BARS Account Exports In this section, governments can access a report providing information on the allowability of BARS codes in fund types as well as export a chart of accounts specific to a government type.
BARS Codes to Fund Type BARS codes may be restricted for use in the annual report filing system. The following matrix “Codes to Funds” identifies which fund group(s) that each active BARS code may be reported in.
Download FY2022 Codes to Funds here. Codes are as of November 30, 2022.
Note: It is recommended to use this matrix in conjunction with the government specific BARS Account Export provided below.
BARS Account Export Download a government specific BARS Chart of Accounts in the export box at the bottom of this page.
Your annual report requires seven digits for all account codes however, their display in the chart of accounts export varies. The expenditure or expense accounts are presented in the export without object codes. Object codes will need to be added to the BARS Code to complete the required seven digits for the annual report. Additional details about object codes are available in the BARS Manual 1.4. The reporting at the subobject level is not required.
How to use the BARS Account Export
Select a government type The government type selection will limit the BARS accounts that are applicable to the selected government type. If allis selected, the export will include BARS accounts for all government types.
Select basis of accounting The basis of accounting selection will limit the BARS accounts that are applicable to the basis of accounting selected (GAAP or Cash). If allis selected, the export will include all the BARS codes regardless of their applicability to a specific basis.
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 and for printing. 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 all the accounts, including the accounts in which other codes are rolled up into for category presentation. These above prescribed codes are not valid for reporting, however they provide detailed information on the category of the codes. This listing also provides the Prescribed accounts, which are the required accounts for annual report filing. The Prescribed option includes only the accounts which are the valid BARS account codes for annual report filing.
184.108.40.206 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.
220.127.116.11 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).
18.104.22.168 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 – A 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.
A governmental accounting system should be organized and operated on a fund basis. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations.
Basis of accounting refers to when revenues and expenditures are recognized and reported in the financial statements.
Revenues are recognized only when cash is received and expenditures are recognized when chargeable against the report year’s budget appropriations as required by state law. This generally results in revenues being recognized when delivered to the government or government’s agent and expenditures being recognized when paid. Warrants and checks are considered paid when issued. An exception to expenditure recognition would be during any open period after the close of the fiscal year when expenditures can be charged against the previous period for claims incurred in the previous period. Open periods are required by statute for cities (RCW 35.33.151 and RCW 35A.33.150) and allowed for counties (RCW 36.40.200). Special purpose districts which use the county or a city as their treasurer may use the same open-period as their treasurer. If a district acts as its own treasurer, no open period is allowed by statute.
Revenues and expenditures should be reported at gross amounts by account and not netted against each other.
Revenues and expenditures should be recognized for all receipts and payments of a government’s resources, including those where the cash is handled by an agent (such as a bank, underwriter, etc.) on behalf of the government rather than handled directly by the local government. For example, debt proceeds wired directly to an escrow account, payments by the State Treasurer’s Office to vendors for items purchased with LOCAL resources, etc.
Interest earned on investments may be recognized at cost, amortized cost or fair value in accordance with the government’s disclosed accounting policy.
In addition, revenue and expenditures should also be recognized when the government agrees to forgo receiving earned revenue in exchange for reduction of expenses (offsetting agreement) or receipt of an asset (e.g., acquiring an asset in exchange for reduced permit fees, etc.). The government should also recognize transactions in which cash may have been exchanged by third parties on behalf of the government (e.g., bond issuances and bond retirement transactions, loan advances deposited and held by a trustee). In such cases, the transactions are still reportable since the government experienced a transaction of economic or legal substance that would have resulted in cash inflows and outflows into the government’s accounts if the agreement was not in place or third party had not handled the transaction on behalf of the government. The transaction should be recorded as if the cash was received and expended in order to reflect the legal transaction.
This basis results in no reported assets other than cash and investments and no reported liabilities. For example, purchases of capital assets are expensed during the year of acquisition without any capitalization of capital assets or allocation of depreciation expense. However, please be aware that certain liabilities should be reported on Schedule 09 and in the notes in financial statements.
In fund financial statements, governments should report governmental, proprietary, and fiduciary funds to the extent that they have activities that meet the criteria for using these funds.
Presented below is a system to classify all funds used by local government and the assignment of code numbers to identify each type of fund. A three digit code is used: the first digit identifies the fund type and the next two digits will be assigned by the governmental unit to identify each specific fund.
Since counties account for special purpose districts in their accounting systems as fiduciary funds, they often provide the districts with reports showing assigned fund codes 630-699. These codes refer to the fund from the county perspective. A district has to “reassign” the county code to the code appropriate to the fund type it is reporting (e.g., if the district’s general fund is coded in the county records as 663, the district in its annual report has to code this fund as 001).
For reporting purposes local governments are required to follow the described below fund structure. However, the local governments may create other funds for accounting or managerial purposes. When preparing external financial reports, those accounting or managerial funds should be rolled to appropriate fund types (e.g., there should be only one general fund or if an entity accounts separately for operating, capital or/and debt activities of its proprietary function, those activities should be rolled up into the appropriate enterprise fund, etc.)
Code 000 - General (Current Expense) Fund – should be used to account for and report all financial resources not accounted for and reported in another fund. For reporting purposes the local government can have only one general fund.
Although a local government has to report only one general fund in its external financial reports, the government can have multiple general subfunds for its internal managerial purposes. These managerial subfunds have to be combined into one general fund for external financial reporting.
Code 100 - Special Revenue Funds – should be used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects. Restricted revenues are resources externally restricted by creditors, grantors, contributors or laws or regulations of other governments or restricted by law through constitutional provisions or enabling legislation. Committed revenues are resources with limitations imposed by the highest level of the government (e.g., board of commissioners, city council, etc.) through a formal action (resolution, ordinance) and where the limitations can be removed only by a similar action of the same governing body. Revenues do not include other financing sources (long-term debt, transfers, etc.).
The term proceeds of specific revenue sources establishes that one or more specific restricted or committed revenues should be foundation for a special revenue fund. They should be expected to continue to comprise a substantial portion of the inflows reported in the fund. It is recommended that at least 20 percent is a reasonable limit for restricted and committed revenues to create a foundation for a special revenue fund. Local governments need to consider factors such as past resource history, future resource expectations and unusual current year inflows such as debt proceeds in their analysis.
They may use the calculation below to determine whether an activity would qualify for reporting as a special revenue fund.
Other resources (investment earnings and transfers from other funds, etc.) also may be reported in the fund if these resources are restricted, committed, or assigned (intended) to the specific purpose of the fund.
Governments should discontinue reporting a special revenue fund, and instead report the fund’s remaining resources in the general fund, if the government no longer expects that a substantial portion of the inflows will derive from restricted or committed revenue sources.
All revenues have to be recognized in the special revenue fund. If the resources are initially received in another fund, such as the general fund, and subsequently remitted to a special revenue fund, they should not be recognized as revenue in the fund initially receiving them. They should be recognized as revenue in the special revenue fund from which they will be expended.
Special revenue funds should not be used to account for resources held in trust for individuals, private organizations, or other governments.
The state statutes contain many requirements for special funds to account for different activities. The legally required funds do not always meet standards for external reporting. So, while the local governments are required to follow their legal requirements, they will have to make some adjustment to their fund structure for external financial reporting.
Code 200 - Debt Service Funds – should be used to account for and report financial resources that are restricted, committed, or assigned (intended) to expenditure for principal and interest. Debt service funds should be used to report resources if legally mandated. Financial resources that are being accumulated for principal and interest maturing in future years also should be reported in debt service funds. The debt service transactions for a special assessment for which the government is not obligated in any matter should be reported in a custodial fund. Also, if the government is authorized, or required to establish and maintain a special assessment bond reserve, guaranty, or sinking fund, it is required to use a debt service fund for this purpose.
Note: Debt service funds should not be used in proprietary funds (400 and 500). Use enterprise funds (400) or internal service (500) for debt payments related to utilities and other business type activities.
Code 300 - Capital Projects Funds – should be used to account for and report financial resources that are restricted, committed, or assigned (intended) for expenditure for capital outlays including the acquisition or construction of capital facilities or other capital assets. Capital outlays financed from general obligation bond proceeds should be accounted for through a capital projects fund. Capital project funds exclude those types of capital-related outflows financed by proprietary funds or for assets that will be held in trust for individuals, private organizations, or other governments (private-purpose trust funds).
Note: Capital project funds should not be used in proprietary funds (400 and 500). Use enterprise funds (400) or internal service (500) for capital payments related to utilities and other business type activities.
Code 700 - Permanent Funds – should be used to account for and report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government’s programs – that is for the benefit of the government or its citizens (public-purpose).
Generally, only the principal amounts, interest revenue, and transfers to the appropriate operating fund for interest revenue use should be reported in this fund. Note: any expenses related to the allowable use of the interest earned must be reported in the appropriate operational fund.
Permanent funds do not include private-purpose trust funds which account for resources held in trust for individuals, private organizations, or other governments.
Code 400 - Enterprise Funds – may be used to report any activity for which a fee is charged to external users for goods or services. Enterprise funds are required for any activity whose principal revenue sources meet any of the following criteria:
Debt backed solely by a pledge of the net revenues from fees and charges.
Legal requirement to recover cost. An enterprise fund is required to be used if the cost of providing services for an activity including capital costs (such as depreciation or debt service) must be legally recovered through fees or charges.
Policy decision to recover cost. It is necessary to use an enterprise fund if the government’s policy is to establish activity fees or charges designed to recover the cost, including capital costs (such as depreciation or debt service).
These criteria should be applied in the context of the activity’s principal revenue source.
The term activity generally refers to programs and services. This term is not synonymous with fund. As a practical consequence, if an activity reported as a separate fund meets any of the three criteria, it should be an enterprise fund. Also, if a “multiple activity” fund (e.g., general fund) includes a significant activity whose principal revenue source meets any of these three criteria, the activity should be reclassified as an enterprise fund.
The determination of an activity’s principal revenue source is a matter of professional judgement. A good indicator of the activity’s significance may be comparing pledged revenues or fees and charges to total revenue. For example, consider a county auditor’s office that charges fees to provide a payroll service to various taxing districts. Even if the fee is meant to cover the cost of the service, the county auditor function as a whole is primarily supported with tax dollars from the general fund. It would be allowable in this case to leave the activity all within general fund.
Finding an appropriate fund type requires a careful analysis since there is not always a clear choice. For example, building permit fees may be accounted for in the general fund or a special revenue fund in certain circumstances, such as when they are partially supported by taxes. However, if there is a pricing policy to recover the cost of issuing those individual building permits, they should be reported in an enterprise fund.
Separate funds are not required for bond redemption, construction, reserves, or deposits, for any utility. If separated, use 400 series number. Separate funds are not required even though bond covenants may stipulate a bond reserve fund, bond construction fund, etc. The bond covenant use of the term fund is not the same as the use in governmental accounting. For bond covenants, fund means only a segregation or separate account, not a self-balancing set of accounts.
Local governments may separate operating, capital projects and debt functions of enterprise funds. However, when reporting such proprietary activities, all those functions should be contained in one fund.
Code 500 - Internal Service Funds – may be used to report any activity that provides goods or services to other funds, departments or agencies of the government, or to other governments, on a cost-reimbursement basis. Internal service funds should be used only if the reporting government is the predominant participant in the activity. Otherwise, the activity should be reported in an enterprise fund. Cash basis special purpose districts (such as a fire or water district) should not use the internal service fund category.
Note: When calculating the predominant participant, purchases from fiduciary funds would be considered part of the reporting government’s activity, but the BARS coding would still be to an external customer.
Code 600 - Fiduciary Funds – should be used to account for assets held by a government in a trustee capacity or as a custodian for individuals, private organizations, other governmental units, and/or other funds. These include (a) investment trust funds, (b) pension (and other employee benefit) trust funds, (c) private-purpose trust funds, and (d) custodial funds.
Code 600-609 - Investment Trust Funds – should be used to report fiduciary activities from the external portion of investment pools and individual investment accounts that are held in a trust or equivalent that meets the criteria above.
In addition to the trust criteria requirements above, all individual investment accounts are required to be reported in an Investment Trust Fund.
Code 610-619 - Pension (and Other Employee Benefit) Trust Funds – should be used to report fiduciary activities for pension plans and OPEB plans that are administered through qualifying trusts. Qualifying trusts are those in which:
Contributions to the plan, and earnings on those contributions, are irrevocable. Pay-as-you-go plans do not qualify because they are “payments,” not contributions.
Plan assets are dedicated solely to providing benefits to plan members in accordance with the benefit terms. Different plans (for example a pension and an OPEB plan) cannot be commingled in the same trust. The assets must be partitioned for specific plans.
Plan assets are legally protected from creditors.
If you are acting as administrator for someone else’s pension/OPEB plans, the plans still must meet the criteria above to be reported in a trust fund.
Code 620-629 - Private-Purpose Trust Funds – should be used to report all fiduciary activities that (a) are not required to be reported in pension (and other employee benefit) trust funds or investment trust funds, and (b) are held in a trust that meets the following criteria: the assets are (a) administered through a trust or equivalent that meets the criteria above.
Code 630-698- Custodial Funds – should be used to report all fiduciary activities that are not required to be reported in pension (and other employee benefit) trust funds, investment trust funds or private purpose trust funds. The external portion of the investment pools that are not held in trust that meets criteria listed above should be reported in a separate external investment pool fund column under the custodial funds classification.
Note: The custodial funds are required to be used by business-type activities and enterprise funds, except when the resources will normally be held for less than ninety (90) days.
Code 699 - External Investment Pool Fund – The external portion of the investment pools that are not held in trust and meet criteria listed above. Although this is considered a custodial fund, it should be reported in a separate external investment pool fund column under the custodial funds classification.
Governments should establish and maintain those funds required by law and sound financial administration. Only the minimum number of funds consistent with legal and operating requirements should be established. Using numerous funds results in inflexibility, undue complexity, and inefficient financial administration.
Local governments should periodically undertake a comprehensive evaluation of their fund structure to ensure that individual funds that became superfluous are eliminated from accounting and reporting.
Elected officials should be educated to the fact that accountability may be achieved effectively and efficiently by judicious use of department, program and other available account coding or cautious use of managerial (internal) funds.
22.214.171.124 Budgeting, budgetary control and budgetary reporting
a. An annual/biennial budget must be adopted by every government. b. The accounting system should provide the basis for appropriate budgetary control. c. Budgetary comparisons must be included in the appropriate financial statements and schedules for funds for which an annual/biennial budget has been adopted.
126.96.36.199 Transfer, revenue and expenditure account classifications
a. Interfund transfers, proceeds of general long-term debt issues and material proceeds of capital asset disposition should be classified separately from fund revenues and expenditures. b. Governmental fund revenues should be classified by fund and by the sources indicated in BARS Account Export. Expenditures should be classified by fund and by the categories indicated in BARS Account Export. c. Proprietary fund revenues and expenses should be classified in essentially the same manner as those of similar business organizations, functions, or activities.
a. Appropriate interim financial statements and reports of operating results and other pertinent information should be prepared to facilitate management control of financial operations, legislative oversight, and, where necessary or desired, for external reporting purposes. (RCW 35.33.141, RCW 35A.33.140 and RCW 36.40.210)
188.8.131.52 The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards 2 CFR 200 (Uniform Guidance), requires auditees to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements that includes certain required elements described below. Click here for the Uniform Guidance.
Note that the term "Catalog of Federal Domestic Assitance" (CFDA) number was changed to "Assistance Listing Number" (ALN) with the revisions to the Uniform Guidance effective November 12, 2020.
Caution: If the government expends $750,000 or more in federal awards in a year, it must contact the Office of the Washington State Auditor and arrange for a single audit in accordance with the Uniform Guidance, 2 CFR 200, Subpart F – Audit Requirements. Further, the government must submit the single audit reporting package to the federal government within 30 calendar days after receiving the SAO report (report issuance date) or within nine months following the end of the audit period, whichever is earlier. All governments that need a single audit must prepare financial statements even if they are not otherwise required to under the BARS Manual, with this Schedule included as supplementary information with the statements. If the government received and spent federal funds under only one program, and the federal program’s statutes, regulations, or the terms and conditions of the federal award do not require a financial statement audit, the auditor may be able to conduct a program specific audit.
184.108.40.206 The purpose of this Schedule is to summarize federal award expenditures as a basis for planning and conducting the single audit. It also serves to provide assurance to those agencies that award federal financial assistance that their programs were included in the audit. It is important to prepare this Schedule carefully to ensure that it is accurate and complete. Any program or award omitted from this Schedule will be considered unaudited.
220.127.116.11 Include on this Schedule all expenditures of federal awards that were received directly from a federal agency and indirectly (pass-through) from a state agency, local government or other nongovernmental entity.
18.104.22.168 Uniform Guidance: 2 CFR §200.510(b) describes the criteria and requirements for preparing the Schedule. The SEFA must be prepared for the same period and reporting entity, and using the same underlying accounting records as the Schedule 01 and (as applicable) financial statements, except for specific exceptions described below starting at paragraph 22.214.171.124. The Schedule includes amounts required to be recorded, if any, during the statutorily required open period for cash basis cities and towns (20 days) and optional open period for cash basis counties (30 days to receive the invoice with the option to remain open for up to 60 days thereafter (per the county auditor’s discretion) to pay claims incurred prior to the close of the year).
Example: A calendar year government orders supplies and receives the supplies and invoice in December 2021. The government has an open period of 20 days after yearend. The government pays the invoice on February 5, 2022.
Accrual basis: The expenditure is reported in the 2021 SEFA, because the activity, a receipt of goods in this situation, occurred during fiscal year 2021 and the invoice was received before the end of the period. In the financial statements this expenditure would have been reported as an expense with offsetting liability because it was not paid. Since the SEFA is reported on the same basis of accounting as the other financial reports, it too would report the expenditure.
Cash basis: The expenditure is reported in the 2022 SEFA, because cash-basis entities report expenditures when paid. However, note that had this invoice been paid within the government's open period, a cash-basis city, town or county would report the expenditure on the 2021 SEFA (for fore information on open period accounting, please see BARS 3.1.7, Fund Types and Accounting Principles, paragraph 126.96.36.199).
Report award-related expenditures in the year they take place, even if the government will not be reimbursed by the awarding agency until the following year. For most programs, do not report amounts on this Schedule based on the date(s) that funds are received from the awarding agency (e.g., the date the government submitted a reimbursement request or received a reimbursement payment). Note however that there are some exceptions whereby the "basis for the federal awards expended” for purposes of SEFA reporting may be based on an activity, not reimbursable expenditures. This is common for fixed amount awards. Fixed amount awards are a type of grant or cooperative agreement under which the Federal awarding agency or pass-through entity provides a specific level of support without regard to actual costs incurred under the Federal award. This type of Federal award reduces some of the administrative burden and record keeping requirements for both the non-Federal entity and Federal awarding agency or pass-through entity. Accountability is based primarily on performance and results.
188.8.131.52 Federal awards expendedinclude the following (2 CFR §200.1 Definitions Expenditures and §200.502 Basis for determining Federal awards expended):
Direct costs of expenditure transactions associated with grants, cost-reimbursement contracts, cooperative agreements, direct appropriations, and other federal financial assistance.
Indirect costs claimed for reimbursement using an indirect cost rate or cost allocation plan. (Revenues received from indirect cost recoveries should be coded as a federal revenue, BARS accounts 331 or 333 as appropriate)
Disbursement of federal award funds that the entity’s passed through to subrecipients. (See additional information below regarding period of reporting.)
Use of loan proceeds under loan and loan guarantee programs. (Refer to loan valuation guidance below.)
Receipt of federal property (e.g., equipment and supplies), including some surplus property.
Receipt or use of program income. (Refer to program income guidance below.)
Receipt of non-cash assistance such as food commodities and vaccines.
Disbursement of amounts entitling a non-federal entity to an interest subsidy.
Insurance contracts in force during the period under audit.
COVID-19 Expenditures Section
184.108.40.206 COVID-19 Expenditures
To maximize the transparency and accountability of COVID-19 expenditures, governments must separately identify COVID-19 expenditures on the SEFA. This includes the new COVID-19 only programs. This may be accomplished by identifying COVID-19 expenditures on a separate line by Assistance Listing Number (ALN) with “COVID-19” as a prefix to the program name (see SEFA example below). See below other special COVID-19 SEFA reporting requirements.
220.127.116.11 Special COVID-19 SEFA reporting requirements Donated Personal Protective Equipment (PPE) purchased with COVID-19 federal financial assistance.
Per Part 8, Appendix VII of the 2022 Compliance Supplement, during the emergency period of COVID-19 pandemic and as allowed under OMB Memorandum M-20-20 (April 9, 2020), federal agencies and recipients can donate PPE purchased with federal assistance funds to various entities for the COVID-19 response. The donated PPE were mostly provided without any compliance or reporting requirements or Assistance Listing information from the donors. As such, the non-federal entities that received donated PPE should provide the fair market value of the PPE at the time of receipt as a stand-alone footnote accompanying their SEFA. The amount of donated PPE should not be counted for purposes of determining the threshold for a single audit or determining the type A/B threshold for major programs, and is not required to be audited as a major program. Because donated PPE has no bearing on the single audit, the donated PPE footnote may be marked “unaudited.”
As a reminder, the above only relates to donated PPE provided without any compliance or reporting requirements or assistance listing from donors. There could be some PPE that must appear on the SEFA as a federal program (e.g., when the recipient uses funds provided under an Assistance Listing Number to purchase PPE).
COVID-19 Vaccines – Immunization Cooperative Agreements ALN 93.268 Per Part 4 of the 2022 Compliance Supplement, after the end of each month and after the end of each federal fiscal year, the Centers for Disease Control (CDC) advises each grantee of the value of all federally funded vaccine which was distributed, in lieu of cash, directly to the grantee and/or on behalf of the grantee to vaccinating providers located in the grantee’s geographical area. The annual dollar value of federally funded vaccine should be treated by the grantee as expenditures under a federal award for purposes of determining audit coverage and reporting on the SEFA. Therefore, if you are receiving reports from the CDC, report that value on your SEFA. However, vaccinating providers and vaccinated individuals are not considered subrecipients; therefore, the value of vaccine received is not considered as expenditures under a federal award for purposes of determining audit coverage and SEFA reporting for those entities.
Provider Relief Fund (PRF) ALN 93.498 Per Part 4 of the 2022 Compliance Supplement, SEFA reporting amounts for this program (including both expenditures and lost revenue) are based upon the PRF report that is required to be submitted to the HRSA reporting portal. The HRSA PRF reporting requirements are summarized in the following table:
Guidance for Other Specific Expenditures Section
Equipment and supplies (non-cash assistance)
18.104.22.168 The receipt of federally-funded equipment, materials or supplies that are either received directly from a federal agency or received indirectly from another non-federal entity that purchased them with federal funds, is considered a non-cash award that must be reported on the SEFA. The recipient must report the fair market value at the time of receipt or the assessed value provided by the awarding agency of the non-cash items on the SEFA. Despite the basis of accounting used by the recipient, non-cash awards are reported in the fiscal year they are received.
Other non-cash assistance
22.214.171.124 Food stamps, food commodities, vaccines (see above for information on COVID-19 vaccines), donated property (including surplus, also, see above for information on donated personal protective equipment funded with COVID-19 assistance), and other non-cash assistance should be valued at fair market value at the time of receipt or the assessed value provided by the awarding agency. The notes to the Schedule of expenditures of federal awards should disclose the nature of the amounts reported. Despite the basis of accounting used by the recipient, non-cash awards are reported in the fiscal year they are received.
126.96.36.199 The amount of state and/or local funding contributed by the entity in the form of matching funds or in- kind match required by the awarding agency should not be reported on the SEFA.
188.8.131.52 Many awardees earn program income while administering federal programs or projects. For most programs, the use or expenditure of program income is reported on the SEFA in the period the expenditure occurs in accordance with the basis of accounting. However, some federal agencies differ on the treatment of program income on the SEFA. Therefore, it is recommended that the government consults with the awarding agency about how it requires the program income to be reported.
When the expenditure of program income is reported, it is added to the amount of expenditures that occurred during the fiscal year that have been or will be applied to the program through a reimbursement or advance request. A note disclosure regarding the inclusion of expenditures from program income is recommended.
Note: The BARS revenue code for program income should be the same as the code of the award generating this income. (See next section for accounting for program income related to revolving loans.)
Note: If the awardee has received written (documented) approval to use program income as match/cost sharing, it is not reported on the SEFA.
Unless otherwise specified in the awarding documents, interest earned on cash advances or idle award funds are not considered program income. Interest earnings are recorded in the BARS account 361.
FEMA Disaster Assistance - ALN 97.036
184.108.40.206 Disaster assistance awards are made based upon a Project Worksheet (PW) and are classified by FEMA as either a “small” or “large” project according to the cost of the eligible work for the project. The thresholds for project costs can be found in the Compliance Supplement Part 4.
Some grantees might experience a long delay from the time they incur costs to recover from a disaster and the date they actually are approved to receive federal disaster relief funding. In the Compliance Supplement to the Uniform Guidance (2 CFR Part 200 Appendix XI), FEMA has stated that for purposes of recording expenditures of federal Disaster Grants (ALN 97.036 – IV. Other Information) on the Schedule of Expenditures of Federal Awards (SEFA):
Non-Federal entities must record expenditures on the SEFA when: (1) FEMA has approved the non-Federal entity’s Project Worksheet (PW), and (2) the non-Federal entity has incurred the eligible expenditures. Federal awards expended in years subsequent to the fiscal year in which the PW is approved are to be recorded on the non-Federal entity’s SEFA in those subsequent years.
1. If FEMA approves the PW in the non-Federal entity’s fiscal year 2020 and eligible expenditures are incurred in the non-Federal entity’s fiscal year 2021, the non-Federal entity records the eligible expenditures in its fiscal year 2021 SEFA.
2. If the non-Federal entity incurs eligible expenditures in its fiscal year 2020 and FEMA approves the non-Federal entity’s PW in the non-Federal entity’s fiscal year 2021, the non-Federal entity records the eligible expenditures in its fiscal year 2021 SEFA with a footnote that discloses the amount included on the SEFA that was incurred in a prior year.
Equitable sharing program – Department of Justice and Department of Treasury
220.127.116.11 Equitable Sharing funds must be reported on the SEFA. Those are funds received from the Department of Justice (ALN 16.922) or the Department of Treasury (see 18.104.22.168 [Column 3] for the guidance regarding coding when the ALN is not available). The Equitable Sharing funds are for payments to state and local law enforcement agencies that directly participate in an investigation or prosecution resulting in a federal forfeiture.
Retainage is an amount withheld from contractor payments until the end of the project when work has been completed to satisfaction. Per 2 CFR §200.305(b)(6)(iv), retainage is not an allowable cost that can be charged to the federal award and should not be reported on the SEFA as a federal expenditure until one of the following has been met
a) The retainage is paid to the contractor. Despite the basis of accounting used by the awardee, the retainage payment is reported in the fiscal year it is paid.
b) The retainage is paid into an escrow/trust account. Despite the basis of accounting used by the awardee, the retainage payment is reported in the fiscal year(s) it is paid into the escrow/trust account.
Note: If retainage was not paid to the contractor or paid to an escrow/trust account, but was incorrectly reimbursed by the awarding agency, a cash advance has occurred. Contact the awarding agency for instructions on what to do with the funds (such as return to them or move to an escrow/trust account).
22.214.171.124 Disbursements to subrecipients
Per 2 CFR §200.502, “the determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as…the disbursement of funds to subrecipients…” Federal funds are determined to be expended when the pass-through agency becomes obligated to the subrecipient for payment. Generally that is when the pass-through agency has made the determination the costs are allowable, they are charged to the federal award, and the payment is made to (or authorized to be made to) the subrecipient.
Valuation of Federal Loans Section
Valuation of federal loans
126.96.36.199 Use the following guidelines to calculate the value of federal awards expended under loan programs:
Amount of new loans made or received during the fiscal year, plus
Beginning of the audit period balance of loans from previous years for which the federal government imposes continuing compliance requirements, plus
Any interest subsidy, cash, or administrative cost allowance received.
Question 1: When do I report the loan on my SEFA?
Answer: Uniform Guidance: 2 CFR §200.502(a), and guidance from the AICPA states the loan is considered expended when the loan proceeds are used under loan and loan guarantee programs. Note exception to the rule for certain programs below.
Reimbursement Basis: Most loans are funded on a reimbursement basis where the borrower incurs program-related costs and then makes a request to the lender for the loan proceeds. In this case, report expenditures during the year for which the government will seek loan funding.
Loan Advances: Some loans are made in advance of any project-related expenditures. Because the federal government is at risk for these loans, thetotalproceedsreceivedshouldbereported on the SEFA the date of receipt, even if the government has not spent all the funding. Contact the lender to determine if it requires the full amount of proceeds to be reported in the year of receipt.
Revolving Loans: If the entity receives federal funds and then makes a loan to another party, report the amount of loans the government made during the year. (Refer to additional guidance on revolving loan funds below.)
Question 2: What is a continuing compliance requirement?
Answer: The government is considered to have a continuing compliance requirement if the lender continues to impose a requirement over the outstanding loan balance in any one of the following 12 areas in years following receipt of the loan.
Activities allowed or unallowed
Allowable costs/cost principles
Equipment and real property management
Matching, level of effort, earmarking
Period of performance of federal funds
Procurement and suspension and debarment
Award-specific special tests and provisions, including prevailing wages (David-Bacon Act)
Examples of continuing compliance requirements:
A housing authority received a federal loan to construct apartments for low income households. As a condition of the loan, the authority is required to make a certain percentage of apartments available to low income households for the next 15 years. The housing authority should report the loan balance on the SEFA for the duration of this requirement. (We recommend consulting with the lender about its expectations for reporting loan balances.)
A university has established a federal revolving loan fund and makes loans to students to help them pay for school expenses. The federal agency sponsoring the loan program requires the university to comply with continuing requirements such as default prevention, billing and collection, deferments, cancelations, fund liquidity, and borrower exit counseling.
A city purchased equipment with loan funds and is required to maintain capital asset records and conduct physical inventories of the equipment in the years following the purchase.
Exceptions to the rule:
EPA Clean Water State Revolving Fund (ALN 66.458). The EPA has stated in the Compliance Supplement (see IV. Other Information) that subrecipients receiving loans under this program (66.458) should only report project expenditures incurred (see note on timing of SEFA reporting below) because it considers it a subaward, not direct federal loan. For this program, the loan reporting requirements of 2 CFR sections 200.502(b) or (d) do not apply when calculating the amount of federal funds expended. In other words, loan balances are not reported. CAUTION: EPA further stated in the Compliance Supplement that to achieve consistency in meeting program requirements and eliminate the possibility of over-reporting information under the Federal Funding Accountability and Transparency Act (“FFATA” or “Transparency Act”), the State CWSRF program must use the same group of loans for purposes of meeting federal cross-cutting, single audit, procurement, and Transparency Act reporting requirements. EPA refers to this as “Equivalency”, which is an option states can use to streamline program implementation. The State awarding agency for CWSRF, WA Department of Ecology (DOE), makes the determination as to which awards it will use for equivalency purposes. See below for more detailed information about DOE awards. Only those awards deemed equivalent (by DOE) are reported on the SEFA, regardless of the funding source. Entities should refer to their awarding documents and/or consult with their awarding agency if they are unclear whether or not their award is an equivalency project or being reported as FFATA. A HelpDesk request may be submitted with our Office for assistance.
NOTE ON TIMING OF SEFA REPORTING:In consultation with the EPA, the subrecipient should not report the expenditures on its SEFA until the expenditures are incurred and it requests reimbursement from its awarding agency. This may result in prior period expenditures being reported on the SEFA.
DOE Awards: Within the DOE agreement, there are two “funding distributions”, each with their own unique identifying numbers starting with “EL” and will state if the funding is federal or state. Funding distributions are how ECY is keeping track of the equivalency awards.
EPA Drinking Water State Revolving Fund (ALN 66.468) The EPA has stated in the Compliance Supplement (see IV. Other Information) that subrecipients receiving loans under program (66.468) should only report project expenditures incurred (see note on timing of SEFA reporting below) because it considers it a subaward, not a direct federal loan. For this program, the loan reporting requirements of 2 CFR sections 200.502(b) or (d) do not apply when calculating the amount of federal funds expended. In other words, loan balances are not reported. CAUTION: EPA further stated in the Compliance Supplement that to achieve consistency in meeting program requirements and eliminate the possibility of over-reporting information under the Federal Funding Accountability and Transparency Act (“FFATA” or “Transparency Act”), the State DWSRF program must use the same group of loans for purposes of meeting federal cross-cutting, single audit, procurement, and Transparency Act reporting requirements. EPA refers to this as “Equivalency”, which is an option states can use to streamline program implementation. The State awarding agency for DWSRF, WA Department of Health (DOH), has chosen to not implement equivalency. This means that the subset of FFATA projects, as well as other DWSRF projects are all subject to Federal cross-cutting requirements. All DWSRF projects expending federal funds will be reported to the SEFA. DOH will notify subrecipients of actual federal dollars expended. Entities should refer to their awarding documents and/or consult with their awarding agency if they are unclear whether or not their award is being reported as Federal funds. A HelpDesk request may be submitted with our Office for assistance.
NOTE ON TIMING OF SEFA REPORTING: In consultation with the EPA, the subrecipient should not report the expenditures on its SEFA until the expenditures are incurred and it requests reimbursement from its awarding agency. This may result in prior period expenditures being reported on the SEFA.
USDA Interim Financing: Water and Waste Disposal Systems for Rural Communities (ALN 10.760), Community Facilities Loans and Grants (ALN 10.766). After USDA has made a commitment on a loan, the borrower may be required to obtain interim financing from commercial sources (e.g., a bank loan) for the construction period. Expenditures from these commercial loans which will be repaid from a USDA loan should be considered Federal awards expended, included in determining Type A programs, and reported in the Schedule of Expenditures of Federal Awards. The subsequent issuance of the USDA loan is not reported as an expenditure on the SEFA.
Continuing Compliance Requirements for 10.760: Per the 2022 Compliance Supplement, USDA states during the project, the entity must report any loan balances, in addition to project expenditures, in accordance with 2 CFR §200.502(b). After the project is completed, the entity does not report any outstanding loan balances as the loans are no longer considered to have continuing compliance requirements.
Continuing Compliance Requirements for 10.766: The USDA has stated in the 2022 Compliance Supplement (April 2022) that for Community Facility (CF) direct loans, the Agency requires a promissory note or bond and security that will adequately protect the interest of the Agency during the repayment period of the loan. In the case of a CF guaranteed loan, the borrower executes a promissory note or bond with the lender and the lender is responsible for obtaining adequate security to protect the interest of the lender, any holder, and the Government. Loan terms cannot exceed 40 years, the useful life of the facility or state statute, whichever is less. The borrower is required to repay the principal and interest according to the term of the note or bond. The full outstanding balance on the note or bond should be considered Federal awards expended, included in determining Type A programs, and reported as loans on the Schedule of Expenditures of Federal Awards in accordance with 2 CFR part 200, subpart F. Note: Prior years' compliance supplements included language that CF loans did not have continuing compliance requirements. USDA has changed its position and determined that CF loans have continuing compliance requirements. This change is to be applied prospectively and will be effective for borrowers’ with outstanding CF loan balances for fiscal years ending on or after June 30, 2022. There is no expectation that borrowers that had existing outstanding loan balances in years prior to June 30, 2022, go back and have single audits performed of prior periods.
Question 3: If my project takes several years to complete, will I have continuing requirements throughout the duration of the project until it is complete?
Answer: Most likely. For example, many lenders will set aside a portion of the funding until all inspections are made and all supporting documentation encompassing the entire project is submitted and approved. CAUTION: If the lender is waiting to reimburse a portion of costs submitted for reimbursement until the project is approved, be sure to report the expenditures in the year occurred, not when reimbursed. Consult with the lender about its expectations over reporting loans for projects that span multiple years.
Question 4: How do I determine the amount of any interest subsidy I am receiving?
Answer: The OMB has not issued any official guidance on this topic. Typically, an interest subsidy means the federal government is paying or waiving a portion of the interest cost that would ordinarily have to be paid by the borrower. Consult with the lender to determine if any portion of interest is being subsidized.
Question 5: Are interest subsidies from Build America Bonds reported on the SEFA?
Answer: No. The OMB has excluded Build American Bonds from single audits.
Question 6: What if my project is complete and there are no requirements other than to repay the loan?
Answer: If the laws, regulations, and the provisions of contracts or loan agreements pertaining to the loan impose no continuing compliance requirements other than to repay the loan, the loan does not have to be reported on the SEFA.
Question 7: What if our entity makes a loan to another entity or program participant?
Answer: Report the amount of loans made during the year. If the entity administers a revolving loan program where federal funds are lent to third parties, repaid, and then lent to again to other parties, the repayment of principal and interest is considered program income (revenues) and loans of such funds to eligible recipients are considered expenditures. For purposes of SEFA presentation, report the amount of loans the government made during the year. This includes all loans that are funded by the original loan and program income. However, be sure to check the terms of the award and discuss with the awarding agency because some federal agencies have different rules for presenting revolving loans on the SEFA. For example, the Department of Commerce for its Economic Adjustment Assistance Revolving Loan Fund program (ALN 11.307) requires awardees to report the principle balance of loans outstanding at year-end, instead of the amounts lent. See the Compliance Supplement Part 4 for this program, IV. Other Information for the specific calculation.
188.8.131.52 Accounting for revolving loans
The original agreement for the loan program should be coded as federal direct or indirect grant (3310000 or 3330000).
A loan to an entity is a balancesheet transaction and the government should debit LoanReceivables and credit Cash. A repayment of the loan requires debiting Cash and crediting LoanReceivablesandInterest Revenue (3614000).
There are no BARS codes specifically assigned to loan program revenues (neither principal nor interest). Although the repayment of principal is not considered revenue from the GAAP accounting perspective, it has to be considered as such for the purpose of SEFA. The expenditures from the revolving loan should include expenditures from the initial loan and subsequent repayments of the loans, including interest generated by the loan.
Employer Identification Number (EIN) for federal award recipients
184.108.40.206 Recipients of federal funds must arrange to have a single audit in accordance with Uniform Guidance, 2 CFR 200, Subpart F – Audit Requirements if they expend $750,000 or more in federal awards in a year. Most federal agencies define a recipient according to the federal Employer Identification Number (EIN). That is, the awarding agency makes its awards to each recipieint based on the EIN, rather than entity name. For example, if a small fire district uses the county’s EIN for payroll tax purposes, and also applies for a federal award using the county EIN, some federal agencies will make the official award to the county. As a result, the awarding agency expects the award to be included in the county’s Schedule of Expenditures of Federal Awards (Schedule 16) and thus subject to audit at the county. Further, at the conclusion of a single audit, the fire district’s audit will be misfiled with the federal clearinghouse because the county’s EIN was listed on the Data Collection Form. This puts the county in a difficult position with the federal government and can cause additional audits. Therefore, it is recommended that all special purpose districts without an EIN make application for this number with the IRS (Form SS-4) and use this number when applying for federal financial assistance as well as IRS tax purposes. The district also should consult with its county auditor and/or treasurer for the protocol concerning payroll taxes.
220.127.116.11 Preparing the preformatted SEFA template for upload to Online Filing
The template for Online Filing is available on the SAO’s website page, BARS Reporting Templates. When using the Online Filing option, the system will create the Schedule based on data provided by the local government on the template. Instructions for the template are as follows:
Column A: Enter the Assistance Listing Number (ALN, formerly referred to as CFDA). If unknown or does not exist, follow detailed instructions below in Column 3.
Column B: Enter “Yes” if these are COVID-19 expenditures. As noted above, COVID-19 expenditures must be reported separately by ALN. If these are not COVID-19 expenditures please leave this column blank.
Column C: This will pre-populate the federal agency name from Assistance Listings (SAM.gov ) once uploaded into the online filing system. If the ALN is unknown or doesn’t exist, manually add the federal agency name.
Column D: This will pre-populate the official federal program name from Assistance Listings (SAM.gov ) once uploaded into the filing system. If the ALN is unknown or doesn’t exist,manually add the federal program name.
Column E: Enter the name of the pass-through agency for indirect awards. If there is no pass-through agency, leave this field blank.
Column F: For indirect awards, add the other award identification number assigned by the pass-through agency (contract/agreement number). Refer to detailed instructions below. If no identification number was provided by the pass-through agency, enter “NA”. For direct awards, leave this field blank. If an other award identification number is entered for direct awards, you may receive an error in the online filing system.
Column G: Check if this award is research and development (R&D).
Column H: Enter the total federal awards expended. Refer to detailed instructions below for calculating the total.
Column I: Of the total amount of federal awards expended, report how much of that was passed on to subrecipients.
Column J: Add any applicable footnote reference.
Finalized Schedule of Expenditures of Federal Awards
18.104.22.168 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. Governments can manually enter the information or upload an electronic file. Acceptable file should adhere to the prescribed record layout and should be an Excel file. More details are provided on the website.
22.214.171.124 Local governments are required to update the incorrect financial data submitted on this Schedule. The requirement applies to all errors found prior or during an audit. For questions and/or support e-mail the SAO Client HelpDesk through our Online Services.
Column 1 Provide the name of the federal agency. If the government receives federal funds as a pass-through award, identify the pass-through agency. Please clearly distinguish between federal agencies and state agencies with similar names or initials. Subtotals should be included for each federal agency.
Column 2 List individual federal programs by federal agency. Provide the official name of the federal award (please avoid nicknames). A list of official federal program titles can be obtained from Assistance Listings at SAM.gov (formerly the Catalog of Federal Domestic Assistance). As noted above at 126.96.36.199, COVID-19 expenditures must be reported on a separate line by ALN with “COVID-19” as a prefix to the program name, including new COVID-19 only programs, such as the Coronavirus State and Local Fiscal Recovery Fund 21.027.
IMPORTANT NOTE: For federal programs included in a cluster of programs, provide the official cluster name (e.g., Highway Planning and Construction Cluster) regardless of whether the expenditures were incurred under only one program or multiple programs within the cluster, list the individual federal programs within the cluster (e.g., 20.205 Highway Planning and Construction, 20.219 Recreational Trails Program, 20.224 Federal Lands Access Program, 23.003 Appalachian Developoment Highway System) and provide a total for the cluster (see the example SEFA below). For research and development, total federal awards expended must be shown by either the individual award or by federal agency and major subdivision within the federal agency. A listing of programs included in a cluster can be found in the in Part 5 of the Compliance Supplement. Note the Compliance Supplement is updated annually, including the list of clusters found in Part 5, so it is important to consult the applicable Compliance Supplement (e.g., for audits of fiscal years beginning after June 30, 2021, consult the 2022 Compliance Supplement).
Column 3 List the applicable ALN for each award. This is a five digit (XX.XXX) identification number assigned by the federal government and published in Assistance Listings at SAM.gov (formerly the Catalog of Federal Domestic Assistance. This number must be provided for all federal awards received either directly from a federal agency or indirectly through a state agency or local government.
Every effort should be made to obtain ALNs. Awarding agencies are required to provide the ALN when making an award; however, if one was not provided, research the program before the government concludes an ALN does not exist. Steps to take:
Follow the guidance below if, after researching the number, the government concludes that an ALN does not exist or is unknown.
In the first two spaces enter the Federal Agency’s two digit prefix (see list of agencies in 188.8.131.52). Follow the two digit prefix with the letter “U”, for unknown, followed by a two digit number starting with “01”.
Example: The first Federal program with an unknown three digit extension would be U01 for all award lines associated with that program, the second would be U02, and so on.
Note: The two digit number can start over for each Federal Agency or continue throughout the remainder of the SEFA.
YELLOW FLAG CAUTION:If you use our electronic filing system, when entering an unknown ALN, you will get a “yellow flag”. That is because our system pulls from Assistance Listings at SAM.gov. If the ALN is unknown, it is not going to be in Assistance Listings. Also, if you enter an ALN number that has been archived by the Federal Awarding Agency, in other words the program is no longer giving awards but you still have some federal expenditures to report, you will also get a yellow flag. In both of these cases, it is ok to ignore the yellow flag; you do not need to contact our Office.
Column 4 Use this column to report the other award identification number assigned by the pass-through agency (for indirect awards), such as the contract or agreement number. If a number was not assigned by the pass-through entity, enter "NA". For direct awards, leave this field blank. If an other award identification number is entered for direct awards, you may receive an error in the online filing system.
Column 5 Use these columns to report current year expenditures (determined on the same basis of accounting as the financial statements). See requirements for valuing loans and noncash assistance above.
Expenditures from Pass-Through Awards – Enter the amount of expenditures for federal assistance received as a pass-through award from a state agency, local government, etc. When calculating the amount expended for each program, be sure to include both direct costs and indirect costs. If the government made a subaward to another entity, these amounts should also be reported as expenditures.
Expenditures from Direct Awards – Enter the amount of expenditures for assistance received directly from a federal agency. When calculating the amount expended for each program, be sure to include both direct costs and indirect costs. If the government made a subaward to another entity, these amounts should also be reported as expenditures.
Note: If the entity receives an award under the same ALN from multiple awarding agencies, the SEFA should have a subtotal for that ALN showing the total amount received from all sources.
Total Expenditures – Enter the combined total of all federal expenditures from pass- through and direct awards by ALN.
Column 6 Passed through to Subrecipients (requirement per 2 CFR§200.510(b)(4)):
Use this column to report the total amount of expenditures provided to subrecipients from each federal award. This is an informational column that shows, of the amount of total expenditures reported for an award, how much was passed on to a subrecipient.
Column 7 Notes to the Schedule – If applicable, enter the reference number that corresponds with the “Notes to the Schedule of Expenditures of Federal Awards.”
Instructions for preparing the Notes to the Schedule of Expenditures of Federal Awards
The template for Online Filing is available on the SAO’s website page, BARS Reporting Templates. When using the Online Filing option, the system will create the Schedule based on data provided by the local government on the template. Instructions for the template are as follows:
REQUIRED NOTE 1 (per 2 CFR §200.510(b)(6)) – the notes to the Schedule must disclose the basis of accounting and any other significant accounting policies used in preparing the Schedule. This includes reconciling any difference between the amounts shown on the Schedule and the underlying amounts reflected in the entity’s accounting system.
REQUIRED NOTE 2 (per 2 CFR §200.510(b)(6)) – the notes must disclose whether or not the auditee elected to use the 10% de minimis cost rate as covered in 2 CFR §200.414 Indirect (F&A) costs. If the de minimis rate was not elected, it is optional to include the indirect cost rates used (see example below).
REQUIRED IF APPLICABLE, NOTE 3 – for loans or loan guarantee programs described in 2 CFR §200.502 – Basis for determining federal awards expended paragraph (b), the notes must identify the balances outstanding at the end of the audit period. This is in addition to including the total federal awards expended for loan or loan guarantee programs reported in the Schedule.
OPTIONAL (BUT RECOMMENDED) – provide any information that may be useful to the reader such as the method used to value commodities or other non-cash assistance such as property or vaccines, and any other information necessary to reconcile the amount reported to the entity’s accounting records.
An example of these footnotes is provided below.
Frequently used federal agency two-digit prefixes
184.108.40.206 This list is used for ALNs; if the government does not see the federal agency here, Assistance Listings at SAM.gov.
07 - Office of National Drug Control Policy 10 - Department of Agriculture 11 - Department of Commerce 12 - Department of Defense 14 - Department of Housing and Urban Development 15 - Department of Interior 16 - Department of Justice 17 - Department of Labor 20 - Department of Transportation 21 - Department of Treasury 39 - General Services Administration 43 - National Aeronautics and Space Administration 47 - National Science Foundation 59 - Small Business Administration 64 - Department of Veterans Affairs 66 - Environmental Protection Agency 81 - Department of Energy (includes the Bonneville Power Administration) 84 - Department of Education 93 - Department of Health and Human Services 94 - Corporation for National Service 96 - Social Security Administration 97 - Department of Homeland Security (includes FEMA)
Characteristics of subrecipients and contractors
220.127.116.11 A subrecipient is a non-federal entity (typically a local government or non-profit organization) that receives federal assistance from a pass-through agency (such as the state or another local government) to carry out a program or project of the federal government. Subrecipients receive the federal award or loan so that it can meet a public need in the community. The amount paid to the subrecipient to reimburse it for the cost of the project or program should be based on actual, allowable costs incurred - that is, a subrecipient cannot earn a profit from its award. Subrecipients have substantial decision-making responsibility for how the project or program operates. Subrecipients are required to follow all applicable requirements in Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards, 2 CFR 200. Often subrecipients are required to contribute some of their own funds as a matching share to accomplish the program or project.
18.104.22.168 Contractors (formerly “vendors”) compete with others to provide goods and services needed to operate a project or program. These goods and services are often ancillary to the overall program objectives. Selection of contractors is typically based on the capability to provide the best goods and services at the best price. The scope of work is specified by the awardee and the price is usually based on quotes, formal bids, or requests for proposals. Contractors are often paid a set fee for providing its goods or services where the price allows the contractor to recover its costs and also earn a profit. The Association of Government Accountants (www.agacgfm.org) published a subrecipient versus contractor checklist.
22.214.171.124 Tips for preparing the Schedule
Some projects or programs may be funded by a mix of federal and state money. If possible, identify the different sources and list them on appropriate Schedules (i.e., the federal share on the Schedule of Expenditures of Federal Awards and the state or portion on the Schedule of Expenditures of State Financial Assistance). If the state portion cannot be identified, list the entire amount on the Schedule of ExpendituresofFederalAwards and describe the commingled nature of the funds in the notes to the Schedule of Expenditures of FederalAwards.
Funds received as fee for services, generally should not be included on the Schedule 16. For example, if the government is being paid for providing goods or services in a contractor capacity, this contractor payment is not considered federal financial assistance to the entity.
List all awards from the same federal agency together on the Schedule (for example, group all HUD awards together by ALN).
If the government chooses to report multiple projects/programs that have the same ALN as separate line items (e.g., WSDOT highway planning and construction projects), provide a subtotal for the ALN.
It is important to note that the expenditures reported on the SEFA will not necessarily tie to those reported on the operating statement, especially if the federal awards include loans or non-cash awards (property, supplies, etc.). However, all amounts reported should agree or reconcile to records maintained by finance, budget, and treasury departments.
The SEFA should be prepared using the same basis of accounting as the financial statements. For example, if the government prepares the financial statements using the cash basis of accounting, the government should report expenditures of federal awards using the cash basis. Explain any departure in the footnotes.
126.96.36.199 Sample Schedule of Expenditures of Federal Awards
Notes to the Schedule of Expenditures of Federal Awards For the Year Ended December 31, 20__
Please be advised the order of the notes correspond to the Federal Audit Clearinghouse Data Collection Form (SF-SAC). Please follow the same order, as applicable.Disclose other notes only if applicable to the government circumstances.
Note 1 – Basis of Accounting (Required)
This Schedule is prepared on the same basis of accounting (describe if not the same basis) as the (city/county/district’s) financial statements. The (city/county/district) uses the (describe the basis of accounting used by the city/county/district).
Note 2 – Federal Indirect Cost Rate (Required to state whether or not the de minis indirect cost rate was elected)
The (city/county/district) has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The amount expended includes $______ claimed as an indirect cost recovery using an approved indirect cost rate of _____ percent.
The (city/county/district) has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Note 3 – Federal Loans (Required ifapplicable.)
(a) The (city/county/district) was approved by the USDA Rural Utilities Service to receive a loan totaling $____ to build a sewer treatment plant. Interim loan financing was received for the construction period. The amount listed for this loan includes the beginning of the period loan balance plus proceeds used during the year. The balance owing at the end of the period is $______.
(b) The (city/county/district) was approved by the EPA and the PWB to receive a loan totaling $____ to improve its drinking water system. The amount listed for this loan includes the beginning of the period loan balance plus proceeds used during the year. The balance owing at the end of the period is $_____.
Both the current and prior year loans are reported on the (city/county/district’s)(Schedule of Liabilities [Cash governments] or Schedule of Changes in Long-Term Liabilities [GAAP governments – note disclosure].
Note 4 – Revolving Loan – Program Income (Recommended if applicable)
The (city/county/district) has a revolving loan program for low income housing renovation. Under this federal program, repayments to the (city/county/district) are considered program revenues (income) and loans of such funds to eligible recipients are considered expenditures. The amount of loan funds disbursed to program participants for the year was $_____ and is presented in this Schedule. The amount of principal and interest received in loan repayments for the year was $____.
Note 5 – Noncash Awards (Recommended if applicable)
The amount of (vaccine/dental items/commodities/surplus property/etc.) reported on the Schedule is the value of (vaccine/dental items/commodities/surplus property/etc.) received by the (city/county/district) during current year and priced as prescribed by ________________.
Note 6 – Noncash Awards – Equipment (Recommended if applicable)
The (city/county/district) received equipment and supplies that were purchased with federal Homeland Security funds by the state of Washington. The amount reported on the Schedule is the value of the property on the date it was received by the (city/county/district) and priced by the state of Washington.
Note 7 – Program Costs (Recommended if applicable)
The amounts shown as current year expenditures represent only the federal award portion of the program costs. Entire program costs, including the (city/county/district’s) portion, are more than shown. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
188.8.131.52 – Clarified how to account for non-cash transactions and receipting by a third party for the benefit of the government. 184.108.40.206 – Clarified which transactions can be reported in Permanent Funds.
220.127.116.11 – Added when interfund loans could be used and requirements for interfund loans from the General Fund. 18.104.22.168 – Added information on negative fund balances and the accounting for those balances. 22.214.171.124 – Added information on when interfund payments become interfund loans.
344.71 (Transits, Railroads and Other Transportation Systems Services)
344.71 New Code - Include private vanpool charges, streetcar and monorail fares, disabled/aging transportation fees, etc. For cities/counties: this code is not reported on the road/street report to WSDOT.
547.10 (Transits, Railroads and Other Transportation Systems Services)
547.10 New Code - This account should be used only if the local government operates its own, or with other governments, transit, railroad or other transportation system. These expenditures are related to public transportation. For cities/counties: this code is not reported on the road/street report to WSDOT.
3.7.1 Changed title to Federal Awards to include all items that must be reported on the Expenditures of Federal Awards (Schedule 16). Updates, changes, and clarifications for reporting awards made throughout.
Added Footnote 2 for no activity governments reporting, no formal Schedule 22, but the government must attach bank statements and any meeting minutes for the fiscal year. 126.96.36.199 Clarified instances where special purpose districts do not need to prepare financial statements. 188.8.131.52 Updated the definition for no financial activity to include small automatic bank fees and SAO audit billings.
Added Quick Links to specific guidance 184.108.40.206 Added additional information on COVID-19 Expenditures including donated personal protective equipment purchased with COVID-19 federal financial assistance, COVID 19 Vaccines - Immunization Cooperative Agreements CFDA #93.268, Provider Relief Fund (PRF) CFDA #93.498 220.127.116.11 Moved and retitled 18.104.22.168 to Preparing the preformatted SEFA template for upload to Online Filing 22.214.171.124 Added yellow flag caution under column 4 instructions. 126.96.36.199 Changed to example of finalized Schedule of Expenditures of Federal Awards.
348.00 (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”.
308 / 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.
188.8.131.52 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
3.7.1 Updated references to Office of Management and Budget (OMB) Circulars 184.108.40.206 Included other federal financial assistance guidance 220.127.116.11 Removed reference to the American Recovery and Reinvestment Act (ARRA) 18.104.22.168 Added Identification of COVID-19 related awards requirements 22.214.171.124 Removed the Common Rule Administrative Requirements section 126.96.36.199 Removed the OMB Circular A-87 Cost Principals section
Section number updated to 4.14.13 (from 4.8.13). 188.8.131.52 Updated information on reporting pension (264.30) and OPEB liabilities (264.40) 184.108.40.206 Updated the due date instructions to list I.D. Numbers that do not require a due date to be reported.
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.
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.
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.
220.127.116.11 Updated information about the "Green Book." 18.104.22.168 Added information that states the SAO is not part of the internal control functions of a government. 22.214.171.124 Updated the five components of internal controls. 126.96.36.199 Updated information about the different areas that should be reviewed for creating internal controls.
188.8.131.52 Included information about OPEB reporting requirements, the types of OPEB plans, links to the State Actuary tools used for liability calculations. OPEB liability reporting on the Schedule 09 required in 2019.
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."
184.108.40.206 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. 220.127.116.11 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. 18.104.22.168 Revised the requirements for Disbursements to Subrecipients to "expended" rather than "paid." 22.214.171.124 Updated the exceptions for EPA Drinking Water State Revolving Fund (CFDA 66.468) and Clean Water State Revolving Fund (CFDA 66.458). 126.96.36.199 Removed Note 8 American Recovery and Reinvestment Act (ARRA) of 2009 from the SEFA Notes Template.
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.
264.40, OPEB Liabilities
Added 264.40 to the Schedule 09 codes for reporting OPEB liabilities.
263.93, Environmental liabilities
Added 263.93 to the Schedule 09 codes for reporting Environmental liabilities (e.g. pollution remediation, certain asset retirement, etc.).
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 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.
The recent changes in governmental accounting regarding fiduciary activities are effective for reporting periods beginning after December 15, 2018; however we incorporated the required changes in this version of manual. The additional information will be available on our website under Fiduciary Funds in BARS manual.
Also, updated was the discussion of enterprise  funds. There are no new reporting requirements and the update expands the current prescription.
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.
This section provides a short overview of other postemployment benefits (OPEB). Starting with financial reports for a fiscal year 2018, all local governments are required to report liabilities related to OPEB, if applicable, in the notes to the financial statements. [This update provides also samples of disclosure regarding OPEB in the Reporting/Notes to Financial Statements section.]
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.
Added a new section to provide a general overview of interfund transactions.
The recent changes in governmental accounting regarding fiduciary activities are effective for reporting periods beginning after December 15, 2018; however we incorporated the required changes in this version of manual. The additional information will be available on our website under Fiduciary Funds in BARS manual.
The following sections were updated 188.8.131.52, 184.108.40.206, 4.3.13 (also includes the change in the pension trust fund title), 220.127.116.11, 18.104.22.168, 22.214.171.124, Note X- Deposits and Investments – paragraph . These changes involved only a title change from agency to custodial funds.
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 firsttime in 2018. If they reported them in 2017, the note is not longer required.
The Schedule was revised to provide relevant information needed in assessing and auditing governments’ risk management circumstances.
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.