BARS Account Exports In this section, governments can access a report providing information on the allowability of BARS codes in fund types as well as export a chart of accounts specific to a government type.
BARS Codes to Fund Type BARS codes may be restricted for use in the annual report filing system. The following matrix “Codes to Funds” identifies which fund group(s) that each active BARS code may be reported in.
Download FY2022 Codes to Funds here. Codes are as of November 30, 2022.
Note: It is recommended to use this matrix in conjunction with the government specific BARS Account Export provided below.
BARS Account Export Download a government specific BARS Chart of Accounts in the export box at the bottom of this page.
Your annual report requires seven digits for all account codes however, their display in the chart of accounts export varies. The expenditure or expense accounts are presented in the export without object codes. Object codes will need to be added to the BARS Code to complete the required seven digits for the annual report. Additional details about object codes are available in the BARS Manual 1.4. The reporting at the subobject level is not required.
How to use the BARS Account Export
Select a government type The government type selection will limit the BARS accounts that are applicable to the selected government type. If allis selected, the export will include BARS accounts for all government types.
Select basis of accounting The basis of accounting selection will limit the BARS accounts that are applicable to the basis of accounting selected (GAAP or Cash). If allis selected, the export will include all the BARS codes regardless of their applicability to a specific basis.
Select export type The Excel option provides a spreadsheet which you can format. The PDF is formatted to highlight the different categories of account codes and for printing. For display purposes, the account codes contain decimal points which should be excluded in your annual report. Select a reporting level Above and Prescribed option includes all the accounts, including the accounts in which other codes are rolled up into for category presentation. These above prescribed codes are not valid for reporting, however they provide detailed information on the category of the codes. This listing also provides the Prescribed accounts, which are the required accounts for annual report filing. The Prescribed option includes only the accounts which are the valid BARS account codes for annual report filing.
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.
The Governmental Accounting Standards Board (GASB) issued Statement 87, Leases. In addition, there are several Implementation Guides that address lease accounting and reporting:
The guidance in section 3.4.1.70 – 3.4.1.74 is specific to lessors and the guidance in section 3.4.1.80 – 3.4.1.86 is specific to lessees. The rest of this section applies to both lessors and lessees.
3.4.1.20 Definition
A lease is a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction.
3.4.1.30 Exclusions
The following items should not follow lease accounting and reporting guidance:
Short-term leases – One that, at the beginning of the lease, has a maximum possible term of 12 months or less, including any options to extend - e.g. rolling month-to-month leases
Interfund leases – Leases between departments or funds within the same government
Lease of intangible assets – This includes mineral rights, patents, software, copyrights, except for the sublease of an intangible right-to-use asset created by the original lease of a tangible underlying asset
Leases of biological assets – such as timber, living plants, and living animals
Leases of inventory
Service concession arrangements
Assets financed with outstanding conduit debt – unless both the asset and conduit debt are reported by the lessor
Supply contracts – such as power purchase agreements that do not convey control of the right to use the underlying power generating facility
Certain regulated leases – such as aviation leases between airports and air carriers
3.4.1.40 Lease term
The lease term includes:
The period during which a lessee has a non-cancelable right to use an underlying asset
plus periods covered by a lessee’s or lessor’s option to extend the lease (if reasonably certain the option will be exercised)
and periods covered by the lessee’s or lessor’s option to terminate the lease (if reasonably certain the option will not be exercised)
Lease term excludes periods for which both the lessee and lessor each have the option to terminate or both parties must agree to extend
Lease term excludes the period, if any, after the date at which a purchase option is reasonably certain to be exercised (GASB Statement 99, Omnibus, paragraph 11b.)
Determining whether a lease option is reasonably certain of being exercised or not requires professional judgement and should take into consideration the specific facts and circumstances at your government. Examples of items to consider in this analysis:
What is the past history of extending the lease or not?
Is the item being leased essential to your government’s operations or services provided to citizens?
Do you have other options for where you can lease this asset from?
Any other factors relevant to your specific circumstances.
3.4.1.45 Short-term lease
A short-term lease is one that has a maximum possible term of less than 12 months. The maximum possible term includes all options to extend regardless of whether those options will be exercised or not.
Example: A lease contract has an initial noncancelable term of 6 months with an option for the lessee to extend for another year. The lessee will most likely not exercise that option.
This is not a short-term lease because the maximum possible term is 18 months. The extension option is included even if it will not be exercised. The lease term for accounting purposes would only be 6 months.
Lessors should recognize revenue and lessees should recognize an expense when lease payments are due based on the payment provisions of the lease contract.
3.4.1.50 Discount rate
The lease payments should be discounted using the rate the lessor charges the lessee. This may be an implicit rate which is discussed in GASB Statement 63, paragraphs 173 – 187. However, the rate cannot be readily determined, then the lessee’s incremental borrowing rate may be used. The incremental borrowing rate is the estimated interest rate that would be charged if the lessee borrowed the lease payment amounts over the lease term. If it is not practicable for the lessor to determine the lessee’s incremental borrowing rate, the lessor may use its own incremental borrowing rate as the discount rate.
The discount rate must be reasonable for the specific lease. For example, a 5-year lease and a 20-year lease would likely have different discount rates because a lender would likely charge different rates for borrowing funds over those different time frames.
3.4.1.60 Remeasurement
Lessees and lessors are required to remeasure (recalculate) the lease liability or lease receivable in certain circumstances:
If a lease liability or receivable is remeasured for any of the changes above, the index or rate used for variable payments and the discount rate should also be updated. However, the liability does not need to be remeasured solely for a change in the index or rate used for variable payments or a change in the incremental borrowing rate (if used as the discount rate).
3.4.1.70 Financed purchases/installment purchases (previously called capital leases)
A contract that transfers ownership of the underlying asset to the lessee by the end of the contract and does not contain a termination option, should be reported as a financed purchase by the lessee and a sale of the asset by the lessor.
3.4.1.80 Lessor accounting
At the start of the lease term the lessor will recognize a lease receivable and deferred inflow of resources. The lessor will also continue to recognize the underlying asset as their own capital asset. Lessors also have required note disclosures. See template note at Note X – Leases (Lessors).
3.4.1.81 Lease receivable
The initial lease receivable is measured at the present value of lease payments expected to be received during the lease term, reduced by any provision for estimated uncollectible amounts. The receivable should include the following:
Fixed payments
Variable payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate), initially measured using the index or rate as of the commencement of the lease term
Variable payments that are fixed in substance
Residual value guarantee payments that are fixed in substance
Any lease incentives payable to the lessee.
As the lessee makes payments, the lessor will recognize a reduction in the lease receivable and interest revenue. The lease receivable must be amortized using the interest method (GASB Implementation Guide No. 2019-3, Leases, paragraph 4.49).
3.4.1.82 Deferred inflow
The initial deferred inflow is measured at the amount of the lease receivable plus lease payments received from the lessee at the start of the lease term that relate to a future period (for example receiving the last month’s rent upfront).
The deferred inflow is amortized in a systematic and rationale manner over the lease term. GASB does not specify a required amortization method, so lessors may choose which method they use (for example the interest method or straight-line).
3.4.1.83 Lessor BARS codes
The lessor records lease revenue and interest revenue. The interest revenue from leases should be recorded to BARS Code 361.4P which is a non-operating revenue code. GASB Implementation Guide 2021-1, Question 4.13 clarified that all interest revenue earned from leases should be reported as non-operating revenue.
The lease revenue should be recorded to BARS Code 34P.PP (Charge for Services code) or 362. In a proprietary fund, use BARS Code 362 for non-operating lease revenue, and 34P.PP for operating lease revenue. In a governmental fund, use BARS Code 362 for leases that are not tied to a specific operation or function or for leases that are infrequent in nature. Lessors will also use these codes for short-term lease revenue.
The “P” stands for prescribed numbers that are related to the function of the leasing activity. Review your chart of accounts to identify the applicable function and determine the full BARS Code.
3.4.1.84 Lessor example journal entries
A County leases equipment to a City in a 60 month lease. The payments are $1,000 per month (made at the beginning of the month) and the County uses an annual discount rate of 3%.
The County first calculates the present value of the lease to be $55,791 to record the initial lease journal entry:
The County records the first month’s lease receipt. Since this payment is received at the very start of the lease, the present value is $1,000 and all of the payment goes towards principal and directly reduces the lease receivable.
The County also records the first month’s deferred inflow amortization. This example uses straight line amortization in this example ($55,791 initial deferred inflow divided by 60 total payments equals monthly amortization of $930). This will be the exact same journal entry each month since straight line amortization is used.
The County records the second month’s lease receipt. This time there is interest revenue, because one month of interest has accrued. The interest is calculated by multiplying the balance of the lease receivable from the prior month of $54,791 ($55,791 initial lease receivable minus the $1,000 payment in the first month) by the monthly interest rate of 0.25% (annual interest rate of 3% divided by 12 months). The remaining portion of the payment is the principal amount that reduces the lease receivable.
3.4.1.90 Lessee accounting
For full accrual reporting (such as the government wide financial statements and proprietary fund statements) at the start of the lease term, the lessee will recognize a lease liability and lease asset.
The lessee will report lease liabilities on the Schedule of Liabilities (Schedule 09). In the year of implementation, any existing leases should report a beginning balance on the Schedule 09. The beginning balance reported should be the amount calculated for the implementation of GASBS No. 87. In subsequent years, the beginning balance should match the prior year ending balance.
Any new leases entered into during the year will be reported as an addition on the Schedule 09. The addition will be the liability calculated to add the lease to your financial statements.
Reductions are the amount the lease liability is reduced during the year, which is typically the principal portion of payments made.
If the lease is remeasured for any of the items in Section 3.4.1.60, the change in the lease liability should be reported as either an addition or reduction on the Schedule 09.
The lease liability is measured at the present value of payments expected to be made during the lease term. This includes:
Fixed payments
Variable payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate), initially measured using the index or rate as of the commencement of the lease term
Variable payments that are fixed in substance
Amounts that are reasonably certain of being required to be paid by the lessee under residual value guarantees
The exercise price of a purchase option if it is reasonably certain that the lessee will exercise that option
Payments for penalties for terminating the lease, if the lease term reflects the lessee exercising (1) an option to terminate the lease or (2) a fiscal funding or cancellation clause
Any lease incentives receivable from the lessor
Any other payments that are reasonably certain of being required based on an assessment of all relevant factors
As the lessee makes payments, they reduce the lease liability and recognize interest expense. The lease liability must be amortized using the interest method (GASB Statement No. 87, paragraph 24).
3.4.1.92 Lease asset – full accrual
The lease asset is measured at the initial lease liability plus lease payments made before the start of the lease term, plus any direct ancillary costs necessary to place the lease asset into service, minus any lease incentives received from the lessor before the start of the lease term.
The lease asset should be amortized over the shorter of the lease term or the underlying asset’s useful life. GASB does not specify a required amortization method, so lessors may choose which method they use (for example the interest method or straight-line).
3.4.1.93 Lease reporting in governmental funds
Governmental funds do not report a lease asset or lease liability. Instead the lessee would record a Capital Outlay Expenditure (debit) and an Other Financing Source for leases (credit). As the lessee makes payments, they would record a Debt Service Principal Expenditure (debit), Debt Service Interest Expenditure (debit), and reduce cash (credit).
3.4.1.94 Lessee BARS codes
In a full accrual fund, the only revenue and expense accounts used are interest expense and amortization expense.
592.PP.80
Recording interest expense payments
501.PP.00
Recording amortization expense on lease asset
In a modified accrual there is no lease asset or lease liability, so the accounts used are different.
594.PP.60
Recording the capital outlay expenditure at the start of the lease
391.70.00
Recording the “other financing source” at the start of the lease
591.PP.70
Recording debt principal payments
592.PP.80
Recording interest expense payments
The “P” stands for prescribed numbers that are related to the function of the leasing activity. Review your chart of accounts to identify the applicable function and determine the full BARS Code.
Expenses for short-term leases should be coded to the regular, functional BARS expense/expenditure codes. For example if a government has a short-term lease for a copier that is used by the water utility fund, the lease expense would be coded to BARS 534.00.40.
3.4.1.95 Lessee example journal entries – full accrual
A County leases equipment to a City in a 60 month lease. The payments are $1,000 per month (made at the beginning of the month) and the County uses an annual discount rate of 3%.
The City first calculates the present value of the lease to be $55,791 to record the initial lease journal entry:
The City records the first month’s lease payment. Since this payment is received at the very start of the lease, the present value is $1,000 and all of the payment goes towards principal and directly reduces the lease liability.
The City also records the first month’s lease asset amortization. This example uses straight line amortization in this example ($55,791 initial lease asset divided by 60 total payments equals monthly amortization of $930). This will be the exact same journal entry each month since straight line amortization is used.
The City records the second month’s lease payment. This time there is interest expense, because one month of interest has accrued. The interest is calculated by multiplying the balance of the lease liability from the prior month of $54,791 ($55,791 initial lease receivable minus the $1,000 payment in the first month) by the monthly interest rate of 0.25% (annual interest rate of 3% divided by 12 months). The remaining portion of the payment is the principal amount that reduces the lease liability.
3.4.1.96 Lessee example journal entries – modified accrual
A County leases equipment to a City in a 60 month lease. The payments are $1,000 per month (made at the beginning of the month) and the County uses an annual discount rate of 3%.
The City first calculates the present value of the lease to be $55,791 to record the initial lease journal entry. Since the modified accrual funds do not record a lease asset or lease liability different accounts are used. However, the amounts calculated for the full accrual journal entries are the exact same that are used for the modified accrual journal entries.
The City records the first month’s lease payment. Since this payment is received at the very start of the lease, the present value is $1,000 and all of the payment goes towards principal. Since there is no lease liability to reduce, the payment is recorded as a debt service expenditure.
There is no lease asset in the modified accrual fund, therefore there is nothing to amortize.
The City records the second month’s lease payment. This time there is interest expense, because one month of interest has accrued. The same amounts calculated for the full accrual journal entries are used.
4.1.2.10 Pursuant to RCW43.09.230, 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:
Basic Financial Statements, including notes to financial statements.
Required Supplementary Information (including MD&A)
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 Requirementsidentify 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.
[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.
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.
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.
3.4.7 Intergovernmental and Forgivable Loans – Moved accounting for forgivable loans out of the Schedule 09 instructions and added information on intergovernmental loans.
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.
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.
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.
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.
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.
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.
Moved note template from the templates page to the notes section. Updates, changes, and clarifications for disclosing pensions made throughout (annual updates).
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
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.
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.
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.
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.
547.10 (Transits, Railroads and Other Transportation Systems Services)
547.10 New Code - This account should be used only if the local government operates its own, or with other governments, transit, railroad or other transportation system. These expenditures are related to public transportation. For cities/counties: this code is not reported on the road/street report to WSDOT.
3.7.1 Changed title to Federal Awards to include all items that must be reported on the Expenditures of Federal Awards (Schedule 16). Updates, changes, and clarifications for reporting awards made throughout.
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.
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.
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".
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.
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.
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.
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
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
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
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
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
Removed this section from proprietary fund financial statement section and created a new section for the additional reporting requirements for risk pools.
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.
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.
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
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.
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 codes 5990000, Payments for Refunded Debt, these codes should be used for payments to an escrow agent for refunding debt payments and direct payments of refunded debt (e.g., BANs, refinancing or loans, etc.). Note this correlates to current refundings, advanced refundings utilize 5930000 codes.
Other Increases and Other Decreases in Fund Resources Added BARS Codes 3821000, Refundable Deposits, 3822000, Retainage Deposits, and 5821000, Refund of Deposits, 5822000, Refund of Retainage Deposits to be used for deposits that are not custodial activities. These codes are replacing 3891000, 5891000, 3892000, 5892000 which are no longer valid BARS codes.
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.
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."
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."
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."
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.
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.
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
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.
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.
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.
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.
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.
Added GASBS 86, Certain Debt Extinguishment Issues update regarding accounting and reporting when the debt is refunded with the government’s own resources.
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.
New section was added regarding Equipment Rental and Revolving (ER&R) Fund. This guidance was previously available outside the BARS manual and it is now incorporated into the manual allowing an easy access.
Added a new section to provide a general overview of interfund transactions.
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.
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.
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.
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.
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.
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.
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.
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.
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.
