IS IT PART OF THE COUNTY?

Harland County is in a financially distressed area within the state of Missouri. In hopes of enticing business to the county, the state legislature appropriates $3 million to start an industrial development commission. The federal government provides an additional $1 million. The state appoints 15 individuals to a board to oversee the operations of this commission. Harland County officials name five additional members. The commission begins operations by raising funds from local citizens and businesses. Over the past 12 months, it received $700,000 in donations and pledges. The county provides clerical assistance and allows the commission to use one wing of a county office building for its headquarters. The Harland County government must approve the commission's annual operating budget. The county will also cover any deficits that might occur.

During the current period, the commission spent $2.4 million and achieves notable success. Several large companies recently began to explore the possibility of opening manufacturing plants in the county.

Harland County is currently preparing its comprehensive annual financial report. Should the county's CAFR include the revenues, expenditures, assets, expenses, and liabilities of the industrial development commission? Is it a fund within the county's primary government, a component unit, or a related organization?

Is the industrial development commission a component unit of the State of Missouri? How should its activities be presented in the state's comprehensive annual financial report?