Page 45 - 2018 Comprehensive Annual Financial Report - City of Winston-Salem

Overview of Financial Statements

Required Components of Annual Financial Report Figure 1

Management’s Discussion Basic Financial
and Analysis Statements

Government-wide Fund Financial Notes to the
Financial Statements Statements Financial Statements

Summary Detail

Basic Financial Statements
This discussion and analysis serves as an introduction to the City of Winston-Salem’s basic nancial statements, which consist of
three components: 1) government-wide nancial statements, 2) fund nancial statements, and 3) notes to the nancial statements
as shown above. The basic nancial statements present two di erent views of the City through the use of government-wide and
fund nancial statements. In addition to the basic nancial statements, this report contains other supplemental information that
will enhance the reader’s understanding of the nancial condition of the City. This report includes all funds and account groups of
the City of Winston-Salem as well as its component units, which are described below. Note 1A in the nancial report includes
further discussion of the reporting entity and descriptions of funds.

Government-wide Financial Statements
The rst two statements (Exhibits 1 and 2) in the basic nancial statements are the Government-wide Financial Statements. These
nancial statements provide a broad overview of the City’s nancial position and operations, in a manner similar to a private-sector
business. These statements also include two component units, Risk Acceptance Management Corporation and North Carolina
Municipal Leasing Corporation. Although legally separate, nancial information for these nonpro t corporations is blended in the
nancial statements because under federal tax regulations they may provide services only to the City.
The statement of net position presents the City’s assets and deferred out ows of resources and total liabilities and deferred in ows
of resources, with the di erence between the two reported as net position. Over time, increases or decreases in net position may
serve as a useful indicator of whether the nancial position of the City is improving. The statement of activities presents information
on how the City’s net position changed during the most recent scal year. All changes in net position are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash ows. Therefore, revenues and expenses
are reported in this statement, which result in cash ows in future scal periods, such as uncollected taxes and earned but unused
vacation leave.
Government-wide statements are divided into governmental and business-type activities. The governmental activities include
most of the City’s basic services such as public safety, parks and recreation, environmental health, transportation, community and
economic development, and general government. Property taxes, intergovernmental revenues, and other local taxes nance
about 80.03% of the costs of these activities. Business-type activities include water and sewer utility, solid waste disposal, stormwater
management, public assembly facilities, parking, and Winston-Salem Transit Authority services. These activities are primarily paid
from charges to customers.

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