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BARS GAAP Manual

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BARS Account Export


Select a government type/Select basis of accounting

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

Select export type

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

Select a reporting level

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

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

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

2.4 Budget Compliance

2.4.1 Introduction

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

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

2.4.1.30 Glossary of budgetary terms:

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

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

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

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

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

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

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

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

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

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

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

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

This section was last edited by SAO on 12/17/20
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Capital Asset Accounting

3.3 Capital Assets

3.3.10 Capital Asset Accounting

Quick Links
3.3.10.10 Recording
3.3.10.20 Determining ownership of capital assets
3.3.10.30 Cost to be recorded
3.3.10.40 Excess costs
3.3.10.50 Capitalization of interest
3.3.10.60 Donated and contributed assets
3.3.10.61 Transferred assets
3.3.10.65 Acquisition of another entity or its operations and government mergers
3.3.10.70 Works of art and historical treasures
3.3.10.80 Improvements, repairs and maintenance
3.3.10.90 Date placed in service
3.3.10.100 Depreciation
3.3.10.105 Unit of depreciation
3.3.10.110 Salvage value
3.3.10.120 Estimated useful life
3.3.10.130 Fully-depreciated assets
3.3.10.140 Depreciation method
3.3.10.145 Modified approach
3.3.10.150 Componentization of assets
3.3.10.160 Depreciation on donated assets
3.3.10.170 Capital asset impairment
3.3.10.180 Calculating capital asset impairment
3.3.10.190 Reporting
Asset Impairment Decision Process (Flowchart)

3.3.10.10 Recording

Once the capital asset system is in operation, the government needs to make sure that assets which should be capitalized are properly recorded and that records are brought up to date when assets are disposed of or replaced.

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3.3.10.20 Determining ownership of capital assets

While assets may be jointly acquired, constructed or used, an asset can only be asserted to be owned by one government and therefore may only be reported as such on one set of financial statements. Generally, the government that owns the asset and holds the title determines who should report the asset even if used or paid for by someone else. For example, a city pays to construct a park on port property. The port owns the land and as such, should report the asset. However, when a title is not available, it may be difficult to determine who owns the asset. In such cases, the party responsible for managing and maintaining the asset should be considered the owner and report it. In the previous example, even if the city assumed responsibility for maintaining the park, the port would report the asset since they own the land. However, there is a potential for the city to report a leased asset if there is a lease agreement in place for the park.

Whenever there is a question about ownership or the correct classification or reporting of an asset that was acquired, constructed or used jointly, the government should check with the other parties involved to ensure consistency in reporting the asset and clarify any applicable contracts or agreements as needed.

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3.3.10.30 Cost to be recorded

Original cost (historical cost) is the amount spent to acquire an asset. This cost is based on the actual price paid, including related taxes, commissions, installation costs and any other costs related to acquiring the asset or preparing the asset for use. Costs should only be capitalized when directly attributable to a specific asset. As such, costs related to studies that determine feasibility or the best location of an asset should not be capitalized. On the other hand, legal, engineering, architectural and other ancillary fees related to acquiring, or putting in service, a specific piece of property could be capitalized.

Land costs typically include: the purchase price; closing costs, such as title to the land, attorney fees, and recording fees; assumptions of any liens, mortgages, or encumbrances on the property; costs incurred in getting the land in condition for its intended use, such as excavation, grading, filling, draining, clearing, removal, relocation or reconstruction of property of others; retaining walls; parking lots; fencing; landscaping; and any additional land improvements. Any proceeds obtained in the process of getting the land ready for its intended use, such as salvage receipts on the demolition of an old building or the sale of cleared timber, should be treated as a reduction in the price of the land.

The actual price should approximate fair market value. If the information regarding original cost is not available, the government needs to estimate the original cost. This cost principle applies to both governmental and proprietary capital asset acquisitions.

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3.3.10.40 Excess costs

Costs that do not add to the utility of an asset should not be capitalized. For example, expenditure to repair a piece of equipment that was damaged during shipment should be expensed. In addition, training on how to use a newly acquired asset should not be capitalized as it would not meet the criteria of a necessary cost to place the asset into service. Each capital asset purchase should be analyzed carefully to determine which portions of the cost should be capitalized.

Specific guidance on this topic may be provided in industry publications or mandated by certain regulatory agencies. For example, FERC guidance for PUDs, provides that any amounts incurred for plant additions that are in excess of just and reasonable charges should be expensed. Likewise, if excess costs are incurred to replace individual units of property damaged in a storm so as to restore the utility system to operating condition without delay, then only the normal or fair cost is charged to plant, the balance to maintenance.

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3.3.10.50 Capitalization of interest

Effective with GASB Statement 89, Accounting for Interest Cost Incurred before the End of Construction Period interest may no longer be capitalized as part of the historical cost of a capital asset. These costs should instead be expensed. This standard is effective for reporting periods beginning after December 15, 2019 and earlier application is encouraged. Until that time, the following guidance is in effect:

Interest cost incurred in connection with the acquisition, construction, or improvement of capital assets are considered part of the ancillary charges necessary to place the asset into its intended location and condition to use. See GASB Statement 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, paragraphs 5-22 for specific requirements.


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3.3.10.60 Donated and contributed assets

Assets are sometimes donated to a government. Donations of cash to be used to purchase or construct a specific asset should be reported as revenue (BARS 367, Contribution and Donations from Nongovernmental Sources in governmental funds; BARS 374/379, Capital Contributions in proprietary funds).

Contributed capital assets intended to be used in operations should be reported at the acquisition value. Acquisition value is the price that would be paid to acquire an asset with equivalent service potential in an orderly market transaction at the acquisition date, or the amount at which a liability could be liquidated with the counterparty at the acquisition date (further described in GASB Statement 72, Fair Value Measurement and Application). Contributed capital assets intended to be sold should be reported at fair value.

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3.3.10.61 Transferred assets

Assets are sometimes transferred within a government and between governments. Capital assets transferred between funds or between financial reporting entity components should be transferred at their current carrying value, both the original cost and accumulated depreciation amounts will transfer. For additional information, see GASB Statement 48, Sales and Pledges of Receivables and Future Revenues and Intra Entity Transfers of Assets and Future Revenues or GASB Statement 69, Government Combinations and Disposal of Government Operations.

Assets transferred between governments that qualify as a transfer of operations (such as with annexations) should be accounted for and valued consistent with guidance in GASB Statement 69, Government Combinations and Disposals of Government Operations. For example, the transfer of assets relating to an annexation should be recorded at the carrying value of the transferor (the government giving up the assets). Annexations are considered a transfer of operations. In addition, such transfers are reported as a special item.

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3.3.10.65 Acquisition of another entity or its operations and government mergers

Government acquisitions are transactions in which a government acquires another entity, or its operations, in exchange for significant consideration. In this case, assets acquired (and liabilities assumed) are required to be measured based on acquisition values.

A government merger includes combinations of legally separate entities without the exchange of significant consideration. In this scenario, the use of carrying values should be used to measure the assets and liabilities.

For reporting requirements, see GASB Statement 69, Government Combinations and Disposal of Government Operations for further details.

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3.3.10.70 Works of art and historical treasures

Works of art, historical treasures, and similar assets are considered to be capital assets and as such they should be capitalized at their historical cost if purchased or acquisition value if donated.

Exhaustible assets (such as exhibits whose useful lives are diminished by display or educational or research applications) should be depreciated over their estimated useful lives. Governments should not depreciate collections or items considered inexhaustible (i.e., the individual works of art or historical treasures that have extraordinarily long useful lives). Distinctions of exhaustible and inexhaustible items or collections, or their useful lives need to be made by each government.

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3.3.10.80 Improvements, repairs and maintenance

Costs relating to an existing asset need to be carefully evaluated as they are incurred to determine whether they should be expensed or capitalized. This evaluation will depend on the nature of the cost as well as the government’s policy.

Routine repair and maintenance costs should be expensed as they are incurred.

Costs that represent betterments, such as those that increase service capacity or efficiency should be capitalized. For example, an example of an increase in service capacity is a road that is widened to include another lane. An example of an increase in efficiency might be the ability to raise the speed limit of a road due to the addition of entrance or exit ramps. To the extent that a project is partially a betterment, the amount of the betterment should be estimated and capitalized.

Costs that extend useful life should also be capitalized. For example, a road that is fully depreciated undergoes a significant reconstruction. The costs of the reconstruction should be capitalized.

For major maintenance or replacements of components of a pre-existing asset, there are several approaches that might be used. Local governments should determine in advance what approach(s) will be used, address the approach(s) to be used in its policy, and then apply it consistently.

  • Componentization. This allows for recording key components as separate asset records and depreciating over respective useful lives. See section 3.3.10.150 for more information. For example, if the roof is recorded as its own component, then the old asset record would be removed and the new asset record added.
  • Expense the replacement or major maintenance. This approach is recommended when using group or composite depreciation as assets are part of a pool and no longer have individual identity.
  • Adjust the existing asset record for the addition and the removal. Capitalize subsequent replacements or major maintenance (such as a new roof) and adjust the existing asset record (and accumulated depreciation) for the removal or disposal (such as of the old roof). A gain or loss on the disposal should be recognized, unless the composite/group depreciation method is used. The local government’s policy should address how the original costs will be determined when the existing asset record is updated for the replacement.

If the modified approach is used, different guidance applies to improvements, see section 3.3.10.145.

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3.3.10.90 Date placed in service

Capital assets should be depreciated over their useful lives. Purchased or acquired assets are presumed to be useful upon receipt and therefore recorded as “placed in service” for accounting purposes. Constructed assets should be re-classified from construction in progress and begin to be depreciated when they are substantially completed or otherwise available for use. Construction in progress reflects the status of construction activities of buildings, other structures, infrastructure, etc.  Construction in progress is a non-depreciable capital asset since the asset’s useful life has not yet begun.  

Local governments should use professional judgement to determine the timing of the transition from construction in progress to a depreciable capital asset.  An asset would be considered substantially completed when it can at least partially perform its intended function. For example, an empty building for which the government obtained the occupancy permit, or a structure that is completed except for the landscaping, or equipment that was delivered but has not yet been tested, configured or assigned would all be considered substantially complete – these are available for use even though the government is not actively using them. A multilane road with cars using some of the lanes, a partially constructed building, or an asset that is being used even if not all “punch list” items are completed would similarly be considered substantially complete – these assets are available for use, even though use may be limited or subject to additional capitalizable improvement.

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3.3.10.100 Depreciation

Most capital assets, including infrastructure should be depreciated. There are some exceptions for assets such as land and depreciating art and historical treasures, if they are inexhaustible. In addition, an asset that has been surplused or that is held for possible future use is an investment and should not be depreciated. For quarries, timberlands, and mineral rights, depletion expenses must be recorded. Since properly maintained infrastructure assets have the potential of indefinite useful lives, there is an option of not applying depreciation for infrastructure assets that meet certain criteria as defined in GASB Statement 34; this is referred to as the modified approach.

The objective of depreciation is to spread the costs of capital assets incurred in one period equitably over multiple periods for which the capital asset will benefit. Several items should be considered when depreciating assets, as discussed below.

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3.3.10.105 Unit of depreciation

Governments may depreciate by class of assets, by a network of assets (such as a road network), a subsystem of a network (such as residential roads, arterial roads, or highway), or by individual assets. The government’s policy should prescribe how assets will be depreciated. Also, regardless of how assets are depreciated, sufficient information and support should be retained to identify them and support their existence.

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3.3.10.110 Salvage value

Salvage value is the estimated fair value of a capital asset, infrastructure or otherwise, remaining at the conclusion of its estimated useful life – after considering the cost of demolition or removal. In most cases, it is probable that many infrastructure assets will have no salvage value, given the cost of demolition or removal. For other asset types, salvage value is typically expected to be trivial and if so, can be ignored in establishing the amount to depreciate. However, if scrap or sale proceeds are expected upon disposal and these proceeds exceed the cost of demolition or removal, then this value can and should be factored into the depreciation calculation.

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3.3.10.120 Estimated useful life

Depreciation must be based on a reasonable estimate of expected useful life or service life; that is, the number of years, miles, service hours, etc., that the government expects to use that asset in operations. Service life means the time between the date the asset is includible as an asset in service to the date of its retirement.

Ideally, governments should base useful life estimates on its actual experience and plans. For example, internal sources of information about useful life might include property replacement policies or practices, property disposal information, and budgeting information regarding the planned timing for replacement of assets.

However, if this information is not available, the government can look to industry guidelines for a starting estimate and then revise the estimate as additional information becomes known. The use of another’s estimate should also be adjusted for differences in application, quality, environment, and maintenance practices that may vary amongst the entities.

The useful estimate should consider:

  • Present condition;
  • Expected future use, including anticipated changes in future usage rates or patterns; as well as how long it is expected to meet service and technology demands;
  • The government’s own experience;
  • Construction type or quality;
  • Maintenance policy;
  • The government’s historical experience with assets of this type as well as any industry, manufacturer or regulatory guidelines on the life-expectancy of the asset;
  • Any legal, regulatory, or contractual provisions that might affect the estimate for an intangible asset.

Governments should maintain support for their useful life estimates as long as they are in use in order to demonstrate how the estimate was determined. Some examples of support might include engineering or depreciation studies.

Depreciation is intended to allocate the cost of a capital asset over its entire useful life to the periods that are benefitted. As useful lives are an estimate, periodically, local governments should consider information available about the existing estimates and make adjustments as needed. For example, governments should evaluate the service life of assets that are replaced or disposed to assess whether useful life estimates for the related class should be updated. Adjustments should be made prospectively to useful life and depreciation expense to ensure costs are allocated up to the end of its service life.

Estimates involving dissimilar assets that are depreciated together (such as using the composite depreciation method) should be evaluated more frequently than other useful life estimates due to the risk that the makeup of the group may change over time.

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3.3.10.130 Fully-depreciated assets

If a government has fully depreciated assets, they should continue to report them until they are disposed of, sold, or replaced. However, fully depreciated assets that are still in use might be a red flag that useful lives are not reasonably accurate. The process of periodically evaluating and adjusting useful lives should prevent a material amount of fully depreciated assets from being reported but still in use. In practice, there are two legitimate reasons there may be fully depreciated assets that are still in use:

(1) The use of average estimated useful lives for entire classes of assets means that at least a few fully depreciated capital assets typically will be reported (i.e., those whose actual lives exceed the group estimate). This is acceptable, but only if such balances do not become material, in which case the estimated useful life for the group would likely need to be changed.

(2) For assets that have multiple components with different useful lives (such as a building) but are recorded and depreciated as one asset record, there might be a composite rate used that might reflects the service life of different components (such as a use of a weighted average). This practice results in accelerated depreciation and the overall building asset may be fully depreciated but still in use.

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3.3.10.140 Depreciation methods

There are two primary depreciation methods used by local governments in practice: straight-line or group life.

Straight-line depreciation

Straight-line depreciation is the most common method used. With the straight-line method, the cost of an individual capital asset (less any salvage value) is allocated equally over its estimated useful life.

Group or composite depreciation

Group or composite depreciation should only be used in appropriate circumstances, and should be supported by rationale documented in the capital asset policy.

In group depreciation, similar assets are depreciated as one record, such as a fleet of police cars or lane miles of pavement of a road. It is applied when it does not make practical sense to record and depreciate assets on an individual basis. Composite depreciation is used for dissimilar assets such as for depreciating all the roads and bridges of a state.

This depreciation method cannot be applied across different classes of assets (such as furniture and vehicles) and must not interfere with depreciation being charged to the appropriate functional expense in governmental activities (such as one cannot depreciate public safety assets and culture/recreation assets together in one group).

The accounting methodology is the same for both methods. The group of assets should be treated as a single asset; a depreciation rate determined based on the average life of the group (can be a weighted average, simple average, or based on an assessment). The depreciation rate is applied to the asset costs each year. Disposals are recognized by adjusting the asset record and accumulated depreciation (with no gain or loss typically recognized except in unusual situations). Governments using this method should be able to identify the assets using other source records such as operational records. When some items within the group are retired, the cost of the items is removed from both the asset and the accumulated depreciation account and no gain or loss is recognized. Depreciation continues to be charged only for the remaining assets at the original rate. The gain or loss is deferred until the entire asset group is disposed of, at which point it would be recognized.

When depreciation charges are based on time periods, charges should be made for each month that an asset is in service.  Exceptions such as the half-year convention or excluding depreciation in the first year of service are acceptable, unless this practice results in material distortions in operating income.  This might occur when capital asset additions to a fund in any one year are very large.  When such large additions are done, depreciation must be charged for no less than each whole month the additions are in service, because it is likely that material distortions in operating income would result from applying more approximate methods.

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3.3.10.145 Modified approach

The modified approach is an alternative to depreciating certain infrastructure. Governments make a commitment to maintain the infrastructure at a certain level and therefore, do not depreciate the assets. All maintenance and preservation costs are expensed, regardless of whether they extend useful life. The only costs capitalized are those related to betterments or entirely new additions that did not previously exist. Replacement of a pre-existing asset, such as a bridge, would be expensed as a preservation cost unless there was a portion of the project that was a betterment – such as the new bridge added another lane. Those using the modified approach should ensure they meet all applicable requirements for using this method.

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3.3.10.150 Componentization of assets

Componentization involves identifying and separately recording asset components that have different useful lives and depreciating them over their respective useful lives; rather than recording a composite asset as one asset record. For example, a building is a composite asset because it consists of many components such as a foundation, roof, heating and cooling system, and electrical system that might have different useful lives. A road could also be considered a composite asset due to the surface layer and the base/sub-base having different useful lives.

Componentization is a preferred method because it more accurately allocates depreciation over the periods benefitted than use of a composite rate. The decision to componentize assets of different types should be addressed in the government’s policy and be consistently applied. It is preferable to begin componentization at the time an asset is constructed or purchased. The costs of the composite asset should be reasonably allocated to the various components.

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3.3.10.160 Depreciation on donated assets

Depreciation of assets acquired from contributions is calculated in the same manner as for other assets and is reported in the same way on the operating statement.

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3.3.10.170 Capital asset impairment

GASB Statement 42, Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries requires the immediate recognition of decreases in the productive capacity of capital assets that are expected to remain in service, even if there is no change in the estimated useful life of the asset. It does not apply to assets reported using the modified approach.

The Statement identifies five indicators of possible impairment:

1. Evidence of physical damage – such as an office building damaged in a storm;

2. Changes in legal or environmental factors – such as an underground storage tank that is no longer usable due to changes in environmental standards;

3. Technological changes or obsolescence – such as medical equipment that still can be used, but for which the demand is expected to significantly decrease with the advent of more attractive treatment options;

4. Changes in manner or duration of usesuch as a school building being used as a warehouse;

5. Construction stoppagelegal or practical reasons may cause to abandon a construction project, such as a road construction that threatens the habitat of endangered species).

The presence of one of these indicators does not automatically prove that the impairment has occurred. For example, the alternative use of capital asset could have the same value as its original use. The presence of an indicator, however, does put management on notice that it needs to consider the possibility that an impairment may have occurred.

Only permanent impairments of capital assets should be recognized in the financial statements. If a government recognizes impairment because it cannot determine that the situation is only temporary, it may not recognize a subsequent recovery in value should the impairment ultimately prove to be temporary.

The following flowchart is designed to help the governments determine if there is a need to calculate and disclose the assets impairment.

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3.3.10.180 Calculating capital asset impairment

For permanently impaired assets, the appropriate accounting and financial reporting depends on whether the asset is expected to remain in service. For capital assets expected to remain in service, the impairment loss must be recognized according to methods prescribed in the statement.

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3.3.10.190 Reporting

In some cases, capital asset impairment will qualify as an extraordinary item. Capital asset impairments subject to management control (e.g., change in manner or duration of use) may qualify as special items. Otherwise, capital assets impairment should be treated as an element of net program cost in appropriate functional category.

The notes to financial statements should disclose the amount and classification of impairment losses not visible on the face of financial statements. Also, any capital assets that are idle either permanently or temporarily as a result of impairments, should be disclosed.

All insurance recoveries, including those not associated with the impairment of capital assets, should be reported net of the related loss as soon as the recovery is either realized or realizable.

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This section was last edited by SAO on 12/18/20
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BARS Reporting Requirements

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 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 Comprehensive Annual Financial Report, 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 Comprehensive Annual Financial Report, and nearly all of the additional financial requirements of the Comprehensive Annual Financial Report are readily met by formally preparing the data used to satisfy BARS requirements. No duplication of effort is necessary to produce the Comprehensive Annual Financial Report from BARS reports. For additional information on preparation of a Comprehensive Annual Financial Report 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.

Footnotes (to above checklist)

[1] 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.

[2] 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.

This section was last edited by SAO on 03/09/21
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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
County’s External Investment Pool3.2.2
Compensating Balances3.2.5
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 Guarantees3.4.12
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 – Receipts3.6.6
Impact Fees3.6.7
Liquor Tax and Profits – Two Percent Substance Abuse Treatment Programs3.6.8
Prosecuting Attorneys' Salaries3.8.12
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
Grants3.7
Grants – Accounting3.7.1
Pass-Through Grants3.7.2
Expenditures3.8
Confidential Funds (Drug Buy Money, Investigative Funds)3.8.9
Electronic Funds Transfer – Disbursements3.8.11
Employee Travel3.8.2
Imprest, Petty Cash and Other Revolving Funds3.8.8
Memberships in Civic and Service Organizations3.8.13
Mobile Devices3.8.3
Paths and Trails – Accounting3.8.10
Purchase Cards3.8.4
Redeemed Warrants/Cancelled Checks3.8.7
Unemployment and Deferred Compensation3.8.1
Use of Payroll and Claims Funds3.8.6
Voter Registration and Election Costs Allocation3.8.12
Voucher Certification and Approval3.8.5
Interfund Activities3.9
Equipment Rental and Revolving (ER&R) Fund3.9.7
Interfund Activities Overview3.9.8
Internal Service Funds3.9.6
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
Conversion and Reconciliation between Government-Wide and Fund Financial Statements4.4
Statement of Cash Flows4.5
Notes to Financial Statements4.6
Instructions4.6.1
Required Supplementary Information (RSI)4.7
Supplementary and Other Information4.14
DES Schedule of Expenses – Risk Pools4.14.2
List of Participating Members – Risk Pools4.14.1
Liabilities (Schedule 09)4.14.3
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
Labor Relations Consultant(s) (Schedule 19)4.8.7
Sales and Use Tax for Public Facilities – Rural Counties (Schedule 20)4.8.8
Risk Management (Schedule 21)4.8.9
Assessment Questionnaire (Schedule 22)4.8.14
GFOA Financial Reporting Recognition Programs4.9
This section was last edited by SAO on 12/24/20
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Overview of Changes

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.

   

BARS Alerts

7/20/2017 BARS Manual Update - Coding Marijuana Excise Tax Distribution (Cities/Counties Only)
3/14/2017 BARS Update - Reporting Court Related Agency Deposits and Remittances (Cities/Counties Only)
1/4/2017 BARS Manuals Update - 2017 Filing System Update
Overview of Significant Changes – Applicable to the Reporting Year 2017
Topic Reference Description of Changes
    CHART OF ACCOUNTS
Revenue/Expenditure/Expense Accounts 3132400, Local Infrastructure Financing Tool (LIFT) Added a new account for revenues from the local sales and use tax dedicated for LIFT projects.
Revenue/Expenditure/Expense Accounts 3340370, State Grant from CRAB The title was changed to Rural Arterial Program (RAP).
Revenue/Expenditure/Expense Accounts 3340372, CRAB Road Arterial – Projects The title was changed to County Arterial Preservation Project (CAPP).
Revenue/Expenditure/Expense Accounts 335/336 The titles for both categories was revised to State Shared Revenues, Entitlements and Impact Payments.
Revenue/Expenditure/Expense Accounts 3360425, Foundational Public Health Services A new account was added for 2017 distributions from the DOH.
Revenue/Expenditure/Expense Accounts 3360642, Marijuana Excise Tax Distribution A new account was added for the distribution of the marijuana excise tax from the State.
Revenue/Expenditure/Expense Accounts 3421000, Law Enforcement Services The definition was expanded to include payments from the WASP for processing the sex and kidnapping offenders’ registration.
Revenue/Expenditure/Expense Accounts 3670000, Contributions and Donations from Nongovernmental Sources The definition was clarified regarding connection fees.
Revenue/Expenditure/Expense Accounts 379, Capital Contributions The definition was clarified regarding connection fees.
Revenue/Expenditure/Expense Accounts 395, Disposition of Capital Assets Added a clarification regarding use of the account in the proprietary fund.
Revenue/Expenditure/Expense Accounts 398, Insurance Recoveries The account was split into two 3981, Insurance Recoveries for cash basis governments and 3985, Insurance Recoveries for GAAP. The split was necessary to accommodate reporting by cash basis proprietary funds since the BARS codes in 370 series are not available to them. The revised account 3985 replaces the original 398 code.
Revenue/Expenditure/Expense Accounts 50138, Depreciation Depletion, Amortization – Combined Water/Sewer/Solid Waste Utilities Changed title to Depreciation, Depletion, Amortization – Combined Utilities to correctly reflect the RCW.
Revenue/Expenditure/Expense Accounts 50195, Depreciation Depletion, Amortization – Infrastructure Added new account 50195, Depreciation, Depletion, Amortization – Infrastructure to include depreciation related to parking facilities.
Revenue/Expenditure/Expense Accounts 51530, Legal Services The account was divided between internal and external legal services. Within each category were created more separate accounts for different specific legal expenditures. The change will allow governments to analyze and compare costs much more effectively. This also aligns accounting records with procedures auditors are required by professional standards to perform on legal liabilities, so it will help make the audit process more efficient. This account will be required for 2018 reporting.
Revenue/Expenditure/Expense Accounts 51770, Unemployment Compensation Changed references to section of the BARS manual to correctly refer the current title (Payroll Accounting vs. Unemployment and Deferred Compensation).
Revenue/Expenditure/Expense Accounts 51830, Maintenance/Security/Insurance/Janitorial Services Clarified the definition regarding property insurance.
Revenue/Expenditure/Expense Accounts 51863, General Grants and Financial Assistance to Other Governments Revised title to General Grants, Financial Assistance and Other Distributions to Local Governments.
Revenue/Expenditure/Expense Accounts 538, Combined Water/Sewer/Solid Waste Utilities Revised title and definition to correctly reflect RCW 54.16.300 (i.e., Combined Utilities).
Revenue/Expenditure/Expense Accounts 562, Public Health The WA State DOH added additional detail accounts 562.11-562.15 for local governments subject to the DOH’s jurisdiction.
Revenue/Expenditure/Expense Accounts 593, Advance Refunding Escrow Added to the definition a reminder that this account should be reported also for proprietary funds.
Revenue/Expenditure/Expense Accounts 595, Roads/Streets and Other Infrastructure Added to the definition a reminder that this account should be reported also for proprietary funds.
Revenue/Expenditure/Expense Accounts 599, Payments to Refunded Debt Escrow Added to the definition a reminder that this account should be reported also for proprietary funds.
Account Structure 1.1.2 The section was revised to discontinue the old terminology regarding the seven-digit account codes (i.e., Prime, BASUB, etc.). The digits are now referred by their location within the code (i.e., first, second, etc.). This change was applied in all places in the BARS manual and the revised sections are not itemized in this listing.
Revenue/Expenditure Accounts Overview 1.3.10 The section was revised to discontinue the old terminology regarding the seven-digit account codes (i.e., Prime, BASUB, etc.). The digits are now referred by their location within the code (i.e., first, second, etc.).
     
    ACCOUNTING
Fund Types and Accounting Principles 3.1.1.60-3.1.1.80 These paragraphs were related to capital assets and were removed since the topics are covered extensively in Capital Asset Accounting (3.3.10).
Utility Tax Levies 3.2.6 The section is no longer needed since we do not prescribe the G.L. accounts. The section was replaced with accounting and reporting for the B&O tax related to utilities (Utility Tax, 3.6.13).
Capital Assets Accounting 3.3.10.80 Added a flowchart to determine if the expenditures should be capitalized.
Leases 3.4.1.10 Clarified in the bullet 2 that the future lease principal payments should be recorded as debt redemption rather than other financing uses.
Refunding Debt 3.4.4.120 Updated the bullet 2 regarding remaining prepaid insurance (GASBS 86, Certain Debt Extinguishment Issues).
Accounting and Reporting of Property Tax 3.5.2.30 The section was revised to better describe the reporting of property tax (no substantive change).
Diversion of County Road Property Tax 3.6.5.20 The BARS previous procedures were revised to better assist compliance with the provisions of the law.
Working Advances from DSHS 3.6.10 The section was revised to provide accounting requirements reflecting the current status of the advances from the DSHS.
Payroll Accounting 3.8.1 The title was change to Unemployment and Deferred Compensation to better reflect the content of this section. There are no changes in the prescription.
Loans   A new paragraph (3.9.1.30) was added. The paragraph discusses an issue of a government incorrectly using its own debt instruments as investments.
Voucher Certification and Approval 3.8.5 Updated the section to include electronic payments.
     
    REPORTING
GAAP Reporting Requirements 4.1.1 Flowchart and Notes to the Flowchart: The flowchart was updated to incorporate GASBS 80, Blending Requirements for Certain Component Units regarding situation when the government is the sole corporate member. Also, paragraph 12 was updated to incorporate the GASBS 85, Omnibus 2017 regarding blending component units with business-type activities.
BARS Reporting Requirements 4.1.2 The matrix of reporting requirements was updated to eliminate reporting Schedules 07 and 11.
Summary of Reporting Requirements 4.1.4 The Matrix of Statutory Reporting Requirements was updated to eliminate reporting Schedules 07 and 11.
Note X – Asset Retirement Obligations   A new note was added to meet the disclosure requirements of the GASBS 83, Certain Asset Retirement Obligations. Please note that the requirement is applicable for reporting years starting after June 15, 2018.
Note X – Deposits and Investments   The note was revised to make the disclosure easier by adding tables and additional samples of text. There are no substantive changes.
Note X – Long-Term Debt   Added additional instructions for preparers regarding disclosures when the debt is refunded with the government’s own resources. This addition incorporates the GASBS 86, Certain Debt Extinguishment Issues applicable for the year begining after June 15, 2017.
Note X – Tax Abatement   Added a matrix to summarize the disclosure requirements for governments’ own abatements and abatements of others. Also added discussion regarding disclosure when, regardless of a tax abatement agreement, the overall tax revenue is not reduced.
Schedule 01 4.8.1.50 Column 4 – clarified the instruction regarding reporting of revenues and expenses for proprietary funds.
Schedule 09   Added 4.8.3.71 and 4.8.3.81 regarding reporting loans with forgiveness clause.
     
    ONLINE FILING
Annual Street/Road Finance Report   The pilot project with DOT has been extended another year to explore the possibility of an alternative reporting process to the existing Street/Road Finance Report required to filed to DOT for cities and counties.
Fund Balance – Beginning Check   A minimum variance requirement within $1,000 added summarizing Schedule 01 funds reported.

BARS Alerts

4/21/2016 BARS Manual Update - Revisions to the Schedule of Expenditures of Federal Awards (SEFA/Schedule 16)
4/5/2016 BARS Codes for a New Distribution
2/10/2016 BARS Manual Update - Cash BARS only - Pension Accounting and Reporting
2/10/2016 BARS Manual Update - GAAP BARS only - Pension Liabilities
2/8/2016 BARS Manuals Update - BARS Coding of Miscellaneous Revenue
Overview of Significant Changes – Applicable to the Reporting Year 2016
Topic Reference Description of Changes
    CHART OF ACCOUNTS
Revenue/Expenditure/Expense Accounts 31720, Leasehold Excise Tax The definition was updated to clarify that this tax can be imposed only by counties and cities and other governments receiving their share of this tax should code the proceeds to 337, Local Grants, Entitlements and Other Payments.
Revenue/Expenditure/Expense Accounts 31740, Timber Excise Tax The definition was updated to clarify that this tax can be imposed only by counties and other governments receiving their share of this tax should code the proceeds to 337, Local Grants, Entitlements and Other Payments.
Revenue/Expenditure/Expense Accounts 32180, Concessions A new account was added. This account should be used for revenues from awarding rights to use government’s property. Previously these proceeds were comingled with proceeds from an actual sales and coded to account 36280, Concession Proceeds and 36290, Other Rents, Leases and Concession Proceeds. Proceeds from governments own sales should be accounted for in 34170, Sales of Merchandise.
Revenue/Expenditure/Expense Accounts 32191, Franchise Fees and Royalties This account was updated to include royalty payments. Previously the royalties were accounted for in 36290, Other Rents, Leases and Concession Proceeds (e.g., property rights, etc.), 34790, Other Fees (e.g., publication royalties, etc.).
Revenue/Expenditure/Expense Accounts 36210, 36230, 36240, 36250, 36260 These accounts were combined into 36200, Rents and Leases. This account is designed only for rentals and leases which are not a part of the governments’ principal operation [those rents and leases should be accounted in the appropriate 340s service and sales accounts]. The new section Determining Operating/Nonoperating Revenues/Expenses in Proprietary Funds provides guidance for classification of revenues/expenses as operating/nonoperating for the proprietary funds.
Revenue/Expenditure/Expense Accounts 36280, Concession Proceeds Account removed. For revenues from awarding rights to use government’s property use 32180, Concessions. Proceeds from governments own sales should be accounted for in 34170, Sales of Merchandise.
Revenue/Expenditure/Expense Accounts 362900, Other Rents, Leases and Concession Charges Account removed. The revenues should be accounted in 36200, Rents and Leases, 32191, Franchise Fees and Royalties 34170, Sales of Merchandise or other appropriate account.
Revenue/Expenditure/Expense Accounts 36850, Special Assessment- Operating The title was changed to Special Assessment – Service and the definition was updated. If the service assessments are related to the governments’ principal operations, they should be coded in 340s as proceeds from sales of goods and services.
Revenue/Expenditure/Expense Accounts 36910, Sale of Scrap and Junk The title was changed to Sale of Surplus and a definition was added.
Revenue/Expenditure/Expense Accounts 36950, Special Items The account changed to account 385, Special/Extraordinary Items to better reflect the substance of the transaction [i.e., special items should not be classified as revenue] The account can be also used for extraordinary items, and the title was adjusted to reflect this.
Revenue/Expenditure/Expense Accounts 380, Nonrevenues
  • The title of this section of the chart was changed to Other Increases in Fund Resources.
  • A new account 385, Special/Extraordinary Items was added [previously accounted for in 36950, Special Items – see above row for description].
  • The account 388, Prior Period Adjustments was changed to 38810 and account 38850, Cumulative Effect of Change in Accounting Principle(s) was added.
  • Accounts 386 (1), Agency Deposits and 389, Other Nonrevenues were pooled and rearranged into:
    • 38910, Refundable Deposits,
    • 38920, Retainage Deposits,
    • 38930, Agency Type Collections,
    • 38940, Agency Type Deposits,
    • 38960, Agency Type Interest Earnings, and
    • 38990, Other Custodial Activities.
These accounts are still optional for GAAP governments. [Updated the definition of these codes to clarify that they should be used for custodial activities only – to record receipts and disbursements from fiduciary funds as well as any custodial activity reported in other fund types. Subaccount detail allows for reporting by major types of custodial activities in order to provide further clarity, align with internal tracking of custodial balances and support analysis.] (1) The change applicable to the courts’ deposits and remittances was updated on March 14, 2017. The following BARS Alert was sent to all cities and counties at that time. The BARS codes for agency deposits/remittances were revised this year and BARS account 386/586 was replaced by several 389/589 accounts. However, the recent submissions of the Schedule 01 indicate that this change creates some confusion. To avoid further misunderstanding at this time the Online reporting system will accept court related deposits and remittances coded as 386/586. All other non-court items should be coded to appropriate 389/589 accounts. We have updated the summary of significant changes in the BARS manual.
Revenue/Expenditure/Expense Accounts 51170, Lobbying Activities New account. The lobbying services were excluded from account 51120, Advisory Services and are now reported separately.  [Lobbying expenditures are subject to specific compliance and reporting requirements, so governments need to separately track them. Also, the separation will allow cross-checking figure against PDC filings.]
Revenue/Expenditure/Expense Accounts 531, Storm Drainage Utilities The account description was revised to ensure that this account is used only when a local government has a separate utility for storm drainage. The storm drainage projects that are an integral part of streets and roads should be accounted with transportation codes which are generally accounted for in governmental funds.
Revenue/Expenditure/Expense Accounts 580, Nonexpenditures
  • The title of this section of the chart was retitled to Other Decreases in Fund Resources.
  • A new account 585, Special/Extraordinary Items was added [previously accounted for in 36950, Special Items – see account 385 for description].
  • The account 588, Prior Period Adjustments was changed to 58810 and account 58850, Cumulative Effect of Change in Accounting Principle(s) was added.
  • Accounts 586 (1) and 589, Other Nonexpenditures were pooled and rearranged into:
    • 58910, Refunds of Deposits,
    • 58920, Refund of Retainage,
    • 58930, Agency Type Remittances,
    • 58940, Agency Type Disbursements, and
    • 58990, Other Custodial Activities.
These accounts are still optional for GAAP governments.
  • The change applicable to the courts’ deposits and remittances was updated on March 14, 2017. The following BARS Alert was sent to all cities and counties at that time.
The BARS codes for agency deposits/remittances were revised this year and BARS account 386/586 was replaced by several 389/589 accounts. However, the recent submissions of the Schedule 01 indicate that this change creates some confusion. To avoid further misunderstanding at this time the Online reporting system will accept court related deposits and remittances coded as 386/586. All other non-court items should be coded to appropriate 389/589 accounts. We have updated the summary of significant changes in the BARS manual.
Determining Operating/Nonoperating Revenues/Expenses in Proprietary Funds 1.5 A new section was added with a guidance regarding classification of revenues/expenses as operating or nonoperating. This section is applicable only to proprietary GAAP funds. It contains a discussion and a spreadsheet showing the BARS classification. The new section should help governments to resolve the discrepancy between operating/nonoperating categories in their financial statements and in the FIT presentation.
     
    ACCOUNTING
Capital Assets 3.4 Capital asset guidance that was previously split into nine different sections (3.3.1 – 3.3.7 and 4.2.5 – 4.2.6) were consolidated into three. While content has not fundamentally changed, most topics were updated and re-written to improve guidance and match the current environment and user needs. In particular, internal control guidance was expanded to help local governments with management of capital assets.
Deposits and Investments 3.2.1 Updated content to focus on an overview of requirements for deposits and investments and refer to the Office of State Treasurer’s Guide to Public Funds Investing for Local Governments publication for details.
Pensions – Application of GASB Statement 68, Accounting and Financial Reporting for Pensions 3.4.2 The pension section has been updated for the second year of pension reporting.
    REPORTING
Liabilities (Schedule 09) 4.8.3.110 Added requirement for cities and counties to provide a BARS code for redemption and specific ID Numbers of debt related to streets/roads to accommodate the DOT Annual Street/Road Finance Report.
Note X – Self-insurance   The note was removed. The information required in this note is already provided in other risk management related disclosures.
Note X – Deposits and Investments   The note was updated to incorporate reporting requirements contained in GASB Statement 72, Fair Value Measurement and Application.
Note X – Pension Plans – Pensions Provided Through Certain Multiemployer Defined Benefit Pension Plans (nongovernmental Plans)   Added a new note required when a government participates in a nongovernmental pension plan (GASBS 78).
Note X – Pension Plans   The note instructions for local government plans that do not comply with GASBS 67/68 have been updated for the first phase of the implementation of GASBS 73.  The pension notes and RSI templates for both state sponsored and local sponsored plans have been updated with 2016 information. The GAAP-basis pension illustration spreadsheet has been significantly updated for year two reporting including note disclosure examples, amortization tables, and reconciliation examples.
Note X – Tax Abatement   This disclosure is required for fiscal years starting after December 15, 2015 (GASBS 77).
     
    ONLINE FILING
Annual Street/Road Finance Report   Steps added as a pilot project exploring an alternative to the DOT Annual Street/Road Finance Report.
591/594 in GAAP Enterprise Funds   Added validation checking each individual enterprise fund for reporting accounts 591, Debt Repayment and 594, Capital Expenses as indicated in these accounts description. Both accounts should be reported even if the dollar amounts are $0.
Balance sheet footing requirement   Section 4.8.1.25 adds balance sheet/statement of net position minimum variance requirements within $1,000. Validation tests each reporting fund.