Page 80 - 2018 Comprehensive Annual Financial Report - City of Winston-Salem

11. Pensions
For purposes of measuring the net pension asset/liability, deferred out ows of resources and deferred in ows of resources
related to pensions, and pension expense, information about the duciary net position of the Local Governmental
Employees’ Retirement System (LGERS) and additions to/deductions from LGERS’ duciary net position have been
determined on the same basis as they are reported by LGERS. For this purpose, plan member contributions are recognized
in the period in which the contributions are due. The City of Winston-Salem’s employer contributions are recognized
when due and the City of Winston-Salem has a legal requirement to provide the contributions. Bene ts and refunds are
recognized when due and payable in accordance with the terms of LGERS. Investments are reported at fair value.

2. Stewardship, Compliance and Accountability

A. Excess of Expenditures over Appropriations

For the scal year ended June 30, 2018, environmental health expenditures in the general fund were under estimated due
to higher than anticipated operating costs, including the purchase of refuse and recycling carts for curbside service and
the addition of the operations department mid-year; however, fund balance was available to cover the expenditures.
For the scal year ended June 30, 2018, the transfers out in the gasoline tax fund to the general fund exceeded
appropriations by $43,319; however, fund balance was available to cover the expenditures.

3. Detailed Notes on All Funds

A. Deposits and Investments

1. Deposits
All of the City’s deposits are entirely insured or collateralized. The City requires collateral for demand deposits and
certi cates of deposit to be held by an independent custodian in the City’s name or through a collateral pool held by the
State Treasurer’s agent in the name of the State Treasurer. Since the State Treasurer is acting in a duciary capacity for the
City; these deposits are considered to be held by the City’s agents in its name. The amount of the pledged collateral is
based on an approved averaging method for non-interest bearing deposits and the actual current balance for interest-
bearing deposits. Depositories using the Pooling Method report to the State Treasurer the adequacy of their pooled
collateral covering uninsured deposits. The State Treasurer does not con rm this information with the City or with the
escrow agent. Because of the inability to measure exact amount of collateral pledged for the City under the Pooling
Method, the potential exists for under-collateralization, and this risk may increase in periods of high cash ows. However,
the State Treasurer of North Carolina enforces strict standards of nancial stability for each depository that collateralizes
public deposits under the Pooling Method. The City does not have a policy regarding custodial credit risk for deposits.
At June 30, 2018, the City’s deposits had a carrying value of $38,514,277 and bank balance of $37,281,052. Of the bank
balance $1,934,284 was covered by federal depository insurance and the remainder was covered by collateral held under
the Pooling Method. At June 30, 2018, the City maintained various petty cash funds totaling $56,701.

2. Investments
The City’s investment policy was adopted by the City Council in July 1999, (revised on April 15, 2013) and is designed to
provide liquidity for disbursement needs and to maximize investment income. Since individual funds may deposit and
withdraw funds at any time, the cash and investment types, short-term and longer-term xed income investments and
equity investments are essentially managed on demand deposit accounts. For the statement of cash ows, all proprietary
fund types pooled cash is considered cash and cash equivalents. Restricted cash and cash equivalents are restricted by
bond covenants and other nancing intergovernmental agreements.

74 2018 AN NUAL R E P O R T