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The board of Education (BOE) is a separately elected body that administers the public school system in the city. The BOE is not organized as a separate legal entity and does not have the power to levy taxes or issue bonds. Its budget is subject to approval by the city council to the extent that, under state law, the BOE has the discretionary authority to expend the amount appropriated to it by the city. The BOE requests a single amount to fund its operations; the city council can reject the BOE's requested budget. How should the city report the financial activities of the BOE? (I.e., is the entity a component unit of the city-why or why not? If yes, should blending or discrete presentation format be used?)

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