Harland County is in a financially distressed area of Missouri. In hopes of enticing business to this county, the state legislature appropriated $3 million to start an industrial development commission. The federal government provided an additional $1 million. The state appointed 15 individuals to a board to oversee the operations of this commission, and Harland County offi-cials named five additional members. The commission began operations by raising funds from local citizens and businesses. Over the past 12 months, it received $700,000 in donations and pledges. The county provided clerical assistance and allowed the commission to use one wing of a county office building for its headquarters. The Harland County government must approve the commission’s annual operating budget. The county will also cover any deficits that might occur.During the current period, the commission spent $2.4 million and achieved notable success. Several large manufacturing companies recently began to explore the possibility of opening plants in the county.Harland County is currently preparing its comprehensive annual financial report. Should the county’s CAFR include the revenues, expenditures, assets, expenses, and liabilities of the industrial development commission? Is it a fund within the county’s primary government, a component unit, or a related organization?Is the industrial development commission a component unit of the State of Missouri? How should its activities be presented in the state’s comprehensive annual financial report?
Harland County is in a financially distressed area of Missouri. In hopes of enticing business
to this county, the state legislature appropriated $3 million to start an industrial development
commission. The federal government provided an additional $1 million. The state appointed 15 individuals to a board to oversee the operations of this commission, and Harland County offi-
cials named five additional members. The commission began operations by raising funds from local citizens and businesses. Over the past 12 months, it received $700,000 in donations and
pledges. The county provided clerical assistance and allowed the commission to use one wing
of a county office building for its headquarters. The Harland County government must approve
the commission’s annual operating budget. The county will also cover any deficits that might
occur.
During the current period, the commission spent $2.4 million and achieved notable success.
Several large manufacturing companies recently began to explore the possibility of opening
plants in the county.
Harland County is currently preparing its comprehensive annual financial report. Should
the county’s CAFR include the revenues, expenditures, assets, expenses, and liabilities of the
industrial development commission? Is it a fund within the county’s primary government, a component unit, or a related organization?
Is the industrial development commission a component unit of the State of Missouri? How should its activities be presented in the state’s comprehensive annual financial report?
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