(1) Definition of Reporting Entity

 

The general purpose financial statements present information on the City of Revere, Massachusetts (the "primary government") and its component units as required by generally accepted accounting principles. Component units are included in the City's reporting entity because of the significance of their operational or financial relationships with the City. The inclusion of component units in the City's general purpose financial statements does not affect their legal standing.

 

The component units provide services entirely or almost entirely to the City or otherwise exclusively or almost exclusively to its benefit. Although legally separate, all component units have been reported as if they were part of the primary government; a method of inclusion known as blending. The component units include the City's Retirement System ("System") and the Revere Business Development Corporation (RBDC).

 

The financial statements of the RBDC are included for its year end which is September 30, 1994. The financial statements of the System are presented for the year ended December 31, 1994, which is its fiscal period for reporting to the Retirement Law Commission of the Commonwealth of Massachusetts.