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BARS Cash Manual

Charts of Accounts
Budgeting
Accounting
Reporting
Table of Contents
Alerts & Changes

BARS Account Export

Select a government type/Select basis of accounting

This government type selection will limit the accounts to those applicable to the selected government type. Although the listing provided intends to be all inclusive, it is possible that needed account codes will not be included. If this occurs, please use the All option to view the entire chart of accounts and contact LGCSFeedback@sao.wa.gov so the listing can be updated.

Select export type

The Excel option provides a spreadsheet which you can format. The PDF is formatted to highlight the different categories of account codes. For display purposes, the account codes contain decimal points which should be excluded in your annual report.

Select a reporting level

Above and Prescribed option includes those accounts which are aggregates of detailed account codes and are not valid for reporting in addition to Prescribed accounts which are the valid BARS account codes. Prescribed option only lists valid BARS account codes.

Your annual report requires seven digits for all account codes however, their display in the chart of accounts varies. The expenditure or expense accounts are presented without object codes. Object codes are available in the BARS Manual. The reporting at the subobject level is not required.

This section was last edited by SAO on 03/10/20

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Introduction

2.4 Budget Compliance

2.4.1 Introduction

2.4.1.10 A budget is a legal document that forecasts the financial resources of a government and authorizes the spending of those resources for a fiscal period. At a minimum, local governments’ budget must meet the requirements of Washington state law and the State Auditor’s Office. The SAO does not prescribe how to budget or what a budget should look like. The adopted budget should be of sufficient detail to be meaningful and meet the intention of the law. The SAO considers budgets showing revenues and expenditures at the legal fund level to be the minimum acceptable level of detail.

2.4.1.20 Budgeting is more than just an activity to satisfy state law. It is a sophisticated process of strategic planning, communication and policy development resulting in a detailed plan of operations for allocating and monitoring the use of limited resources among various competing demands. Teaching how to budget is outside the scope of the BARS. However, there are many educational resources available to local governments, such as the Municipal Research and Services Center (mrsc.org) and the Government Finance Officers Association (gfoa.org).

2.4.1.30 Glossary of Budgetary Terms:

Appropriation. The legal spending level authorized by a budget ordinance or resolution. Spending should not exceed this level without prior approval of the governing body.

Original Budget. The first complete appropriated budget. The original budget may be adjusted by reserves, transfers, allocations, supplemental appropriations, and other legally authorized legislative and executive changes before the beginning of the fiscal year. The original budget should also include actual appropriation amounts automatically carried over from prior years by law.

Final Amended Budget. The original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized legislative and executive changes applicable to the fiscal year, whenever signed into law or otherwise legally authorized.

Comprehensive Budget. An government-wide budget that includes all resources the government expects and everything it intends to spend or encumber during a fiscal period. The comprehensive budget contains annual/biennial appropriated budgets, the annual/biennial portion of continuing appropriations such as the capital improvement projects, debt amortization schedules, and grant projects, flexible budgets and all non-budgeted funds.

Fixed Budget. Those budgets which set an absolute maximum or ceiling on the expenditures of a particular fund, department, or other specific category. A fixed budget can be either an annual/biennial appropriated budget or a continuing appropriation. Fixed budgets must be adopted by ordinance or resolution, either for the government’s fiscal period or at the outset of a service project, debt issue, grant award, or capital project.

Annual/Biennial Appropriated Budget. A fixed budget adopted for the government’s fiscal period. The appropriated budget was traditionally used to determine a government’s property tax levy, and a ceiling on expenditures was made absolute so that the expenditures of a government unit would not exceed its revenues. This budget was also historically a balanced budget, estimated revenues equaling appropriations. The appropriated budget is still used to set tax levies and some budget statutes still require balanced budgets, but it is more generally used to authorize a specific amount of expenditures regardless of whether estimated resources meet or exceed that amount. Appropriated budgets are required by statute in cities (Chapter 35.32A RCW, Chapter 35.33 RCW and Chapter 35A.33 RCW), counties (Chapter 36.40 RCW), and most other local governments in Washington State. These budgets are also called legal budgets, adopted budgets, or formal budgets. The appropriated budgets should be adopted by ordinance or resolution.

Continuing Appropriation. A fixed budget which authorizes expenditures for a fiscal period that differs from the government’s fiscal year, such as capital projects, debt issues, grant awards, and other service projects. These expenditures require an ordinance or resolution to authorize the project, establish the assessment roll, adopt the debt amortization schedule, or accept the grant award. Such ordinances or resolutions set an absolute maximum or ceiling on the expenditures, but the time period for incurring expenditures does not coincide with the government’s fiscal year; it may even cover several years. The major difference between annual/biennial appropriated budgets and continuing appropriations is that the latter do not lapse at fiscal period end; this implies that no legislative action is required to amend the annual/biennial portion of a continuing appropriation, unless the total authorized expenditures would exceed the entire appropriation.

Flexible Budgets. Are usually regarded as managerial tools, which do not set a ceiling on expenses or expenditures but establish a plan for them at various levels of service. They are especially appropriate for the day-to-day operations of a public utility where it is essential to plan fluctuations in the demand for services and where revenues will automatically increase with demand, so that a balanced budget does not depend on establishing a ceiling for expenses.

Working Capital Budget. Combines flexible and fixed budget elements in one document for enterprise and internal service funds. Current operations are flexibly budgeted based on the estimated level of services to be provided and long-range sources and uses of assets are controlled by annual/biennial appropriations and continuing appropriations.

Capital Improvement Budget. Consists of two elements: the annual/biennial portion of capital projects and annual/biennial appropriations for the purchase, construction or replacement of major fixed assets in the current fiscal period.

Operating Budget. Presents the estimated expenditures and available resources necessary to provide the services for which the government was created. An operating budget will contain flexible budgets and fixed budgets; the fixed budgets will include annual/biennial appropriations for services and the annual/biennial portion of continuing appropriations for debt service and for service projects.

Encumbrances. Commitments related to unperformed (executory) contracts for goods or services should be utilized to the extent necessary to assure effective budgetary control and to facilitate cash planning. Encumbrances outstanding at year end represent the estimated amount of expenditures ultimately to result if unperformed contracts in process are completed; they do not constitute expenditures or liabilities.

This section was last edited by SAO on 01/23/19

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Capital Assets Management

3.3 Capital Assets

3.3.8 Capital Assets Management

3.3.8.10 Definitions

Capital assets are real and personal property used in operations, above a specified value, the government intends to use or keep for more than one year. Capital assets include land and land rights; buildings, their furnishings, fixtures, and furniture; infrastructure assets, intangible assets equipment, machinery, vehicles, and tools.

Capitalize means to report an expenditure for real and personal property or intangible assets as a capital outlay. These expenditure transactions are coded to 594 and 595 account codes.

Accountability means the obligation to demonstrate good management of or control over those matters for which the government is responsible.

Capital assets management system is the set of written policies and procedures used to control a government’s capital assets and demonstrate accountability. Public officials have several broad responsibilities with respect to capital assets such as tracking assets for accountability purposes; maintaining records for insurance purposes; ensuring assets are safeguarded from loss, waste, damage, or neglect; for compliance purposes such as when purchased with federal funds; and long term capital budgeting and planning.

Capitalization threshold is a dollar amount set in a formal policy defining when an item with more than one or more years of usefulness will be classified as a capital asset.

Physical inventory is a procedure where the existence of assets on the inventory list is confirmed by physically observing the assets at their location in the field.

Small and attractive assets are assets that last longer than one year, but do not qualify as capital assets. They are less than the capitalization threshold and may be susceptible to theft or misuse.

3.3.8.20 Reporting Capital Asset Transactions

Cash basis accounting only reports inflows and outflows of cash. When a capital asset is purchased the entire expenditure is recognized in the period as “capital outlay” when the cash outflow occurs. Because the entire asset cost is reported when it was purchased the reporting of depreciation accounts is not appropriate.

Determination of when a purchased item is classified as a capital asset (and reported as a “capital outlay”) will depend upon the capitalization threshold established in policy of the government. Each government should establish a formal policy that includes a capitalization threshold.

The cash basis financial reporting requirements for capital assets are limited; however, this does not remove the responsibility of the government from its stewardship of public resources. Entities must have policies and procedures in place to track, demonstrate accountability and ensure security of their capital assets.

3.3.8.30 General Tracking Requirements

Specific capital asset tracking requirements of the State Auditor's Office are contained on the subsequent pages. In addition, the federal government has issued property management requirements that apply to all governments that receive federal assistance. Title 2 of the Code of Federal Regulations (CFR) sections 200.310-316 outlines specific requirements related to real property, equipment, supplies and intangible property purchased with federal funds. Note that these requirements involve broad stewardship responsibilities and specific accounting records.

3.3.8.40 Establishing Capital Assets Policies

The duty to make certain that public property is adequately protected and that its use is properly managed is one of the fundamental responsibilities of government officials. Local governments with capital assets should develop policies and procedures for management of these public resources. At a minimum the policies should be reviewed and approved by the governing body. Once a policy is adopted, it should be periodically reviewed and updated to ensure it meets the needs of the local government.

The following are items the government must consider when developing policies for tracking and safe guarding their capital assets.

Capitalization Threshold. Governments must set the dollar amount at which the purchase of an asset with a useful life of more than one year will be classified as a capital asset, for which the expenditure will be recognized as a capital outlay. The cost of maintaining the information versus the benefit of the information should be evaluated when setting the threshold. The amount of the capitalization threshold is up to the government and may vary. Many governments have set their policy at $5,000.
Inventory Requirements. Policies should require inventories at reasonable intervals to verify the existence and condition of capital assets. The policy should define the categories or types and threshold of assets to be inventoried. These policies should require an inventory interval based on the nature of assets, number of assets and extent of decentralization. The policy should also assign overall responsibility for conducting the inventory – ideally by personnel other than those charged with custody of the assets. The policy should include how to follow up on damaged or missing assets, including when inventory results or issues are communicated to the governing body. The policy should direct losses of public resources to be reported to our office, as required by state law. Inventory policies should conform to any statutory or regulatory requirements, such as the requirement for counties to inventory all capital assets per RCW 36.32.210 or the requirement for all assets over $5,000 per unit purchased with federal grant funds to be inventoried at least once every two years per the 2 CFR §200.313.
Recordkeeping. Policies should address how the capital assets will be tracked and what records will be maintained for operational and accountability purposes. Governments should maintain records of what they own, where it is located, the condition, and who is responsible for the asset. Records should be sufficient to prove any losses for insurance purposes. Inventory and maintenance records will confirm that a lost or damaged asset has been in use recently, which will support the validity and timeliness of a theft or damage report. Specific information captured may vary by type of asset.
Disposition Procedures. To the extent procedures are not defined by statute (such as Chapter 39.33 RCW for intergovernmental disposition of property, or property sales for ports in Chapter 53.08 RCW, etc.), policies should define authority and authorized procedures for determining assets require replacement or are otherwise surplus, and their subsequent disposition.
Asset Replacement. Policies should provide sufficient direction on when assets should be replaced. Replacement may be based on a set schedule, based on specified conditions, or delegated to specified staff positions or groups to determine or recommend on an asset-by-asset basis. Replacement policies often differ by asset type and should be established to align with and support the governments capital budgeting and planning process.

3.3.8.50 Small and Attractive Assets

These are assets that are below the government’s capitalization threshold for financial statement reporting purposes and last longer than a year, but may be susceptible to theft or misuse. Each government should perform an assessment to identify those assets that are particularly at risk or that otherwise need to be tracked for operational purposes. Governments should implement specific measures to track and control these assets to minimize identified risks, as appropriate for the nature of the assets, value of the assets, and risks. Controls may range from basic measures such as policies, tagging, assigned custody, restricted access or other physical controls - to limited systems such as check-out systems or reserve inventories (where only items not in use are tracked) – to comprehensive tracking and inventory controls such as that done for capital assets (compete tracking lists, periodic physical inventories, see below for more information). Governments should also consider the cost/benefit of tracking certain types of assets and the resources it has available when establishing control measures, as compared to the risks involved.

3.3.8.60 Capital Asset Tracking System

When a government has capital assets it must establish and maintain a tracking system for them. It may be maintained using either a computerized or manual system.

The tracking system must adhere to the formal asset policies approved by the governing body.

It must include:

1) Inventory list containing capital assets owned by the government.
2) Individual information record for each capital asset:

Acquisition information, including references to source documents and acquisition dates
Name and detailed description sufficient to define and identify the asset, including any identifying numbers or legal description where applicable
Location of the asset
Custodian responsible for the asset, if applicable
Cost of the asset/source of funding (federal grant, etc.)
Estimated life
Condition of the asset
Identifying number for the asset
Disposal – date and method used to determine disposal value

3) A reconciliation of the capital assets list and individual supporting asset records at least once per year to ensure the information is complete and accurate.

4) Adequate internal controls over additions and deletions to the capital asset tracking system to ensure the capital asset tracking system is kept up-to-date and accurately reflects all activity.

5) A method to track changes in custody and assigned responsibility for the assets.

6) Performance of a physical inventory, at reasonable intervals, as established by the government’s policy

3.3.8.70 Uniform Guidance - Property Management

Capital assets purchased with federal funds are subject to federal property standards found in 2 CFR §§200.310-316. The requirements are known as the Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance). They apply whether the assets are purchased in whole or in part with federal resources and are in addition to the accountability requirement prescribed by our office. The federal rules are in effect during the time the asset is owned by the government until official disposition has occurred. Also, government should be aware some federal agencies may publish deviations from the Uniform Guidance due to statutory requirements.

This section was last edited by SAO on 01/10/20

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Reporting Requirements and Filing Instructions for Cities and Counties

4.1 Reporting Principles and Requirements

4.1.5 Reporting Requirements and Filing Instructions for Cities and Counties

4.1.5.10 Pursuant to RCW 43.09.230, Annual Reports are to be certified and filed with the State Auditor’s Office (SAO) within 150 days after the close of each fiscal year.

Footnotes:
[1] Applies differently to Cities and Counties, see below:
Counties may choose to prepare the Schedule 06 in lieu of Schedules 07 and 11. This is an option for the reporting year 2019 and Schedule 06 will be required for the subsequent reporting periods. SAO strongly encourages cash counties to prepare and file Schedule 06 regardless of errors in preparation for future reporting period requirements.

Cities are required to prepare the Schedule 06 for reporting year 2019.

[2] Cities with total revenues usually less than $300,000 are also required to submit an Assessment Questionnaire.

4.1.5.20 The matrix on the following pages provides additional details regarding reporting requirements for governmental, proprietary and fiduciary funds.

Caution

4.1.5.30 Local governments with total revenues of $2 million or less are not required to prepare C-4 or C-5 statements unless debt covenants, a contract, a grantor or the city/county’s legislative body requires the city/county to prepare the financial statements or to receive a financial statements audit. If this request is made, C-4 and C-5 statements and notes should be prepared. The $2 million threshold calculation excludes any proceeds from issuance of long-term debt and resources held by the city/county in its fiduciary capacity. Local governments which choose not to prepare C-4 and C-5 statements must have their budgeted information available for the audit.

4.1.5.40 If more than $750,000 in federal funding was expended by the entity during the year and a federal single audit is required, the entity must prepare financial statements if it has expenditures of federal moneys from more than one program or cluster. However, an entity that normally does not prepare financial statements may not need to prepare them for the single audit if it has expenditures from only one program or cluster. Entities should consult with their local SAO team or the SAO HelpDesk if they have questions about this requirement.

4.1.5.50 FORMS

The templates for Online Filing for Schedules 01, 06, 09, 15 and 16 are available on the SAO Annual Financial Reports website. When using the Online Filing option, the system will create the Schedule based on data provided by the city/county on these templates.

Blank forms for other schedules are provided in this Manual. The use of these particular forms is not required; however, information requested by the form is prescribed. Specific instructions accompanying each statement and schedule identify which, if any, details are optional.

4.1.5.60 SUBSEQUENT CORRECTIONS

All subsequent discoveries of errors and omissions in the annual report – from the date of original submission up through the end of the audit applicable to that period – are required to be corrected by resubmitting the annual report. For any misstatements discovered during the audit, governments should ensure open communication with the audit team about the correction. Any misstatements discovered after the audit is completed that affect Schedule 01 should be recorded as a prior period adjustment. If misstatements discovered after completion of the audit are material, governments should immediately alert their audit team.

4.1.5.70 FILING INSTRUCTIONS

Electronic reporting is encouraged when filing annual reports. Annual reports should be submitted via the Online Filing option on the State Auditor’s website at: www.sao.wa.gov. Acceptable file should adhere to the prescribed record layout and should be an Excel file. It should include column headings. All columns must be formatted as text except the Actual Amount column which is numeric. More details are provided on the website.

For questions and/or support e-mail the SAO HelpDesk through our Online Services.

If the city or county cannot provide the annual report in the electronic format it should mail it to:

Annual Report
State Auditor’s Office
Local Government Support Team
P.O. Box 40031
Olympia, WA 98504-0031

4.1.5.80 CERTIFICATION

Prepare the certification, sign and date the certification before submitting your report.

4.1.5.90 The following matrix describes required statements and schedules for cash basis cities and counties and the scope of each schedule.

Footnote:
[1] There should be only one general fund. Also, if the local government accounts for the debt and capital projects related to proprietary activities in funds other than proprietary, these activities should be incorporated in the appropriate proprietary fund. All interfund transactions between funds which are combined for reporting purposes should be eliminated to avoid double counting.

Annual Report Disclosure Form
MCAG No. _______
(City/County)

(This form is NOT required if you are submitting the annual report electronically.)

Please check if the statements/schedules are attached. Use the column which is appropriate for your government type. If financial statements and/or Schedules 17 and 22 are not applicable mark the spot NA (not applicable). An unmarked spot in your government type column will indicate that a schedule is not attached due to lack of activities described in this schedule in reported year.

Footnotes:
[1] Only cities and counties with revenue of $2 million or more are required to prepare the financial statements. See Caution on a previous page.

[2] See BARS Manual for detailed instructions indicating which cities are required to prepare this schedule.

[3] Only cities with revenue usually less than $300,000 are required to prepare this schedule.

This section was last edited by SAO on 01/10/20

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Index of Sections

CHARTS OF ACCOUNTS
BARS Account Export	1.4
Object Codes	1.3
Revenue/Expenditure/Expense Accounts Overview	1.1
General Ledger Accounts	1.2
Account Structure
Applicability	1.1.6
Structure	1.1.2

BUDGETING
Budget Compliance
Introduction	2.4.1
Budget Adoption and Amendments	2.4.3
Budget Process	2.4.2

ACCOUNTING
Accounting Principles and Internal Control
Fund Types and Accounting Principles	3.1.7
Internal Control	3.1.3
Original Supporting Documentation	3.1.4
Reserved and Unreserved Cash and Investments	3.4
Assets
Compensating Balances	3.2.5
Deposits and Investments	3.2.1
Money Held in Trust	3.2.4
Special Assessments	3.2.7
Sweeping Interest and Investment Returns into County General Fund	3.2.3
Capital Assets
Capital Assets Management	3.3.8
Liabilities
Accounting for LOCAL Program Financing Activities	3.4.11
Bonds and Revenue Warrants	3.4.3
Issuance of Duplicate Instruments	3.4.5
Other Post-Employment Benefits	3.4.16
Pension Liabilities	3.4.13
Refunding Debt	3.4.14
Solid Waste Utilities: Closure and Postclosure Cost Accounting	3.4.10
Revenues
Cash Receipting	3.6.1
County Auditor's Operation and Maintenance Fund (Recording Fees)	3.6.2
County Treasurer's Operation and Maintenance Fund	3.6.3
Criminal Justice Funding	3.6.4
Diversion of County Road Property Tax	3.6.5
Electronic Funds Transfer - Receipts	3.6.6
Liquor Tax and Profits - Two Percent for Substance Abuse Treatment Programs	3.6.8
Prosecuting Attorney's Salaries	3.6.12
Suspense Funds	3.6.11
Utility Tax	3.6.13
Working Advances from Department of Social and Health Services (DSHS)	3.6.10
Grants
Grants Accounting	3.7.1
Pass-Through Grants	3.7.2
Expenditures
Confidential Funds (Drug Buy Money, Investigative Funds)	3.8.9
Electronic Funds Transfer - Disbursements	3.8.11
Employee Travel	3.8.2
Imprest, Petty Cash and Other Revolving Funds	3.8.8
Memberships in Civic and Service Organizations	3.8.13
Mobile Devices	3.8.3
Paths and Trails - Accounting	3.8.10
Purchase Cards	3.8.4
Redeemed Warrants/Cancelled Checks	3.8.7
Unemployment and Deferred Compensation	3.8.1
Use of Payroll and Claims Funds	3.8.6
Voter Registration and Election Costs Allocation	3.8.12
Voucher Certification and Approval	3.8.5
Interfund Activities
Interfund Activities Overview	3.9.8
Equipment Rental and Revolving (ER&R) Fund	3.9.7
Loans	3.9.1
Overhead Cost Allocation	3.9.5
Property Transfers	3.9.2
Reimbursements	3.9.4
Utility Surplus Transfers	3.9.3
Compliance
Bond Coverage for Public Officials and Employees	3.10.3
County Fair Operations	3.10.1
Limitation of Indebtedness	3.10.5
New Entity Creation and Dissolution Notification	3.10.6
Promotional Hosting	3.10.7
Public Works Records	3.10.4
Reporting Losses of Public Funds or Assets or Other Illegal Activity	3.10.2
Special Topics
Transportation Benefit District (TBD)	3.11.1

REPORTING
Reporting Principles and Requirements
Reporting Requirements and Filing Instructions for Cities and Counties	4.1.5
Reporting Requirements and Filing Instructions for Special Purpose Districts	4.1.6
Certification	4.1.3
GAAP versus Cash Reporting	4.1.7
Financial Statements
Fund Resources and Uses Arising from Cash Transactions (C-4)	4.3.12
Fiduciary Fund Resources and Uses Arising from Cash Transactions (C-5)	4.3.13
Notes to Financial Statements
Instructions	4.6.2
Supplementary and Other Information
Liabilities (Schedule 09)	4.8.13
Expenditures of Federal Awards (Schedule 16)	4.8.5
SAO Annual Report Schedules
Revenues/Expenditures/Expenses (Schedule 01)	4.8.1
Summary of Bank Reconciliation (Schedule 06)	4.8.17
Disbursement Activity (Schedule 07)	4.8.2
Cash Activity (Schedule 11)	4.8.4
Expenditures of State Financial Assistance (Schedule 15)	4.8.16
Public Works (Schedule 17)	4.8.6
Labor Relations Consultant(s) (Schedule 19)	4.8.7
Sales and Use Tax for Public Facilities - Rural Counties (Schedule 20)	4.8.8
Risk Management (Schedule 21)	4.8.9
Assessment Questionnaire (Schedule 22) (Cash)	4.8.14

This section was last edited by SAO on 01/12/19

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BARS Alerts & Overview of Significant Changes

BARS Alerts

01/13/2020	Annual update, see changes below
04/07/2020	Note X - Deposits and Investments Update
04/21/2020	Note X - Other Disclosures (Subsequent Event COVID-19)
04/24/2020	COVID-19 BARS Coding

Overview of Significant Changes – Applicable to the Reporting Year 2019

Topic	Reference	Description of Changes
		CHART OF ACCOUNTS
BARS Account Export	3952000, Compensation for Loss/Impairment of Capital Assets	3952000, Compensation for Loss/Impairment of Capital Assets Added the following information: Insurance recoveries that are related to storm cleanup and are realized, or are measurable and available, in the same year as the related cleanup expenditures should be netted against those expenditures. Insurance recoveries that are related to cleanup and are recognized in subsequent periods should be reported as other financing sources or extraordinary items, as appropriate.
BARS Account Export	3132700, Affordable and Supportive Housing Sales and Use Tax	3132700, Affordable and Supportive Housing Sales and Use Tax A new BARS code 3132700 was assigned to code the sales and use tax authroized by the SHB 1406, Laws of 2019.
BARS Account Export	Department of Health supplement	For BARS codes 5620000 Added the link to the new Department of Health supplement for BARS codes 5620000 which includes the detailed codes.
BARS Account Export	5100000 Guidance	For BARS codes 5100000, General government function, these codes should only be used by cities, towns, and counties. Risk Pools may use 5190000.
BARS Account Export	5990000 Guidance	For BARS codes 5990000, Payments for Refunded Debt, these codes should be used for payments to an escrow agent for refunding debt payments and direct payments of refunded debt (e.g., BANs, refinancing or loans, etc.). Note this correlates to current refundings, advanced refundings utilize 5930000 codes.
Revenue/Expenditure Accounts Overview	1.14.10	Other Increases and Other Decreases in Fund Resources Added BARS Codes 3821000, Refundable Deposits, 3822000, Retainage Deposits, and 5821000, Refund of Deposits, 5822000, Refund of Retainage Deposits to be used for deposits that are not custodial activities. These codes are replacing 3891000, 5891000, 3892000, 5892000 which are no longer valid BARS codes.
Object Codes		Removed the reminder that 2018 was the final year for use of object code 50.
General Ledger Accounts	1.2.30	Updated the General Ledger Chart to match the Schedule 09 coding requirement and simplified other sections.

		ACCOUNTING
Internal Control	3.1.3	3.1.3.10 Updated information about the "Green Book." 3.1.3.30 Added information that states the SAO is not part of the internal control functions of a government. 3.1.3.40 Updated the five components of internal controls. 3.1.3.90 Updated information about the different areas that should be reviewed for creating internal controls.
Original Supporting Documentation	3.1.4	3.1.4.10 Updated the link to the Local Government Records Retention Schedule.
Fund Types and Accounting Principles	3.1.7	3.1.7.50 Added clarifying information about Debt service funds, Capital project funds, and Fiduciary funds.
Bank Reconciliations	3.1.9	New section on bank reconciliations.
Transportation Benefit Districts (TBD)	3.11.1	3.11.1.70 Removed reference to object code 50 in reference to contract expenditure and updated to object code 40.
Capital Assets Management	3.3.8	3.3.8.60 Added information that is required to be recorded for each capital asset, and clarified some of the tracking system requirements.
Other Postemployment Benefits (OPEB)	3.4.16	3.4.16.30 Included information about OPEB reporting requirements, the types of OPEB plans, links to the State Actuary tools used for liability calculations.
Environmental and Certain Assets Retirement Liabilities	3.4.18	3.4.18.20 Included information about common indicators of obligations arising from operations.
County Auditor’s Operation and Maintenance Fund (Recording Fees)	3.6.2	Counties - 3.6.2.75 Added reference to RCW 36.22.240 and requirements.
Electronic Funds Transfer - Receipts	3.6.6	Removed "signed" in 3.6.620 b. which now says "A file must be maintained of those payers who have authorized to add moneys to your account electronically including the proceeds form third party vendors for credit card remittances."
Electronic Funds Transfer - Disbursement	3.8.11	Removed "signed" in 3.8.11.20 b. which now says "A file must be maintained of authorizations by payees who have therby agreed to have moneys added to their accounts electronically."
Electronic Funds Transfer - Disbursement	3.8.11	Added the fourth bullet in 3.8.11.30 which now says "Policies and procedures should be in place to validate these authorization to protect resources being transferred electronically."

		REPORTING
Fund Resources and Uses Arising from Cash Transactions (C-4)	4.3.12	4.3.12.60 Changed "other increases in fund resources" and "other decreases in fund resources" to "other increases" and "other decreases."
Fiduciary Fund Resources and Uses Arising from Cash Transactions (C-5)	4.3.13	4.3.13.40 Changed "Prior Period Adjustments, Net" to "Net Adjustments."
Expenditures of Federal Awards (Schedule 16)	4.8.5	4.8.5.40 Removed reference to the fact that the SEFA must be prepared on the same basis of accounting since Uniform Guidance does not require the SEFA. 4.8.5.50 Removed references to CFDA 10.665: Title I - Schools and Roads, Title II - Special Projects on Federal Land, Title III - County Projects in the Direct costs of expenditure transactions associated with grants, cost-reimbursement contracts, cooperative agreements, and direct appropriations. 4.8.5.128 Revised the requirements for Disbursements to Subrecipients to "expended" rather than "paid." 4.8.5.130 Updated the exceptions for EPA Drinking Water State Revolving Fund (CFDA 66.468) and Clean Water State Revolving Fund (CFDA 66.458). 4.8.5.230 Removed Note 8 American Recovery and Reinvestment Act (ARRA) of 2009 from the SEFA Notes Template.
Summary of Bank Reconciliations (Schedule 06)	4.8.17	Rewrote the complete section to match the new Schedule 06.
Note 1 - Summary of Significant Accounting Policies		Added a link to the new Component Unit(s), Joint Ventures, and Related Parties note.
Note X - Component Unit(s), Joint Ventures, and Related Parties		Created a new note to move the guidance for component units, joint ventures, and related parties. Note - this information was previously located in the "Other Disclosures" note template.
Note X - Debt Service Requirements		Instructions to Preparer - Added "When reporting loans, only amount actually drawn should be included here.
Note X - Deposits and Investments		Rewrote the note template and added to the note to include investment pool requirements.
Note X - External Investment Pool		New Note Counties - Provided guidance for disclosing external investment pools.
Note X - OPEB Plans		Added the reporting of the OPEB liability and examples in the instructions to preparers.
Note X - Other Disclosures		Removed information for related parties, component units or joint ventures. Added information about Pollution Remediation/Retirement of Certain Assets.
Note X - Pension Plans		Added guidance for defined contribution pension plans when a government contributes.

		ONLINE FILING
Schedule 01	Red Flags	Governments will receive a red flag if they report functional codes in custodial funds. Note only applicable 36X and 389/589 codes may be used.
Schedule 06	Requirements	Schedule 06 is required for CASH basis cities and towns for FY2019. Optional for CASH basis counties for FY2019, required for FY2020 reporting. Schedule 06 template is available on the BARS Reporting templates page.
Schedule 09	264.40, OPEB Liabilities	Added 264.40 to the Schedule 09 codes for reporting OPEB liabilities.
Schedule 09	263.93, Environmental liabilities	Added 263.93 to the Schedule 09 codes for reporting Environmental liabilities (e.g. pollution remediation, certain asset retirement, etc.).

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	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.

		ACCOUNTING
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 [400] 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. [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.

		REPORTING
		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 4.1.5.90, 4.1.6.80, 4.3.13 (also includes the change in the pension trust fund title), 4.8.2.50, 4.8.4.30, 4.8.13.50, Note X- Deposits and Investments – paragraph [7]. 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.
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 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.

		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.

BARS Alerts

7/20/2017	BARS Manual Update - Coding Marijuana Excise Tax Distribution (Cities/Counties Only)
3/14/2017	BARS Update - Reporting Court Related Agency Deposits and Remittances (Cities/Counties Only)
1/4/2017	BARS Manuals Update - 2017 Filing System Update

Overview of Significant Changes – Applicable to the Reporting Year 2017

Topic	Reference	Description of Changes
		CHART OF ACCOUNTS
Revenue/Expenditure/Expense Accounts	3132400, Local Infrastructure Financing Tool (LIFT)	Added a new account for revenues from the local sales and use tax dedicated for LIFT projects.
Revenue/Expenditure/Expense Accounts	3340370, State Grant from CRAB	The title was changed to Rural Arterial Program (RAP).
Revenue/Expenditure/Expense Accounts	3340372, CRAB Road Arterial – Projects	The title was changed to County Arterial Preservation Project (CAPP).
Revenue/Expenditure/Expense Accounts	335/336	The titles for both categories was revised to State Shared Revenues, Entitlements and Impact Payments.
Revenue/Expenditure/Expense Accounts	3360425, Foundational Public Health Services	A new account was added for 2017 distributions from the DOH.
Revenue/Expenditure/Expense Accounts	3360642, Marijuana Excise Tax Distribution	A new account was added for the distribution of the marijuana excise tax from the State.
Revenue/Expenditure/Expense Accounts	3421000, Law Enforcement Services	The definition was expanded to include payments from the WASP for processing the sex and kidnapping offenders’ registration.
Revenue/Expenditure/Expense Accounts	3670000, Contributions and Donations from Nongovernmental Sources	The definition was clarified regarding connection fees.
Revenue/Expenditure/Expense Accounts	395, Disposition of Capital Assets	Added a clarification regarding use of the account in the proprietary fund.
Revenue/Expenditure/Expense Accounts	398, Insurance Recoveries	The account was split into two 3981, Insurance Recoveries for cash basis governments and 3985, Insurance Recoveries for GAAP. The split was necessary to accommodate reporting by cash basis proprietary funds since the BARS codes in 370 series are not available to them. The revised account 3981 replaces the original 372 code.
Revenue/Expenditure/Expense Accounts	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 account will be required for 2018 reporting.
Revenue/Expenditure/Expense Accounts	51770, Unemployment Compensation	Changed references to section of the BARS manual to correctly refer the current title (Payroll Accounting vs. Unemployment and Deferred Compensation).
Revenue/Expenditure/Expense Accounts	51830, Maintenance/Security/Insurance/Janitorial Services	Clarified the definition regarding property insurance.
Revenue/Expenditure/Expense Accounts	51863, General Grants and Financial Assistance to Other Governments	Revised title to General Grants, Financial Assistance and Other Distributions to Local Governments.
Revenue/Expenditure/Expense Accounts	538, Combined Water/Sewer/Solid Waste Utilities	Revised title and definition to correctly reflect RCW 54.16.300 (i.e., Combined Utilities).
Revenue/Expenditure/Expense Accounts	562, Public Health	The WA State DOH added additional detail accounts 562.11-562.15 for local governments subject to the DOH’s jurisdiction.
Revenue/Expenditure/Expense Accounts	593, Advance Refunding Escrow	Added to the definition a reminder that this account should be reported also for proprietary funds.
Revenue/Expenditure/Expense Accounts	595, Roads/Streets and Other Infrastructure	Added to the definition a reminder that this account should be reported also for proprietary funds.
Revenue/Expenditure/Expense Accounts	599, Payments to Refunded Debt Escrow	Added to the definition a reminder that this account should be reported also for proprietary funds.
Account Structure	1.1.2	The section was revised to discontinue the old terminology regarding the seven-digit account codes (i.e., Prime, BASUB, etc.). The digits are now referred by their location within the code (i.e., first, second, etc.). This change was applied in all places in the BARS manual and the revised sections are not itemized in this listing.
Revenue/Expenditure Accounts Overview	1.14.10	The section was revised to discontinue the old terminology regarding the seven-digit account codes (i.e., Prime, BASUB, etc.). The digits are now referred by their location within the code (i.e., first, second, etc.).

		ACCOUNTING
Diversion of County Road Property Tax	3.6.5.20	The BARS previous procedures were revised to better assist compliance with the provisions of the law.
Payroll Accounting	3.8.1	The title was change to Unemployment and Deferred Compensation to better reflect the content of this section. There are no changes in the prescription.
Loans		A new paragraph (3.9.1.30) was added. The paragraph discusses an issue of incorrectly using its own debt instruments as investments.

		REPORTING
Reporting Requirements and Filing Instructions for Cities and Counties	4.1.5.10	The reporting matrix was updated to reflect optional reporting of the new Schedule 06.
Fiduciary Fund Resources and Uses Arising from Cash Transactions (C-5)	4.3.13.10, 4.3.13.40, 4.3.13.70	Adding a requirement for counties to include the special purpose districts on the statement C-5. Also, the format of the statement C-5 was changed. The fiduciary funds should be aggregated according to the fund type (i.e., pension, investment, private-purpose and agency funds plus total column). The instructions and the Online Reporting were updated to incorporate these changes.
Schedule 01	4.8.1.50, 4.8.1.70	Since a requirement for counties to include the special purpose districts on the statement C-5 was added, Schedule 01 has to include data for these districts. Column 4 – clarified the instruction regarding reporting of revenues and expenses for proprietary funds.
Schedule 06		Schedule 06, Summary of Bank Reconciliation was added. This Schedule is optional for cities and counties for reporting bank activities in the fiscal year 2017. Governments choosing to prepare Schedule 06 do not have to prepare neither Schedule 07 nor 11 for the 2017 fiscal year. Schedule 06 will be required schedule for reporting year ending December 31, 2018.
Schedule 07		Removing the requirement for this schedule, if the city/county choose to prepare Schedule 06.
Schedule 09		Added 4.8.13.71 and 4.8.13.81 regarding reporting loans with forgiveness clause.
Schedule 11		Removing the requirement for this schedule, if the city/county choose to prepare Schedule 06.
Note X – Pension Plans		Additional column for employers’ contributions was added to the matrix.
Note X – Other Disclosures		Added instructions for reporting special items, contingencies and litigations and government combinations.

		ONLINE FILING
Annual Street/Road Finance Report		The pilot project with DOT has been extended another year to explore the possibility of an alternative reporting process to the existing Street/Road Finance Report required to filed to DOT for cities and counties.
Fund Balance – Beginning Check		A minimum variance requirement within $1,000 added summarizing Schedule 01 funds reported.

BARS Alerts

4/21/2016	BARS Manual Update - Revisions to the Schedule of Expenditures of Federal Awards (SEFA/Schedule 16)
4/5/2016	BARS Codes for a New Distribution
2/10/2016	BARS Manual Update - Cash BARS only - Pension Accounting and Reporting
2/10/2016	BARS Manual Update - GAAP BARS only - Pension Liabilities
2/8/2016	BARS Manuals Update - BARS Coding of Miscellaneous Revenue

Overview of Significant Changes – Applicable to the Reporting Year 2016

Topic	Reference	Description of Changes
		CHART OF ACCOUNTS
Revenue/Expenditure/Expense Accounts	31720, Leasehold Excise Tax	The definition was updated to clarify that this tax can be imposed only by counties and cities and other governments receiving their share of this tax should code the proceeds to 337, Local Grants, Entitlements and Other Payments.
Revenue/Expenditure/Expense Accounts	31740, Timber Excise Tax	The definition was updated to clarify that this tax can be imposed only by counties and other governments receiving their share of this tax should code the proceeds to 337, Local Grants, Entitlements and Other Payments.
Revenue/Expenditure/Expense Accounts	32180, Concessions	A new account was added. This account should be used for revenues from awarding rights to use government’s property. Previously these proceeds were comingled with proceeds from an actual sales and coded to account 36280, Concession Proceeds and 36290, Other Rents, Leases and Concession Proceeds. Proceeds from governments own sales should be accounted for in 34170, Sales of Merchandise.
Revenue/Expenditure/Expense Accounts	32191, Franchise Fees and Royalties	This account was updated to include royalty payments. Previously the royalties were accounted for in 36290, Other Rents, Leases and Concession Proceeds (e.g., property rights, etc.), 34790, Other Fees (e.g., publication royalties, etc.).
Revenue/Expenditure/Expense Accounts	36210, 36230, 36240, 36250, 36260	These accounts were combined into 36200, Rents and Leases. This account is designed only for rentals and leases which are not a part of the governments’ principal operation [those rents and leases should be accounted in the appropriate 340s service and sales accounts].
Revenue/Expenditure/Expense Accounts	36280, Concession Proceeds	Account removed. For revenues from awarding rights to use government’s property use 32180, Concessions. Proceeds from governments own sales should be accounted for in 34170, Sales of Merchandise.
Revenue/Expenditure/Expense Accounts	362900, Other Rents, Leases and Concession Charges	Account removed. The revenues should be accounted in 36200, Rents and Leases, 32191, Franchise Fees and Royalties 34170, Sales of Merchandise or other appropriate account.
Revenue/Expenditure/Expense Accounts	36850, Special Assessment- Operating	The title was changed to Special Assessment – Service and the definition was updated. If the service assessments are related to the governments’ principal operations, they should be coded in 340s as proceeds from sales of goods and services.
Revenue/Expenditure/Expense Accounts	36910, Sale of Scrap and Junk	The title was changed to Sale of Surplus and a definition was added.
Revenue/Expenditure/Expense Accounts	36950, Special Items	The account changed to account 385, Special/Extraordinary Items to better reflect the substance of the transaction [i.e., special items should not be classified as revenue] The account can be also used for extraordinary items, and the title was adjusted to reflect this.
Revenue/Expenditure/Expense Accounts	379, Capital Contributions	The account was removed since the capital contribution category is not applicable to cash basis governments. System development fees should be accounted for in 367, Contributions and Donations from Nongovernmental Sources unless the related costs of the physical connections, etc. are reported as current period expense – then the systems development fees should be reported as operating revenue (340s).
Revenue/Expenditure/Expense Accounts	380, Nonrevenues	The title of this section of the chart was changed to Other Increases in Fund Resources. A new account 385, Special/Extraordinary Items was added [previously accounted for in 36950, Special Items – see above row for description]. The account 388, Prior Period Adjustments was changed to 38810. Accounts 386 (1), Agency Deposits and 389, Other Nonrevenues were pooled and rearranged into: 38910, Refundable Deposits, 38920, Retainage Deposits, 38930, Agency Type Collections, 38940, Agency Type Deposits, 38960, Agency Type Interest Earnings, and 38990, Other Custodial Activities. [Updated the definition of these codes to clarify that they should be used for custodial activities only – to record receipts and disbursements from fiduciary funds as well as any custodial activity reported in other fund types. Subaccount detail allows for reporting by major types of custodial activities in order to provide further clarity, align with internal tracking of custodial balances and support analysis.] (1) The change applicable to the courts’ deposits and remittances was updated on March 14, 2017. The following BARS Alert was sent to all cities and counties at that time. The BARS codes for agency deposits/remittances were revised this year and BARS account 386/586 was replaced by several 389/589 accounts. However, the recent submissions of the Schedule 01 indicate that this change creates some confusion. To avoid further misunderstanding at this time the Online reporting system will accept court related deposits and remittances coded as 386/586. All other non-court items should be coded to appropriate 389/589 accounts. We have updated the summary of significant changes in the BARS manual.
Revenue/Expenditure/Expense Accounts	51170, Lobbying Activities	New account. The lobbying services were excluded from account 51120, Advisory Services and are now reported separately. [Lobbying expenditures are subject to specific compliance and reporting requirements, so governments need to separately track them. Also, the separation will allow cross-checking figure against PDC filings.]
Revenue/Expenditure/Expense Accounts	531, Storm Drainage Utilities	The account description was revised to ensure that this account is used only when a local government has a separate utility for storm drainage. The storm drainage projects that are an integral part of streets and roads should be accounted with transportation codes which are generally accounted for in governmental funds.
Revenue/Expenditure/Expense Accounts	580, Nonexpenditures	The title of this section of the chart was retitled to Other Decreases in Fund Resources. A new account 585, Special/Extraordinary Items was added [previously accounted for in 36950, Special Items – see account 385 for description]. The account 588, Prior Period Adjustments was changed to 58810. Accounts 586 (1) and 589, Other Nonexpenditures were pooled and rearranged into: 58910, Refunds of Deposits, 58920, Refund of Retainage, 58930, Agency Type Remittances, 58940, Agency Type Disbursements, and 58990, Other Custodial Activities. (1) The change applicable to the courts’ deposits and remittances was updated on March 14, 2017. The following BARS Alert was sent to all cities and counties at that time. The BARS codes for agency deposits/remittances were revised this year and BARS account 386/586 was replaced by several 389/589 accounts. However, the recent submissions of the Schedule 01 indicate that this change creates some confusion. To avoid further misunderstanding at this time the Online reporting system will accept court related deposits and remittances coded as 386/586. All other non-court items should be coded to appropriate 389/589 accounts. We have updated the summary of significant changes in the BARS manual.

		ACCOUNTING
Deposits and Investments	3.2.1	Updated content to focus on an overview of requirements for deposits and investments and refer to the Office of State Treasurer’s Guide to Public Funds Investing for Local Governments publication for details.
Pension Liabilities	3.4.13.30	The Cash-Basis Pension - Illustration 1 spreadsheet has been updated with the 2016 PEFI collective pension amounts.

		REPORTING
Fund Resources and Uses Arising from Cash Transactions (C-4)	4.3.12	The titles of subcategories were revised and the two sections below revenues and expenditures were rearranged to provide greater clarity and state-wide comparability. Also, a link was added to the checklist for preparation of financial reports.
Note X – Pension Plans		The pension note has been updated for the second year of pension reporting.
Liabilities (Schedule 09)	4.8.13.110	Added requirement for cities and counties to provide a BARS code for redemption and specific ID Numbers of debt related to streets/roads to accommodate the DOT Annual Street/Road Finance Report.
Assessment Questionnaire (Schedule 22)		For fiscal year 2016, all diking/drainage districts, cemetery districts, mosquito/pest/weed districts, TV reception districts and water conservancy boards are required to submit the Schedule 22.

		ONLINE FILING
Annual Street/Road Finance Report		Steps added as a pilot project exploring an alternative to the DOT Annual Street/Road Finance Report.

BARS Alerts

12/23/2015	BARS Manuals Update - 2016 Filing System Update
10/05/2015	BARS Manual Update - GAAP Cities, Counties and Special Purpose Districts - Upcoming Changes
9/30/2015	BARS Manuals Update - Cities and Counties Only - Cash Basis and GAAP - Marijuana Enforcement Code
3/11/2015	BARS Manuals Update - Cash BARS Only - Reserved and Unreserved Cash and Investments
1/6/2015	BARS Manuals Update - Online Filing System Update

Overview of Significant Changes – Applicable to the Reporting Year 2015

Topic	Reference	Description of Changes
		CHART OF ACCOUNTS
		The new chart of accounts is an interactive application. To see accounts applicable to your government choose an appropriate government type.
Revenue/Expenditure/Expense Account	3132100	The account title was changed to Public Transportation Systems.
Revenue/Expenditure/Expense Account	3322100	The account Equitable Sharing of Federally Forfeited Property was removed.
Revenue/Expenditure/Expense Account	3350301	The account LEOFF Special Funding was added.
Revenue/Expenditure/Expense Account	3360641	The account Marijuana Enforcement was added.
Revenue/Expenditure/Expense Account	3451100	The detailed codes listed in the 3451100, Soil and Water Conservation Services are optional and not required to be reported on the Schedule 01.
Revenue/Expenditure/Expense Account	3573900	The account Miscellaneous District/Municipal Court Cost Recoupment was removed.
Revenue/Expenditure/Expense Account	3688000	The account Deferred Assessment was removed.
Revenue/Expenditure/Expense Account	5010000	The account Depreciation was added.
Revenue/Expenditure/Expense Account	51860	The account 51860 [Risk Management] was changed to 519; account 51920 [Judgements and Settlement] became 51861, account 51970 [Jobbing and Contacting] became 51862; added account 51863 [General Grants and Financial Assistance to Other Governments].
Revenue/Expenditure/Expense Account	5510000	The account 55920 [Public Housing] was moved to 5510000 [Public Housing Services].
Object Codes	00	The object 00 was updated to include account 501[Depreciation] and exclude account 508 [Ending Balances].
		ACCOUNTING
Cash Receipting	3.6.1.50	Added new section discussing requirements when a local government receives payments through third party vendors.
Electronic Fund Transfer	3.6	The section was divided into two sections: one for receipts (3.6.6) and other for disbursements (3.8.11).
Voucher Certification and Approval	3.8.5	Added checks and electronic payments.
Grants – Accounting	3.7.1	This section was updated for the New Uniform Guidance. The following subsections contain new information: 3.7.1.10, .40, .50 and .60.
Pension Liabilities	3.4.13	This is a new section discussing the new reporting requirements regarding governments’ pension liabilities. The guideline contains a link to an Excel spreadsheet with calculation instructions.
Transportation Benefit Districts (TBD)	3.11.1.120	This new section discusses accounting and reporting requirements for cities and counties assuming the TBDs as authorized by the 2015 legislation.
Refunding Debt	3.4.14	This is a new section which discussed refunding debt. The guidelines include coding and reporting the transactions on the Schedule 09.
Accounting for LOCAL Program Financing Activities	3.4.11	This section was revised to provide better guidelines for accounting and reporting of LOCAL program. It does not contain new requirements, only clarifies existing instructions.
Utility Tax	3.6.13	This is a new section discussing accounting and reporting tax on utilities.
		REPORTING
Supplementary and Other Information		Schedules 09 (Liabilities) and 16 (SEFA), if applicable, are required from all local governments; however since they are an integral part of the audit reports they were moved from the SAO Annual Report Schedules category to Supplemental and Other Information category to properly align with the audit reports.
Revenues/Expenditures/Expense (Schedule 01)	4.8.1.25	Local governments completing the Schedule 01 for fiscal years ended on or after December 31, 2015 must ensure the data submitted is accurate. The Online filing system will calculate ending fund balances/net position using government-submitted information. If the SAO calculated ending balances/net position result in a variance from the local government’s submitted ending balances of greater than $1,000, the government will not be able to submit its annual report until corrected.
Liabilities (Schedule 09)		Schedule 09 debt and liability IDs were changed from categorizing by fund type to categorizing based on obligation type (i.e., general obligations, revenue and other non-G.O. obligations and assessment obligations). The change allows for better alignment of categories with the debt limit calculation and avoids the need to allocate certain liabilities between different IDs in different categories. Since Schedule 09 uses general, revenue and assessment obligations as titles, the re-alignment will also improve the accuracy of this presentation. In addition, several ID numbers were added to facilitate calculation of debt limit and an ID number was also added for pension liabilities (264.30). Please review and update ID numbers.
Expenditures of Federal Awards (Schedule 16)	4.8	This is a transition year between the requirements of OMB Circular A-133 and the new Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards 2 CFR 200 (Uniform Guidance). This section has been updated for the new Uniform Guidance as it will be applicable for the majority of the BARS users, specifically those entities with a calendar year end. The effective date for the Audit Requirements, which include the SEFA requirements, of the new Uniform Guidance found in Subpart F of 2 CFR 200 is for fiscal years beginning after December 26, 2014. For those entities which the Audit Requirements of the new Uniform Guidance is not effective yet (fiscal years beginning prior to December 26, 2014), we left the references to the OMB Circular A-133 in parenthesis. Click here for the new Uniform Guidance. Also sections 4.8.5.125 and 126 were added and Question 2 was revised. Information for Schedule 16 was updated in the BARS Manual in the fall of 2015; however, several items were inadvertently missed in those updates. The changes, which were put into effect on April 20, 2016. Here are the changes to the SEFA, with corresponding information from the Uniform Guidance: Amounts passed through to subrecipients: Same information, but a location change. (b) Schedule of Expenditures of Federal Awards. ... At a minimum, the schedule must: (4) Include the total amount provided to subrecipients from each Federal program. Change: Therefore, a column is being added to the SEFA and input for these amounts, and the disclosure will not be needed. No additional information is being requested, since the pass-through information was previously reported in the notes. Use of de minimis indirect cost rate: Additional affirmative disclosure by governments. (6) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in § 200.414 Indirect (F&A) costs. Change: The BARS Manual information for the SEFA notes has been updated, along with an instruction stating that it’s not an optional disclosure. Basis of Accounting note disclosure: (Minor change) Language was added to the sample note to recognize the fact that pre- and post-Uniform Guidance grants may have different bases for recognizing costs (i.e., cost principles). This disclosure will be needed during the transition period when a mixture of pre- and post-Uniform Guidance awards may be shown on the SEFA.
Risk Management (Schedule 21)		Minor updates to add options and clarify questions encountered in practice.
Note X – Debt Service Requirements		The reporting requirements changed from reporting by debt type to reporting principal, interest and total amount. Also, if applicable, local governments are required to provide disclosure regarding their refunding and debt guaranties activities.
Note X – Pension Plans		The cash basis local governments are required to report their pension related liabilities in this new note and on their Schedule 09. The BARS manual in accounting part discusses the new pension accounting and reporting. It also contains a link to Excel spreadsheet with examples of calculation of these liabilities.
Questionnaire for Small Local Governments Accountability Audits (Schedule 22)	4.8.14	The Schedule 22 applicability expanded to include all cash-basis fire districts. Further, all conservation districts filing the Schedule 22 are required to submit the requested Schedule 22 attachments. Schedule 22 introductory training is provided via YouTube video, located here.

BARS Cash Manual

BARS Account Export

Introduction

Capital Assets Management

Reporting Requirements and Filing Instructions for Cities and Counties

Table of Contents

Index of Sections

BARS Alerts & Overview of Significant Changes

For Years:

BARS Alerts

BARS Alerts

BARS Alerts

BARS Alerts

BARS Alerts