COG Comprehensive Annual Financial Report

147-69.2 (1-6), (6c) and (8). Funds submitted are managed in three different sub-funds, the STIF consisting of short to intermediate treasuries, agencies and corporate issues authorized by G.S. 147-69.1, the Bond Index Fund (BIF) consisting of high quality debt securities eligible under G.S. 147-69.2(b)(1)-(6), and BlackRock’s MSCI ACWI EQ Index Non-Lendable Class B Fund (EIF) authorized under G.S. 147-69.2(b)(8). Under the authority of G.S. 147-69.3, no unrealized gains or losses of the STIF are distributed to participants of the fund. The BIF is also valued at $1 per share. The MSCI ACWI EQ Index Non-Lendable Class B Fund is priced at $21.2727 per share at June 30, 2018. General Statute 159-30.2 allows the City to establish a Law Enforcement Special Separation Allowance Trust and G.S. 147- 69.2 (65) allows the State Treasurer to invest deposits by the City into this Trust in the same manner as the OPEB Trust in the same three sub-funds outlined above. Interest income earned in the Capital Projects funds, amounting to $218,800 was assigned to the Debt Service Fund. The GTA owns a percentage of the City's total investment pool. Accordingly, investment balances of the GTA are included in the following table:

Valuation Measurement

Weighted Average

Investment Type

Method

Reported/Fair Value

Maturity (Year)

U.S. Government Agencies

Fair Value - Level 2 Fair Value - Level 2 Amortized Cost Fair Value - Level 2 Fair Value - Level 1 Amortized Cost Fair Value - Level 2 Fair Value - Level 1 Amortized Cost Fair Value - Level 1

$

249,419,451 21,878,590 805,320 6,414,720 13,333,541 2,531,487 4,236,999 62,603,377 8,413

0.78469 0.16680 0.00203 0.01613 0.03353 0.00002 0.00637 0.01065 0.00044 0.00001

Commercial Paper

OPEB - STIF OPEB - BIF OPEB - EIF

LEOSSA - STIF LEOSSA - BIF LEOSSA - EIF

NCCMT Government Portfolio

NCCMT TermFund

767,756

US Bank Trust Account:

US Government Agencies

Fair Value - Level 2

29,956,255 391,955,909

0.07534

Total Fair Value

$

Portfolio Weighted Average Maturity

1.09601

All investments are measured using the market approach: using prices and other relevant information generated by market transactions involving identical or comparable assets or a group of assets. Level of fair value hierarchy: Level 1: Financial instruments are valued using directly observable, quoted prices (unadjusted) in active markets for identical assets. Level 2: Financial instruments are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ benchmark quoted prices. The Street Improvements Bond Fund-Series 2010 has $602,380 in checks in excess of cash, which are reflected in the liability section of these financial statements. Interest Rate Risk In accordance with the formal approved City of Greensboro’s Charter, Article III, Section 4.71, the Investment Manager (Assistant Treasurer) prepares a memo describing investment transactions in detail as they are purchased. This memo is sent to the Mayor, the City Manager and the Finance Director (Treasurer) for signature approval and then returned to the Investment Manager. Although the investment policy has not been formally approved by the City Council, the City has an investment policy guideline, an internally approved Finance Department document that follows North Carolina General Statute 159-30. As a means of limiting the City’s exposure to declines in fair market values from rising interest rates, the City limits the 38q