Question
Identification of Component Units. (LO9-3) Following are descriptions of several relationships between primary governments and other organizations.* Required Using just the information provided, indicate whether
Identification of Component Units. (LO9-3) Following are descriptions of several relationships between primary governments and other organizations.*
Required
Using just the information provided, indicate whether you believe the primary government should include the organization as a component unit. Please explain your answer.
- Tesser Municipal Hospital is a not-for-profit corporation whose governing board is appointed by the Tesser city mayor. The hospital manages its page 410day-to-day operations and sets its own fee schedule. The governing board provides preliminary approval of the hospital budget, with final approval required by the Tesser city council. Bonded debt for the hospital is repaid with the hospitals revenues.
- The Atkins Convention and Visitors Bureau is a not-for-profit organization funded by a hotel tax levied by the City of Atkins. By city statute, the hotel tax is set by the city and can be used only by the Convention and Visitors Bureau.
- The Sports Authority of Dawson County is a legally separate organization with its own elected board. It annually presents its budget to the Dawson County Commission for commissioners input and recommendations. The Sports Authority incorporates those recommendations it deems beneficial.
- The County Aviation Authority has issued bonds that are guaranteed by the City of Middle Falls. The Aviation Authority will use its revenues to service the debt. Middle Falls believes that the probability it will have to cover any debt service requirements related to the Aviation Authority bonds is remote.
Help for Kids is a not-for-profit organization that receives funding from Alice County. Each year Help for Kids is required to submit its audited financial statements and approved budget to Alice County. County commissioners review the financial statements and budgets to ensure that the resources provided by the county are being used in an approved manner.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started