COG Comprehensive Annual Financial Report

2. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the Fiscal Year are referred to as “internal receivables/internal payables” (i.e., the current portion of interfund loans) and are reported “net”. Residual balances outstanding between the governmental activities and business-type activities are reported in the government- wide financial statements as “internal balances”. City ad valorem taxes are billed by the Guilford County Tax Collector after July 1, the beginning of the Fiscal Year, and are due on September 1. No penalties or interest are assessed until the following January 6. The taxes levied (other than motor vehicles) are based on assessed property values as of January 1, which is the statutory lien date on real property. Liens against personal property are coincident with action taken to levy or garnish. Collections of City taxes are made by the County and remitted to the City as collected. In accordance with State law, property taxes on certain registered motor vehicles are assessed and collected throughout the year based on a staggered registration system. Effective September 1, 2013, motor vehicle taxes become due at the time the vehicles are registered. Until that date, motor vehicle taxes became due the first day of the fourth month after vehicles were registered and were collected by the County and remitted to the City. Under the current system, vehicle taxes are collected by the State of North Carolina and remitted to the City. The taxes receivable amount for the General Fund is reduced by an allowance for uncollectible of $321,907. The net General Fund receivable of $4,045,083 is shown as a deferred inflow of resources on the Governmental Funds Balance Sheet. 3. Inventories/Assets Held for Resale and Prepaid Items Inventories consist primarily of materials and supplies held for consumption. They are stated at cost, determined principally by a moving average method. The costs of governmental fund-type inventories are recorded as expenditures when consumed rather than when purchased. Inventories of the Greensboro ABC Board are valued at the lower of cost (FIFO) or market. Assets Held for Resale in the amount of $3,070,890 and $2,276,711 as of June 30, 2018, can be found in the statement of net position for component units, Exhibit A-15 on page 35, for the Greensboro Redevelopment Commission and the Greensboro Housing Development Partnership, respectively. Assets Held for Resale amounting to $95,180, and $600,000 are recorded in the Street and Sidewalk Capital Project Fund, and the Capital Leasing Fund, respectively, for certain other properties held by the City. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements and expensed as the items are used. 4. Restricted Assets Certain proceeds of the City’s bonds, certain grant receipts, as well as other funds are classified as restricted assets on the balance sheet because their use is limited by applicable bonds covenants, grantor or other third party and enabling legislative restrictions and state statutes. Powell Bill funds are classified as restricted cash because they can be expended only for the purposes of maintaining, repairing, constructing, reconstructing or widening of local streets per G.S. 136-41.1 through 136-41.4. 5. Intangible Assets Intangible Assets of $90,048,822 as of June 30, 2018 are recorded in the Water Resources Enterprise Fund and represent rights to future raw water allocations from the Randleman Dam and reservoir project, in accordance with a joint venture agreement established in September 1987 with five other governmental entities to form a regional water supply. The intangible asset is based on City contributions to the Piedmont Triad Regional Water Authority for construction of the dam, reservoir, water treatment plant and surrounding infrastructure improvements as well as $901,683 of contributions recorded in Fiscal Year 2018, toward the City’s administrative and operating allocation. In Fiscal Year 2011, the City began amortizing the water rights over a period of 50 years with current year related amortization expense totaling $1,800,976. Accumulated amortization totals $13,914,892.

38e