Overview of Significant Changes – Applicable to the Reporting Year 2018
|Topic||Reference||Description of Changes|
|CHART OF ACCOUNTS|
|BARS Account Export||3132500, Housing and Related Services Sale and Use Tax||New account for governments collecting sales and use tax as authorized in RCW 82.14.530.|
|BARS Account Export||3329330, Medical Transformation Demonstration||New account for revenues for Medicaid payments related to an implementation of the Transformation Plans. The addition was communicated on August 1, 2018 in BARS Alert.|
|BARS Account Export||3329340, Ground Emergency Medical Transportation (GEMT) Payment Program||New account for revenues from Medicaid related to the GEMT program. The addition was communicated on August 1, 2018 in BARS Alert.|
|BARS Account Export||3360211, County Fair Fund||Expanded definition to clarify use of this code.|
|BARS Account Export||3360700, PFD Lodging Tax Distribution||Code applicable only to Seattle and King County.|
|BARS Account Export||3432000, Television/Cable/Internet Sales and Services||Expanded the title and the definition to include internet services as authorized by Chapter 186, Laws of 2018.|
|BARS Account Export||3697000, Pension/OPEB Contributions||Revised title and definition to clarify use of this account for pension and OPEB related revenues only.|
|BARS Account Export||51530, Legal Services||The account was divided between internal and external legal services. Within each category were created more separate accounts for different specific legal expenditures. The change will allow governments to analyze and compare costs much more effectively. This also aligns accounting records with procedures auditors are required by professional standards to perform on legal liabilities, so it will help make the audit process more efficient. This change was already announced in 2016 and was not required for the FY 2017 reports; however, the new accounts will be required for 2018 reporting.|
|Object Codes||Object code 50 was removed and the definitions of object codes 30 and 40 adjusted to include the transactions which were previously reported using object 50. For other details see BARS Alert issued August 1, 2018.|
|Fund Types and Accounting Principles||3.1.7||The recent changes in governmental accounting regarding fiduciary activities are effective for reporting periods beginning after December 15, 2018; however we incorporated the required changes in this version of manual. The additional information will be available on our website under Fiduciary Funds in BARS manual.
Also, updated was the discussion of enterprise  funds. There are no new reporting requirements and the update expands the current prescription.
|Capital Assets Management||3.3.8||The entire section was revised to provide a comprehensive guidance for accounting of capital assets. The update also incorporates the changes to RCW 36.32.210 which removed the annual inventory requirement. This change was communicated on March 21, 2018 in BARS Alert.|
|Other Postemployment Benefits (OPEB)||3.4.16||This section provides a short overview of other postemployment benefits (OPEB). Starting with financial reports for a fiscal year 2018, all local governments are required to report liabilities related to OPEB, if applicable, in the notes to the financial statements. [This update provides also samples of disclosure regarding OPEB in the Reporting/Notes to Financial Statements section.]|
|County Auditor’s Operation and Maintenance Fund (Recording Fees)||3.6.2||The section was updated to reflect the 2018 legislative changes in the amounts of collected surcharges.|
|Federal Grants Received During the Open Period – Accounting||3.7.3||The section was removed since it conflicts with statutory restrictions regarding an open period.|
|ER&R||3.9.7||New section was added regarding Equipment Rental and Revolving (ER&R) Fund. This guidance was previously available outside the BARS manual and it is now incorporated into the manual allowing an easy access.|
|Interfund Activities Overview||3.9.8||Added a new section to provide a general overview of interfund transactions.|
|The recent changes in governmental accounting regarding fiduciary activities are effective for reporting periods beginning after December 15, 2018; however we incorporated the required changes in this version of manual. The additional information will be available on our website under Fiduciary Funds in BARS manual.
The following sections were updated 184.108.40.206, 220.127.116.11, 4.3.13 (also includes the change in the pension trust fund title), 18.104.22.168, 22.214.171.124, 126.96.36.199, Note X- Deposits and Investments – paragraph . These changes involved only a title change from agency to custodial funds.
|Note 1 – Summary of Significant Accounting Policies||A. Fund Accounting – revised first paragraph; added investment and pension/OPEB trust funds to listing of fiduciary funds.
C. Budgets – the budgetary section was extracted and added as a separate note since budgetary disclosure is not considered an accounting policy.
|Note X – Fiduciary Activities||New note Fiduciary Activities was added to explain the change in counties’ reporting of 2017 money held for the special purpose districts. The affected counties were notified in an email dated May 29, 2018. The note is still required for the counties which will be reporting the special purpose districts for the first time in 2018. If they reported them in 2017, the note is not longer required.|
|Note X – OPEB Plans||A new reporting requirements regarding other than pension postemployment benefits (OPEB). Please see the Accounting/Liabilities/Other Postemployment Benefits section for more details.|
|Schedule 07||The local government should prepare either the Schedule 07, Disbursement Activity and Schedule 11, Cash Activity OR Schedule 06, Summary of Bank Reconciliation for 2018 annual report.|
|Schedule 09||Clarified that the governments should be reporting both short- and long-term liabilities on the Schedule. Also added new ID. Numbers for registered warrants and lines of credits.|
|Schedule 11||The local government should prepare either the Schedule 07, Disbursement Activity and Schedule 11, Cash Activity OR Schedule 06, Summary of Bank Reconciliation for 2018 annual report.|
Note 4, Federal Loans
|Revision reflect the clarification for reporting federal grants provided by federal agencies.
Remove discussion regarding ARRA grants.
The example of reporting FEMA grants was updated.
Updated for changes related to reporting the following grants: EPA Drinking Water (CFDA 66.468), Clean Water (CFDA 66.458), USDA Interim Financing (CFDA10.760) and (CFDA 10.766).
Revised rules for reporting grants with missing CFDA numbers.
Added sentence regarding interim financing.
|Schedule 21||The Schedule was revised to provide relevant information needed in assessing and auditing governments’ risk management circumstances.|
|Schedule 09||The Schedule 09, Schedule of Liabilities, includes a new validation check for net pension liabilities. Governments will receive a red flag if they have pension related liabilities but do not report them on the Schedule 09 or if they are using the incorrect ID No.|