2023 Annual Comprehensive 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 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 a contractual reimbursement agreement.

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, 2023, the City’s deposits had a carrying amount of $4,273,769 and a bank balance of $9,306,485. Of the bank balance, $341,223 was covered by federal depository insurance and the remainder was covered by the collateral held under the Pooling Method. At June 30, 2023, the City had $151,034 cash on hand, included in the carrying amount above. Additional deposits of $91,223 are held with local banks for the Better Building program. Negative cash and investment amounts in the following funds are reflected in the financial statements as “Accounts Payable” to denote the amount owed to the City’s internal “pool” that aggregates cash/investments Citywide.

Fire Bond Fund

$

70,386 230,407 848,913

Emergency Rental Assistance - Guilford County Fund

Workforce Investment Act Fund State and Federal Grants Fund

6,926,160

The Greensboro ABC Board, a discretely presented component unit, held deposits in Pooling Method banks only. At June 30, 2023, the ABC Board’s carrying amount of deposits was $3,760,304 and the bank balance was $3,390,298. 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, 2023 of $82,154. 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, 2023 of $31,168. 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

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