9-41. (Reporting entity) Oneid

9-41. (Reporting entity) Oneida County, New York sponsors the Mohawk Valley Community College (MVCCJ. Based on the following information from the County’s financial statements for a previous year, state (1) whether MVCC should be reported as a component unit of Oneida County and (2) if so, whether it should be blended or discretely reported. Give reasons for your answers. MVCC is administered by a Board of Trustees consisting of ten voting members. Five are ap- pointed by the Oneida County Executive and confirmed by the Oneida Legislature, four by the Gov. ernor of the state, and one student is elected by the student body. MVCC’s budget is subject to the approval of the County Executive and the County Legislature, and the County provides substantial funding for MVCC’s operations. LO 2 E9-42. (Reporting entity) A city created The City Building Authority (CBA) as a separate legal entity public benefit corporation. CBA is govemed by a five-person board appointed for 6-year terms by the mayor, subject to city council approval. The authority sells tax-exempt bonds and uses the proceeds only to finance the construction or acquisition of general capital assets and only for the city. The bonds are secured by a lease agreement with the city and will be retired through lease payments from the city. Is CBA a component unit of the city If so, how should the city report its financial activities? (Adapted from GASB Statement 14, par. 134) .02 E9-43. (Reporting entity) The State Turnpike Commission (STC) was established as an instrumentality of the state to construct, operate, and maintain the state turnpike system. The STC was created as a separate legal entity with pow- ers to issue revenue bonds payable from tolls and other revenues. Its governing body consists of eight members appointed by the governor for fixed 10-year terms and three state officials serving ex officio- the elected state treasurer, the elected state comptroller, and the appointed superintendent of highways. The STC is financially self-sufficient. The state cannot access its assets or surpluses, nor is it ob ligated to subsidize STC deficits. The state does not approve STC rates or the STC budget. The bond agreement states that the debt of the STC is not an obligation of the state. However, state statutes autho rize the state budget director to include in the budget submitted to the legislature an amount sufficient to make the principal and interest payments on STC bonds in the event STC revenues are insufficient to meet debt service requirements. Is the STC a component unit of the state? If so, how should the state report the financial activities of the STC? (Adapted from GASB Statement 14, par. 142)