Page 78 - 2018 Comprehensive Annual Financial Report - City of Winston-Salem

8. Accumulated Vacation and Sick Leave Bene ts
Earned vacation may be accumulated to a maximum of 30 days at the end of each calendar year. Accumulated vacation is due
when leave time is taken by the employee or at the time of termination, retirement, or death. Accrued vacation leave is recorded
as a liability when incurred in the government-wide, proprietary, and duciary fund nancial statements.
Employees terminating service before retirement forfeit accumulated sick leave; therefore, sick leave is charged as an expenditure
or expense when paid. Sick leave may be accumulated without limit until retirement, at which time limited credit for this leave
is given in the computation of retirement bene ts. Since the City has no obligation for the accumulated sick leave until it is
actually taken, no accrual for sick leave has been made.
9. Long-Term Obligations
In the government-wide nancial statements and proprietary fund types in the fund nancial statements, long-term debt and
other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or
proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the
related debt. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs, except for
prepaid insurance costs, are expensed in the reporting period in which they are incurred. Prepaid insurance costs are expensed
over the life of the debt.
In fund nancial statements, governmental fund types recognize bond premiums and discounts, as well as issuance costs,
during the current period. The face amount of debt issued is reported as other nancing sources. Premiums and discounts
received on debt issuance are reported as other nancing sources. Issuance costs, whether or not withheld from the actual debt
proceeds, are reported as debt service expenditures.

10. Net Position/Fund Balances
Net position in government-wide and proprietary fund nancial statements are classi ed as net investment in capital assets,
restricted, and unrestricted. Restricted net position are either constrained externally by creditors, grantors, contributors, or laws
or regulations of other governments or imposed by law through state statute.
Restricted Net Position June 30, 2018

Stabilization by state statute $ 24,133,159
Debt service 22,999,436
Other purposes
Nonmajor governmental 22,369,878
Total $ 69,502,473
In the governmental fund nancial statements, fund balance is composed of ve classi cations designed to disclose the
hierarchy of constraints placed on how fund balance can be spent.
The governmental fund types classify fund balances as follows:

Nonspendable Fund Balance. This classi cation includes amounts that cannot be spent because they are either (a) not in
spendable form or (b) legally or contractually required to be maintained intact.
Loans – portion of fund balance that is not an available resource because it represents the year-end balance of loans,
which are not spendable resources.
Inventories – portion of fund balance that is not an available resource because it represents the year-end balance of
ending inventories, which are not spendable resources.

Prepaids – portion of fund balance that is not an available resource because it represents the year-end balance of
ending prepaids, which are not spendable resources.
Perpetual care – Cemetery resources that are required to be retained in perpetuity for the maintenance of the
Woodland and Evergreen Cemeteries.
Restricted Fund Balance. This classi cation includes amounts that are restricted to speci c purposes externally imposed
by creditors or imposed by law.
Restricted for Stabilization by State Statute – portion of fund balance that is restricted by State Statute [G.S. 159-8(a)].
Restricted for Debt Service – portion of fund balance restricted by revenue source for debt service.
Restricted for capital improvements – portion of fund balance restricted by bond proceeds for capital improvements.
Restricted for general government – portion of fund balance restricted by revenue source for public access and education.

72 2018 AN NUAL R E P O R T