A large private bus company in ABC City went bankrupt. At ABC City's request, the state legislature established a legally separate public benefit corporation named Metro City Bus. In the law establishing Metro City Bus, ABC City was authorized to appoint Metro's entire governing body, and Metro was authorized to issue tax-exempt debt to assume the assets of the private bus company. When Metro City Bus want to prepare its financial statements, certain issues were raised.

As a chartered member of Association of Public Sector Accountants, the management of Metro City bus has contacted you for advice on a wide range of issues.

Required:

Write a report to the board of governors of Metro City Bus addressing the following concerns.

1. Critically discuss four (4) factors that distinguish state owned enterprises from privately owned enterprises. ( 8marks)
2. Discuss whether Metro City Bus is or is not a governmental entity. (8 marks)

c. Explain four revenue control checks that Mayor of ABC City can put in place to ensure that all moneys due are received and accounted for in accordance with the procedures established by Local Authorities to control revenue.