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BARS Cash Manual

 

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:

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

This section was last edited by SAO on 12/17/20
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Reimbursements

3.9 Interfund Activities

3.9.4 Reimbursements

3.9.4.10 For financial reporting purposes, all revenue, expenditures/expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions should be recognized when the transaction takes place. This means transactions should be presented at gross amounts unless the transaction is a reimbursement or else netting is specifically allowed by GAAP. Examples of allowable netting other than reimbursements include reinsurance activities for public entity risk pools (GASB Statement 10), pollution remediation obligation (GASB Statement 49) and some insurance recoveries (GASB Statement 42), etc.

Interfund reimbursements

3.9.4.20 Reimbursements are repayments from the fund responsible for particular expenditures/expenses to the fund that initially paid for them. They are adjustments to correct the assignment of the expenditures/expenses. Reimbursements reduce expenditures/expenses in the fund that is reimbursed and move the expenditures/expenses to the fund that ultimately pays for it. The offsetting transaction should be posted on an object level.

3.9.4.30 There is one major exception to this definition: frequently, internal service funds are created to account for cost allocation and purchasing. In those funds, cost allocations and payments for pooled purchases are treated as revenues rather than reimbursements.

3.9.4.40 Examples of reimbursements include: correction of errors, internal allocation of overhead and payments received for others’ share of pooled activities (payments for a convenience) such as the distribution of utility and telephone bills among the departments and funds after one department has paid the bill or the allocation of insurance premiums and payrolls among various departments and funds.

3.9.4.50 Reimbursements do not include recoveries for damages, whether from insurance or from private sources, grants, contractual payments, impact payments, or shared costs of providing services from the federal, state or local governments. Also, do not include expenditures which constitute direct cost of the activity like interfund taxes, utility payments, licenses, interest, etc.

Reimbursements to external parties

3.9.4.60 Only corrections of error (including discounts/rebates awarded after the transactions were completed) would qualify as reimbursement and as such, they should be treated in similar manner like interfund reimbursements. If a local government has an ongoing relationship with an external entity (e.g., phone company, etc.) the amounts of reimbursements most likely would be included in the upcoming bill, so no adjusting entry is required. If the reimbursement is related to the expenditure/expense from the previous fiscal year and is immaterial, the amount of reimbursement may be recorded as revenue. If it is material, the government should adjust its fund balance.

3.9.4.70 Examples of transactions that should not be accounted for as reimbursements include: state payments for public health services, expert witnesses, police salaries while attending criminal justice training; federal/state/local payments for the care and custody of prisoners and for election costs; local payments for data processing services, police/sheriff services, street maintenance, etc.; private payments for street repairs, culvert installations, weed control, demolition of dangerous property, subleases, etc.

3.9.4.80 For an overview of reporting interfund loan transactions, BARS Manual 3.9.8, Interfund Activities Overview, paragraph 3.9.8.30.

This section was last edited by SAO on 12/17/20
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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] Cities were required to prepare the Schedule 06 beginning in reporting year 2019.
Counties are required to prepare the Schedule 06 for reporting year 2020.

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


4.1.5.20 The following matrix 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 BARS Reporting Templates page on the SAO 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 on the BARS Reporting Templates page. 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 strongly encouraged when filing annual reports. Annual reports should be submitted via the Online Filing option on the State Auditor’s website at: https://portal.sao.wa.gov/saoportal/. 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 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

Electronic reporting through the SAO website will require electronic certification of the annual report during the final steps of the submission process.

If the city or county cannot utilize the electronic reporting, prepare the certification form (provided on the BARS Reporting Templates page), including signature and date and include this form when mailing 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.)

Use the column which is appropriate for your government type. Please place a check mark or "Y" if the statements/schedules are attached. If financial statements and/or are not applicable, mark the spot "NA" (not applicable). An "NA" in your government type column will indicate that a schedule is not attached due to lack of activities described in the schedule in reported year. The blocked spot indicates the schedule is not required for that government type.

Footnotes
[1] Only cities and counties with revenue of $2 million or more are required to prepare the financial statements. See Caution, above.

[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 12/15/20
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Table of Contents

Index of Sections

Charts of Accounts1.
BARS Account Export 
General Ledger Accounts1.2
Object Codes1.4
Revenue/Expenditure Accounts Overview1.14
Account Structure1.1
Applicability1.1.6
Structure1.1.2
Budgeting2.
Budget Compliance2.4
Introduction2.4.1
Budget Adoption and Amendments2.4.3
Budget Process2.4.2
  
Accounting3.
Accounting Principles and Internal Control3.1
Fund Types and Accounting Principles3.1.7
Bank Reconciliations3.1.9
Beginning and Ending Cash and Investments Classifications3.1.8
Internal Control3.1.3
Original Supporting Documentation3.1.4
Assets3.2
Compensating Balances3.2.5
County’s External Investment Pool3.2.9
Deposits and Investments3.2.1
Money Held in Trust3.2.4
Special Assessments3.2.7
Sweeping Interest and Investment Returns into General Fund3.2.3
Capital Assets3.3
Capital Assets Management3.3.8
Liabilities3.4
Accounting for LOCAL Program Financing Activities3.4.11
Bonds and Revenue Warrants3.4.3
Environmental and Certain Assets Retirement Liabilities3.4.18
Issuance of Duplicate Instruments3.4.5
Other Postemployment Benefits (OPEB)3.4.16
Pension Liabilities3.4.13
Refunding Debt3.4.14
Solid Waste Utilities: Closure and Postclosure Cost Accounting3.4.10
Revenues3.6
Cash Receipting3.6.1
County Auditor's Operation and Maintenance Fund (Recording Fees)3.6.2
County Treasurer's Operation and Maintenance Fund3.6.3
Criminal Justice Funding3.6.4
Diversion of County Road Property Tax3.6.5
Electronic Funds Transfer – Receipts3.6.6
Liquor Tax and Profits Two Percent Substance Abuse Treatment Programs3.6.8
Prosecuting Attorneys' Salaries3.6.12
Suspense Funds3.6.11
Utility Tax3.6.13
Working Advances from Department of Social and Health Services (DSHS)3.6.10
Grants3.7
Grants Accounting3.7.1
Pass-Through Grants3.7.2
Expenditures3.8
Confidential Funds (Drug Buy Money, Investigative Funds)3.8.9
Electronic Funds Transfer – Disbursements3.8.11
Employee Travel3.8.2
Imprest, Petty Cash and Other Revolving Funds3.8.8
Memberships in Civic and Service Organizations3.8.13
Mobile Devices3.8.3
Paths and Trails – Accounting3.8.10
Purchase Cards3.8.4
Redeemed Warrants/Cancelled Checks3.8.7
Unemployment and Deferred Compensation3.8.1
Use of Payroll and Claims Funds3.8.6
Voter Registration and Election Costs Allocation3.8.12
Voucher Certification and Approval3.8.5
Interfund Activities3.9
Equipment Rental and Revolving (ER&R) Fund3.9.7
Interfund Activities Overview3.9.8
Loans3.9.1
Overhead Cost Allocation3.9.5
Property Transfers3.9.2
Reimbursements3.9.4
Utility Surplus Transfers3.9.3
Compliance3.10
Bond Coverage for Public Officials and Employees3.10.3
County Fair Operations3.10.1
Limitation of Indebtedness3.10.5
New Entity Creation and Dissolution Notification3.10.6
Promotional Hosting3.10.7
Public Works Records3.10.4
Reporting Losses of Public Funds or Assets or Other Illegal Activity3.10.2
Special Topics3.11
Transportation Benefit District (TBD)3.11.1
  
Reporting4.
Reporting Principles and Requirements4.1
Reporting Requirements and Filing Instructions for Cities and Counties4.1.5
Reporting Requirements and Filing Instructions for Special Purpose Districts4.1.6
Certification4.1.3
GAAP Versus Cash Basis Reporting4.1.7
Financial Statements4.3
Determining Fiduciary Activities to be Reported in Custodial Funds4.3.14
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 Statements4.6
Instructions4.6.2
Supplementary and Other Information4.14
Liabilities (Schedule 09)4.14.13
Expenditures of Federal Awards (Schedule 16)4.14.5
SAO Annual Report Schedules4.8
Revenues/Expenditures/Expenses (Schedule 01)4.8.1
Summary of Bank Reconciliation (Schedule 06)4.8.17
Expenditures of State Financial Assistance (Schedule 15)4.8.16
Public Works − Cities and Counties (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)4.8.14

This section was last edited by SAO on 12/24/20
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BARS Alerts & Overview of Changes

BARS Alerts

12/18/2020Annual update, see changes below
04/24/2020COVID-19 BARS Coding
10/01/2020CARES Act Grant Monies Expenditure Codes

Overview of Changes – Applicable to the Reporting Year 2020

TopicReferenceDescription of Changes
  

Chart of Accounts

BARS Account ExportAll BARS CodesRemember to download the most current version of the BARS Chart of Accounts.

BARS Account Export

386 (Court Remittances) 3860000 –
Updated the referenced RCWs for courts.
Allowed only in Fiduciary Funds.
BARS Account Export586 (Court Remittances)5860000 –
Updated the referenced RCWs for courts.
Allowed only in Fiduciary Funds.
BARS Account Export Any use of all functional BARS accounts in fiduciary funds389/589, 386/586 and 361 are the ONLY codes allowed in fiduciary funds. All other codes will be red flagged.
BARS Account Export3899000 (Other Custodial Activities)3899000 –
Only allowed in governmental and proprietary funds, not allowed in the fiduciary funds.
BARS Account Export5899000 (Other Custodial Activities)5899000 –
Only allowed in governmental and proprietary funds, not allowed in the fiduciary funds.
BARS Account Export316.40 (Business & Occupation Tax – Utility)316.40 (Business & Occupation Tax – Utility) –
Not allowed in proprietary funds.
BARS Account Export341/51P (General Government)341 and 51P (General Government) BARS Codes →
Allowed only in governmental funds and internal service funds.

Exception - 341.70 Sale of Merchandise - allowed in governmental and proprietary funds.

See additional 518 information below.
BARS Account Export343.60 (Cemetery Sales & Services)343.60 (Cemetery Sales & Services) –
Not allowed in permanent funds.
BARS Account Export343.80/538.00 (Combined Utilities)343.80/538.00 (Combined Utilities) –
Allowed only for Public Utility Districts.
BARS Account Export348.00 (Internal Service Funds Sales and Services)348.00 (Internal Service Funds Sales and Services) –
Allowed only in internal service funds. Read more about the use of 348.00 and internal service funds in the audit connection blog, “BARS Code Spotlight”.
BARS Account Export382/582 (Deposits/Retainage)382/582 (Deposits/Retainage) –
Not allowed in fiduciary funds. Allowed only in the governmental and proprietary funds.
BARS Account Export518 (Centralized/General Services) CodesAll 518 (Centralized/General Services) –
For general purpose governments only.

518.65 Impact Fee Distributions to Local Governments - General Fund and Special Revenue Fund use only.

518.70 Printing Services - General Fund and Internal Service Fund use only.

518.80 Information Technology Services - General Fund and Internal Service Fund use only.

All other 518 codes not listed above - Allowed in all governmental funds or internal service funds.
BARS Account Export519 (Risk Management Services)For general purpose governments only.
Allowed only in general fund and internal service fund.   
*Exception: Risk Pools may use 519 in enterprise funds.
BARS Account Export541 (Roads/Streets Construction – Preservation Projects)541 (Roads/Streets Construction – Preservation Projects) –
This GAAP only code is no longer active in the Cash Basis Chart of Accounts.
BARS Account Export548 (Public Works – Centralized Services)548 (Public Works – Centralized Services) –
Allowed only in general fund and internal service fund.
BARS Account Export308 / 508 (beginning/ending cash and investment balance codes)Cash Basis Cash and Investment Balance Codes –
308.21/508.21: Allowed only in permanent funds and private-purpose trust funds.
308.31/508.31: Allowed in all fund types.
308.41/508.41: Allowed in all fund types except fiduciary. 308.51/508.51: Allowed in all fund types except fiduciary. *308.91/508.91: Allowed in all fund types except fiduciary.
*Only the general fund can report a positive unassigned balance.
   
Budgeting
Budget Adoption and Amendments2.4.3Updated the referenced RCWs and updated for any changes to RCWs
  

Accounting

Fund Types & Accounting Principles3.1.7Fiduciary funds – Added a reference to the new Determining Fiduciary Activities to be Reported in Custodial Funds
Beginning and Ending Cash and Investments Classifications3.1.8Updated full section to include the new beginning and ending cash and investments classifications
County External Investment Pools3.2.93.2.9.20 updated link to the RCW
Capital Asset Management3.3.83.3.8.40 Clarified the definition and requirements for capitalization threshold
Accounting for LOCAL Program3.4.11Updated the Washington State Treasurer link to the LOCAL program
Pensions3.4.13Annual update for the DRS PEFI changes
OPEB3.4.163.4.17.80 Updated the years in the measurement date table
Liquor Tax and Profits – Two Percent Substance Abuse Treatment Programs3.6.83.6.8.10 Changed "Programs must be approved by the behavioral health organization and the secretary of the Department of Social and Health Services" to "…secretary of the Department of Health" to match RCW 71.24.555
DSHS Advances3.6.10Removed references to modified accrual accounting
Grants – Accounting3.7.13.7.1 Updated references to Office of Management and Budget (OMB) Circulars
3.7.1.20 Included other federal financial assistance guidance
3.7.1.30 Removed reference to the American Recovery and Reinvestment Act (ARRA)
3.7.1.30 Added Identification of COVID-19 related awards requirements
3.7.1.41 Removed the Common Rule Administrative Requirements section
3.7.1.51 Removed the OMB Circular A-87 Cost Principals section
Unemployment and Deferred Compensation3.8.13.8.1.100 Added requirements for reporting defined compensation plans.
Paths and Trails3.8.10Updated references to RCW
3.8.10.70 Updated references to reserved versus restricted
Overhead Cost Allocation3.9.5Updated references to RCW
3.9.5.80 Removed references to OMB Circular A-87
3.9.5.100 Removed references to OMB Circular A-87
Added an "Additional resources" section
Limitation of Indebtedness3.10.5Updated references to RCW
Created a Footnotes section
Transportation Benefit Districts3.11.13.11.1.120 Changed a reference from a negative 3850000 code to a 5850000 code.
Added an Additional Resources section
   
  

Reporting

Reporting Requirements and Filing Instructions for Cities and Counties4.1.54.1.5.10 Removed references to the Schedule 07 and Schedule 11
4.1.5.10 Updated the county requirements to include the Schedule 06
Fund Resources and Uses Arising from Cash Transactions (C-4)4.3.12Updated section to remove references to reserved/unreserved and replaced with new cash and investment classifications
4.3.12.100 Updated the sample C-4 with new format
Determining Fiduciary Activities Reported in Custodial Funds4.3.14New section for determining fiduciary custodial funds
Schedule 064.8.17City and County Fiscal Year 2020 reporting requirement
Clarified instructions for the Schedule 06
Schedule 094.14.13Section number updated to 4.14.13 (from 4.8.13).
4.14.13.100 Updated information on reporting pension (264.30) and OPEB liabilities (264.40)
4.14.13.110 Updated the due date instructions to list I.D. Numbers that do not require a due date to be reported.
Schedule 164.14.5Section number updated to 4.14.5 (from 4.8.5).
Annual update for SEFA including updates to the note requirements and COVID-19 reporting requirements
Schedule 174.8.64.8.6.20 Updated reporting requirements for counties due to changes in RCW
Schedule 214.8.94.8.9.20 Added information for the Washington Paid Family & Medical Leave self-insurance.
Note 1 – SSAPNote 1 – SSAPRemoved references to reserved/unreserved and updated with new cash and investment classification
Note X – COVID-19Note X – COVID-19Created a separate note for COVID-19 reporting requirements
Note X – Going ConcernNote X – Going ConcernClarified reporting requirements and included reporting requirements for bankruptcy
Note X – Long-term Debt (formerly Debt Service Requirements)Note X – Long-term Debt (formerly Debt Service Requirements)Updated the disclosure to include direct borrowings, direct placements, and significant debt agreement terms
Note X – Other DisclosuresNote X – Other DisclosuresRemoved reference to COVID-19 required note
Note X – PFML Note X – PFML New note for disclosure for governments that are self-insured for the Washington Paid Family & Medical Leave 
   Online Filing
Schedule 01Schedule 01All Schedule 01s are updated for the new cash and investment balance classifications
Schedule 06Schedule 06Schedule 06 is required for Fiscal Year 2020 reporting for both cities and counties
Schedule 07Schedule 07Schedule 07 has been removed. Replaced with the Schedule 06.
Schedule 11Schedule 11Schedule 11 has been removed. Replaced with the Schedule 06.
Schedule 16Schedule 16Schedule 16 and the Schedule 16 Notes have been updated for the required reporting of CARES Act monies
Schedule 21Schedule 21Schedule 21 has been updated it include new questions and information on the PFML (State medical leave)
Pension and OPEB TemplatesPension and OPEB TemplatesFiscal Year 2020 Pension and OPEB templates are being refreshed and will be available for download.
Online Filing Flag DescriptionsOnline Filing Flag DescriptionsGuide to Online Filing Flag Descriptions has been added to the Forms and Other Resources section of the BARS Reporting Templates page.

BARS Alerts

01/13/2020Annual update, see changes below
04/07/2020Note X - Deposits and Investments Update
04/21/2020Note X - Other Disclosures (Subsequent Event COVID-19)
04/24/2020COVID-19 BARS Coding
10/01/2020CARES Act Grant Monies Expenditure Codes

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 Assets3952000, 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 supplementFor 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 GuidanceFor BARS codes 5100000, General government function, these codes should only be used by cities, towns, and counties. Risk Pools may use 5190000.
BARS Account Export5990000 GuidanceFor 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 1.14.10Other 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 CodesRemoved 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 Control3.1.33.1.3.10 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 Documentation3.1.43.1.4.10 Updated the link to the Local Government Records Retention Schedule.
Fund Types and Accounting Principles3.1.73.1.7.50 Added clarifying information about Debt service funds, Capital project funds, and Fiduciary funds.
Bank Reconciliations3.1.9New section on bank reconciliations.
Transportation Benefit Districts (TBD)3.11.13.11.1.70 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)

3.4.163.4.16.30 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 Liabilities3.4.183.4.18.20 Included information about common indicators of obligations arising from operations.
County Auditor’s Operation and Maintenance Fund (Recording Fees)3.6.2Counties - 3.6.2.75 Added reference to RCW 36.22.240 and requirements.
Electronic Funds Transfer - Receipts3.6.6Removed "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 - Disbursement3.8.11Removed "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 - Disbursement3.8.11Added 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)4.3.124.3.12.60 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)4.3.134.3.13.40 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)4.8.17Rewrote 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 PartiesCreated 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 RequirementsInstructions to Preparer -
Added "When reporting loans, only amount actually drawn should be included here.
Note X - Deposits and InvestmentsRewrote the note template and added to the note to include investment pool requirements.
Note X - External Investment PoolNew Note
Counties - Provided guidance for disclosing external investment pools.
Note X - OPEB PlansAdded the reporting of the OPEB liability and examples in the instructions to preparers.
Note X - Other DisclosuresRemoved information for related parties, component units or joint ventures. Added information about Pollution Remediation/Retirement of Certain Assets.
Note X - Pension PlansAdded guidance for defined contribution pension plans when a government contributes.
   
  

ONLINE FILING

Schedule 01Red FlagsGovernments 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 06RequirementsSchedule 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 09264.40, OPEB LiabilitiesAdded 264.40 to the Schedule 09 codes for reporting OPEB liabilities.
Schedule 09263.93, Environmental liabilities Added 263.93 to the Schedule 09 codes for reporting Environmental liabilities (e.g. pollution remediation, certain asset retirement, etc.).
   

Overview of Significant Changes – Applicable to the Reporting Year 2018

TopicReferenceDescription of Changes
  CHART OF ACCOUNTS
BARS Account Export3132500, Housing and Related Services Sale and Use TaxNew account for governments collecting sales and use tax as authorized in RCW 82.14.530.
BARS Account Export3329330, Medical Transformation DemonstrationNew 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 Export3329340, Ground Emergency Medical Transportation (GEMT) Payment ProgramNew account for revenues from Medicaid related to the GEMT program. The addition was communicated on August 1, 2018 in BARS Alert.
BARS Account Export3360211, County Fair FundExpanded definition to clarify use of this code.
BARS Account Export3360700, PFD Lodging Tax DistributionCode applicable only to Seattle and King County.
BARS Account Export3432000, Television/Cable/Internet Sales and ServicesExpanded the title and the definition to include internet services as authorized by Chapter 186, Laws of 2018.
BARS Account Export3697000, Pension/OPEB ContributionsRevised title and definition to clarify use of this account for pension and OPEB related revenues only.
BARS Account Export51530, Legal ServicesThe 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 Principles3.1.7The 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 Management3.3.8The 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)3.4.16This 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)3.6.2The section was updated to reflect the 2018 legislative changes in the amounts of collected surcharges.
Federal Grants Received During the Open Period – Accounting3.7.3The section was removed since it conflicts with statutory restrictions regarding an open period.
ER&R3.9.7New 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 Overview3.9.8Added 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 164.8.5.60

 

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.