(Reporting entity)

(Note: Exercises E9-39 through E9-41 are based on material from actual financial statements. In some instances, we added material to the facts presented in the financial statements to clarify the issues raised in the Exercises.)

Sarasota, Florida operates under a CommissionerManager form of government. Its financial state-ments for the year ended September 30, 2016 refer to an entity called the Golden Gate Point Special District (GGPSD). Based on the following information, state (1) whether GGPSD should be reported as a component unit of Sarasota and (2) if so, whether it should be blended or discretely reported. Give reasons for your answers.

GGPSD was created by the City Commissioners pursuant to Florida statutes. Its purpose is to construct and maintain enhancements and improvements within the public right of way on Golden Gate Point. The City Commissioners serve as the governing board of the GGPSD. They approve the adoption of the annual budget (using tax revenues), the issuance of all debt, the execution of all contracts, and the payment of all expenditures