It is a matter of professional judgment whether and how certain entities should be included in the Financial Report of the U.S. Government. Based on the criteria set forth in this chapter and the limited facts presented, indicate which of the following apocryphal entities you believe should be incorporated into the Financial Report of the U.S. Government. For those that you think should be included, tell whether you think it should be a consolidation entity or a disclosure entity.

1. The Entrepreneurial Business Administration was established by Congress to promote investment in innovative small businesses. The agency is financed with congressionally appropriated funds and is considered a unit of the Department of Commerce.

2. Electronics, Inc. is a major Defense Department contractor and, in fact, receives all of its revenue from military contracts. Accordingly, it is completely dependent on the U.S. government for its survival. Although the revenues of Electronics, Inc. are not directly appropriated by Congress, funds to support the weapons systems on which Electronics, Inc. works are.

3. Congress and the president established Delta Corporation as a not-for-profit organization to promote the export of U.S. robotics technology. The corporation is governed by a five-person board of directors, two of whom are appointed by the Secretary of Commerce and two of whom are named by the Robotics Industry Association. The corporation is funded from fees assessed to members of the association. The Corporation is audited by the Government Accountability Office and must submit an annual report to the Senate and House Commerce Committees.

4. Congress and the president chartered Mt. Vernon Technical College to engage in sophisticated research in nanotechnology. Most of its funding comes from contracts with suppliers and from private donations. However, Congress explicitly appropriates approximately 15 percent of the college's budget under a Department of Education program. Although the appropriations provide general guidance on how the resources may be used, the college nevertheless has broad discretion over specific activities and projects to which it can allocate the funds.

5. The Energy Industry Accounting Standards Board was established by major oil and gas companies as a not-for-profit corporation with the mission, as its name implies, of establishing accounting standards for energy firms. It is governed by a 10-member board of trustees appointed by the firms that established it. The board is financed by a tax on shares of energy companies that are traded either on major exchanges or in over-the-counter markets. The Securities and Exchange Commission determines the tax rate and collects the tax. However, it has no administrative responsibility for the taxes collected other than to pass them through to the board. Further, although it unquestionably influences the decisions of the board, it has no direct control over them.