financial factors, such as changes in the City’s property tax base, local economy and service levels, to assess the overall health of the City. On the other hand, the statement of activities reports how net position has changed and includes all of the current year’s revenues and expenses regardless of when cash is received or paid. The government-wide financial statements of the City are divided into three categories: Governmental Activities - Most of the City’s basic services are included here, such as police, fire, transportation, environmental services, libraries, planning, neighborhood development, public improvements, parks and recreation and general administration. Property taxes along with sales and certain state-shared taxes and state and federal grants finance most of these activities. Business-Type Activities - The City charges fees to customers to help cover the costs of certain services it provides. The City’s water and sewer system and other stormwater resources, parking facilities, solid waste facilities, coliseum, and transit activities are included here. Component Units - The City includes three discretely presented component entities in its report— Greensboro Housing Development Partnership, Inc., the Alcoholic Beverage Control Board (ABC), and the Redevelopment Commission of Greensboro. Although legally separate, these “component units” are important because of certain financial transactions that exist between the entities and the City and from extensive board member appointments by City officials. The government-wide financial statements can be found on pages 3-6 of this report. B. Fund Financial Statements The fund financial statements provide more detailed information about the City’s major funds while focusing on fiscal accountability. Funds are accounting devices that the City uses to keep track of specific sources of funding and spending for particular purposes, as required by state law and bond covenants. City Council establishes many funds to assure control as well as good management and to exhibit proper usage of certain taxes and grants. The City of Greensboro, like all other governmental entities in North Carolina, also uses fund accounting to ensure and reflect compliance (or non compliance) with finance-related legal requirements, such as the General Statutes or City ordinances. The City has three types of funds: Governmental Funds - Most of the City’s basic services are included in governmental funds, which focus on 1) how cash and other financial assets can readily be converted to cash flow in and out (that is, their liquidity) and 2) the balances left at year-end that are available for spending. This is the manner in which the financial budget is typically developed. Because this information provides a short-term view that helps determine whether there are more or fewer financial resources that can be

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