Component Units are entities (authorities) that are legally separate but financially accountable to the Commonwealth of Massachusetts.
In the Commonwealth of Massachusetts, there are two types of Component Units:
Blended Component United: Blended Component Unit are entities that are legally separate from the Commonwealth but are so closely related to the Commonwealth that they are, in substance, the same as the Commonwealth, or are entities providing services entirely to the Commonwealth or the entities’ total debt is to be repaid entirely or almost entirely with resources of the Commonwealth.
Discretely Presented Component Unit: Discretely Presented Component Units do not provide services exclusively to the Commonwealth, and therefore its financial information is reported in a separate column on the Commonwealth’s government-wide financial statements.