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This government type selection will limit the accounts to those applicable to the selected government type. Although the listing provided intends to be all inclusive, it is possible that needed account codes will not be included. If this occurs, please use the All option to view the entire chart of accounts and contact LGCSFeedback@sao.wa.gov so the listing can be updated.
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The Excel option provides a spreadsheet which you can format. The PDF is formatted to highlight the different categories of account codes. For display purposes, the account codes contain decimal points which should be excluded in your annual report.
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Above and Prescribed option includes those accounts which are aggregates of detailed account codes and are not valid for reporting in addition to Prescribed accounts which are the valid BARS account codes. Prescribed option only lists valid BARS account codes.
Your annual report requires seven digits for all account codes however, their display in the chart of accounts varies. The expenditure or expense accounts are presented in the export without object codes. Object codes are available in the BARS Manual. The reporting at the subobject level is not required.
2.4.1.10 A budget is a legal document that forecasts the financial resources of a government and authorizes the spending of those resources for a fiscal period. At a minimum, local governments’ budget must meet the requirements of Washington state law and the State Auditor’s Office. The SAO does not prescribe how to budget or what a budget should look like. The adopted budget should be of sufficient detail to be meaningful and meet the intention of the law. The SAO considers budgets showing revenues and expenditures at the legal fund level to be the minimum acceptable level of detail.
2.4.1.20 Budgeting is more than just an activity to satisfy state law. It is a sophisticated process of strategic planning, communication and policy development resulting in a detailed plan of operations for allocating and monitoring the use of limited resources among various competing demands. Teaching how to budget is outside the scope of the BARS. However, there are many educational resources available to local governments, such as the Municipal Research and Services Center (mrsc.org) and the Government Finance Officers Association (gfoa.org).
2.4.1.30 Glossary of budgetary terms:
Annual/biennial appropriated budget – A fixed budget adopted for the government’s fiscal period. The appropriated budget was traditionally used to determine a government’s property tax levy, and a ceiling on expenditures was made absolute so that the expenditures of a government unit would not exceed its revenues. This budget was also historically a balanced budget, estimated revenues equaling appropriations. The appropriated budget is still used to set tax levies and some budget statutes still require balanced budgets, but it is more generally used to authorize a specific amount of expenditures regardless of whether estimated resources meet or exceed that amount. Appropriated budgets are required by statute in cities (Chapter 35.32A RCW, Chapter 35.33 RCW and Chapter 35A.33 RCW), counties (Chapter 36.40 RCW), and most other local governments in Washington State. These budgets are also called legal budgets, adopted budgets, or formal budgets. The appropriated budgets should be adopted by ordinance or resolution.
Appropriation – The legal spending level authorized by a budget ordinance or resolution. Spending should not exceed this level without prior approval of the governing body.
Capital improvement budget – Consists of two elements: the annual/biennial portion of capital projects and annual/biennial appropriations for the purchase, construction or replacement of major fixed assets in the current fiscal period.
Comprehensive budget – An government-wide budget that includes all resources the government expects and everything it intends to spend or encumber during a fiscal period. The comprehensive budget contains annual/biennial appropriated budgets, the annual/biennial portion of continuing appropriations such as the capital improvement projects, debt amortization schedules, and grant projects, flexible budgets and all non-budgeted funds.
Continuing appropriation – A fixed budget which authorizes expenditures for a fiscal period that differs from the government’s fiscal year, such as capital projects, debt issues, grant awards, and other service projects. These expenditures require an ordinance or resolution to authorize the project, establish the assessment roll, adopt the debt amortization schedule, or accept the grant award. Such ordinances or resolutions set an absolute maximum or ceiling on the expenditures, but the time period for incurring expenditures does not coincide with the government’s fiscal year; it may even cover several years. The major difference between annual/biennial appropriated budgets and continuing appropriations is that the latter do not lapse at fiscal period end; this implies that no legislative action is required to amend the annual/biennial portion of a continuing appropriation, unless the total authorized expenditures would exceed the entire appropriation.
Encumbrances – Commitments related to unperformed (executory) contracts for goods or services should be utilized to the extent necessary to assure effective budgetary control and to facilitate cash planning. Encumbrances outstanding at year end represent the estimated amount of expenditures ultimately to result if unperformed contracts in process are completed; they do not constitute expenditures or liabilities.
Final amended budget – The original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized legislative and executive changes applicable to the fiscal year, whenever signed into law or otherwise legally authorized.
Fixed budget – Those budgets which set an absolute maximum or ceiling on the expenditures of a particular fund, department, or other specific category. A fixed budget can be either an annual/biennial appropriated budget or a continuing appropriation. Fixed budgets must be adopted by ordinance or resolution, either for the government’s fiscal period or at the outset of a service project, debt issue, grant award, or capital project.
Flexible budgets – Are usually regarded as managerial tools, which do not set a ceiling on expenses or expenditures but establish a plan for them at various levels of service. They are especially appropriate for the day-to-day operations of a public utility where it is essential to plan fluctuations in the demand for services and where revenues will automatically increase with demand, so that a balanced budget does not depend on establishing a ceiling for expenses.
Operating budget – Presents the estimated expenditures and available resources necessary to provide the services for which the government was created. An operating budget will contain flexible budgets and fixed budgets; the fixed budgets will include annual/biennial appropriations for services and the annual/biennial portion of continuing appropriations for debt service and for service projects.
Original budget – The first complete appropriated budget. The original budget may be adjusted by reserves, transfers, allocations, supplemental appropriations, and other legally authorized legislative and executive changes before the beginning of the fiscal year. The original budget should also include actual appropriation amounts automatically carried over from prior years by law.
Working capital budget – Combines flexible and fixed budget elements in one document for enterprise and internal service funds. Current operations are flexibly budgeted based on the estimated level of services to be provided and long-range sources and uses of assets are controlled by annual/biennial appropriations and continuing appropriations.
In June 2015, the Governmental Accounting Standards Board (GASB) issued two new standards for the accounting and financial reporting by state and local governments for postemployment benefits other than pensions.
OPEB refers to benefits, other than pensions, that are paid in the period after employment. OPEB includes:
Postemployment healthcare benefits such as medical, dental, vision, hearing, etc., whether provided through a pension plan or separately; and
Other benefits such as death benefits, life insurance, disability, long-term care, etc., when provided separately from a pension plan.
OPEB includes the direct payment of benefits and also explicit and implicit rate subsidies. An implicit rate subsidy is also referred to as a “blended premium rate.” It is caused by the inclusion of retirees in the same cost pool as active employees. As a result, retirees have the same premium rates as active employees and the rates for active employees implicitly subsidize the rates for retirees (for example – the state’s PEBB plan). This implicit subsidy is OPEB and must be included in the OPEB liability – even if retirees pay 100 percent of their premiums.
OPEB does not include termination benefits or termination payments for compensated absences.
3.4.17.40 Defined benefit OPEB vs. defined contribution OPEB
Defined benefit plans are those for which the benefits the employee will receive at or after separation from employment are defined by the benefit terms. OPEB may be stated as:
A specified dollar amount
An amount that is calculated based on one or more factors such as age, years of service, and compensation, or
A type or level of coverage such as prescription drug coverage or a percentage of health insurance premiums.
Defined contribution plans have terms that:
Provide an individual account for each employee;
Define the contributions that an employer is required to make to an active employee’s account for the periods in which the employee renders service; and
Provide that the OPEB an employee will receive will depend only on the employee’s account balance.
For defined contribution plans, there is no liability (other than amounts payable to the plan), deferred outflows, or deferred inflows to report. OPEB expense is the net amount of employer contributions made to the plan. Note that if only employees contribute to a defined contribution plan (and not the employer), the employer is not a participant and no disclosures are required. See Note X – Pension and/or OPEB Plans - Defined Contribution.
3.4.17.50 Qualifying vs. non-qualifying trust
The accounting and financial reporting requirements for defined benefit OPEB plans is dependent on whether or not the plan is administered through a qualifying trust. A qualifying trust (or equivalent arrangement) is one that meets all three of the following criteria (see GASBS 75, paragraph 4):
a) Contributions to the plan and earnings are irrevocable – Refunds and withdrawals are consistent with this criterion.
b) Plan assets are dedicatedto providing OPEB to plan members in accordance with the benefit terms – This is the criterion most often violated by the old, pre-LEOFF police and fire pension plans. Pension and OPEB assets cannot be commingled in the same trust fund as this indicates that plan assets are not dedicated solely to either pensions or OPEB. Pension and OPEB assets can be partitioned in the same fund, but this partition cannot be arbitrarily determined; it requires an actuarial determination.
c) Plan assets are legally protected from creditors.
Pay-as-you-go type plans (for example – the state’s PEBB plan) are not a qualifying trust.
3.4.17.60 Plan types
The accounting and financial reporting requirements for defined benefit OPEB plans also vary depending upon plan type. Defined benefit plans are classified in one of the following categories:
Single-employer plan – those in which OPEB benefits are provided to the employees of only one employer. The primary government and its component units are considered to be one employer. Each employer requires an individual actuarial valuation. This is the most common type of OPEB plan in the state. All pay-as-you-go plans are considered single-employer plans. Example: the state’s PEBB plan.
Agent, multiple-employer plan – OPEB plan assets are pooled for investment purposes, but separate accounts are maintained for each individual employer so that each employer’s share of the pooled assets is legally available to pay the benefits of only its employees. Each individual employer requires an individual actuarial valuation.
Cost-sharing, multiple-employer plan – OPEB obligations to the employees of more than one employer are pooled and OPEB plan assets can be used to pay the benefits of the employees of any employer that provides OPEB through the plan.
Regardless of plan type, if the plan is not administered through a qualifying trust, each individual employer is considered to be a single employer participating in their own plan, and each individual employer must obtain their own actuarial valuation.
3.4.17.70 Measurement of the OPEB liability, deferred outflows, deferred inflows, and OPEB expense
The amounts to be reported in the financial statements for the OPEB liability, deferred outflows, deferred inflows, and OPEB expense are determined through an actuarial valuation. The valuation report generally also includes relevant information for the note disclosures such as actuarial assumptions used, sensitivity analysis of the discount rate and the health care cost trend rate (if applicable), and the amortization of the deferred outflows and deferred inflows.
Actuarial valuations should be performed at least biennially. The valuation date can be no more than 30 months and 1 day prior to the employer’s reporting date. The Total OPEB Liability should be measured as of a date (the measurement date) no earlier than the end of the employer’s prior fiscal year, consistently applied from year to year. When the valuation date is prior to the measurement date, update procedures must be used to roll forward the valuation to the measurement date for the employer’s reporting. There is no requirement to roll forward from the measurement date to the employer reporting date; neither is it prohibited. Professional judgment should be used to determine the specific update procedures to be used (the roll forward is usually done by the actuary).
In the first year of implementation of GASBS 75, employers need both beginning and ending OPEB amounts. A single actuarial valuation may be used to determine both the ending and beginning balances (by rolling back from the ending balances). See GASB OPEB Implementation Guide 2017-3, Q&A 4.499.
3.4.17.80 Measurement date
The OPEB amounts are reported in the employer’s financial statements as of the measurement date. The earliest measurement date that can be used by an employer is one up to 12 months earlier than the reporting date. The following table shows the timing relationships between the valuation date, the measurement date, and the employer reporting date.
Earliest Available Valuation Date
Earliest Available Measurement Date Employer Can Use
Employer Reporting Date
12/31/2018
06/30/2020
06/30/2021
02/28/2019
08/31/2020
08/31/2021
06/30/2019
12/31/2020
12/31/2021
3.4.17.90 Alternative measurement method
Plans with fewer than 100 participants (actives + retirees) as of the beginning of the fiscal year, have the option to use the alternative measurement method (see GASB OPEB Implementation Guide, Illustration B7) in lieu of a professional actuarial valuation. Under this method, only the OPEB liability is calculated. There are no deferred outflows and inflows other than the deferred outflow for payments subsequent to the measurement date.
PEBB member employers or LEOFF 1 employers with fewer than 100 participants (actives + retirees) as of the beginning of the fiscal year may use the on-line calculation tools provided by the Office of the State Actuary (OSA). These tools are the alternative measurement method. They are only available for use by PEBB and LEOFF 1 employers, and should only be used by those with fewer than 100 participants. For additional information on these tools, go to the OSA website.
Note: When using the OSA tools, active member data should be based on the number of employees eligible to participate, even if some have currently waived participation in the plan.
Plans, including PEBB and LEOFF 1, with 100 or more participants (actives + retirees) as of the beginning of the fiscal year, must obtain a professional actuarial valuation.
3.4.17.100 Financial statements
In the year of implementation of GASBS 75, employers made a direct adjustment to equity for the net effect of beginning balances of the OPEB liability and any relevant deferred inflows and outflows. This adjustment also included the removal of any existing OPEB Obligation that existed prior to this implementation.
Example:
Year 1 – Beginning Balances:
DR – OPEB obligation (old balance – if applicable) DR – Deferred outflows (payments subsequent to the measurement date – if applicable) DR – Net difference to unrestricted net position
CR – Total (or Net) OPEB liability
At year-end, employers adjust the OPEB liability and the related deferred outflows and deferred inflows to actual as of the measurement date per the valuation. Also, adjust for payments subsequent to the measurement date. The net difference is an adjustment to OPEB expense. Do this at each subsequent year-end.
Example:
Year 1 – Ending Balances (and future year-ends):
DR/CR – Adj. OPEB liability and relevant DO/DI to actual per measurement date DR/CR – Net change to OPEB expense
Plans administered through a qualifying trust report “net OPEB liability” because there is fiduciary net position (in the trust) to net against the total OPEB liability. The entire net OPEB liability is a non-current liability.
Plans not administered through a qualifying trust report “total OPEB liability” because there are no plan assets or fiduciary net position.
The “total OPEB liability” should be allocated between current and non-current liabilities in the financial statements. Since there is no trust fund to make the benefit payments, the employer is making the payments. So the amounts expected to be due within one year are current liabilities.
For GAAP statements that include multiple opinion units, the OPEB liability, and deferred outflows and deferred inflows related to OPEB, should be allocated between governmental and business-type activities in the government-wide statement of net position. OPEB expense should be allocated to the appropriate activities in the government-wide statement of activities. For proprietary and fiduciary funds, OPEB amounts should be reported in the specific funds they are related to and expected to be paid from. OPEB amounts, other than actual payments, should not be reported in governmental-type funds.
3.4.17.110 Fiduciary fund financial statements
Qualifying trusts – If the plan is administered through a qualifying trust, the employer should report a statement of fiduciary net position and a statement of changes in fiduciary net position for the plan. The net OPEB liability is a liability of the employer to the plan and should not be reported in the fiduciary statements.
No qualifying trust – When there is no qualifying trust, the employer cannot report a trust. There should be no fiduciary fund statements presented for the plan. Any assets accumulated in a fund should be reported as assets of the employer. In these circumstances, any OPEB fiduciary funds should be treated as managerial funds and rolled into the appropriate fund (e.g., the general fund) for financial statement reporting.
3.4.17.120 Note disclosures and Required Supplementary Information (RSI)
Many of the significant note disclosures, such as the sensitivity analysis of the discount rate and the health care cost trend rate (if applicable) and the amortization of deferred outflows and inflows are provided by the actuary in the actuarial valuation report. There are different reporting requirements for plans administered through qualifying trusts versus those not administered through a qualifying trust.
See the BARS Manual for note and RSI instructions for:
Employers may have employees who are members of defined benefit OPEB plans that are not state or local government sponsored (e.g., a union sponsored plan). Participating employers report no OPEB liability, deferred outflows, or deferred inflows. OPEB expense is equal to contributions to the plan. See the BARS Manual for note disclosures. The only RSI required is a ten-year schedule of employer contributions.
A – Probably not. Statement 74 is the financial reporting requirements for OPEB plans that are administered through a qualifying trust or equivalent arrangement. A qualifying trust is one in which all of the following criteria are met:
Contributions to the plan and earnings on those contributions are irrevocable
Plan assets are dedicated to providing benefits to plan members in accordance with the benefit terms.
Plan assets are legally protected from creditors.
Most plans in our state are not administered through a qualifying trust.
A – If you provide OPEB to retirees, then the requirements of GASBS 75 are applicable for the years ended 2018 and after.
Just like pensions, the new OPEB standards require local governments to report their OPEB liabilities and related deferred outflows and deferred inflows on the face of the financial statements.
Q – Where do I get my numbers?
A – From an actuarial valuation. Unlike pension plans, most OPEB plans in the state are not centrally administered and there is no single actuarial valuation like the DRS PEFI for the state’s pension plans. Many employers who provide OPEB will need to arrange for their own actuarial valuations.
For employers participating in the Public Employees Benefits Board (PEBB) program and LEOFF 1 employers, the Office of the State Actuary provides on-line valuation tools. These tools should only be used by employers with fewer than 100 participating plan members (includes active employees and retirees).
Employers participating in the Association of Washington Cities (AWC) or Washington Counties Insurance Fund (WCIF) programs should contact those programs directly. Employers who need individual valuations should contact their own actuaries to arrange for a valuation under the new standards.
Q – I am a participating employer in the state’s Public Employees Benefits Board (PEBB) plan. Do I provide OPEB?
A – Yes. Participating employers provide OPEB through the plan’s implicit and explicit rate subsidies for retirees. These subsidies lower the monthly premiums for retirees, and that is the OPEB benefit.
Q - What is an “implicit rate subsidy?”
A – This is also known as a “blended premium rate.” It is caused by the inclusion of retirees in the same cost pool as active employees. As a result, retirees have the same premium rates as active employees and the rates for active employees implicitly subsidize the rates for retirees. This implicit subsidy is OPEB and must be included in your OPEB liability – even if retirees pay 100% of their premiums.
Q - What is the Alternative Measurement Method?
A – This is an alternative to a professional actuarial valuation and is specified by paragraphs 225 and 226 of GASBS 75. It uses simplified assumptions and calculations. It can be used to measure the total OPEB liability if you have fewer than 100 plan members (includes active employees and retirees) as of the beginning of the year.
To determine your member count, consider each plan subscriber to be one member. For example:
An active employee = 1
An active employee and dependents = 1
A retiree and spouse = 1
Q – What is “census data?” Will there be census data testing?
A – Census data is information about plan members, such as birthdate, gender, years of service, compensation, etc. Actuaries use census data to perform the valuation that determines the total OPEB liability.
Auditors will test the completeness and accuracy of census data provided by employers to the actuary.
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.
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.
Overview of Significant Changes – Applicable to the Reporting Year 2017
Topic
Reference
Description of Changes
CHART OF ACCOUNTS
Revenue/Expenditure/Expense Accounts
3132400, Local Infrastructure Financing Tool (LIFT)
Added a new account for revenues from the local sales and use tax dedicated for LIFT projects.
Revenue/Expenditure/Expense Accounts
3340370, State Grant from CRAB
The title was changed to Rural Arterial Program (RAP).
Revenue/Expenditure/Expense Accounts
3340372, CRAB Road Arterial – Projects
The title was changed to County Arterial Preservation Project (CAPP).
Revenue/Expenditure/Expense Accounts
335/336
The titles for both categories was revised to State Shared Revenues, Entitlements and Impact Payments.
Revenue/Expenditure/Expense Accounts
3360425, Foundational Public Health Services
A new account was added for 2017 distributions from the DOH.
Revenue/Expenditure/Expense Accounts
3360642, Marijuana Excise Tax Distribution
A new account was added for the distribution of the marijuana excise tax from the State.
Revenue/Expenditure/Expense Accounts
3421000, Law Enforcement Services
The definition was expanded to include payments from the WASP for processing the sex and kidnapping offenders’ registration.
Revenue/Expenditure/Expense Accounts
3670000, Contributions and Donations from Nongovernmental Sources
The definition was clarified regarding connection fees.
Revenue/Expenditure/Expense Accounts
379, Capital Contributions
The definition was clarified regarding connection fees.
Revenue/Expenditure/Expense Accounts
395, Disposition of Capital Assets
Added a clarification regarding use of the account in the proprietary fund.
Revenue/Expenditure/Expense Accounts
398, Insurance Recoveries
The account was split into two 3981, Insurance Recoveries for cash basis governments and 3985, Insurance Recoveries for GAAP. The split was necessary to accommodate reporting by cash basis proprietary funds since the BARS codes in 370 series are not available to them. The revised account 3985 replaces the original 398 code.
Added new account 50195, Depreciation, Depletion, Amortization – Infrastructure to include depreciation related to parking facilities.
Revenue/Expenditure/Expense Accounts
51530, Legal Services
The account was divided between internal and external legal services. Within each category were created more separate accounts for different specific legal expenditures. The change will allow governments to analyze and compare costs much more effectively. This also aligns accounting records with procedures auditors are required by professional standards to perform on legal liabilities, so it will help make the audit process more efficient. This account will be required for 2018 reporting.
Revenue/Expenditure/Expense Accounts
51770, Unemployment Compensation
Changed references to section of the BARS manual to correctly refer the current title (Payroll Accounting vs. Unemployment and Deferred Compensation).
Clarified the definition regarding property insurance.
Revenue/Expenditure/Expense Accounts
51863, General Grants and Financial Assistance to Other Governments
Revised title to General Grants, Financial Assistance and Other Distributions to Local Governments.
Revenue/Expenditure/Expense Accounts
538, Combined Water/Sewer/Solid Waste Utilities
Revised title and definition to correctly reflect RCW 54.16.300 (i.e., Combined Utilities).
Revenue/Expenditure/Expense Accounts
562, Public Health
The WA State DOH added additional detail accounts 562.11-562.15 for local governments subject to the DOH’s jurisdiction.
Revenue/Expenditure/Expense Accounts
593, Advance Refunding Escrow
Added to the definition a reminder that this account should be reported also for proprietary funds.
Revenue/Expenditure/Expense Accounts
595, Roads/Streets and Other Infrastructure
Added to the definition a reminder that this account should be reported also for proprietary funds.
Revenue/Expenditure/Expense Accounts
599, Payments to Refunded Debt Escrow
Added to the definition a reminder that this account should be reported also for proprietary funds.
Account Structure
1.1.2
The section was revised to discontinue the old terminology regarding the seven-digit account codes (i.e., Prime, BASUB, etc.). The digits are now referred by their location within the code (i.e., first, second, etc.). This change was applied in all places in the BARS manual and the revised sections are not itemized in this listing.
Revenue/Expenditure Accounts Overview
1.3.10
The section was revised to discontinue the old terminology regarding the seven-digit account codes (i.e., Prime, BASUB, etc.). The digits are now referred by their location within the code (i.e., first, second, etc.).
ACCOUNTING
Fund Types and Accounting Principles
3.1.1.60-3.1.1.80
These paragraphs were related to capital assets and were removed since the topics are covered extensively in Capital Asset Accounting (3.3.10).
Utility Tax Levies
3.2.6
The section is no longer needed since we do not prescribe the G.L. accounts. The section was replaced with accounting and reporting for the B&O tax related to utilities (Utility Tax, 3.6.13).
Capital Assets Accounting
3.3.10.80
Added a flowchart to determine if the expenditures should be capitalized.
Leases
3.4.1.10
Clarified in the bullet 2 that the future lease principal payments should be recorded as debt redemption rather than other financing uses.
Refunding Debt
3.4.4.120
Updated the bullet 2 regarding remaining prepaid insurance (GASBS 86, Certain Debt Extinguishment Issues).
Accounting and Reporting of Property Tax
3.5.2.30
The section was revised to better describe the reporting of property tax (no substantive change).
Diversion of County Road Property Tax
3.6.5.20
The BARS previous procedures were revised to better assist compliance with the provisions of the law.
Working Advances from DSHS
3.6.10
The section was revised to provide accounting requirements reflecting the current status of the advances from the DSHS.
Payroll Accounting
3.8.1
The title was change to Unemployment and DeferredCompensation to better reflect the content of this section. There are no changes in the prescription.
Loans
A new paragraph (3.9.1.30) was added. The paragraph discusses an issue of a government incorrectly using its own debt instruments as investments.
Voucher Certification and Approval
3.8.5
Updated the section to include electronic payments.
REPORTING
GAAP Reporting Requirements
4.1.1
Flowchart and Notes to the Flowchart: The flowchart was updated to incorporate GASBS 80, Blending Requirements for Certain Component Units regarding situation when the government is the sole corporate member. Also, paragraph 12 was updated to incorporate the GASBS 85, Omnibus 2017 regarding blending component units with business-type activities.
BARS Reporting Requirements
4.1.2
The matrix of reporting requirements was updated to eliminate reporting Schedules 07 and 11.
Summary of Reporting Requirements
4.1.4
The Matrix of Statutory Reporting Requirements was updated to eliminate reporting Schedules 07 and 11.
Note X – Asset Retirement Obligations
A new note was added to meet the disclosure requirements of the GASBS 83, Certain Asset Retirement Obligations. Please note that the requirement is applicable for reporting years starting after June 15, 2018.
Note X – Deposits and Investments
The note was revised to make the disclosure easier by adding tables and additional samples of text. There are no substantive changes.
Note X – Long-Term Debt
Added additional instructions for preparers regarding disclosures when the debt is refunded with the government’s own resources. This addition incorporates the GASBS 86, Certain Debt Extinguishment Issuesapplicable for the year begining after June 15, 2017.
Note X – Tax Abatement
Added a matrix to summarize the disclosure requirements for governments’ own abatements and abatements of others. Also added discussion regarding disclosure when, regardless of a tax abatement agreement, the overall tax revenue is not reduced.
Schedule 01
4.8.1.50
Column 4 – clarified the instruction regarding reporting of revenues and expenses for proprietary funds.
Schedule 09
Added 4.8.3.71 and 4.8.3.81 regarding reporting loans with forgiveness clause.
ONLINE FILING
Annual Street/Road Finance Report
The pilot project with DOT has been extended another year to explore the possibility of an alternative reporting process to the existing Street/Road Finance Report required to filed to DOT for cities and counties.
Fund Balance – Beginning Check
A minimum variance requirement within $1,000 added summarizing Schedule 01 funds reported.
