Correct Answer:
A
A special-purpose government (e.g., a school district, utility authority) is considered a primary
government when it meets at least one of the following conditions:
Has a separately elected governing body
Is legally separate
Is fiscally independent of other governments
The reliance on revenue projections from another entity does not preclude a government from being
a primary government. What matters is legal and fiscal independence.
Relevant Reference:
GASB Statement No. 14 – The Financial Reporting Entity
GASB Statement No. 39 and No. 61 (Amendments to Statement 14)
GASB Codification Section 2100 – Defining the Financial Reporting Entity
Answer : A. relies on revenue projections from another government entity
