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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, 2016, the City’s deposits had a carrying amount of $4,097,385 and a bank balance of $10,879,039. 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.
The Greensboro ABC Board, a discretely presented component unit, held deposits in Pooling Method banks only. At June
30, 2016, the ABC Board’s carrying amount of deposits was $4,627,007 and the bank balance was $4,763,604. 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,
2016 of $60,405. 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, 2016 of
$32,146. 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 by quoted market prices, using the specific identification method. Money market instruments that have
a remaining maturity at time of purchase of one year or less are reported at amortized cost. The securities of the NCCMT
Cash Portfolio, a SEC-registered (2a-7) money market mutual fund, are valued at fair value, which is the NCCMT’s share
price. The NCCMT Term Portfolio has a duration of 0.14 years, and is also an eligible investment for City funds, investing
in high-grade money market securities including obligations of the U.S. Treasury and the State of North Carolina.
General Statute 147-69.4 allows the City to participate in an Other Postemployment Benefit (OPEB) Investment Fund
managed by the staff of the Department of the State Treasurer and operated in accordance with state laws and regulations. It
is not registered with the SEC and G.S. 159-30(g) allows the City to make contributions to the Fund. The State Treasurer in
her discretion may invest the proceeds in equities of certain publicly held companies and long or short-term fixed income
investments as detailed in G.S. 147-69.2 (1-6) and (8). Funds submitted are managed in three different sub-funds, the State
Treasurer’s Short Term Investment Fund (STIF) consisting of short to intermediate treasuries, agencies and corporate issues
authorized by G.S. 147-69.1, the long-term investment fund (LTIF) consisting of investment grade corporate securities,
treasuries, and agencies, and BlackRock’s Global Ex-US Alpha Tilts Fund B and BlackRock’s Russell 3000 Alpha Tilts
Fund B authorized under G.S. 147-69.2 (8). One domestic equity fund and one international equity fund are considered to be
commingled in nature. Each is valued at the net asset value of units held at the end of the period based upon the fair value of
the underlying investments. The STIF securities are reported at cost and maintain a constant $1 per share value. Under the
authority of G.S. 147-69.3, no unrealized gains or losses of the STIF are distributed to participants of the fund. Ownership
interests in the LTIF are determined monthly at fair market value based upon units of participation. Units of participation are
calculated monthly based upon inflows and outflows as well as allocations of net earnings. The weighted average maturity of
the STIF and LTIF is 1.5 years and 17.9 years, respectively.
Interest income earned in the Capital Projects funds, amounting to $41,072 was assigned to the Debt Service Fund.