For Each of the Following Independent Cases State Whether or Not

question 21

Essay

For each of the following independent cases state whether or not the entity described should be included in the financial statements of the primary government and if so, how? Be concise but adequately defend your answer using GASB criteria.
a) The Planning and Development Authority is a separate legal entity with a five-member board appointed as follows: one member appointed by the school district, one member appointed by the city, one member appointed by the county, and two members elected by the three appointed members. The Planning and Development Authority received a $50,000 grant from the state. The money was used to make loans to businesses agreeing to relocate to the immediate area. Repayments of the principal and interest by borrowers are available for lending to new entities.
b) The state created a Public Building Authority, a separate legal entity. The governor appoints a voting majority of the authority's board. The authority issues bonds, backed by the buildings financed with the proceeds. The authority leases the buildings to the state and uses the proceeds of those leases to service the debt on the bonds.
c) Boxer County Hospital is built on land donated to the hospital by the US Bureau of Land Management (a federal agency). The hospital board members elect replacements to the board without outside nominations. The hospital is a separate legal entity and is entirely supported by revenues generated by the hospital. The county commission must approve the budget each year, but has never questioned any item in the budget.
d) Members of State University's board of trustees are elected in a statewide general election. The state provides approximately one-half of the operating revenues necessary to finance the university's programs. The university is a separate legal entity and state laws apply to the conduct of its business.

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Definitions:

Water Seal Chamber

A component of a chest drainage system that prevents air from entering the pleural space while allowing air and fluids to exit, creating a one-way valve mechanism.

Chest X-ray

A diagnostic imaging test that uses a small amount of electromagnetic radiation to produce images of the structures inside the chest, including the heart, lungs, and bones.

Arterial Blood Gas

A test that measures the amounts of oxygen and carbon dioxide in the blood, as well as the acidity (pH) of the blood.

Oxygen Saturation

A measure of the amount of oxygen carried by the hemoglobin in the red blood cells, typically measured with a pulse oximeter; an important indicator of respiratory function.