2025 Annual Comprehensive Report

OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis are intended to serve as an introduction to the City of Greensboro’s basic financial statements. The financial statements include two kinds of statements that present different views of the City: 1) Government-Wide Financial Statements and 2) Fund Financial Statements. Both perspectives, however, are essential and complementary components that allow the user to address relevant questions, broaden a basis for comparison, and enhance the City’s accountability. Another element of the basic financial statements is the notes to the financial statements. In addition to the basic financial statements, this report contains other supplemental information that will enhance the reader’s understanding of the financial condition of the City of Greensboro. (See Figure 1) Figure 1 Required Components of Annual Financial Report

Management’s Discussion and Analysis

Basic Financial Statements

Notes to the Financial Statements

Fund Financial Statements

Government-Wide Financial Statements

Summary

Detail

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.

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