Some critics of GASB Statement No. 14 (even as amended) believe that it casts too wide a net—that it requires governments to include in their reporting entity organizations over which the primary government has little control. For example, suppose that a city’s mayor appoints the majority of the governing board of an authority but that the city has only minimal ability to inﬂuence the decisions of that board. As long as the city gets some ﬁnancial beneﬁt from the authority or has some burden of responsibility for it, it must include the authority in its reporting entity. Do you agree? Explain.
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