Reference no: EM132599596

Question - 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 officials 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.

Discuss the question of 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?