CAFR 2016

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, 2016, the City’s deposits had a carrying amount of $4,097,385 and a bank balance of $10,879,039. Of the bank balance, $250,000 was covered by federal depository insurance and the remainder was covered by the collateral held under the Pooling Method. The Greensboro ABC Board, a discretely presented component unit, held deposits in Pooling Method banks only. At June 30, 2016, the ABC Board’s carrying amount of deposits was $4,627,007 and the bank balance was $4,763,604. 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, 2016 of $60,405. 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, 2016 of $32,146. 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 Cash Portfolio, a SEC-registered (2a-7) money market mutual fund, are valued at fair value, which is the NCCMT’s share price. The NCCMT Term Portfolio has a duration of 0.14 years, and is also an eligible investment for City funds, investing in high-grade money market securities including obligations of the U.S. Treasury and the State of North Carolina. General Statute 147-69.4 allows the City to participate in an Other Postemployment Benefit (OPEB) Investment Fund managed by the staff of the Department of the State Treasurer and operated in accordance with state laws and regulations. It is not registered with the SEC and G.S. 159-30(g) allows the City to make contributions to the Fund. The State Treasurer in her discretion may invest the proceeds in equities of certain publicly held companies and long or short-term fixed income investments as detailed in G.S. 147-69.2 (1-6) and (8). Funds submitted are managed in three different sub-funds, the State Treasurer’s Short Term Investment Fund (STIF) consisting of short to intermediate treasuries, agencies and corporate issues authorized by G.S. 147-69.1, the long-term investment fund (LTIF) consisting of investment grade corporate securities, treasuries, and agencies, and BlackRock’s Global Ex-US Alpha Tilts Fund B and BlackRock’s Russell 3000 Alpha Tilts Fund B authorized under G.S. 147-69.2 (8). One domestic equity fund and one international equity fund are considered to be commingled in nature. Each is valued at the net asset value of units held at the end of the period based upon the fair value of the underlying investments. The STIF securities are reported at cost and maintain a constant $1 per share value. Under the authority of G.S. 147-69.3, no unrealized gains or losses of the STIF are distributed to participants of the fund. Ownership interests in the LTIF are determined monthly at fair market value based upon units of participation. Units of participation are calculated monthly based upon inflows and outflows as well as allocations of net earnings. The weighted average maturity of the STIF and LTIF is 1.5 years and 17.9 years, respectively. Interest income earned in the Capital Projects funds, amounting to $41,072 was assigned to the Debt Service Fund.

38o