Reporting Year: 2018

BARS Alerts

8/19/2019	New BARS Code (This alert applies only to counties and cities)
3/5/2019	Reporting of the USDA Federal Loans
8/1/2018	BARS Manual Update - New Accounts and Changes to Object Code 50
3/21/2018	Capital Assets Inventory in Counties
3/7/2018	Tax Abatement information available on the DOR website (GAAP governments only)

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	38110/38120, Interfund Loan Receipts	Removed these accounts since the loans are balance sheet transactions and their reporting on Schedule 01 was always optional.
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 an audit 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.
BARS Account Export	58110/58120, Interfund Loan Repayments	Removed these accounts since the loans are balance sheet transactions and their reporting on Schedule 01 was always optional.
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.

		ACCOUNTING
Fund Types and Accounting Principles	3.1.1	GASB Statement 84, Fiduciary Activities – the Statement is 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 [400] funds. There are no new reporting requirements and the update expands the current prescription.
Capital Assets Management	3.3.9	The update incorporates the changes to RCW 36.32.210 which removed the annual inventory requirement. The change was communicated on March 21, 2018 in BARS Alert.
Capital Assets Accounting	3.3.10	Based on additional research we made the following changes to clarify different areas related to capital assets: Added guidance for options for accounting for replacements; Moved all the guidance for componentization primarily to this section Added GASBS 69 guidance; Added GASBS 89 guidance; Aligned useful life section with current GASB standards and terminology; Clarified and expanded fully depreciated asset section; Clarified and expanded group/composite depreciation section based on research and GASB codification guidance.
Capital Assets Accounting	3.3.10.50	Removed requirement to capitalize interests during construction. This is an early implementation of GASBS 89, Accounting for Interest Cost Incurred before the End of Construction Period which is applicable for reporting periods beginning after December 15, 2019.
Refunding Debt	3.4.4.91	Added GASBS 86, Certain Debt Extinguishment Issues update regarding accounting and reporting when the debt is refunded with the government’s own resources.
Arbitrage Rebate	3.4.6.90	Removed requirement to capitalize interests during construction. This is an early implementation of GASBS 89, Accounting for Interest Cost Incurred before the End of Construction Period which is applicable for reporting periods beginning after December 15, 2019.
Contingencies and Litigations	3.4.15	A new section was added to discuss and clarify concepts related to accounting and reporting of contingencies and litigations.
Other Postemployment Benefits (OPEB)	3.4.17	The entire section was updated to implement GASBS 74 and 75. [The update contains also notes and RSI requirements.]
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.
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	3.9.8	Added a new section to provide a general overview of interfund transactions.

		REPORTING
		GASB Statement 84, Fiduciary Activities – the statement is effective for reporting periods beginning after December 15, 2018; however we incorporated the required changes in this version of manual. The following sections were updated: 4.1.1.150 (removed due to the changes in reporting requirements for custodial funds and their impact on financial reports); 4.1.4.20, 4.3.1.40, 4.3.2.70, 4.8.3.50, and 4.9.140. These changes involved only a title change from the agency to custodial funds. The most significant change involves changes in financial reporting and these are incorporated into 4.3.5, Fiduciary Funds Financial Statements.
Statement of Cash Flows	4.5.100	Removed requirement to capitalize interests during construction. This is an early implementation of GASBS 89, Accounting for Interest Cost Incurred before the End of Construction Period which is applicable for reporting periods beginning after December 15, 2019.
Note 1 – Summary of Significant Accounting Policies	Section 7	Removed requirement to capitalize interests during construction. This is an early implementation of GASBS 89, Accounting for Interest Cost Incurred before the End of Construction Period which is applicable for reporting periods beginning after December 15, 2019.
Note X – Capital Assets	Subsection F, Interest Capitalization + Instructions [7]	Removed requirement to capitalize interests during construction. This is an early implementation of GASBS 89, Accounting for Interest Cost Incurred before the End of Construction Period which is applicable for reporting periods beginning after December 15, 2019.
Note X – Long-Term Debt		Added reporting requirements of GASBS 88, Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placements. This Statement is applicable for reporting periods beginning after June 15, 2018.
Note X – Tax Abatement		Added link to the WA State Department of Revenue page containing information regarding state’s abatements. This update was communicated on March 7, 2018 in the BARS Alert.
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 16	4.8.5.60 4.8.5.120 4.8.5.130 4.8.5180 Note 4, Federal Loans	Revision reflect the clarification for reporting federal grants provided by federal agencies. Remove discussion of 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.

		ONLINE FILING
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.