2023 Annual Comprehensive Report

The following schedule provides management and citizens with information on the portion of General Fund balance that is available for appropriation:

Total Fund Balance - General Fund Less: Designated for ARPA-Enabled Projects

$126,633,852

14,331,791 1,985,031

Inventories

Prepaid Expenditures

92,965 92,025

Leases

Stabilization by State Statute

46,320,025 6,534,498 20,928,335 36,349,182

Appropriated Fund Balance in 2024 Budget

Capital Projects

Working Capital/Fund Balance Policy

Budgets are adopted at a fund level and are amended as necessary during the Fiscal Year in one of two ways. First, the City Manager, as delegated by City Council, may make line-item transfers within individual fund budgets with subsequent monthly notice to City Council. Such transfers can neither increase nor decrease the overall budget at the fund level. Secondly, the budget may be increased or decreased at the fund level as changing circumstances dictate, subject to City Council approval. The legal level of budgetary control (the level at which expenditures may not legally exceed appropriations) is the fund level. As required by North Carolina General Statutes, appropriations in Governmental Funds are encumbered upon issuance of purchase orders, contracts or other forms of legal commitments. Even though goods and services have not been received, the transactions are accounted for as a reservation of fund balance in the year that the commitment is made. While appropriations lapse at the end of the Fiscal Year, the succeeding year’s budget ordinance specifically provides for the re-appropriation of year-end encumbrances. The outstanding encumbrances are amounts needed to pay any commitments related to purchase orders and contracts that remain unperformed at year-end are as follows:

Encumbrances

General Fund Debt Service Fund Non-Major Funds

$

76,362,882

$

10,165,522

$

12,700

$

66,184,660

Supplemental budgetary amendments increased the General Fund appropriation by $56,999,597 for programs being funded by the American Rescue Plan Act and appropriated fund balance. No expenditures exceeded appropriations at the legal level of control during Fiscal Year 2023. B. Deficit Fund Equity The following funds report deficit fund balances as of June 30, 2023:

Workforce Investment Act

$

(1,044,048) (9,836,462) (24,714) (230,407)

State, Federal and Other Grant Funds

Stimulus Grants Project Fund

Emergency Rental Assistance - Guilford County

Opioid Settlement Fund

(1,582) (70,386)

Fire Station Bonds Series 2019

40l