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BARS GAAP Manual

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

BARS Account Exports

BARS Account Exports
In this section, governments can access a report providing information on the allowability of BARS codes in fund types as well as export a chart of accounts specific to a government type.

BARS Codes to Fund Type
BARS codes may be restricted for use in the annual report filing system. The following matrix “Codes to Funds” identifies which fund group(s) that each active BARS code may be reported in.

Download FY2022 Codes to Funds here. Codes are as of November 30, 2022.

Note: It is recommended to use this matrix in conjunction with the government specific BARS Account Export provided below.

BARS Account Export
Download a government specific BARS Chart of Accounts in the export box at the bottom of this page.

Your annual report requires seven digits for all account codes however, their display in the chart of accounts export varies. The expenditure or expense accounts are presented in the export without object codes. Object codes will need to be added to the BARS Code to complete the required seven digits for the annual report. Additional details about object codes are available in the BARS Manual 1.4. The reporting at the subobject level is not required.

How to use the BARS Account Export

Select a government type
The government type selection will limit the BARS accounts that are applicable to the selected government type. If all is selected, the export will include BARS accounts for all government types.

Select basis of accounting
The basis of accounting selection will limit the BARS accounts that are applicable to the basis of accounting selected (GAAP or Cash). If all is selected, the export will include all the BARS codes regardless of their applicability to a specific basis.

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

Select a reporting level
Above and Prescribed option includes all the accounts, including the accounts in which other codes are rolled up into for category presentation. These above prescribed codes are not valid for reporting, however they provide detailed information on the category of the codes. This listing also provides the Prescribed accounts, which are the required accounts for annual report filing.
The Prescribed option includes only the accounts which are the valid BARS account codes for annual report filing.

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

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Introduction

2 Budgeting

2.4 Budget Compliance

2.4.1 Introduction

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

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

2.4.1.30 Glossary of budgetary terms:

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

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

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

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

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

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

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

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

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

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

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

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

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

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Federal Awards – Accounting (Formerly Grants – Accounting)

3 Accounting

3.7 Awards (Formerly Grants)

3.7.1 Federal Awards – Accounting (Formerly Grants – Accounting)

3.7.1.10 NOTE: Revisions to the Uniform Guidance were issued on August 13, 2020. Revisions are effective to new awards issued by a federal agency on or after November 12, 2020, except for amendments to sections 200.216 and 200.340, which were effective August 13, 2020. Click here for Final Rule. One change to be aware of is that “CFDA Number” was changed to “Assistance Listing Number” (ALN).

The requirements described below apply to all local governments who expend federal funds or pass funds through federal funds to subrecipients. Federal financial assistance can be provided to state and local governments in many forms including project grants, block grants, formula grants, cost reimbursement contracts, cooperative agreements, loans, loan guarantees, insurance contracts, interest subsidies, food commodities, real property, personal property, and other financial assistance.

3.7.1.20 Excerpts from the Uniform Guidance, 2 CFR 200 are provided in this section. Please note that there are many additional federal laws and regulations that may apply to your federal financial assistance which can generally be found in the awarding documents and/or awarding agency guidance.

3.7.1.30 Identification of COVID-19 related awards

As described in 2 CFR section 200.510(b), non-federal entities must complete the Schedule of Expenditures of Federal Awards (SEFA) and include ALNs of federal awards and subawards. To maximize transparency and accountability of COVID-19 related award expenditures, non-federal entities must separately identify COVID-19 expenditures on the SEFA. This includes the new COVID-19 only programs. Municipalities will need to have a system that enables them to separately identify how it spent its COVID-19 awards.

3.7.1.40 The Uniform Guidance – Administrative Requirements

Subpart C – Pre-Federal Award Requirements and Contents of Federal Awards and Subpart D – Post-Federal Award Requirements of the Uniform Guidance, 2 CFR 200, (§§.200-.216 and §§.300-.346, respectively) contain the Administrative Requirements for federal financial assistance to state and local governments and are effective for new awards and additional funding increments to existing awards issued by the federal government on or after December 26, 2014. The financial management systems of local governments and subawards to subrecipients must meet the following standards of 2 CFR §200.302:

“…(b) The financial management system of each non-Federal entity must provide for the following (see also §§200.334 Retention requirements for records, 200.335 Requests for transfer of records, 200.336 Methods for collection, transmission and storage of information and 200.337 Access to records):

"(1) Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the Assistance Listings (formerly CFDA) title and number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any.

"(2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§200.328 Financial reporting and 200.329 Monitoring and reporting program performance…
If a Federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient must not be required to establish an accrual accounting system. This recipient may develop accrual data for its reports on the basis of an analysis of the documentation on hand. Similarly, a pass-through entity must not require a subrecipient to establish an accrual accounting system and must allow the subrecipient to develop accrual data for its reports on the basis of an analysis of the documentation on hand.

"(3) Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation.

"(4) Effective control over, and accountability for, all funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and assure that they are used solely for authorized purposes. See §200.303 Internal controls.

"(5) Comparison of expenditures with budget amounts for each Federal award.

"(6) Written procedures to implement the requirements of §200.305 Payment.

"(7) Written procedures for determining the allowability of costs in accordance with Subpart E – Cost Principles of this Part and the terms and conditions of the Federal award.”

3.7.1.50 Uniform Guidance – Cost Principles

For new awards and additional funding increments to existing awards issued by the federal government on or after December 26, 2014, expenditures of federal funds and costs claimed for reimbursement or used for matching must be determined in accordance with Subpart E – Cost Principles of the Uniform Guidance: 2 CFR 200 (§§.400-.476).

3.7.1.60 Uniform Guidance – Audit Requirements

Subpart F – Audit Requirements (§§.500-.521) set forth the uniform requirements for audits of federal financial assistance provided to state and local governments and is effective based upon the entity fiscal year and not the date of the award. Uniform Guidance audit requirements are effective for audits of fiscal years beginning on or after December 26, 2014.

A non-Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single or program-specific audit conducted for that year in accordance with the provisions of this part.

3.7.1.70 Uniform Guidance outlines specific auditee responsibilities. In short, the auditee must perform the following:

1. Identify, in the accounting records, all federal awards received and expended (§200.302);

2. Establish and maintain internal control over federal programs that provides reasonable assurance that the non-federal entity is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards (§200.303);

3. Comply with laws and regulations and the terms and conditions of its federal awards (§§200.300 and .303);

4. Prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA aka Schedule 16) (§§200.508 and .510). See SEFA requirements here.

5. Ensure audits are performed when required (§200.508);

6. Promptly follow up and take corrective action on audit findings, including preparation of a Summary Schedule of Prior Audit Findings and a Corrective Action Plan (§200.511); and

7. Ensure a reporting package and a Data Collection Form are submitted to the Federal Audit Clearinghouse by the applicable deadline (§200.512).

3.7.1.80 Governments that expend less than $750,000 in a year in federal awards are exempt from federal audit requirements for that year, but records must be available for review or audit by appropriate officials of the federal agency, pass-through entity, and General Accounting Office (GAO).

3.7.1.90 The Single Audit Act provides that an audit made in accordance with the Uniform Guidance should be in lieu of any financial or financial compliance audit required under individual federal assistance programs. To the extent that a single audit provides federal agencies with information and assurances they need to carry out their overall responsibilities, they should rely upon and use such information. However, a federal agency should make additional audits which are necessary to carry out its responsibilities under federal law and regulation. Any additional federal audit effort should be planned and carried out in such a way as to avoid duplication.

3.7.1.100 To satisfy the requirements of the Single Audit Act and generally accepted accounting principles, the following accounting for awards is prescribed.

1. Use of separate award funds

Awards may be accounted for in the same funds as other operations of a municipality or in one or more separate “award funds,” depending upon award terms. The Governmental Accounting Standards Board (GASB) recommends that governments establish and maintain the minimum number of funds consistent with legal specifications and operational requirements. Award transactions coded within the same fund as other operations may be distinguished by using the BARS local option codes.

2. Fund types

Awards must be accounted for in the type of fund appropriate for the activities being financed. If an award is to be used for general governmental purposes, it should be accounted for in the general (current expense) or a special revenue fund. If an award is received for the payment of principal and/or interest on general long-term debt, it should be accounted for in a debt service fund. If an award is received to support operations of, or acquire capital assets for, a proprietary fund, the award should be accounted for in a proprietary fund. Other capital grants should be accounted for in capital projects funds. See separate discussion in Pass-Through Grants.

3. Project coding

At the inception of an award (award notification), one or more project codes should be assigned locally to identify the particular award. This coding must be incorporated into the basic coding structure the municipality uses to identify all its transactions. Any available field or fields may be used, so long as the results do not interfere with the prescribed seven-digit BARS code.

The use of multiple codes may be necessary when there is more than one source of funds for a particular award. For example, when some expenditures must be charged to particular revenue sources or are not allowed under some agencies' terms, separate budgets for such sources must be established. In addition, it may be desirable or necessary to account for the local share of costs (match) or program income in separate projects. The value of separate projects is that they immediately segregate budgets, revenues, expenditures, cash accounts, receivables, and payables for each award and for the related non-award resources used to accomplish the project or operate the program.

4. Local funding of award projects

Within this project or set of projects, the municipality should account not only for award resources and expenditures but also for the municipality’s own contributions to the project or program and for related program income. This is necessary to ensure uniform accounting for the entire project or program, not merely that portion supported by award money.

5. Award (project) budgets

As soon as the terms of the award are known, the award budget entries are to be made. If the exact terms of an award agreement are not known when expenditures begin to be incurred, approximate budgets must be entered. These entries are not the municipality’s own appropriation entries, which are still required.

To distinguish the award budget from the municipality’s own appropriated budget, municipalities may use the separate budgetary control accounts and the separate nominal control accounts. This results in tracking two budgets for the same expenditures because the award fiscal period often will not coincide with the municipality’s fiscal period. In these cases, continuing appropriations will be necessary.

These accounts are used to keep track of the resources/uses for the award projects from inception of the award through the current date. Comparison of these accounts to the control accounts will yield budget analysis on a project basis as opposed to current year transactions.

If a separate award fund is used, the municipality’s own legislated appropriation should be limited to the fund total, and the detail budget should be the terms contained in the award and related agreements. If the award is accounted for within a fund that accounts for other operations of the municipality, either the award terms or the municipal appropriation may be used for the detail budget. Using the municipal appropriation for the detail budget has the disadvantage that, although award revenues and expenditures will be identified as they are incurred, they will not be compared to the detailed award budget and therefore the municipality may have to absorb some award related costs that turn out not to dovetail with the award budget restrictions.

6. Award schedules

A set of award schedules is prepared as shown in the Expenditures of Federal Awards (Schedule 16). These schedules meet federal requirements for the Single Audit. After these schedules are complete, the life-to-date control accounts are closed to allow the preparation of a balance sheet. The life-to-date control accounts are reopened as the first journal entry of the succeeding fiscal year.

7. Noncash awards

The value of noncash awards (e.g., food stamps, food commodities, vaccines, supplies and equipment, etc.) should be accounted for and reported on the Schedule of Expenditures of Federal Awards (Schedule 16) as the fair market value of non-cash awards received during the year, as determined by the awarding agency. The notes to the schedule should disclose the nature of the amounts reported. See BARS guidance on COVID-19 vaccines and Donated Personal Protective Equipment (PPE).

This section was last edited by SAO on 12/13/22

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BARS Reporting Requirements

4 Reporting

4.1 Reporting Principles and Requirements

4.1.2 BARS Reporting Requirements

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

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

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

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

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

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

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

Filing instructions

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

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

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

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

Certification

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

Annual Report Disclosure Form

MCAG No. _______

(City/County/District)

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

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

Checklist Footnotes

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

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

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

This section was last edited by SAO on 12/15/21

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Index of Sections

Charts of Accounts	1
BARS Account Export
Determining Operating/Nonoperating Revenues/Expenses in Proprietary Funds	1.5
General Ledger Accounts	1.2
Object Codes	1.4
Revenue/Expenditure Accounts Overview	1.3
Account Structure	1.1
Applicability	1.1.1
Structure	1.1.2

Budgeting	2
Budget Compliance	2.4
Introduction	2.4.1
Budget Adoption and Amendments	2.4.3
Budget Process	2.4.2

Accounting	3
Accounting Principles and Internal Control	3.1
Fund Types and Accounting Principles	3.1.1
Bank Reconciliations	3.1.9
Internal Control	3.1.3
Original Supporting Documentation	3.1.4
Sources of GAAP	3.1.2
Assets	3.2
Compensating Balances	3.2.5
County’s External Investment Pool	3.2.2
Deposits and Investments	3.2.1
Joint Ventures	3.2.8
Money Held in Trust	3.2.4
Special Assessments	3.2.7
Sweeping Interest and Investment Returns into General Fund	3.2.3
Capital Assets	3.3
Capital Assets Accounting	3.3.10
Capital Asset Management System Requirements	3.3.9
Controls Over Capital Assets	3.3.11
Liabilities	3.4
Arbitrage Rebates	3.4.6
Asset Retirement Obligations (AROs)	3.4.19
Bonds and Revenue Warrants	3.4.3
Financial Guarantees and Conduit Debt	3.4.12
Intergovernmental and Forgivable Loans	3.4.7
Issuance of Duplicate Instruments	3.4.5
Leases	3.4.1
Legal and Other Contingencies	3.4.15
Other Postemployment Benefits (OPEB)	3.4.17
Pensions	3.4.2
Pollution Remediation	3.4.20
Refunding Debt	3.4.4
Risk Management Principles	3.4.9
Solid Waste Utilities: Closure and Postclosure Cost	3.4.8
Deferred Outflows/Inflows	3.5
Accounting and Reporting of Property Tax	3.5.2
Classification of Deferred Outflows/Inflows of Resources	3.5.1
Revenues	3.6
Cash Receipting	3.6.1
County Auditor's Operation and Maintenance Fund (Recording Fees)	3.6.2
County Treasurer’s Operation and Maintenance Fund	3.6.3
Criminal Justice Funding	3.6.4
Diversion of County Road Property Tax	3.6.5
Electronic Funds Transfer (EFT) – Receipts	3.6.6
Impact Fees	3.6.7
Liquor Tax and Profits – Two Percent Substance Abuse Treatment Programs	3.6.8
Prosecuting Attorneys' Salaries	3.6.12
Revenue Accruals in Governmental Funds	3.6.9
Suspense Funds	3.6.11
Utility Tax	3.6.13
Working Advances from the Department of Social and Health Services (DSHS)	3.6.10
Awards (Formerly Grants)	3.7
Federal Awards - Accounting (Formerly Grants – Accounting)	3.7.1
Certain Grants and Other Financial Assistance (Formerly Pass-Through Grants)	3.7.2
Expenditures	3.8
Confidential Funds (Drug Buy Money, Investigative Funds)	3.8.9
Electronic Funds Transfer – Disbursements	3.8.11
Employee Travel	3.8.2
Imprest, Petty Cash and Other Revolving Funds	3.8.8
Memberships in Civic and Service Organizations	3.8.13
Mobile Devices	3.8.3
Paths and Trails – Accounting	3.8.10
Purchase Cards	3.8.4
Redeemed Warrants/Cancelled Checks	3.8.7
Unemployment and Deferred Compensation	3.8.1
Use of Payroll and Claims Funds	3.8.6
Voter Registration and Election Costs Allocation	3.8.12
Voucher Certification and Approval	3.8.5
Interfund Activities	3.9
Interfund Activities Overview	3.9.8
Equipment Rental and Revolving (ER&R) Fund	3.9.7
Internal Service Funds	3.9.6
Interfund Loans	3.9.1
Overhead Cost Allocation	3.9.5
Property Transfers	3.9.2
Reimbursements	3.9.4
Utility Surplus Transfers	3.9.3
Compliance	3.10
Bond Coverage for Public Officials and Employees	3.10.3
County Fair Operations	3.10.1
Limitation of Indebtedness	3.10.5
New Entity Creation and Dissolution Notification	3.10.6
Promotional Hosting	3.10.7
Public Works Records	3.10.4
Reporting Losses of Public Funds or Assets or Other Illegal Activity	3.10.2
Special Topics	3.11
Transportation Benefit Districts (TBD)	3.11.1

Reporting	4
Reporting Principles and Requirements	4.1
BARS Reporting Requirements	4.1.2
Certification	4.1.3
GAAP Reporting Requirements	4.1.1
GAAP Versus Cash Basis Reporting	4.1.7
Summary of Reporting Requirements	4.1.4
Government-Wide Financial Statements	4.2
Presentation Requirements	4.2.1
Statement of Net Position	4.2.2
Statement of Activities	4.2.3
Classification of Revenues and Expenses for the Statement of Activities	4.2.4
Eliminations	4.2.7
Net Position	4.2.8
Fund Financial Statements	4.3
Fund Types	4.3.1
Major Funds	4.3.2
Governmental Funds Financial Statements	4.3.3
Proprietary Funds Financial Statements	4.3.4
Internal Service Funds	4.3.6
Fiduciary Funds Financial Statements	4.3.5
Determining Fiduciary Activities to be Reported in Custodial Funds	4.3.7
Risk Pools – Statement of Net Position – Additional Reporting Instructions	4.3.4.81
Conversion and Reconciliation between Government-Wide and Fund Financial Statements	4.4
Conversion and Reconciliation between Government-Wide and Fund Financial Statements	4.4
Statement of Cash Flows	4.5
Statement of Cash Flows	4.5
Notes to Financial Statements	4.6
Instructions	4.6.1
Note 1 – Summary of Significant Accounting Policies
See the BARS Manual 4.6 menu for additional Note X templates/instructions.
Required Supplementary Information (RSI)	4.7
Required Supplementary Information (RSI)	4.7
Budgetary Comparisons	4.7.2
Infrastructure Condition and Maintenance Data	4.7.6
Management’s Discussion and Analysis	4.7.1
Other Postemployment Benefit (OPEB) Plan Schedules	4.7.4
Pension Plan Information	4.7.3
Revenue and Claims Development Trend Data (for Public Entity Risk Pools)	4.7.5
Supplementary and Other Information	4.14
DES Schedule of Expenses – Risk Pools	4.14.2
List of Participating Members – Risk Pools	4.14.1
Liabilities (Schedule 09)	4.8.3
Expenditures of Federal Awards (Schedule 16)	4.14.5
SAO Annual Report Schedules	4.8
Revenues/Expenditures/Expenses (Schedule 01)	4.8.1
Expenditures of State Financial Assistance (Schedule 15)	4.8.16
Public Works – Cities and Counties (Schedule 17)	4.8.6
Sales and Use Tax for Public Facilities – Rural Counties (Schedule 20)	4.8.8
Risk Management (Schedule 21)	4.8.9
Assessment Questionnaire (Schedule 22)	4.8.14
GFOA Financial Reporting Recognition Programs	4.9
GFOA Financial Reporting Recognition Programs	4.9

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

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Overview of Changes

BARS Alerts

Coming Soon	Opioid Settlement Update
12/17/2022	Annual update, see changes in table below

Overview of Changes – Applicable to the Reporting Year 2022

Topic	Reference	Description of Changes
		Chart of Account
BARS Account Export	512.50 (Municipal Court Expenses)	512.50 (Municipal Court Expense) – Retired see 512.51 and 512.52
BARS Account Export	512.51 (Non-Contracted Court)	512.51 New Code – This code is to be used for municipal governments that provide their own court services.
BARS Account Export	512.52 (Contracted Courts)	512.52 New Code – This code is to be used when a municipal government contracts out their court services and should also be used by governments providing the court services to another municipality.
BARS Account Export	54P (Transportation)	Transportation codes are restricted to governmental funds (Exceptions are codes 542.65, 547.10, 546.00, 547.20)
BARS Account Export	518.61 (Judgments & Settlements)	518.61 (Judgments & Settlements) Restricted to fund types 100, 200, 300, 500, 700. Only to be used by general purpose governments.
BARS Account Export	333.45.30 (Federal Indirect Award from Institute of Museum and Library Services (IMLS))	333.45.30 New Code – This code is to be used for federal indirect awards from the Institute of Museum and Library Services (IMLS).
BARS Account Export	331.45.30 (Federal Direct Award from Institute of Museum and Library Services (IMLS))	331.45.30 New Code – This code is to be used for federal direct awards from the Institute of Museum and Library Services (IMLS).
BARS Account Export	Added instructions and a new resource "Codes to Funds"	Added instructions for chart of accounts export. All codes from the Chart of Accounts as of November 30th are included in the resource with the allowable fund types indicated.
Determining Operating/Nonoperating Revenues/Expenses in Proprietary Funds	1.5	Added an updated determination spreadsheet for codes as of November 30th.
		Budgeting
Budget Adoption and Amendments	2.4.3	2.4.3 Removed statement that this guidance applies only to cities and counties since it applies to all government types.
		Accounting
Fund Types & Accounting Principles	3.1.1	3.1.1.40 – Clarified which transactions can be reported in Permanent Funds.
Original Supporting Documentation	3.1.4	Clarified guidance on electronic documentation and digital signatures.
Leases	3.4.1	3.4.1 Leases – Completely revised the section for the leases standard.
Pensions	3.4.2	3.4.2 Updates, changes, and clarifications for reporting pensions made throughout (annual updates).
Intergovernmental and Forgivable Loans	3.4.7	3.4.7 Intergovernmental and Forgivable Loans – Moved accounting for forgivable loans out of the Schedule 09 instructions and added information on intergovernmental loans.
Financial Guarantees and Conduit Debt	3.4.12	Added information on conduit debt.
Other Postemployment Benefits Plan Schedules	3.4.17	3.4.16 Updates, changes, and clarifications for reporting other postemployment benefits made throughout (annual updates).
Classification of Deferred Outflows/Inflows of Resources	3.5.1	3.5.1.40 – Added a definition and more examples for unearned revenue (Liability). 3.5.1.50 – Added additional examples for unearned revenue (deferred inflow) and deferred inflow unavailable revenues.
Federal Awards – Accounting (Formerly Grants – Accounting)	3.7.1	3.7.1 Updates, changes, and clarifications for reporting federal awards made throughout (annual updates).
Use of Payroll and Claims Funds	3.8.6	3.8.6.30 – Added information on registered warrants issued by counties.
Imprest, Petty Cash and Revolving Funds	3.8.8	3.8.8.20 – Added a new section, bullet 6, for debit and ATM card use.
Interfund Loans	3.9.1	3.9.1.10 – Added when interfund loans could be used and requirements for interfund loans from the General Fund. 3.9.1.31 – Added information on negative fund balances and the accounting for those balances. 3.9.1.32 – Added information on when interfund payments become interfund loans.
Limitation of Indebtedness	3.10.5	3.10.5.60 – Changed capital leases to installment purchases 3.10.5.70 – Added leases to the obligations that do not constitute debt for debt limitation.
Promotional Hosting	3.10.7	Added public facility districts to governments that can participate in promotional hosting.
		Reporting
GAAP Reporting Requirements	4.1.1	4.1.1 Added clarification to footnote 3 of the reporting entity flowchart.
Summary of Reporting Requirements	4.1.4	4.1.4 Removed Schedule 19 from the list of required schedules.
Classification of Revenues and Expenses for the Statement of Activities	4.2.4	4.2.4 Added footnote 2 that the government should have a policy to address the assignment of revenues that could be classified under multiple functions.
Determining Fiduciary Activities to be Reported in Custodial Funds	4.3.7	4.3.7 Added determinations for Flexible Savings and Health Savings Accounts, both when a government controls the asset and when the government does not.
Conversion and Reconciliation between Government-Wide and Fund Financial Statements	4.4	4.4 Corrected the reconciliation and replaced unearned revenue with deferred inflows for unavailable revenues.
Required Supplementary Information	4.7	4.7 Created separate pages for each type of RSI.
Management's Discussion and Analysis	4.7.1	4.7.1 Moved section from large RSI page.
Budgetary Comparisons	4.7.2	4.7.2 Moved section from large RSI page. Added information for reporting biennial budgets.
Pension Plan Information	4.7.3	4.7.3 Moved section from large RSI page.
Other Postemployment Benefits Plan Schedules	4.7.4	4.7.4 Moved section from large RSI page.
Revenue and Claims Development Trend Data (for Public Entity Risk Pools)	4.7.5	4.7.5 Moved section from large RSI page.
Infrastructure Condition and Maintenance Data	4.7.6	4.7.6 Moved section from large RSI page.
Liabilities (Schedule 09)	4.8.3	4.8.3 Removed information on forgivable loans. It was moved to the new Intergovernmental and Forgivable Loans section.
Sales and Use Tax for Public Facilities – Rural Counties (Schedule 20)	4.8.8	4.8.8 Added an example of the new online filing template for Schedule 20.
GFOA Financial Reporting Recognition Programs	4.9	4.9 Removed the listing of requirements for the GFOA ACFR certificate. Created a link for accessing the official GFOA website and requirements for the certificate program.
Expenditures of Federal Awards (SEFA/Schedule 16)	4.14.5	4.14.5 Updates, changes, and clarifications for reporting federal awards made throughout (annual updates).
Note 1 – Summary of Significant Accounting Policies	Note 1 – Summary of Significant Accounting Policies	Added lease disclosures. Created an option for non-state sponsored pension plans.
Note X – COVID-19	Note X – COVID-19	Removed the requirements for all governments to report this note.
Note X – Going Concern	Note X – Going Concern	Added instructions for when to use each part of the note.
Note X – Leases (Lessees)	Note X – Leases (Lessees)	New note for disclosing lease liabilities and related items.
Note X – Leases (Lessors)	Note X – Leases (Lessors)	New note for disclosing lease receivable and related items.
Note X – Long Term Debt	Note X – Long Term Debt	Updated conduit debt disclosures.
Note X – OPEB Defined Benefit Plan – No Qualifying Trust	Note X – OPEB (No Qualifying Trust)	Updates, changes, and clarifications for disclosing other postemployment benefits made throughout (annual updates).
Note X – OPEB Defined Benefit Plan - Qualifying Trust	Note X – OPEB (Qualifying Trust)	Updates, changes, and clarifications for disclosing other postemployment benefits made throughout.
Note X – Pension and/or OPEB Plans - Defined Contribution	Note X – Pension/OPEB Defined Contribution	Moved note template from the templates page to the notes section. Updates, changes, and clarifications for disclosing pensions made throughout.
Note X – Pension and/or OPEB Plans - Nongovernmental Plans	Note X – Pension/OPEB Non-Governmental	Moved note template from the templates page to the notes section. Updates, changes, and clarifications for disclosing pensions made throughout.
Note X – Pensions Defined Benefit Plan (No Qualifying Trust)	Note X – Pensions Defined Benefit Plan (No Qualifying Trust)	Moved note template from the templates page to the notes section. Updates, changes, and clarifications for disclosing pensions made throughout.
Note X – Pensions Defined Benefit Plan (Qualifying Trust)	Note X – Pensions Defined Benefit Plan (Qualifying Trust)	Moved note template from the templates page to the notes section. Updates, changes, and clarifications for disclosing pensions made throughout.
Note X – Pensions State Sponsored Plans	Note X – Pensions State Sponsored Plans	Moved note template from the templates page to the notes section. Updates, changes, and clarifications for disclosing pensions made throughout (annual updates).
Note X – Risk Management	Note X – Risk Management	Removed the outdated Housing Authority Risk Retention Pool (HAARP) disclosure. Housing Authorities should receive an updated disclosure from HAARP.
Note X – Telecommunication Services	Note X – Telecommunication Services	Added information for all government types that can provide telecommunications services (Cities/Towns, Counties, Public Utility District, and Port).
		Online Filing
Schedule 01	BARS Reporting Templates	Schedule 01 templates for online filing schedules have been updated.
Pension and OPEB Templates	BARS Reporting Templates	Fiscal year 2021 Pension and OPEB templates are available for download
Schedule 19 – Labor Relations	BARS Reporting Templates	Removed due to change in state law.

BARS Alerts

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

Overview of Changes – Applicable to the Reporting Year 2021

Topic	Reference	Description of Changes
		Chart of Accounts
	All BARS Codes	*Remember to download the most current version of the BARS Chart of Accounts*
BARS Account Export	344.70 (Transits, Railroads and Other Transportation Systems Services)	344.70 (Transits, Railroads and Other Transportation Systems Services) - Retired, please see 344.71 and 344.72
BARS Account Export	344.71 (Transits, Railroads and Other Transportation Systems Services)	344.71 New Code - Include private vanpool charges, streetcar and monorail fares, disabled/aging transportation fees, etc. For cities/counties: this code is not reported on the road/street report to WSDOT.
BARS Account Export	344.72 (Ferry and Water Taxi Services)	344.72 New Code - Include the proceeds of ferries and water taxis. Include a vessel replacement surcharge fee (RCW 36.54.200)
BARS Account Export	369.70 (Pension/OPEB Contributions)	369.70 (Pension/OPEB Contributions) Should only be used for contributions made to a pension/OPEB plan administered by the reporting government. Not for use in the fiduciary funds.
BARS Account Export	395.30 (Proceeds from Sales of Capital Assets)	395.30 New code - Use for any proceeds received for the sale of capital assets. Examples: real estate (land and buildings), equipment, street vacations, timber sales (timber owned by the municipality). Relatively insignificant proceeds from sales of capital assets should be coded as other revenue. If the money is further distributed to other local governments, such distributions should be coded 337 by these receiving governments. For GAAP enterprise funds, see 372-373 for applicable coding.
BARS Account Export	395.40 (Compensation for Loss/Impairment of Capital Asset)	395.40 New code - Include insurance and other recoveries for damaged, destroyed, stolen, or lost governmental capital assets. If the recoveries meet the criteria of extraordinary items, they should be reported as such in the financial statements. Insurance recoveries that are related to storm cleanup and are realized, or are measurable and available, in the same year as the related cleanup expenditures should be netted against those expenditures. Insurance recoveries that are related to cleanup and are recognized in subsequent periods should be reported as other financing sources or extraordinary items, as appropriate. FEMA grants are not insurance recoveries and should be coded as direct/indirect federal grants. For GAAP enterprise funds, see 372-373 for applicable coding.
BARS Account Export	518.61 (Judgments and Settlements)	518.61 (Judgments and Settlement) Updated description to include proprietary funds
BARS Account Export	544.70 (Miscellaneous)	544.70 (Miscellaneous) - Retired, use appropriate 544XX codes
BARS Account Export	547.00 (Transits, Railroads and Other Transportation Systems Services)	547.00 (Transits, Railroads and Other Transportation Systems Services) - Retired, please see 547.10 and 547.20
BARS Account Export	547.10 (Transits, Railroads and Other Transportation Systems Services)	547.10 New Code - This account should be used only if the local government operates its own, or with other governments, transit, railroad or other transportation system. These expenditures are related to public transportation. For cities/counties: this code is not reported on the road/street report to WSDOT.
BARS Account Export	547.20 (Ferry and Water Taxi Services)	547.20 New Code -This account should only be used if the local government operates its own, or with other governments, ferries and/or water taxis.

		Accounting
County's External Investment Pool	3.2.2	Updated and clarified this section. Applicable to all counties.
Capital Asset Accounting	3.3.10	Removed references to capitalized interest. No longer supported by GAAP.
Pensions	3.4.2	3.4.2.63 Updated the restricted net position section to include all three GAAP compliant reporting options
Criminal Justice Funding	3.6.4	3.6.4.10 Added how to code the sale of confiscated and forfeited items.
Impact Fees	3.6.7	Clarified accounting for impact fees.
Federal Awards - Accounting (Formerly Grants - Accounting)	3.7.1	3.7.1 Changed title to Federal Awards to include all items that must be reported on the Expenditures of Federal Awards (Schedule 16). Updates, changes, and clarifications for reporting awards made throughout.
Certain Grants and Other Financial Assistance (Formerly Pass-Through Grants)	3.7.2	3.7.2 Changed title to Certain Grants and Other Financial Assistance to match national standard titles.
Purchase Cards	3.8.4	3.8.4.10 Removed references to debit cards Added Additional Reference Section

		Reporting
BARS Reporting Requirements	4.1.2	Updated footnote to include no activity requirements of submitting supporting documents.
Net Position	4.2.8	Removed reference to deferred outflows in restricted net position to comply with GAAP.
Risk Pools – Statement of Net Position – Additional Reporting Instructions	4.3.4.81	Updated the definitions for the account balances.
Internal Service Funds	4.3.6	4.3.6.60 Added guidance on accounting for internal service funds providing services to fiduciary funds
Revenues/Expenditures/Expenses (Schedule 01)	4.8.1	Rewrote the section to provide additional links and instructions.
Schedule 09	4.8.3	4.8.3.81 Added guidance on how to account for a recoverable grant with a promissory note included.
Schedule 17	4.8.6	4.8.6.30 Clarified that the amount reported on the Schedule 17 should include all public works, including county road construction.
Schedule 21	4.8.9	4.8.9.40 Clarified definitions in the instructions to preparer.
Annual Questionnaire for Accountability Audit (Schedule 22)	4.8.14	4.8.14.10 Added clarification that governments who file a no activity report will not be required to submit a formal Schedule 22, but will need to submit supporting documents.
Expenditures of Federal Awards (Schedule 16)	4.14.5	Added Quick Links to specific guidance 4.14.5.70 Added additional information on COVID-19 Expenditures including donated personal protective equipment purchased with COVID-19 federal financial assistance, COVID 19 Vaccines - Immunization Cooperative Agreements CFDA #93.268, Provider Relief Fund (PRF) CFDA #93.498 4.14.5.155 Moved and retitled 4.14.5.230 to Preparing the preformatted SEFA template for upload to Online Filing 4.14.5.180 Added yellow flag caution under column 4 instructions. 4.14.5.230 Changed to example of finalized Schedule of Expenditures of Federal Awards.
Note 1 - Summary of Significant Accounting Policies	Note 1 - Summary of Significant Accounting Policies	Updated pension section. Added the net position classification section.
Note X – AROs	Note X – Asset Retirement Obligations (ARO)	Added disclosure requirements for liabilities that are not reasonably estimable or assets with indefinite life.
Note X – COVID-19	Note X – COVID-19 Pandemic	All local governments must include this note. Provided examples for when there has been no substantial impacts.
Note X – Deposits and Investments	Note X – Deposits and Investments	Updated the fair value hierarchy to correctly reflect LGIP and other investment pools.
Note X - External Investment Pools	Note X - External Investment Pools	Updated the fair value hierarchy to correctly reflect LGIP and other investment pools.

		Online Filing
Online Filing Schedules	Online Filing Schedules	Schedule 01 templates for online filing schedules have been updated.
Pension and OPEB Templates	Pension/OPEB Templates	Fiscal Year 2021 Pension and OPEB templates are available for download.
Online Filing Flag Descriptions	Online Filing Flag Descriptions	Updated the Guide to Online Filing Flag Descriptions to include new red flags.

BARS Alerts

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

01/13/2020	Annual update, see changes below
04/21/2020	Note X - Subsequent Events (COVID-19)
04/24/2020	COVID-19 BARS Coding
10/01/2020	CARES 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 Assets	3952000, Compensation for Loss/Impairment of Capital Assets Added the following information: Insurance recoveries that are related to storm cleanup and are realized, or are measurable and available, in the same year as the related cleanup expenditures should be netted against those expenditures. Insurance recoveries that are related to cleanup and are recognized in subsequent periods should be reported as other financing sources or extraordinary items, as appropriate.
BARS Account Export	3132700, Affordable and Supportive Housing Sales and Use Tax	3132700, Affordable and Supportive Housing Sales and Use Tax A new BARS code 3132700 was assigned to code the sales and use tax authroized by the SHB 1406, Laws of 2019.
BARS Account Export	Department of Health supplement	For BARS codes 5620000 Added the link to the new Department of Health supplement for BARS codes 5620000 which provides the detailed codes.
BARS Account Export	5100000 Guidance	BARS codes 5100000, General government function, these codes should only be used by cities, towns, and counties.
BARS Account Export	5990000 Guidance	BARS codes 5990000, Payments for Refunded Debt, these codes should be used for payments to an escrow agent for refunding debt payments and direct payments of refunded debt (e.g., BANs, refinancing or loans, etc.). Note this correlates to current refundings, advanced refundings utilize 5930000 codes.
Revenue/Expenditure Accounts Overview	1.3.10	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 Codes		Removed the reminder that 2018 was the final year for use of object code 50.
General Ledger Accounts	1.2.30	Updated the General Ledger Chart to match the Schedule 09 coding requirement and simplified other sections.

		ACCOUNTING
Internal Control	3.1.3	3.1.3.10 Updated information about the "Green Book." 3.1.3.30 Added information that states the SAO is not part of the internal control functions of a government. 3.1.3.40 Updated the five components of internal controls. 3.1.3.90 Updated information about the different areas that should be reviewed for creating internal controls.
Original Supporting Documentation	3.1.4	3.1.4.10 Updated the link to the Local Government Records Retention Schedule.
Fund Types and Accounting Principles	3.1.7	3.1.7.50 Added clarifying information about Debt service funds, Capital project funds, and Fiduciary funds.
Bank Reconciliations	3.1.9	New section on bank reconciliations.
Transportation Benefit Districts (TBD)	3.11.1	3.11.1.70 Removed reference to object code 50 in reference to contract expenditure and updated to object code 40.
County's External Investment Pool	3.2.2	Counties - 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)	3.6.2	Counties - 3.6.2.75 Added reference to RCW 36.22.240 and requirements.
Electronic Funds Transfer - Receipts	3.6.6	Removed "signed" in 3.6.620 b. which now says "A file must be maintained of those payers who have authorized to add moneys to your account electronically including the proceeds form third party vendors for credit card remittances."
Electronic Funds Transfer - Disbursement	3.8.11	Removed "signed" in 3.8.11.20 b. which now says "A file must be maintained of authorizations by payees who have therby agreed to have moneys added to their accounts electronically."
Electronic Funds Transfer - Disbursement	3.8.11	Added the fourth bullet in 3.8.11.30 which now says "Policies and procedures should be in place to validate these authorization to protect resources being transferred electronically."

		REPORTING
GAAP Reporting Requirements	4.1.1	4.1.1.210 Updated the guidelines for financial accountability.
Governmental Funds Financial Statements	4.3.3	4.3.3.31 Added information about the category Classification of Fund Balances.
Fiduciary Funds Financial Statements	4.3.5	Counties - 4.5.5.53 Provided the guidance for counties reporting external investment pools.
Statement of Cash Flows	4.5.130	Updated the illustration - added a line for "other (payments)."
Required Supplementary Information	4.7.10	Clarified the RSI requirements.
Required Supplementary Information	4.7.20	Removed references to GASB 43 and 45 and replaced with GASB 74 and 75.
Required Supplementary Information	4.7.340	Other 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)	4.8.5	4.8.5.40 Removed reference to the fact that the SEFA must be prepared on the same basis of accounting since Uniform Guidance does not require the SEFA. 4.8.5.50 Removed references to CFDA 10.665: Title I - Schools and Roads, Title II - Special Projects on Federal Land, Title III - County Projects in the Direct costs of expenditure transactions associated with grants, cost-reimbursement contracts, cooperative agreements, and direct appropriations. 4.8.5.128 Revised the requirements for Disbursements to Subrecipients to "expended" rather than "paid." 4.8.5.130 Updated the exceptions for EPA Drinking Water State Revolving Fund (CFDA 66.468) and Clean Water State Revolving Fund (CFDA 66.458). 4.8.5.230 Removed Note 8 American Recovery and Reinvestment Act (ARRA) of 2009 from the SEFA Notes Template.
Note X - Deposits and Investments		Instructions to preparers, footnote 3 - Included instructions for participants in investment pools.
Note X - External Investment Pool		New Note Counties - Provided guidance for disclosing external investment pools.
Note X - Pension and /or OPEB Plans - Defined Contributions		Added information that the requirement to report defined contribution plans is only when the government contributes.
Note X - Pension and /or OPEB Plans - Nongovernmental Plans		Added clarification on when to use the Nongovernmental Plans note.
Note X - Pension Plans		Added guidance for defined contribution pension plans when a government contributes.
Note X - Solvency		Risk Pools - Updated part B. of the note template regarding the requirements for health and welfare pools (joint pools).

		ONLINE FILING
Schedule 01	Red Flags	Governments will receive a red flag if they report functional codes in custodial funds. Note only applicable 36X and 389/589 codes may be used.
Schedule 09	263.93, Environmental liabilities	Added 263.93 to the Schedule 09 codes for reporting Environmental liabilities (e.g. pollution remediation, certain asset retirement, etc.).

BARS Alerts

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

Overview of Significant Changes – Applicable to the Reporting Year 2018

Topic	Reference	Description of Changes
		CHART OF ACCOUNTS
BARS Account Export	3132500, Housing and Related Services Sale and Use Tax	New account for governments collecting sales and use tax as authorized in RCW 82.14.530.
BARS Account Export	3329330, Medical Transformation Demonstration	New account for revenues for Medicaid payments related to an implementation of the Transformation Plans. The addition was communicated on August 1, 2018 in BARS Alert
BARS Account Export	3329340, Ground Emergency Medical Transportation (GEMT) Payment Program	New account for revenues from Medicaid related to the GEMT program. The addition was communicated on August 1, 2018 in BARS Alert
BARS Account Export	3360211, County Fair Fund	Expanded definition to clarify use of this code.
BARS Account Export	3360700, PFD Lodging Tax Distribution	Code applicable only to Seattle and King County.
BARS Account Export	3432000, Television/Cable/Internet Sales and Services	Expanded the title and the definition to include internet services as authorized by Chapter 186, Laws of 2018.
BARS Account Export	3697000, Pension/OPEB Contributions	Revised title and definition to clarify use of this account for pension and OPEB related revenues only.
BARS Account Export	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 GAAP Manual

BARS Account Exports

Introduction

Federal Awards – Accounting (Formerly Grants – Accounting)

BARS Reporting Requirements

Table of Contents

Index of Sections

Overview of Changes

For Years:

BARS Alerts

BARS Alerts

BARS Alerts

BARS Alerts

BARS Alerts