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American Institute of Certified Public Accountants . State and Local Government Accounting Committee

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University of Mississippi eGrove Guides, Handbooks and Manuals American Institute of Certified Public Accountants (AICPA) Historical Collection 1984 Questionnaire for defining a governmental reporting entity American Institute of Certified Public Accountants . State and Local Government Accounting Committee Follow this and additional works at: https://egrove.olemiss.edu/aicpa_guides  Part of the Accounting Commons OCT 0 9 1984AICPA. State and Local Government Accounting Committee.Questionnaire for defining a governmental reporting entity.OCT 09 1984American Institute of Certified Public Accountants State and Local Government Accounting Committee Questionnaire for Defining a Governmental Reporting EntityIn examining the combined financial statements of a governmental reporting entity, an independent auditor has the responsibility to determine whether all organizations that are included in the statements should be included and whether all organizations that should be included are included. This questionnaire is intended to help the auditor carry out that responsibility on the basis of the criteria for defining a governmental reporting entity specified in NCGA Statement 3 as clarified by NCGA Interpretation 7.The questions should be answered for every organization included in the combined financial statements and additional organizations that might be eligible for inclusion. A "yes" answer provides grounds for inclusion, but all questions do not necessarily have to be answered with a "yes" to justify inclusion. The auditor must use judgment to determine the questions that require a "yes" answer and the number of "yes" answers that are required to justify inclusion.Examples of the types of organizations to which the questionnaire would apply are:School Board Community College Library System Economic Development Corp. Industrial Development Corp. Financing Authority Sanitary District Public Housing Corp. Public Hospitals Health Care Facilities Social Service Agencies Public Water Services Cemeteries Public Sewer Services Public Transportation System Public Airport Public Parks Police DepartmentFire DepartmentVoluntary Fire Companies Constitutional officers:Sheriff’s Office Clerks of Court Registers of Wills Treasurer Tax CollectorOther Public Golf Course Cultural Facilities Domiciliary Facilities Public Garages Public Gas Service Public Electric Service Public Civic Center Public Toll Bridgesand/or Roads Port Authority-2-The questions to be answered follow. The term "government" as used in the questions means the reporting entity. ______________Name of Organization______________I. Manifestation of Oversight A. Selection of governing authority 1. Are officials of the organization appointed by elected officials of the government who maintain a sig­nificant continuing relationship with the appointed officials with respect to performance of their duties relating to important pub­lic functions?2. Are there other aspects of selec­tion of organization officials that would indicate reasons for inclusion? (Specify) B. Designation of management1. Is management of the organization appointed by and held accountable to a governing authority which is included in the reporting entity?2. Other designations?(Specify)(Name) (Name) (Name) (Name)Yes No Yes No Yes No Yes No-3- ___________Name of Organization____________  .... . (Name) (Name) (Name) (Name)C. Ability to significantly influence operations --- — --- — --- — --- —1. Does the government have authorityto a. Review and approve the organ­ization's budgetary requests and budgetary adjustments and amendments? ___ ___ ___ ___ ___ ___ ___ ___b. Sign the organization's con­tracts as the contracting authority?c. Approve decisions by the organ­ization's management on hiring or retaining key organization managerial personnel?d. Exercise control over the organ­ization's facilities and prop­erties?e. Determine the outcome or dispos­ition of matters affecting the recipients of the services being provided by the organization?2.__Other influence on the organization's operations? (Specify) _______________________-4-______________Name of Organization______________(Name) (Name) (Name) (Name)Yes No Yes No Yes No Yes NoII. Accountability for Fiscal MattersA. Is absolute authority over all funds of the organization vested within the juris­diction of either a constitutional officer, a management official or a governing authority that is within the government?B. If the answer to A is no, does the govern­ment:1. Budgetary a. Possess authority for final approval over authorization of the organization’s budgetary appropriation? b. Have the authority to authorize revisions to the organization’s approved budget?2. Surplus/deficitsa. Have the responsibility for funding deficits and operating deficiencies of the organization?b. Govern or control the use of surplusfunds?If yes, what is the disposition of  surplus funds?-5- ___________Name of Organization  (Name)_(Name) (Name) (Name)Yes No Yes No Yes No Yes No3. Responsibility for debts a. Have a direct or indirect respon­sibility for debt of the organi­zation? b. Have a "moral responsibility" for debt of the organization?4. Fiscal management a. Govern the process of controlling the collection and disbursements of funds for the organization? b. Hold title to assets of the organization? c. Possess the right to require audits of the organization?5. Revenue characteristics Does the organization derive revenues by means of public levy or charge? If so, how much of total revenue is derived by public levy or charge? (See paragraph 12, part D4 of State­ment No, 3 in defining public levy or charge.)C. Other accountability?(Specify) ______________________________-6- ___________Name of Organization______________(Name) (Name) (Name) (Name)Yes No Yes No Yes No Yes NoIII. Scope of Public ServiceA. Is the activity of the organization for the benefit of the government and/or its residents?B. Is the activity of the organization con­ducted within the geographic boundaries of the government and available to the citizens of the government?IV. Special Financial RelationshipsAre there any special financing relationships between the organization and government where there is no oversight responsibility?If yes, specify______________________________V. Other ConsiderationsA. Have any other criteria been considered?If yes, specify__________________________-7- ___________Name of Organization  (Name)_(Name) (Name) (Name)Yes No Yes No Yes No Yes NoB. Is the organization included in the reporting entity of another govern­mental unit?If yes, at what level of government is it included? (The appropriateness of including the unit in another re­porting entity rather than this re­porting entity should be evaluated. See NCGA Interpretation 7, paragraph 13.)________________________________VI. ConclusionShould this organization be included in the reporting entity of the government? If yes, specify why._______________________ If no, specify why not.____________________G00060

Questionnaire for defining a governmental reporting entity

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Questionnaire for defining a governmental reporting entity

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