Study and analyze the criteria established in GASB Statements 14, 34 and 39. Evaluate the following cases: Case 1 The Planning and Development Authority is a separate legal entity with a board of five members appointed as follows: one member appointed by the school district, one member appointed by the city, one member appointed by the county, and two members elected by the three appointed members. The Planning and Development Authority received a $50,000 grant from the state. The money was used to make loans to businesses that agreed to move to the nearby area. Repayments of principal and interest by borrowers are available for loans to new entities. Case 2 The state created a Public Buildings Authority, a separate legal entity. The governor appoints a majority of the voting members of the authority's board of directors. The authority issues bonds, backed by the buildings financed with the funds. The authority leases the buildings to the state and uses the proceeds of those leases to pay off the bond debt. Case 3 The County Hospital is built on land donated to the hospital by the US Bureau of Land Management (a federal agency). Hospital board members elect replacements to the board of directors without outside nominations. The hospital is a separate legal entity and is fully supported by the income generated by the hospital. The county commission must approve the budget each year, but has never questioned any element of the budget. Case 4 The members of the State University's board of trustees are elected in a statewide general election. The state provides about half of the operating income needed to fund the university's programs. The university is a separate legal entity and there are state laws that apply to the administration of the university.

Use your analysis from the study material and the cases, and answer the following questions. You must answer the three questions for each case. 1. Should the described entity be included in the government's financial statements? 2. How should it be included? 3.Justify your answer using the GASB criteria.