Question: A series of questions can be used to guide decisions

A series of questions can be used to guide decisions as to whether and how to incorporate a potential component unit.
Apple County’s library system is a legally constituted government entity. It is governed by a 10 person board. Six of the members are appointed by the county’s council; the other four are selected by the other members of the board. The members serve staggered terms of three years. Once appointed, the members can be removed from office only for illegal activities.
The county provides 95% of the library system’s resources and thereby can control the total amount spent by the system. However, the governing board adopts the system’s budget, which need not be approved by the county. The board also controls the day-to-day operations of the system.
By asking and answering a series of questions (as was done in the chapter) indicate whether and, if so, how the county should incorporate the library system into its reporting entity.

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  • CreatedApril 29, 2015
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