Section 1- Part 3 and 4 Flashcards
Quasi-Governmental Entities
- Blended Traits
- Government corporations (Business Like Function)
- Potential for Fragmentation
Quasi Governmental Entities
Entities that blend characteristics of governments and the private sector.
quasi-governmental entities that blend characteristics of government and for-profit organizations. Skilled government financial managers are needed to help plan, control, audit and report on the financial relationships among general-purpose, special-purpose and quasi-governmental entities.
Government Corporations
Some quasi-governmental entities are called government corporations. They are often formed to support businesslike functions where most, if not all, operating expenses are expected to be covered through revenues and fees, rather than from appropriated budget authority.
Traits of Government Corporations
Few Traits:
1) Fewer Management Restrictions (Personnel and Procurements rules).
2) Given authority to issue bonds/incur debt.
Ex: Tennessee Valley Authority (Provides electrical power and flood control to 7 states)- National Level.
Mitigate Fragmentation
The proliferation of government corporations, as well as other special-purpose governments, can lead to conflict and fragmentation in government services.
This may occur when the purpose for which the special-purpose government was created overlaps the general-purpose government or another special-purpose government.
One way to mitigate this fragmentation is to create service agreements.
Examples of Service Agreements
Examples of service agreements can be found in public safety, libraries and other functions. For example, two adjacent, general-purpose governments may create a special-purpose district that provides fire or ambulance services to both geographic areas. For this reason, a special-purpose government could have two or more authorizing, general-purpose governments.
Tribal Governments
The Bureau of Indian Affairs, a component of the U.S. Department of the Interior, currently recognizes 574 tribal governments. 9 These entities are usually called tribal councils. Individual states may recognize additional tribal entities that are not (in some cases, not yet) recognized by the Bureau of Indian Affairs. When these state-recognized entities are included, there are more than 590 tribal entities in the U.S. The concentration of tribal governments ranges from state to state.
Limited Sovereignty
Tribal governments have a nation-to-nation relationship with the U.S. and are not subordinate to states.
Most tribal governments are based in democracy (leaders are elected.) Tribal councils determine criteria for legal membership in the council and have sovereignty within tribal lands. They establish businesses, adopt and enforce their own civic codes, establish public safety mechanisms (such as their own police force), and have the power to eject nonmembers from tribal lands. They have the authority to license activities and collect taxes within tribal areas
Financial Status of Tribal Councils
Tribal councils have a complex and evolving financial relationship with the U.S. government. The U.S. holds land and natural resources in trust for tribal entities, resulting in accounting issues related to income and royalties from the trusts. A tribal council is not subject to federal income tax, but, generally, individual tribal members and their businesses are subject to federal income taxation.