3 Accounting
3.6 Revenues
3.6.10 Working Advances from the Department of Social and Health Services (DSHS)
This guidance applies only to counties and Area Agencies on Aging (AAA).
3.6.10.10 The DSHS provides working advances to local governments in conjunction with aging, mental health, developmental disabilities and alcohol and drug rehabilitation programs. They are provided in order to alleviate the cash flow problems associated with the time lag between your expenditures and reimbursements from the DSHS.
3.6.10.20 The working advances should be treated as fund debt rather than revenue. Under guidance from Governmental Accounting Standard Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards (Cod.) Section (Sec.) 2200 “Annual Comprehensive Financial Report” portion on Basic Financial Statements—Fund Financial Statements working advances would be recorded as a long-term liability.
3.6.10.30 In full accrual accounting, the receipt of a working advance should be recorded as follows:
| DR | CR | ||
| Cash | $XXX | ||
| Long-Term Payable - Working Advance | $XXX |
3.6.10.35 In modified accrual accounting, the receipt of a working advance should be recorded as follows:
| DR | CR | ||
| Cash | $XXX | ||
| Other Financing Source - Intergovernmental Loan | $XXX |