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BARS GAAP Manual

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BARS Account Exports

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 all is 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 all is 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.

This section was last edited by SAO on 12/16/22
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Introduction

2 Budgeting

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 – 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.

This section was last edited by SAO on 12/15/22
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Internal Control

3 Accounting

3.1 Accounting Principles and Internal Control

3.1.3 Internal Control

Purpose and definition of internal controls

3.1.3.10 Internal control refers to the means by which management runs it’s organization and achieves organizational objectives.

The Government Accountability Office (GAO) publishes Standards for Internal Control in the Federal Government, also known as the “Green Book,” which provides a comprehensive conceptual framework for designing, implementing and evaluating a government’s system of internal control. The Green Book is not authoritative for Washington governments, but is the basis for this section of the BARS manual and represents a resource for local governments. The Green Book is compatible with similar guidance on internal control published by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and is referenced in professional auditing standards and Uniform Guidance for federal grants.

3.1.3.20 Internal control is a process designed to provide reasonable assurance regarding the achievement of objectives in the following categories:

  • Effectiveness and efficiency of operations performance

  • Compliance with applicable laws and regulations and safeguarding of public resources

  • Reliability of financial reporting

3.1.3.30 A government's management and governing body are responsible for its performance, compliance and financial reporting. Therefore, the adequacy of internal controls is to provide reasonable assurance in achieving these objectives is also the responsibility of management, with oversight from the governing body. The governing body has ultimate responsibility for ensuring adequate controls to achieve objectives, even though primary responsibility has been delegated to management. Since management and the governing body are assumed to work in harmony, both parties are collectively referred to as “management” throughout the rest of this section.

The State Auditor’s Office is not part of a local government’s internal control system and cannot be a replacement or supplement to an adequate system of internal control. In accordance with Washington law, the State Auditor’s Office also provides certain guidance, resources and educational materials. Such materials do not relieve management of their responsibility to evaluate the relevance of such information and decide whether and how to apply it in the context of their government. The role of the auditor is to provide independent accountability and assurance to the public and the government’s stakeholders. However, this independence assurance, along with any recommendations provided by the auditor, also represents valuable feedback to management.

3.1.3.40 An effective system of internal control is composed of five interrelated components, as follows:

  1. Control environment – The tone set by management that influences the control consciousness of staff. Control environment includes communication of integrity and ethical values, commitment to ensure that staff are competent, management’s philosophy and operating style, extent of participation by the governing board in scrutinizing activities and holding management accountable, and human resource practices (hiring, organization, development, evaluation, promotion and remedial action).

  2. Risk assessment – Management's identification and analysis of relevant risks to achievement of its objectives, forming a basis for determining how the risks should be addressed or controlled. Risk assessment includes identification of internal and external risks to the achievement of objectives, such as new contracts or grants, changing regulations and accounting standards, new technology, new personnel, new or discontinued activities and programs, new or discontinued organizational policies and procedures, obsolescence of facilities, and so on. Risk assessment also includes evaluation of risks and determining how to best address them.

  3. Information and communication – Systems to support the identification, capture, and exchange of information in a form and time frame that enable people to carry out their responsibilities. This encompasses the organization’s methods of capturing and sharing information as well as its software, including its accounting information systems.

  4. Control activities – Specific policies or procedures that directly address risks related to the achievement of objectives. Control activities occur throughout the organization, at all levels and in all functions. They include a range of activities such as approvals, reviews, reconciliations, segregation of duties, performance measurement, tracking events or assets, etc.

  5. Monitoring – Management’s review of the operation of internal controls over time. Monitoring allows the system of internal controls to be self-sustaining and self-correcting over time. Monitoring is accomplished through ongoing monitoring activities, separate evaluations, or a combination of the two. Ongoing monitoring occurs during the course of operations when management observes controls and can discern whether they were effective. Separate evaluations occur when management reviews and assesses a particular control to determine if it has been effective.

3.1.3.50 Internal control should be viewed as an integral or inherent part of the policies, systems and procedures management uses to operate and oversee the organization. This is not to say effective control will never require additional or incremental effort. Rather, controls exist to provide reasonable assurance about the achievement of objectives and so should be integrated into all the organization’s fundamental business processes. Controls are normally most effective when built into the government’s infrastructure rather than being treated as supplemental or separate processes. In the same way, implementation and monitoring of internal controls should not be viewed as a singular event, but rather a continuous or iterative process.

3.1.3.60 Since internal control is as fundamental as the objectives the controls relate to, the need for effective control is applicable to all organizations, regardless of size. While small entities may implement internal controls differently than larger ones, effective internal control is still both necessary and possible.

Determining what specific controls to implement

3.1.3.70 It is a management decision as to what specific controls to implement and how such controls are designed and operated.

3.1.3.80 There are many ways to attain effective internal control. Governments and their control needs vary considerably by statutory purpose, regulations, activities and programs, size, organizational structure, contractual and program structures, technology and information systems, expertise of staff and the policies of the governing body. In addition, there are often many different methods or combinations of methods that would result in effective internal control for any given situation. Thus, while all entities should have effective internal control, the specific controls in place may look very different from one government to another.

3.1.3.90 When choosing among different methods of achieving effective control, management often considers the costs and benefits of different control options.

  • Costs - Certain controls may be less costly or require less staff resources , or may allow the process to operate faster.

  • Effect on other control or policy objectives – Certain controls may be able to achieve multiple objectives or may also serve to support the organization’s values or operating principles.

  • Organizational limitations - Control options may be limited by organizational or program policy or structure, expertise of staff, software limitations and other decisions made by management. However, if such factors limit options for effective control to only those that management believes are infeasible or not cost effective, management should consider how it might change the limiting factors rather than ignore the need for effective control.

3.1.3.100 The Washington State Auditor’s Office does not require specific controls to be implemented by governments. Management is only required to ensure that whatever controls they choose to implement be adequate to provide reasonable assurance regarding compliance and financial reporting risks. The burden of demonstrating the adequacy of internal controls rests on management, since management is responsible both for the achievement of objectives and the determination of the design and operation of controls.

Controls over compliance

3.1.3.110 This objective refers to compliance with laws, regulations, contracts, grant agreements and government policies, including the requirement to safeguard public resources against misappropriation, misuse and loss.

3.1.3.120 In meeting this objective, the government should have controls that accomplish the following key functions:

  • Identification of requirements – Controls should ensure that requirements are identified and that employees whose actions may affect compliance are aware of applicable requirements. When statutory, regulatory or contractual provisions are unclear, the government should seek clarification through legal counsel, research or communication with regulatory agencies or contracting parties.

  • Compliance – Controls should prevent non-compliance or detect non-compliance in a timely enough manner for the government to remedy the situation. Such controls vary greatly, depending on the nature of the compliance requirement.

  • Safeguarding of public resources – Controls should prevent misappropriation or misuse of public resources or detect misappropriation or misuse in a timely manner and assign responsibility to individuals charged with custody of assets. Such controls should cover all receipts and receivables, expenditures and commitments, provisions of goods or services and the safekeeping of all public assets at risk of misappropriation, misuse or loss.

Controls over financial reporting

3.1.3.140 This objective refers to fair presentation of financial statements and required schedules in all material respects in accordance with the stated basis of accounting.

3.1.3.150 In meeting this objective, the government should have controls that accomplish the following key functions:

1. Identification of financial events – Controls should ensure financial events and transactions are properly identified and recorded.

2. Properly applying accounting standards – Controls should ensure correct criteria and methodology is applied when accounting for financial events. When the correct method of accounting for or reporting a transaction is unclear, the government should seek clarification by performing research, contracting for accounting assistance, or communicating with the State Auditor’s Office or standard setting bodies.

3. Correctly accounting for all financial events – Controls should ensure that:

  • Only valid transactions are recorded and reported.
  • All transactions occurred during the period are recorded and reported.
  • Transactions are recorded and reported at properly valued and calculated amounts.
  • Recorded and reported transactions accurately reflect legal rights and obligations.
  • Transactions are recorded and reported in the account and fund to which they apply.

4. Preparation of the annual report – Controls should ensure that financial statements and required schedules are properly compiled and prepared from source accounting records. Controls should also ensure correct presentation of statements and schedules.

Limitations of internal control

3.1.3.170 No matter how well designed and operated, internal controls cannot provide absolute assurance that the government will achieve its objectives due to inherent limitations. These limitations include the following:

  • Judgment – If controls depend on human judgment, the effectiveness of controls may be limited by the experience and qualifications, time available, information available, motivations, and pressures on the person applying the control. Moreover, differences in these factors over time and in different people applying the control may result in inconsistencies in the operation of the control. This limitation, when applicable, can be mitigated through a good control environment, clear policies or instructions, redundant controls, supporting controls such as check figures or exception reports and adequate monitoring of controls.

  • Breakdowns – Breakdowns could occur due to changes, failure or obsolesce of data, technology, assumptions, procedures, programming or other dependencies that controls may rely upon for effective functioning. This limitation, when applicable, can be mitigated by thorough risk assessment, redundant controls and adequate monitoring of controls.

  • Collusion – Many controls assume that employees (or certain employees) will not collude. When individuals act together, they may be able to overcome controls. This is typically only a risk when employees have a motivation to overcome controls, such as misappropriation or misuse of public resources. This limitation, when applicable, can be mitigated by a good control environment, redundant controls and adequate monitoring of controls. Control override – Personnel with responsibility to resolve issues identified by controls may decide to ignore or override prescribed policies or procedures. This limitation, when applicable, can be mitigated by a good control environment and adequate monitoring of controls.

  • Control override – Personnel with responsibility to resolve issues identified by controls may decide to ignore or override prescribed policies or procedures.  This limitation, when applicable, can be mitigated by a good control environment and adequate monitoring of controls.

  • Mistakes – Although internal controls may be designed in such a way as to reduce the likelihood of mistakes, is it always possible that a mistake may be made. This limitation can be mitigated by a good control environment, redundant controls, automated controls, supporting controls such as check-figures or exception reports, and adequate monitoring of controls.

  • Unforeseen circumstances – Controls may operate incorrectly when faced with unforeseen situations or permutations. This limitation can be mitigated by thorough risk assessment and adequate monitoring of controls.

  • External factors – Achievement of operational performance objectives (efficiency and effectiveness) may depend on factors outside of the government’s control, such as regulation, resource limitations, environmental changes, decisions made by service recipients or stakeholders, actions of key suppliers, customers or program partners, etc. This limitation can be mitigated by thorough risk assessment.

3.1.3.180 Although controls are not an absolute guarantee of success, effective internal controls are expected to consistently and reliably achieve objectives, year after year. However, even well-designed controls have a remote possibility of failure. This possibility increases with the number and primacy of external factors, as is often the case for performance objectives.

3.1.3.190 Ultimately, providing reasonable assurance of achieving compliance and financial reporting objectives is within the government’s control and depends primarily on how well controls are designed and operated. Achievement of operational performance objectives also depends in large part on effective internal controls. By implementing effective controls a government can have reasonable assurance that it is doing all it can to meet its objectives.

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BARS Reporting Requirements

4 Reporting

4.1 Reporting Principles and Requirements

4.1.2 BARS Reporting Requirements

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

4.1.2.20 The legal reporting requirements prescribed by the State Auditor’s Office for local governments in Washington State are consistent with the national standards of financial reporting prescribed by the GASB. These requirements for GAAP local governments are as follows:

    1. Basic Financial Statements, including notes to financial statements.
    2. Required Supplementary Information (including MD&A)
    3. Supplemental Schedules

4.1.2.30 For the basic financial statements, the local government needs to prepare worksheets to summarize the general ledger trial balances, the resources and the expenditures schedules at the required account level. Most of these worksheets do not need to be submitted as part of the annual report, but they must be available for audit. The matrixes in BARS Manual 4.1.4, Summary of Reporting Requirements identify the statutory reporting requirements for GAAP local governments.

4.1.2.35 Local governments are required to update the materially incorrect financial statements. The requirement applies to all errors found prior or during an audit.

4.1.2.40 If a local government elects to prepare the Annual Comprehensive Financial Report (ACFR), it will have to produce additional schedules and statements that are NOT described in this Manual. However, the statements and schedules required for BARS reporting can be placed directly in the ACFR, and nearly all of the additional financial requirements of the ACFR are readily met by formally preparing the data used to satisfy BARS requirements. No duplication of effort is necessary to produce the ACFR from BARS reports. For additional information on preparation of a ACFR see BARS Manual 4.9, GFOA Financial Reporting Recognition Programs.

4.1.2.45 The Department of Health (DOH) Accounting and Reporting Manual for Hospitals, which contains uniform accounting, budgeting and reporting for licensed hospitals in the state of Washington, is available from the DOH Office of Hospital and Patient Data Systems at (360) 236-4210 or from the Department’s website. The requirements in this Manual do not substitute the reporting requirements contained in the Department of Health (DOH) Accounting and Reporting Manual for Hospitals.

Filing instructions

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

For questions and/or support, please use the HelpDesk through our Online Services.

If the local government cannot provide the annual report in the electronic format mail the annual report to:

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

Certification

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

Annual Report Disclosure Form

MCAG No. _______

(City/County/District)

(This form is not required if you are submitting your annual report electronically.)

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

Checklist Footnotes

[1] Local governments with no financial activity, defined as having neither expenditures, other than small automatic bank fees (such as dormant account fees) and the state auditor’s office audit billings, nor revenues other than interest income on any cash balances, have the option to submit summarized annual reports. These governments need to submit a Schedule 01 reporting cash balances at the beginning and end of the reporting year as well as any investment income received on those balances if applicable. These governments also will be required to submit no activity supporting documents such as meeting minutes and county reports and/or bank statements verifying no activity. Note that by selecting this submission option, preparers of the annual reports are certifying that their government meets the definition of no activity as explained above.

[2] See BARS Manual 4.8.6, Public Works − Cities and Counties (Schedule 17) for detailed instructions indicating which cities are required to prepare this schedule.

[3] Only cities and special purpose districts with revenue usually less than $300,000 are required to prepare this schedule. However, conservation districts, fire districts, transportation benefit districts, local/regional trauma care councils and industrial development corporations are required to prepare the Schedule regardless of the amount of revenue. However, no financial activity reports do not require a formal Schedule 22 to be submitted. Governments who file a no activity report will be required to submit supporting documents to confirm no activity, such as meeting minutes, county reports and/or bank statements.

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Table of Contents

Index of Sections

Charts of Accounts1
BARS Account Export
Determining Operating/Nonoperating Revenues/Expenses in Proprietary Funds1.5
General Ledger Accounts1.2
Object Codes1.4
Revenue/Expenditure Accounts Overview1.3
Account Structure1.1
Applicability1.1.1
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 Principles3.1.1
Bank Reconciliations3.1.9
Internal Control3.1.3
Original Supporting Documentation3.1.4
Sources of GAAP3.1.2
Assets3.2
Compensating Balances3.2.5
County’s External Investment Pool3.2.2
Deposits and Investments3.2.1
Joint Ventures3.2.8
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 Accounting3.3.10
Capital Asset Management System Requirements3.3.9
Controls Over Capital Assets3.3.11
Liabilities3.4
Arbitrage Rebates3.4.6
Asset Retirement Obligations (AROs)3.4.19
Bonds and Revenue Warrants3.4.3
Financial Guarantees and Conduit Debt3.4.12
Intergovernmental and Forgivable Loans3.4.7
Issuance of Duplicate Instruments3.4.5
Leases3.4.1
Legal and Other Contingencies3.4.15
Other Postemployment Benefits (OPEB)3.4.17
Pensions3.4.2
Pollution Remediation3.4.20
Refunding Debt3.4.4
Risk Management Principles3.4.9
Solid Waste Utilities: Closure and Postclosure Cost3.4.8
Deferred Outflows/Inflows3.5
Accounting and Reporting of Property Tax3.5.2
Classification of Deferred Outflows/Inflows of Resources3.5.1
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 (EFT) – Receipts3.6.6
Impact Fees3.6.7
Liquor Tax and Profits – Two Percent Substance Abuse Treatment Programs3.6.8
Prosecuting Attorneys' Salaries3.6.12
Revenue Accruals in Governmental Funds3.6.9
Suspense Funds3.6.11
Utility Tax3.6.13
Working Advances from the Department of Social and Health Services (DSHS)3.6.10
Awards (Formerly Grants)3.7
Federal Awards - Accounting (Formerly Grants – Accounting)3.7.1
Certain Grants and Other Financial Assistance (Formerly Pass-Through Grants)3.7.2
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
Interfund Activities Overview3.9.8
Equipment Rental and Revolving (ER&R) Fund3.9.7
Internal Service Funds3.9.6
Interfund 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 Districts (TBD)3.11.1
Reporting4
Reporting Principles and Requirements4.1
BARS Reporting Requirements4.1.2
Certification4.1.3
GAAP Reporting Requirements4.1.1
GAAP Versus Cash Basis Reporting4.1.7
Summary of Reporting Requirements4.1.4
Government-Wide Financial Statements4.2
Presentation Requirements4.2.1
Statement of Net Position4.2.2
Statement of Activities4.2.3
Classification of Revenues and Expenses for the Statement of Activities4.2.4
Eliminations4.2.7
Net Position4.2.8
Fund Financial Statements4.3
Fund Types4.3.1
Major Funds4.3.2
Governmental Funds Financial Statements4.3.3
Proprietary Funds Financial Statements4.3.4
Internal Service Funds4.3.6
Fiduciary Funds Financial Statements4.3.5
Determining Fiduciary Activities to be Reported in Custodial Funds4.3.7
Risk Pools – Statement of Net Position – Additional Reporting Instructions4.3.4.81
Conversion and Reconciliation between Government-Wide and Fund Financial Statements4.4
Conversion and Reconciliation between Government-Wide and Fund Financial Statements4.4
Statement of Cash Flows4.5
Statement of Cash Flows4.5
Notes to Financial Statements4.6
Instructions4.6.1
Note 1 – Summary of Significant Accounting Policies
See the BARS Manual 4.6 menu for additional Note X templates/instructions.
Required Supplementary Information (RSI)4.7
Required Supplementary Information (RSI)4.7
Budgetary Comparisons4.7.2
Infrastructure Condition and Maintenance Data4.7.6
Management’s Discussion and Analysis4.7.1
Other Postemployment Benefit (OPEB) Plan Schedules4.7.4
Pension Plan Information4.7.3
Revenue and Claims Development Trend Data (for Public Entity Risk Pools)4.7.5
Supplementary and Other Information4.14
DES Schedule of Expenses – Risk Pools4.14.2
List of Participating Members – Risk Pools4.14.1
Liabilities (Schedule 09)4.8.3
Expenditures of Federal Awards (Schedule 16)4.14.5
SAO Annual Report Schedules4.8
Revenues/Expenditures/Expenses (Schedule 01)4.8.1
Expenditures of State Financial Assistance (Schedule 15)4.8.16
Public Works – Cities and Counties (Schedule 17)4.8.6
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
GFOA Financial Reporting Recognition Programs4.9
GFOA Financial Reporting Recognition Programs4.9
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Overview of Changes

For Years:

BARS Alerts

02/07/2023Opioid Settlement Update
12/17/2022Annual update, see changes in table below

Overview of Changes – Applicable to the Reporting Year 2022

TopicReferenceDescription of Changes
  Chart of Account
BARS Account Export512.50 (Municipal Court Expenses)512.50 (Municipal Court Expense) – Retired see 512.51 and 512.52
BARS Account Export512.51 (Non-Contracted Court)512.51 New Code – This code is to be used for municipal governments that provide their own court services.
BARS Account Export512.52 (Contracted Courts)512.52 New Code – This code is to be used when a municipal government contracts out their court services and should also be used by governments providing the court services to another municipality.
BARS Account Export54P (Transportation)Transportation codes are restricted to governmental funds (Exceptions are codes 542.65, 547.10, 546.00, 547.20)
BARS Account Export518.61 (Judgments & Settlements)518.61 (Judgments & Settlements) Restricted to fund types 100, 200, 300, 500, 700. Only to be used by general purpose governments.
BARS Account Export333.45.30 (Federal Indirect Award from Institute of Museum and Library Services (IMLS))333.45.30 New Code – This code is to be used for federal indirect awards from the Institute of Museum and Library Services (IMLS).
BARS Account Export331.45.30 (Federal Direct Award from Institute of Museum and Library Services (IMLS))331.45.30 New Code – This code is to be used for federal direct awards from the Institute of Museum and Library Services (IMLS).
BARS Account ExportAdded instructions and a new resource "Codes to Funds"Added instructions for chart of accounts export. All codes from the Chart of Accounts as of November 30th are included in the resource with the allowable fund types indicated.
Determining Operating/Nonoperating Revenues/Expenses in Proprietary Funds1.5Added an updated determination spreadsheet for codes as of November 30th.
Budgeting
Budget Adoption and Amendments2.4.32.4.3 Removed statement that this guidance applies only to cities and counties since it applies to all government types.
Accounting
Fund Types & Accounting Principles3.1.13.1.1.40 – Clarified which transactions can be reported in Permanent Funds.
Original Supporting Documentation3.1.4Clarified guidance on electronic documentation and digital signatures.
Leases3.4.13.4.1 Leases – Completely revised the section for the leases standard.
Pensions3.4.23.4.2 Updates, changes, and clarifications for reporting pensions made throughout (annual updates).
Intergovernmental and Forgivable Loans3.4.73.4.7 Intergovernmental and Forgivable Loans – Moved accounting for forgivable loans out of the Schedule 09 instructions and added information on intergovernmental loans.
Financial Guarantees and Conduit Debt3.4.12Added information on conduit debt.
Other Postemployment Benefits Plan Schedules3.4.173.4.16 Updates, changes, and clarifications for reporting other postemployment benefits made throughout (annual updates).
Classification of Deferred Outflows/Inflows of Resources3.5.13.5.1.40 – Added a definition and more examples for unearned revenue (Liability).
3.5.1.50 – Added additional examples for unearned revenue (deferred inflow) and deferred inflow unavailable revenues.
Federal Awards – Accounting (Formerly Grants – Accounting)3.7.13.7.1 Updates, changes, and clarifications for reporting federal awards made throughout (annual updates).
Use of Payroll and Claims Funds3.8.63.8.6.30 – Added information on registered warrants issued by counties.
Imprest, Petty Cash and Revolving Funds3.8.83.8.8.20 – Added a new section, bullet 6, for debit and ATM card use.
Interfund Loans3.9.1 3.9.1.10 – Added when interfund loans could be used and requirements for interfund loans from the General Fund.
3.9.1.31 – Added information on negative fund balances and the accounting for those balances.
3.9.1.32 – Added information on when interfund payments become interfund loans.
Limitation of Indebtedness3.10.53.10.5.60 – Changed capital leases to installment purchases
3.10.5.70 – Added leases to the obligations that do not constitute debt for debt limitation.
Promotional Hosting3.10.7Added public facility districts to governments that can participate in promotional hosting.
  

Reporting

GAAP Reporting Requirements4.1.14.1.1 Added clarification to footnote 3 of the reporting entity flowchart.
Summary of Reporting Requirements4.1.44.1.4 Removed Schedule 19 from the list of required schedules.
Classification of Revenues and Expenses for the Statement of Activities4.2.44.2.4 Added footnote 2 that the government should have a policy to address the assignment of revenues that could be classified under multiple functions.
Determining Fiduciary Activities to be Reported in Custodial Funds4.3.74.3.7 Added determinations for Flexible Savings and Health Savings Accounts, both when a government controls the asset and when the government does not.
Conversion and Reconciliation between Government-Wide and Fund Financial Statements4.44.4 Corrected the reconciliation and replaced unearned revenue with deferred inflows for unavailable revenues.
Required Supplementary Information4.74.7 Created separate pages for each type of RSI.
Management's Discussion and Analysis4.7.14.7.1 Moved section from large RSI page.
Budgetary Comparisons4.7.24.7.2 Moved section from large RSI page. Added information for reporting biennial budgets.
Pension Plan Information4.7.34.7.3 Moved section from large RSI page.
Other Postemployment Benefits Plan Schedules4.7.44.7.4 Moved section from large RSI page.
Revenue and Claims Development Trend Data (for Public Entity Risk Pools)4.7.54.7.5 Moved section from large RSI page.
Infrastructure Condition and Maintenance Data4.7.64.7.6 Moved section from large RSI page.
Liabilities (Schedule 09)4.8.34.8.3 Removed information on forgivable loans. It was moved to the new Intergovernmental and Forgivable Loans section.
Sales and Use Tax for Public Facilities – Rural Counties (Schedule 20)4.8.84.8.8 Added an example of the new online filing template for Schedule 20.
GFOA Financial Reporting Recognition Programs4.94.9 Removed the listing of requirements for the GFOA ACFR certificate. Created a link for accessing the official GFOA website and requirements for the certificate program.
Expenditures of Federal Awards (SEFA/Schedule 16)4.14.54.14.5 Updates, changes, and clarifications for reporting federal awards made throughout (annual updates).
Note 1 – Summary of Significant Accounting PoliciesNote 1 – Summary of Significant Accounting PoliciesAdded lease disclosures. Created an option for non-state sponsored pension plans.
Note X – COVID-19Note X – COVID-19Removed the requirements for all governments to report this note.
Note X – Going ConcernNote X – Going ConcernAdded instructions for when to use each part of the note.
Note X – Leases (Lessees)Note X – Leases (Lessees)New note for disclosing lease liabilities and related items.
Note X – Leases (Lessors)Note X – Leases (Lessors)New note for disclosing lease receivable and related items.
Note X – Long Term DebtNote X – Long Term DebtUpdated conduit debt disclosures.
Note X – OPEB Defined Benefit Plan – No Qualifying TrustNote X – OPEB (No Qualifying Trust)Updates, changes, and clarifications for disclosing other postemployment benefits made throughout (annual updates).
Note X – OPEB Defined Benefit Plan - Qualifying TrustNote X – OPEB (Qualifying Trust)Updates, changes, and clarifications for disclosing other postemployment benefits made throughout.
Note X – Pension and/or OPEB Plans - Defined ContributionNote X – Pension/OPEB Defined ContributionMoved note template from the templates page to the notes section. Updates, changes, and clarifications for disclosing pensions made throughout.
Note X – Pension and/or OPEB Plans - Nongovernmental PlansNote X – Pension/OPEB Non-GovernmentalMoved note template from the templates page to the notes section. Updates, changes, and clarifications for disclosing pensions made throughout.
Note X – Pensions Defined Benefit Plan (No Qualifying Trust)Note X – Pensions Defined Benefit Plan (No Qualifying Trust)Moved note template from the templates page to the notes section. Updates, changes, and clarifications for disclosing pensions made throughout.
Note X – Pensions Defined Benefit Plan (Qualifying Trust)Note X – Pensions Defined Benefit Plan (Qualifying Trust)Moved note template from the templates page to the notes section. Updates, changes, and clarifications for disclosing pensions made throughout.
Note X – Pensions State Sponsored PlansNote X – Pensions State Sponsored PlansMoved note template from the templates page to the notes section. Updates, changes, and clarifications for disclosing pensions made throughout (annual updates).
Note X – Risk ManagementNote X – Risk ManagementRemoved the outdated Housing Authority Risk Retention Pool (HAARP) disclosure. Housing Authorities should receive an updated disclosure from HAARP.
Note X – Telecommunication ServicesNote X – Telecommunication ServicesAdded information for all government types that can provide telecommunications services (Cities/Towns, Counties, Public Utility District, and Port).
Online Filing
Schedule 01BARS Reporting TemplatesSchedule 01 templates for online filing schedules have been updated.
Pension and OPEB TemplatesBARS Reporting TemplatesFiscal year 2021 Pension and OPEB templates are available for download
Schedule 19 – Labor RelationsBARS Reporting TemplatesRemoved due to change in state law.

BARS Alerts

12/17/2021Hot Topic - GAAP Proprietary Fund schedule 01 reporting:
Proprietary funds reported in the SAO annual report must include the following:
- Actual depreciation amounts reported in each proprietary fund (501XX)
- Actual expense amounts for capital expenditures (594XX and 595XX)
- Actual expense amounts for principal debt repayments (591XX, 593XX, 599XX)
12/17/2021Leases accounting is effective for fiscal year 2022 reporting in 2023.
See the Leases project page for more information.
12/17/2021Annual update, see changes in table below

Overview of Changes – Applicable to the Reporting Year 2021

Topic Reference Description of Changes 
    Chart of Accounts
  All BARS Codes Remember to download the most current version of the BARS Chart of Accounts
BARS Account Export 344.70 (Transits, Railroads and Other Transportation Systems Services) 344.70 (Transits, Railroads and Other Transportation Systems Services) - Retired, please see 344.71 and 344.72
BARS Account Export 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.
BARS Account Export 344.72 (Ferry and Water Taxi Services) 344.72 New Code - Include the proceeds of ferries and water taxis. Include a vessel replacement surcharge fee (RCW 36.54.200)
BARS Account Export 369.70 (Pension/OPEB Contributions) 369.70 (Pension/OPEB Contributions) Should only be used for contributions made to a pension/OPEB plan administered by the reporting government. Not for use in the fiduciary funds.
BARS Account Export 395.30 (Proceeds from Sales of Capital Assets)

395.30 New code - Use for any proceeds received for the sale of capital assets. Examples: real estate (land and buildings), equipment, street vacations, timber sales (timber owned by the municipality). Relatively insignificant proceeds from sales of capital assets should be coded as other revenue. If the money is further distributed to other local governments, such distributions should be coded 337 by these receiving governments.

For GAAP enterprise funds, see 372-373 for applicable coding.
BARS Account Export 395.40 (Compensation for Loss/Impairment of Capital Asset)

395.40 New code - Include insurance and other recoveries for damaged, destroyed, stolen, or lost governmental capital assets. If the recoveries meet the criteria of extraordinary items, they should be reported as such in the financial statements. 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. FEMA grants are not insurance recoveries and should be coded as direct/indirect federal grants.  

For GAAP enterprise funds, see 372-373 for applicable coding.
BARS Account Export 518.61 (Judgments and Settlements) 518.61 (Judgments and Settlement) Updated description to include proprietary funds
BARS Account Export 544.70 (Miscellaneous) 544.70 (Miscellaneous) - Retired, use appropriate 544XX codes
BARS Account Export 547.00 (Transits, Railroads and Other Transportation Systems Services) 547.00 (Transits, Railroads and Other Transportation Systems Services) - Retired, please see 547.10 and 547.20
BARS Account Export 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.
BARS Account Export 547.20 (Ferry and Water Taxi Services) 547.20 New Code -This account should only be used if the local government operates its own, or with other governments, ferries and/or water taxis.
     
   

Accounting
County's External Investment Pool 3.2.2 Updated and clarified this section. Applicable to all counties. 
Capital Asset Accounting 3.3.10 Removed references to capitalized interest. No longer supported by GAAP.
Pensions 3.4.2 3.4.2.63 Updated the restricted net position section to include all three GAAP compliant reporting options
Criminal Justice Funding 3.6.4 3.6.4.10 Added how to code the sale of confiscated and forfeited items.
Impact Fees 3.6.7 Clarified accounting for impact fees.
Federal Awards - Accounting (Formerly Grants - Accounting) 3.7.1 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.
Certain Grants and Other Financial Assistance (Formerly Pass-Through Grants) 3.7.2 3.7.2 Changed title to Certain Grants and Other Financial Assistance to match national standard titles.
Purchase Cards 3.8.4 3.8.4.10 Removed references to debit cards
Added Additional Reference Section
     
   

Reporting
BARS Reporting Requirements 4.1.2 Updated footnote to include no activity requirements of submitting supporting documents.
Net Position 4.2.8 Removed reference to deferred outflows in restricted net position to comply with GAAP.
Risk Pools – Statement of Net Position – Additional Reporting Instructions 4.3.4.81 Updated the definitions for the account balances.
Internal Service Funds 4.3.6 4.3.6.60 Added guidance on accounting for internal service funds providing services to fiduciary funds
Revenues/Expenditures/Expenses (Schedule 01) 4.8.1 Rewrote the section to provide additional links and instructions.
Schedule 09 4.8.3 4.8.3.81 Added guidance on how to account for a recoverable grant with a promissory note included.
Schedule 17 4.8.6 4.8.6.30 Clarified that the amount reported on the Schedule 17 should include all public works, including county road construction.
Schedule 21 4.8.9 4.8.9.40 Clarified definitions in the instructions to preparer.
Annual Questionnaire for Accountability Audit (Schedule 22) 4.8.14 4.8.14.10 Added clarification that governments who file a no activity report will not be required to submit a formal Schedule 22, but will need to submit supporting documents.
Expenditures of Federal Awards (Schedule 16) 4.14.5 Added Quick Links to specific guidance
4.14.5.70 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
4.14.5.155 Moved and retitled 4.14.5.230 to Preparing the preformatted SEFA template for upload to Online Filing
4.14.5.180 Added yellow flag caution under column 4 instructions.
4.14.5.230 Changed to example of finalized Schedule of Expenditures of Federal Awards.
Note 1 - Summary of Significant Accounting Policies Note 1 - Summary of Significant Accounting Policies Updated pension section.
Added the net position classification section.
Note X – AROs Note X – Asset Retirement Obligations (ARO) Added disclosure requirements for liabilities that are not reasonably estimable or assets with indefinite life.
Note X – COVID-19 Note X – COVID-19 Pandemic All local governments must include this note.
Provided examples for when there has been no substantial impacts.
Note X – Deposits and Investments Note X – Deposits and Investments Updated the fair value hierarchy to correctly reflect LGIP and other investment pools.
Note X - External Investment Pools Note X - External Investment Pools Updated the fair value hierarchy to correctly reflect LGIP and other investment pools.
     
    Online Filing
Online Filing Schedules Online Filing Schedules Schedule 01 templates for online filing schedules have been updated.
Pension and OPEB Templates Pension/OPEB Templates Fiscal Year 2021 Pension and OPEB templates are available for download.
Online Filing Flag Descriptions Online Filing Flag Descriptions  Updated the Guide to Online Filing Flag Descriptions to include new red flags.

BARS Alerts

04/24/2020COVID-19 BARS Coding
10/01/2020CARES Act Grant Monies Expenditure Codes
12/18/2020Annual update, see changes in table below
3/12/2021COVID-19 Vaccine and Donating PPE Reporting Requirements

Overview of Changes – Applicable to the Reporting Year 2020

Topic Reference Description of Changes 
    Chart of Accounts
BARS Account Export All BARS Codes Remember 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 Export 586 (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 funds 389/589, 386/586 and 361 are the ONLY codes allowed in fiduciary funds. All other codes will be red flagged.
BARS Account Export 316.40 (Business & Occupation Tax – Utility) 316.40 (Business & Occupation Tax – Utility) –
Not allowed in proprietary funds.
BARS Account Export 341/51P (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 Export 343.60 (Cemetery Sales & Services) 343.60 (Cemetery Sales & Services) –
Not allowed in permanent funds.
BARS Account Export 343.80/538.00 (Combined Utilities) 343.80/538.00 (Combined Utilities) –
Allowed only for Public Utility Districts.
BARS Account Export 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".
BARS Account Export 37P (Other Revenue and Capital Contributions) 37P (Other Revenue and Capital Contributions) –
Only allowed in proprietary funds.
BARS Account Export 398.50 (Insurance Recoveries) 398.50 (Insurance Recoveries) –
Only allowed in governmental funds.
BARS Account Export 518 (Centralized/General Services) Codes

All 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 Export 519 (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 Export 541 (Roads/Streets Construction – Preservation Projects) 541 (Roads/Streets Construction – Preservation Projects) –
This code is for modified approach to infrastructure.
Allowed in all fund types except fiduciary and permanent.
BARS Account Export 548 (Public Works – Centralized Services) 548 (Public Works – Centralized Services) –
Allowed only in general fund and internal service fund.
BARS Account Export GAAP beginning/ending balance codes GAAP Fund Balance and Net Position Codes –
308.20/508.20, 308.30/508.30, 308.40/508.40, 308.50/508.50, 308.90/508.90 – allowed only in governmental funds.
308.60/508.60, 308.19/508.19, 308.89/508.89 – allowed only in proprietary funds.   Exception: 308.19/508.19 allowed in GAAP fiduciary funds.
Revenue/Expenditure Accounts Overview 1.3.10 Other Increases and Other Decreases in Fund Resources
Removed BARS Codes 3821000, Refundable Deposits, 3822000, Retainage Deposits, and 5821000, Refund of Deposits, 5822000, Refund of Retainage Deposits. These should be reported as liability accounts for GAAP basis.
Determining Operating/Nonoperating Revenues/Expenses in Proprietary Funds 1.5.10 Updated the matrix for guidance on determining operating/nonoperating revenues/expenses
     
    Budgeting
Budget Adoption and Amendments 2.4.3 Updated the referenced RCWs and updated for any changes to RCWs
     
   

Accounting
Fund Types & Accounting Principles 3.1.1 Fiduciary funds – Added a reference to the new Determining Fiduciary Activities to be Reported in Custodial Funds
Fiduciary funds – Added a GASB 34, Paragraph 106 reference for capital assets reported in fiduciary funds
Capital Asset Management System Requirements 3.3.9 3.3.9.30 Clarified requirements for capitalization thresholds
Capital Asset Accounting 3.3.10 3.3.10.90 Clarified "placed in service" for definition
Pensions 3.4.2 Annual update for the DRS PEFI changes
OPEB 3.4.17 3.4.17.80 Updated the years in the Measurement date table
Asset Retirement Obligations 3.4.19 Created a new section for the accounting guidance for asset retirement obligations
Pollution Remediation 3.4.20 Created a new section for the accounting guidance for pollution remediation
Liquor Tax and Profits – Two Percent Substance Abuse Treatment Programs 3.6.8 3.6.8.10 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
Grants – Accounting 3.7.1 3.7.1 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 Compensation 3.8.1 3.8.1.100 Added requirements for reporting defined compensation plans.
Paths and Trails 3.8.10 Updated references to RCW
3.8.10.70 Updated references to reserved versus restricted
Overhead Cost Allocation 3.9.5 Updated 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 Indebtedness 3.10.5 Updated references to RCW
Created a Footnotes section
Transportation Benefit Districts 3.11.1 3.11.1.120 Changed a reference from a negative 3850000 code to a 5850000 code.
Added an Additional Resources section
     
   

Reporting
GAAP Reporting Requirements 4.1.1 4.1.1.210 Clarified the definition of "financially accountable"
4.1.1.220 Clarified the reporting of component units
Financial Reporting Entity Flowchart updated for determining fiduciary trust funds and defined compensation plans
Net Position 4.2.8 Clarified requirements for reporting and calculations of the components of net position
4.2.8.10 Created a downloadable worksheet for converting governmental fund balances to net position
Risk Pools – Statement of Net Position – Additional Reporting Instructions 4.3.4 Removed this section from proprietary fund financial statement section and created a new section for the additional reporting requirements for risk pools.
Determining Fiduciary Activities Reported in Custodial Funds 4.3.7 New section for determining fiduciary custodial funds
Schedule 09 4.8.3 Section number updated to 4.14.3 (from 4.8.3).
4.83.100 Updated information on reporting pension (264.30) and OPEB liabilities (264.40)
4.8.3.110 Updated the due date instructions to list I.D. Numbers that do not require a due date to be reported.
Schedule 16 4.14.5 Section number updated to 4.14.5 (from 4.8.5).
Annual update for SEFA requirements including updated notes and COVID-19/CARES Act reporting requirements.
Schedule 17 4.8.6 4.8.6.20 Updated reporting requirements for counties due to changes in RCW.
Schedule 21 4.8.9 4.8.9.20 Added information for the Washington Paid Family & Medical Leave self-insurance.
Note X – AROs Note X – Asset Retirement Obligations (ARO) Removed the accounting portion from the note. The accounting portion is now located in Accounting, Liabilities, Asset Retirement Obligations (AROs).
Note X – COVID-19 Note X – COVID-19 Pandemic Created a separate note for COVID-19 reporting requirements.
Note X – Deposits and Investments Note X – Deposits and Investments Reorganized and clarified reporting requirements.
Note X – Derivatives Note X – Derivatives Removed references to LIBOR.
Note X – Going Concern Note X – Going Concern Clarified reporting requirements and included reporting requirements for bankruptcy.
Note X – Pensions Note X – Pensions Annual update for the PEFI changes.
Note X – PFML Note X – PFML Required disclosure if a government is self-insuring the Washington Paid Family & Medial Leave.
Note X – Pollution Remediation Note X – Pollution Remediation Removed the accounting portion from the note. The accounting portion is now located in Accounting, Liabilities, Pollution Remediation.
Note X – OPEB No Qualifying Trust Note X – OPEB No Qualifying Trust Annual update to OPEB note disclosure requirements.
Note X – OPEB Qualifying Trust Note X – OPEB Qualifying Trust Annual update to OPEB note disclosure requirements.

Note X – Subsequent Events

 Note X – Subsequent Events Removed reference to COVID-19 required note. There is now a separate note for the COVID-19 Pandemic.
     
    Online Filing
Online Filing Schedules Online Filing Schedules The templates for the online filing schedules have been updated for Fiscal Year 2020 reporting. Schedule templates updated are: Schedule 01, Schedule 16, Schedule 16 Notes, Schedule 21
Pension and OPEB Templates Pension/OPEB Templates Fiscal Year 2020 Pension and OPEB templates are being refreshed and will be available for download.
Online Filing Flag Descriptions Online Filing Flag Descriptions  Guide 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
04/21/2020Note X - Subsequent Events (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 Export3132700, 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 ExportDepartment of Health supplementFor BARS codes 5620000
Added the link to the new Department of Health supplement for BARS codes 5620000 which provides the detailed codes.
BARS Account Export5100000 GuidanceBARS codes 5100000, General government function, these codes should only be used by cities, towns, and counties.
BARS Account Export5990000 GuidanceBARS 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 1.3.10 Other Increases and Other Decreases in Fund Resources
Added BARS Codes 3821000, Refundable Deposits, 3822000, Retainage Deposits, and 5821000, Refund of Deposits, 5822000, Refund of Retainage Deposits to be used for deposits that are not custodial activities. These codes are replacing 3891000, 5891000, 3892000, 5892000 which are no longer valid BARS codes.
Object CodesRemoved the reminder that 2018 was the final year for use of object code 50.
General Ledger Accounts 1.2.30Updated 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.
County's External Investment Pool3.2.2Counties - Rewrote the entire section for counties to report external investments in accordance with GASB 84.
Capital Assets Management System Requirements

3.3.9

3.3.9.40 Added information that is required to be recorded for each capital asset, and clarified some of the tracking system requirements.
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

GAAP Reporting Requirements4.1.14.1.1.210 Updated the guidelines for financial accountability.
Governmental Funds Financial Statements4.3.34.3.3.31 Added information about the category Classification of Fund Balances.
Fiduciary Funds Financial Statements4.3.5Counties - 4.5.5.53 Provided the guidance for counties reporting external investment pools.
Statement of Cash Flows4.5.130Updated the illustration - added a line for "other (payments)."
Required Supplementary Information4.7.10Clarified the RSI requirements.
Required Supplementary Information4.7.20Removed references to GASB 43 and 45 and replaced with GASB 74 and 75.
Required Supplementary Information4.7.340Other Postemployment Benefit (OPEB) Plan Schedules, 4.7.340 - 4.7.410 -
Updated the requirements to match GASB 74 and 75. Added links to the appropriate templates.
Expenditures of Federal Awards (Schedule 16)4.8.54.8.5.40 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.
Note X - Deposits and InvestmentsInstructions to preparers, footnote 3 -
Included instructions for participants in investment pools.
Note X - External Investment PoolNew Note
Counties - Provided guidance for disclosing external investment pools.
Note X - Pension and /or OPEB Plans - Defined ContributionsAdded information that the requirement to report defined contribution plans is only when the government contributes.
Note X - Pension and /or OPEB Plans - Nongovernmental PlansAdded clarification on when to use the Nongovernmental Plans note.
Note X - Pension PlansAdded guidance for defined contribution pension plans when a government contributes.
Note X - SolvencyRisk Pools - Updated part B. of the note template regarding the requirements for health and welfare pools (joint pools).
   
  

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 09263.93, Environmental liabilities Added 263.93 to the Schedule 09 codes for reporting Environmental liabilities (e.g. pollution remediation, certain asset retirement, etc.).
   

BARS Alerts

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

Overview of Significant Changes – Applicable to the Reporting Year 2018

 

Topic

 

Reference

 

Description of Changes

 

  

CHART OF ACCOUNTS

BARS Account Export

3132500, Housing and Related Services Sale and Use Tax

New account for governments collecting sales and use tax as authorized in RCW 82.14.530.

BARS Account Export

3329330, Medical Transformation Demonstration

New account for revenues for Medicaid payments related to an implementation of the Transformation Plans. The addition was communicated on August 1, 2018 in BARS Alert

BARS Account Export

3329340, Ground Emergency Medical Transportation (GEMT) Payment Program

New account for revenues from Medicaid related to the GEMT program. The addition was communicated on August 1, 2018 in BARS Alert

BARS Account Export

3360211, County Fair Fund

Expanded definition to clarify use of this code.

BARS Account Export

3360700, PFD Lodging Tax Distribution

Code applicable only to Seattle and King County.

BARS Account Export

3432000, Television/Cable/Internet Sales and Services

Expanded the title and the definition to include internet services as authorized by Chapter 186, Laws of 2018.

BARS Account Export

3697000, Pension/OPEB Contributions

Revised title and definition to clarify use of this account for pension and OPEB related revenues only.

BARS Account Export

38110/38120, Interfund Loan Receipts

Removed these accounts since the loans are balance sheet transactions and their reporting on Schedule 01 was always optional.

BARS Account Export

51530, Legal Services

The account was divided between internal and external legal services. Within each category were created more separate accounts for different specific legal expenditures. The change will allow governments to analyze and compare costs much more effectively. This also aligns accounting records with procedures auditors are required by professional standards to perform an audit on legal liabilities, so it will help make the audit process more efficient. This change was already announced in 2016 and was not required for the FY 2017 reports; however, the new accounts will be required for 2018 reporting.

BARS Account Export

58110/58120, Interfund Loan Repayments

Removed these accounts since the loans are balance sheet transactions and their reporting on Schedule 01 was always optional.

Object Codes

 

 

Object code 50 was removed and the definitions of object codes 30 and 40 adjusted to include the transactions which were previously reported using object 50. For other details see BARS Alert issued August 1, 2018.

   
  

ACCOUNTING

Fund Types and Accounting Principles

 

3.1.1

GASB Statement 84, Fiduciary Activities – the Statement is effective for reporting periods beginning after December 15, 2018; however we incorporated the required changes in this version of manual. The additional information will be available on our website under Fiduciary Funds in BARS manual.

Also, updated was the discussion of enterprise [400] funds. There are no new reporting requirements and the update expands the current prescription.

Capital Assets Management

 

3.3.9

The update incorporates the changes to RCW 36.32.210 which removed the annual inventory requirement. The change was communicated on March 21, 2018 in BARS Alert.

Capital Assets Accounting

 

3.3.10

Based on additional research we made the following changes to clarify different areas related to capital assets:

  • Added guidance for options for accounting for replacements;
  • Moved all the guidance for componentization primarily to this section
  • Added GASBS 69 guidance;
  • Added GASBS 89 guidance;
  • Aligned useful life section with current GASB standards and terminology;
  • Clarified and expanded fully depreciated asset section;
  • Clarified and expanded group/composite depreciation section based on research and GASB codification guidance.

Capital Assets Accounting

 

3.3.10.50

Removed requirement to capitalize interests during construction. This is an early implementation of GASBS 89, Accounting for Interest Cost Incurred before the End of Construction Period which is applicable for reporting periods beginning after December 15, 2019.

Refunding Debt

 

3.4.4.91

Added GASBS 86, Certain Debt Extinguishment Issues update regarding accounting and reporting when the debt is refunded with the government’s own resources.

Arbitrage Rebate

 

3.4.6.90

Removed requirement to capitalize interests during construction. This is an early implementation of GASBS 89, Accounting for Interest Cost Incurred before the End of Construction Period which is applicable for reporting periods beginning after December 15, 2019.

Contingencies and Litigations

 

3.4.15

A new section was added to discuss and clarify concepts related to accounting and reporting of contingencies and litigations.

Other Postemployment Benefits (OPEB)

 

3.4.17

The entire section was updated to implement GASBS 74 and 75. [The update contains also notes and RSI requirements.]

County Auditor’s Operation and Maintenance Fund (Recording Fees)

 

3.6.2

The section was updated to reflect the 2018 legislative changes in the amounts of collected surcharges.

ER&R

 

3.9.7

New section was added regarding Equipment Rental and Revolving (ER&R) Fund. This guidance was previously available outside the BARS manual and it is now incorporated into the manual allowing an easy access.

Interfund Activities

 

3.9.8

Added a new section to provide a general overview of interfund transactions.

   
  

REPORTING

  

GASB Statement 84, Fiduciary Activities – the statement is effective for reporting periods beginning after December 15, 2018; however we incorporated the required changes in this version of manual. The following sections were updated: 4.1.1.150 (removed due to the changes in reporting requirements for custodial funds and their impact on financial reports); 4.1.4.20, 4.3.1.40, 4.3.2.70, 4.8.3.50, and 4.9.140. These changes involved only a title change from the agency to custodial funds.

The most significant change involves changes in financial reporting and these are incorporated into 4.3.5, Fiduciary Funds Financial Statements.

Statement of Cash Flows

 

4.5.100

Removed requirement to capitalize interests during construction. This is an early implementation of GASBS 89, Accounting for Interest Cost Incurred before the End of Construction Period which is applicable for reporting periods beginning after December 15, 2019.

Note 1 – Summary of Significant Accounting Policies

Section 7

Removed requirement to capitalize interests during construction. This is an early implementation of GASBS 89, Accounting for Interest Cost Incurred before the End of Construction Period which is applicable for reporting periods beginning after December 15, 2019.

Note X – Capital Assets

Subsection F, Interest Capitalization + Instructions [7]

Removed requirement to capitalize interests during construction. This is an early implementation of GASBS 89, Accounting for Interest Cost Incurred before the End of Construction Period which is applicable for reporting periods beginning after December 15, 2019.

Note X – Long-Term Debt

 

Added reporting requirements of GASBS 88, Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placements. This Statement is applicable for reporting periods beginning after June 15, 2018.

Note X – Tax Abatement

 

Added link to the WA State Department of Revenue page containing information regarding state’s abatements. This update was communicated on March 7, 2018 in the BARS Alert.

Schedule 09

 

 

Clarified that the governments should be reporting both short- and long-term liabilities on the Schedule. Also added new ID. Numbers for registered warrants and lines of credits.

Schedule 16

 

4.8.5.60

4.8.5.120

4.8.5.130

4.8.5180

Note 4, Federal Loans

Revision reflect the clarification for reporting federal grants provided by federal agencies.

Remove discussion of ARRA grants.

The example of reporting FEMA grants was updated.

Updated for changes related to reporting the following grants: EPA Drinking Water (CFDA 66.468), Clean Water (CFDA 66.458), USDA Interim Financing (CFDA10.760) and (CFDA 10.766).

Revised rules for reporting grants with missing CFDA numbers.

Added sentence regarding interim financing.

Schedule 21

 

 

The Schedule was revised to provide relevant information needed in assessing and auditing governments’ risk management circumstances.

   
  

ONLINE FILING

Schedule 09

 

The Schedule 09, Schedule of Liabilities, includes a new validation check for net pension liabilities. Governments will receive a red flag if they have pension related liabilities but do not report them on the Schedule 09 or if they are using the incorrect ID No.