the governmental reporting entity consists of a primary government and its component 4375764

The governmental reporting entity consists of a primary government and its component units. Various governmental structures are described below. 1. By a vote of 9-6, the Megalopolis city council voted to establish a Convention Authority (CA). Mega lopolis’s mayor appoints the CA’s governing board with the approval of city council. City council’s direct financial commitment to the CA is limited to a $ 100,000 appropriation of seed money to be repaid from the CA’s permanent financing as soon as possible. The CA’s initial responsibility is to obtain the funding for a downtown convention center. Funding will likely come from a combination of federal development grant money, tax-exempt bonds issued and backed by the city, and corporate contributions. 2. Consider the same facts as in 1. except that the CA is authorized to issue its own bonds without city backing and may levy a small sales tax to support its activities. The CA’s bond issues and sales taxes need not be approved by the city council but, as a matter of courtesy, council is advised of the CA’s plans. 3. Many local communities in Gigantic County are served by volunteer fire departments. Each such fire department is a separate not-for-profit corporation governed by a board elected by and from its own membership. The county has a three-year contract with each fire department to pay for the department’s fire-fighting services. Also, the county has historically paid for fire trucks and similar equipment used and owned by the fire departments. 4. The Winitville Board of Education is elected by the voters. This Board governs the Winitville school district and obtains an annual appropriation from the city to fund school district activities. The City of Winitville levies whatever taxes and issues whatever bonds it needs to fund its expenditures, including those attributable to the school district, and has no authority over the individual line items in the school district’s budget. 5. The State of Michigan, along with seven other states, participates in a joint venture to examine the water quality of the Great Lakes. Michigan is the largest contributor, and contributions to the Great Lakes Protection Fund (GLPF) are permanently restricted and are not available for disbursement. Each participating state is represented by two members on the GLPF’s board of directors. The GLPF’s financing and budgeting operations are controlled by the directors within requirements established by its own Articles of Incorporation. 6. The Georgia Public Telecommunications Commission is a legally separate entity within the State of Georgia. This commission is a public charitable organization created for the purpose of providing educational, instructional and public broadcasting services to the citizens of Georgia. The budget of the commission must be approved by the State. The Board consists of three State officials designated by statute and six members appointed by the Governor. Required For each of the above independent situations, identify the primary government and explain whether the other governmental enterprise is part of the primary government’s financial reporting entity. View Solution:
The governmental reporting entity consists of a primary government and

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