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Approval of
this resolution only impacts the financial reporting in the
Comprehensive Annual Financial Report of capital assets
acquired for the School Board through debt incurred by the
County. In
Virginia, schools are considered component units of the
local government and are, therefore, reported in a separate
column apart from the primary government. They are separate
legal entities, but have no taxing authority. Schools
depend on their local government for substantial resources,
including the issuance of bonds for construction when such
resources are needed.
Two financial reporting
presentations exist in Virginia, which produce significantly
different results for certain components of the
government-wide financial statements, reducing comparability
of financial statement data among governments. Approval of
this resolution will result in presentation of Schools’
assets in accordance with National guidance provided by the
Governmental Accounting Standards Board. The financial
reporting for the jurisdictions that have opted out has been
enhanced by the addition of a “Total Reporting Entity”
column, which focuses the reader on the unique County and
Public Schools relationship that exists in Virginia.
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