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Committed for Economic Opportunity
– This portion of fund balance represents amounts committed to enhancing
economic development within the City of Greensboro.
Committed for Cemetery Maintenance
– This amount represents the portion of fund balance to be used for the
maintenance and operation of the three cemeteries that are owned and operated by the City, primarily derived from
cemetery lot sales.
Committed for Debt Service
– This represents amounts held for the future payment of general long-term debt principal
and interest.
Assigned Fund Balance
can be assigned either by any action of the governing body, or by designees with authority to
assign. Amounts can be unassigned by the same process. Assignments calculations may be made after the end of the fiscal
year during the process of preparation of the financial statements. The City may delegate to the City Manager (or his
designee) the authority to assign amounts of a fund balance to promote sound financial operations of the City or to meet a
future obligation.
Assigned for Subsequent Year’s Expenditures
– This represents the amount of fund balance appropriated by the City
Council to balance the budget for the year ending June 30, 2017.
Assigned for Debt Service
– This represents amounts held for the future payment of general long-term debt principal and
interest.
Assigned for Capital Projects
– This represents funds used to finance all major capital improvements. The governing
body approves the appropriation.
Unassigned Fund Balance
represents the residual classification for the General Fund, which has not been restricted
committed, or assigned to specific purposes within the General Fund. Council action is needed to affect the Unassigned Fund
Balance (Unappropriated Fund Balance) in the General Fund. The ordinance must be approved by seven Council members
unless an emergency exists (Section 3.23 of Greensboro City Charter). The minimum fund balance policy for the General
Fund is 9% of budgeted expenditures of the subsequent year, with the remaining amounts, if any, recorded as “Assigned for
Capital Projects”. Unassigned residual deficits may apply to other governmental funds to the extent fund balances are
insufficient to satisfy restricted and committed balances.
The City of Greensboro’s revenue spending policy provides guidance for programs with multiple revenue sources. The
Finance Officer will use resources in the following hierarchy; bond proceeds, federal funds, state funds, local non-City funds,
and then City funds when directing expenditures of the City.
Fund balance determination of order of expenditures – In determining the classification of total fund balance remaining at the
end of the Fiscal Year when an expenditure is incurred for purposes for which both restricted and unrestricted amounts are
available, expenditures will be applied first to restricted fund balance and then to unrestricted fund balance. The Finance
Director has the authority to deviate from this policy if it is in the best interest of the City and promotes sound financial
practices. Within unrestricted fund balance, the order in which the expenditures will be applied is as follows: Committed,
Assigned, Unassigned, if multiple fund balances are reported for the same program.
10. Net Position
The government-wide and business-type fund financial statements utilize a net position presentation. Net position is
categorized as net investment in capital assets, restricted and unrestricted.
Net Investment in Capital Assets
is intended to reflect the portion of net position which is associated with non-liquid capital
assets less outstanding capital asset-related debt.
Restricted Net Position
represents liquid assets (typically generated from certain revenues and bond proceeds) which have
third-party (statutory, bond covenant or granting agency) limitations on their use. Restrictions may also be imposed by law
through constitutional provisions or enabling legislation.