A contractual arrangement between a government and a party / parties outside of the government reporting entity1 that has all of the following characteristics:
The partners cooperate toward achieving significant clearly defined common goals;
The partners make a financial investment in the government partnership;
The partners share control of decisions related to the financial and operating policies of the government partnership on an ongoing basis; and
The partners share, on an equitable basis, the significant risks and benefits associated with the operations of the government partnership.
The contractual arrangement establishes that the parties have shared control over the government partnership, regardless of the difference in their ownership interest. Nevertheless, overall, there must be an equitable relationship between the financial investment of the government in the government partnership, the extent of control it is able to exercise over the activities of the government partnership, and the risks and benefits that accrue to the government from the government partnership.
Refer to paragraphs PS 3060.11-.22 for more guidance on the elements of a government partnership.
There are three ways a government partnership may be structured:
Operations under shared control (refer to paragraphs PS 3060.23-.25 for more guidance);
Assets under shared control (refer to paragraph PS 3060.26 for more guidance); or
Organizations under shared control (refer to paragraphs PS 3060.27-.28 for more guidance).