Governments must apply the criteria of GASB statement no. 14 (as amended) in determining whether and how to include an associated entity in its reporting entity. A city is considering whether and how it should include the following associated organizations in its reporting entity.
1. Its school system, although not a legally separate government, is managed by a school board elected by city residents. The system is financed with general tax revenues of the city and its budget is incorporated into that of the city at large (and thereby is subject to the same approval and appropriation process as other city expenditures).
2. Its capital asset financing authority is a legally separate government that leases equipment to the city. To finance the equipment, the authority issues bonds that are guaranteed by the city and expected to be paid from rents received from the city. The authority leases equipment exclusively to the city.
3. Its housing authority, which provides loans to low income families within the city, is governed by a five-person board appointed by the city’s mayor, and its debt is guaranteed by the city.
4. Its hospital is owned by the city but managed under contract by a private hospital management firm.
5. Its water purification plant is owned in equal shares by the city and two neighboring counties. The city’s interest in the plant was acquired with resources from its water utility (enterprise) fund.
6. It community college, a separate legal entity, is governed by a board of governors elected by city residents and has its own taxing and budgetary authority.
Based on the very limited information provided, indicate whether and how the city should report the associated entities.
Hixson paid Galyen Petroleum Co. money he owed by issuing three checks to Galyen. The bank refused to cash the three checks because of insufficient funds in the Hixson ac...Aug 13 2021
A drawbar support assembly is shown in the figure. The force in the lifting-link is 2000 lb. Determine the vertical and horizontal components of the force.Jun 27 2020
65.Find to three decimal places, the coordinate of point P lying inthe 4th quadrant on the Cartesian plan such that the line tangentto the cosine function passes through ...Aug 21 2021
Local Steel Construction Company produces two products, steel and wood beams. Steel beams have a unit contribution margin of $200, and wood beams have a unit contribution...May 16 2020
What are the advantages a market economy offers producers?Jun 03 2021
What is the time constant for a 7.50 mF capacitor in series with a 3.00 Ω resistor?May 31 2021
--Step Process with ReworkConsider the following three--step assembly operation with quality problems. All resources are staffed by one employee.-- The first resource ...Aug 01 2020
10) Janitorial service is an example of an activity at which ofthe following levels? a) Unit-level activity b) Product-level activity c) Batch-level activity d) Facil...Jun 05 2021
What is the advantage of a market-product grid?May 08 2021
Minors in Maine and a Major Commerce Clause DecisionMaine passed a law that prohibited anyone other than a Maine-licensed tobacco retailer from accepting an order for del...Aug 11 2021