The Building Authority was created by the city and organized as a separate legal entity. The authority is governed by a five- person board appointed for 6- year terms by the mayor, subject to city council approval. The authority uses the proceeds of its tax- exempt bonds only to finance the construction or acquisition of general capital assets and only for the city. The bonds are secured by the lease agreement with the city and will be retired through lease payments from the city. Is the Building Authority a component unit of the city? If so, how should the city report the financial activities of the Building Authority?
Answer to relevant QuestionsThe Municipal Electric Utility (MEU) was created as a separate legal entity in accordance with state law to own, manage, and operate an electric utilities system in the city. The MEU’s governing body consists of five ...State whether these statements are true or false. For any false statement, explain why it is false. 1. In the fund financial statements, the General Fund should always be reported as a major fund. 2. In the fund financial ...The City of Breukelen maintains a rapid transit system, which is accounted for in a proprietary fund called Breukelen RTS. The following excerpt from the trial balance shows all the information needed to prepare an operating ...When should sales tax revenues and property tax revenues be recognized for governmental activities in the government- wide statement of activities? Use the Internet to review a government’s CAFR. Examine the governmental fund financial statements, the governmental activities sections of the government- wide financial statements, and the reconciliations between the two ...
Post your question