The formation of the transit authority to create and manage the City of Artichoke, WV transportation system was a significant step toward the city’s sustainability and enhancement. The ongoing financial reporting should reveal the transit authority’s performance, achievements, and challenges for officials to take an appropriate intervention. The review of the financial report is an essential part of the city’s government so that all parties and institutions can assess transit authority and officials’ decision feasibility and relevancy to the city’s problems.
In this situation, the city’s officials are highly recommended to base their review and financial analysis on the Governmental Accounting Standards Board (GASB) guidelines. Statements №39 and №80 have a specific interest for the officials, as they define the component units and recommend how to conduct and file financial reports, as a part of local or federal governments.
The Statement №39 indicates that “component units can be other organizations for which the nature and significance of their relationship with a primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete” (Governmental Accounting Standards Board, Statement №39, 13). As a result, the transit authority in the transportation system has a substantial impact on the city’s financial performance, sustainability, and development. Moreover, without this financial report, the city’s officials will have incomplete information on the city’s performance, budgeting, and challenges faced by the component unit.
The Statement №80 indicates that component units are obliged to file the financial review for depicting all financial statements and budgeting issues, which are faced. In this case, the ongoing report should highlight “present, and potential users are the primary beneficiaries of improvements in financial reporting” (Governmental Accounting Standards Board, Statement №80, 11) As a result, alongside standard financial statements, the transit authority should assess the value and impact of its decisions from multiple perspectives, like city officials, public, local business, other component units.
From this perspective, the ongoing financial report from the transit authority should depict not only budgetary issues or assets/liabilities accountability but also show social responsibility and value-added impact on the city. Under these circumstances, the city officials should review and analyze the report by indicating and matching transportation system achievements through numerous city stakeholders’ perspectives.
Works Cited
Governmental Accounting Standards Board. Statement No. 39 of the Governmental Accounting Standards Board. 206-A, Governmental Accounting Standards Series, 2002. Web.
Governmental Accounting Standards Board. Statement No. 80 of the Governmental Accounting Standards Board. 356, Governmental Accounting Standards Series, 2016. Web.