Legally separate, tax-exempt organizations should be reported as a discrete (separate column) component unit if they meet all of the following criteria (GASB Statement No. 14 paragraph 40a, as amended by GASB Statement No. 39, paragraph 5): The economic resources received or held by the separate organization are entirely or almost entirely for the direct benefit of the primary government, its component or its constituents (includes CSU students). The primary government, or its component units, is entitled to, or has the ability to otherwise access, a majority of the economic resources received or held by the separate organization. The ability of a primary government to otherwise access the resources of an organization does not necessarily imply control over that organization or its resources, rather, the ability to access the resources of an organization not necessarily whether there was an actual – transaction during the period is the important factor for determining when a primary – government is entitled to an organization’s resources. The economic resources received or held by an individual organization that the specific primary government, or its component units, is entitled to, or has the ability to otherwise access, are significant to the primary government. Organizations that meet the three criteria above should be discretely presented, even if they also meet the blending criteria in paragraph 53b or 53c in GASB Statement No. 14 described below. Assessment Flowchart The following flowchart is intended to aid in the application of the provisions of GASB Statement No. 61. This is nonauthoritative and does not all aspects of of the Statement. It should not be used in place of the Statement itself. The paragraph references are those of Statement 14, as amended. CALIFORNIA EDUCATION CODE AND CALIFORNIA CODE OF REGULATIONS The California Education Code and Title 5 of the California Code of Regulations provide that each auxiliary organization shall have an annual fiscal audit performed by a certified public accountant. Both codes provide that the Office of the Chancellor (CO) shall develop and forward
Legally separate, tax-exempt organizations should be reported as a discrete (separate column) component unit if they meet all of the following criteria (GASB Statement No. 14 paragraph 40a, as amended by GASB Statement No. 39, paragraph 5): The economic resources received or held by the separate organization are entirely or almost entirely for the direct benefit of the primary government, its component or its constituents (includes CSU students). The primary government, or its component units, is entitled to, or has the ability to otherwise access, a majority of the economic resources received or held by the separate organization. The ability of a primary government to otherwise access the resources of an organization does not necessarily imply control over that organization or its resources, rather, the ability to access the resources of an organization – not necessarily whether there was an actual transaction during the period – is the important factor for determining when a primary government is entitled to an organization’s resources. The economic resources received or held by an individual organization that the specific primary government, or its component units, is entitled to, or has the ability to otherwise access, are significant to the primary government. Organizations that meet the three criteria above should be discretely presented, even if they also meet the blending criteria in paragraph 53b or 53c in GASB Statement No. 14 described below. Assessment Flowchart The following flowchart is intended to aid in the application of the provisions of GASB Statement No. 61. This is nonauthoritative and does not all aspects of of the Statement. It should not be used in place of the Statement itself. The paragraph references are those of Statement 14, as amended. CALIFORNIA EDUCATION CODE AND CALIFORNIA CODE OF REGULATIONS The California Education Code and Title 5 of the California Code of Regulations provide that each auxiliary organization shall have an annual fiscal audit performed by a certified public accountant. Both codes provide that the Office of the Chancellor (CO) shall develop and forward