CAFR 2017

B. Deficit Fund Equity The following funds report deficit fund balances as of June 30, 2017:

State and Federal Grants Fund

$

(1,216,348)

Parks and Recreation Bond Fund - Series 2010 Street Improvement Bond Fund - Series 2010 Parks and Recreation Bond Fund - Series 2016

(411,608)

(4,558,257)

(772,020)

These deficits will be eliminated with future reimbursements of federal and state grants and with proceeds from future bond issuances. 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, 2017, the City’s deposits had a carrying amount of $5,908,776 and a bank balance of $11,121,376. 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. At June 30, 2017, the City had $123,613 cash on hand. The Greensboro ABC Board, a discretely presented component unit, held deposits in Pooling Method banks only. At June 30, 2017, the ABC Board’s carrying amount of deposits was $3,643,612 and the bank balance was $3,879,478. 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, 2017 of $62,478. 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, 2017 of $31,149. 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

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