CAFR 2016

38e

D. Assets, Liabilities, Deferred Outflows/Deferred Inflows of Resources, and Net Position or Equity

Cash and Cash Equivalents/Investments

The City maintains a cash and investment pool that is used by all funds except the following, which maintain separate

deposits and investments: Capital Project Bond Funds and Water Resources Bond Funds. Each fund type’s equity and cash

and cash equivalents/investments are displayed separately on a combined balance sheet. Interest is distributed to the various

funds on the basis of equity in the cash and cash equivalent/investments pool and individual fund investments. For purposes

of the statement of cash flows, investments (including restricted assets) are considered to be cash equivalents, since they

represent highly liquid deposits of the cash and investment pool.

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 payable” (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 $228,531. The net General Fund

receivable of $4,992,001 is shown as a deferred inflow of resources on the Governmental Funds Balance Sheet.

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 $2,723,340 and $2,351,701 as of June 30, 2016, 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 Revolving 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.

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.