The City created a legally separate Housing Authority to provide low-income housing to residents of the City.The City issues debt for the Housing Authority in the name of the City, but the Housing Authority is responsible for repayment of the debt.The Housing Authority is governed by a board composed of all 5 members of the City Council.Actions can be taken by Authority upon receiving an affirmative vote by a simple majority of the board.In what manner would the Authority be included in the City's Basic Financial Statements?

Question

Quizplus · Accepted Answer

The Housing Authority should be blended in the City's Basic Financial Statements because it is governed by the same board as the City Council, indicating that the City has significant control over the Authority.

The City Created a Legally Separate Housing Authority to Provide