The relationships between a county and several potential

component units
The relationships between a county and several potential component units are outlined as
follows. Harrington County is organized under the county executive form of government, as
provided by state law. Under this form of government, the policies concerning the financial and
business affairs of the county are determined by the County Board of Supervisors. The Board is
composed of eight elected members who serve four-year terms. The Board appoints a county
executive who is the government’s chief administrative officer and executes the Board’s
policies and programs. All but two of the following component units issue separately audited
financial statements. The School Board and Adult Detention Center do not prepare separate
financial reports at this time.Potential Component Unit Description of Activities and Relationship
to the CountyMensah City Recreation Center Derives revenue from a special levy on personal
property and real estate within the district and user fees. Assists and advises County Board on
management and planning of levy district and its recreation center. County appoints majority of
board, guarantees debt.District Home Board Agreement between five jurisdictions. Establishes
policy for operation of two district homes. Each county appoints a board member. No other
formal relationships or responsibilities.Northern Region Health Center County Board resolution
created a commission for theCommission operation of a nursing home pursuant to state code.
Develops and establishes policies for the operation of a nursing home. Appoints two of the five
commission board members. Another cooperating county appoints two other board members.
The governor appoints the fifth member.Maysami Regional Special Agreement between three
school districts to foster coop-Education Program eration in the development and delivery of
special education programs and other appropriate educational services. Each district appoints
one-third of the program’s board and subsidizes one-third of any operating deficiency.Adult
Detention Center (ADC) Establishes policy for operation of regional adult detention center
providing care and confinement for all County and adjoining city prisoners. Majority of Center
Board is appointed by County; County hires management officials.Park Authority Established by
County Board resolution. Acquires, develops, maintains, and operates park and recreation
areas according to Authority and County Board comprehensive plans. Majority of County Board
serves as the board of the authority. Financial benefit/burden relationship exists. Authority
provides services to the County.County Parkway District Exercises the powers and duties
enumerated in the state code related to the transportation improvement district. Majority of
District Board is appointed by County; financial benefit/burden relationship exists.Harrington
County School Board School Board is selected by popular election but has no taxing authority.
Most resources are provided by the county, which has budget approval authority over the
school board budget.a. Determine which of the potential component units the county should
report as component units in its financial report. Explain the basis for your decision. If additional
information is needed to make this determination for a potential component unit, state what
information is needed.b. For each component unit, indicate whether it should be blended or
discretely reported. Explain. If additional information is needed to make this determination for a
potential component unit, state what information is needed.c. For each component unit, indicate
whether more detail must be presented in the county’s CAFR than the information in the
combining component unit financial statements.View Solution: The relationships between a
county and several potential component units

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