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Chapter 9 Accounting for Special-Purpose Entities, Including Public Colleges and UniversitiesTollway authoritiesTransit authorities96.What are the required parts of the annual financial report for special-purpose local governments engaged only in business-type activities?Answer: MD&AEnterprise Fund Financial Statements including:Statement of Net Position or Balance SheetStatement of Revenues, Expenses, and Changes in Net PositionStatement of Cash FlowsNotes to the financial statementsRSI other than MD&A, if applicable97.What are the required parts of the annual financial reports for special-purpose governments engaged only in fiduciary-type activities?Answer: MD&AFiduciary Fund Financial Statements including:Statement of Fiduciary Net PositionStatement of Change in Fiduciary Net PositionNotes to the Financial StatementsRSI other than MD&A, if applicable98.What are the criteria outlined in GASB Statement 39: Determining Whether Certain Organizations Are Component Units for requiring public college foundations to be reported as discretely presented components in the college’s financial reports?Answer: 1.The economic resources received or held by the separate organization are entirely or almost entirely for the direct benefit of the primary government, its component units, or its constituents.2.The primary government, or its component units, is entitled to, or has the ability to otherwise access, a majority of the economic resources received or held by the separate organization.3.The economic resources received or held by an individual organization that the specific primary government is entitled to or has the ability to otherwise access, are significant to that primary government22
Chapter 9 Accounting for Special-Purpose Entities, Including Public Colleges and Universities99.Indicate the financial reporting rules for each of the following special-purpose entities (which category of special-purpose entity), and indicate the financial statements that would be required:a.A township that assesses property for taxation, provides road maintenance, and provides welfare assistance.b.A fire protection district that engages in protection of property in unincorporated areas from fires.c.An independent tollway authority, not the component unit of any other government.d.An independent statewide pension plan.e.A public college. Answer: a.This township would be a special-purpose government engaged in more than one governmental activity. As such, it would be required to report all of the applicable basic financial statements, including the government-wide and governmental fund statements. As no mention is made of enterprise and fiduciary activities, those fund statements would not be required.b.This township would be a special-purpose government engaged in only one governmental activity. As such, it would be allowed to report financial statements that combine government-wide and governmental fund information. This would include a governmental fund Balance Sheet/government-wide Statement of Net