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.
3.1.1.10 The following principles of accounting and financial reporting are based on those set forth in the Governmental Accounting Standards Board’s (GASB) Codification of Governmental Accounting and Financial Reporting Standards. The BARS manual permits accounting and financial reporting that conforms to these principles in all respects and requires GAAP municipalities to account and report in conformity with these principles, except that the annual report required is not as extensive as the Annual Comprehensive Financial Report (ACFR).
A governmental accounting system must make it possible both: (a) to present fairly and with full disclosure the funds and activities at the government in conformity with generally accepted accounting principles; and (b) to determine and demonstrate compliance with finance-related legal and contractual provisions.
A governmental accounting system should be organized and operated on a fund basis. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. Fund financial statements should be used to report detailed information about primary government, including its blended component units. The focus of governmental and proprietary fund financial statements is on major funds.
In fund financial statements, governments should report governmental, proprietary, and fiduciary funds to the extent that they have activities that meet the criteria for using these funds.
Presented below is a system to classify all funds used by local government and the assignment of code numbers to identify each type of fund. A three digit code is used: the first digit identifies the fund type and the next two digits will be assigned by the governmental unit to identify each specific fund.
Code 000 - General (Current Expense) Fund – should be used to account for and report all financial resources not accounted for and reported in another fund.
Although a local government has to report only one general fund in its external financial reports, the government can have multiple general subfunds for its internal managerial purposes. These managerial subfunds have to be combined into one general fund for external financial reporting.
Code 100 - Special Revenue Funds – should be used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects. Restricted revenues are resources externally restricted by creditors, grantors, contributors or laws or regulations of other governments or restricted by law through constitutional provisions or enabling legislation (similar to restricted component of net position used in government-wide reporting). Committed revenues are resources with limitations imposed by the highest level of the government, and where the limitations can be removed only by a similar action of the same governing body. Revenues do not include other financing sources (long-term debt, transfers, etc.).
The term proceeds of specific revenue sources establishes that one or more specific restricted or committed revenues should be foundation for a special revenue fund. They should be expected to continue to comprise a substantial portion of the inflows reported in the fund. While GASB Statement 54 has not provided a numeric range for substantial portion of inflows, it was recommended that at least 20 percent is a reasonable limit for reporting a special revenue fund. Local governments need to consider factors such as past resource history, future resource expectations and unusual current year inflows such as debt proceeds in their analysis.
They may use the calculation below to determine whether an activity would qualify for reporting as a special revenue fund.
Other resources (investment earnings and transfers from other funds, etc.) also may be reported in the fund if these resources are restricted, committed, or assigned to the specific purpose of the fund.
Governments should discontinue reporting a special revenue fund, and instead report the fund’s remaining resources in the general fund, if the government no longer expects that a substantial portion of the inflows will derive from restricted or committed revenue sources.
The Statement requires all revenue to be recognized in the special revenue fund. If the resources are initially received in another fund, such as the general fund, and subsequently remitted to a special revenue fund, they should not be recognized as revenue in the fund initially receiving them. They should be recognized as revenue in the special revenue fund from which they will be expended.
Special revenue funds should not be used to account for resources held in trust for individuals, private organizations, or other governments.
The general fund of a blended component unit should be reported as a special revenue fund.
The state statutes contain many requirements for special funds to account for different activities. The legally required funds do not always meet GAAP standards for external reporting. So, while the local governments are required to follow their legal requirements, they will have to make some adjustment to their fund structure for external financial reporting.
Code 200 - Debt Service Funds – should be used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest. Debt service funds should be used to report resources if legally mandated. Financial resources that are being accumulated for principal and interest maturing in future years also should be reported in debt service funds. The debt service transactions for a special assessment for which the government is not obligated in any matter should be reported in a custodial fund. Also, if the government is authorized, or required to establish and maintain a special assessment bond reserve, guaranty, or sinking fund, GASB Statement 6 requires using a debt service fund for this purpose.
Note: Debt service funds should not be used in proprietary funds (400 and 500). Use enterprise funds (400) or internal service (500) for debt payments related to utilities and other business type activities.
Code 300 - Capital Projects Funds – should be used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays including the acquisition or construction of capital facilities or other capital assets. Capital outlays financed from general obligation bond proceeds should be accounted for through a capital projects fund. Capital project funds exclude those types of capital-related outflows financed by proprietary funds or for assets that will be held in trust for individuals, private organizations, or other governments (private-purpose trust funds).
Note:Capital project funds should not be used in proprietary funds (400 and 500). Use enterprise funds (400) or internal service (500) for capital payments related to utilities and other business type activities.
Code 700 - Permanent Funds – should be used to account for and report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government’s programs – that is for the benefit of the government or its citizens (public-purpose).
Generally, only the principal amounts, interest revenue, and transfers to the appropriate operating fund for interest revenue use should be reported in this fund. Note: any expenses related to the allowable use of the interest earned must be reported in the appropriate operational fund.
Permanent funds do not include private-purpose trust funds which account for resources held in trust for individuals, private organizations, or other governments.
Code 400 - Enterprise Funds - may be used to report any activity for which a fee is charged to external users for goods or services. Enterprise funds are required for any activity whose principal revenue sources meet any of the following criteria:
Debt backed solely by a pledge of the net revenues from fees and charges.
Legal requirement to recover cost. An enterprise fund is required to be used if the cost of providing services for an activity including capital costs (such as depreciation or debt service) must be legally recovered through fees or charges.
Policy decision to recover cost. It is necessary to use an enterprise fund if the government’s policy is to establish activity fees or charges designed to recover the cost, including capital costs (such as depreciation or debt service).
These criteria should be applied in the context of the activity’s principal revenue source.
The term activity generally refers to programs and services. This term is not synonymous with fund. As a practical consequence, if an activity reported as a separate fund meets any of the three criteria, it should be an enterprise fund. Also, if a “multiple activity” fund (e.g., general fund) includes a significant activity whose principal revenue source meets any of these three criteria, the activity should be reclassified as an enterprise fund.
The determination of an activity’s principal revenue source is a matter of professional judgement. A good indicator of the activity’s significance may be comparing pledged revenues or fees and charges to total revenue. For example, consider a county auditor’s office that charges fees to provide a payroll service to various taxing districts. Even if the fee is meant to cover the cost of the service, the county auditor function as a whole is primarily supported with tax dollars from the general fund. It would be allowable in this case to leave the activity all within general fund.
Finding an appropriate fund type requires a careful analysis since there is not always a clear choice. For example, building permit fees may be accounted for in the general fund or a special revenue fund in certain circumstances, such as when they are partially supported by taxes. However, if there is a pricing policy to recover the cost of issuing those individual building permits, they should be reported in an enterprise fund.
In addition, GAAP mandate the use of enterprise funds for the separately issued financial statement of public-entity risk pools. Public-entity risk pools also are accounted for as enterprise funds when they are included within a sponsoring government’s report, provided the sponsor is not the predominant participant in the arrangement. Otherwise, they can use the general fund.
Separate funds should not be reported for bond redemption, construction, reserves, or deposits, for any utility that is accounted for on the full accrual basis, using either the BARS accounts or a nationally recognized utility chart of accounts such as FERC or NARUC. Separate funds should not be reported even though bond covenants may stipulate a bond reserve fund, bond construction fund, etc. The bond covenant use of the term fund is not the same as the use in governmental accounting. For bond covenants, fund means only a segregation or separate account, not a self-balancing set of accounts. (See account 150 in the general ledger chart of accounts.)
Code 500 - Internal Service Funds – may be used to report any activity that provides goods or services to other funds, departments or agencies of the government, or to other governments, on a cost-reimbursement basis. Internal service funds should be used only if the reporting government is the predominant participant in the activity. Otherwise, the activity should be reported in an enterprise fund. For more information on accounting for these funds see 3.9.6 and for reporting see 4.3.6.
Code 600 - Fiduciary Funds – should be used to account for assets, including capital assets (GASB 34, Paragraph 106), held by a government in a trustee capacity or as a custodian for individuals, private organizations, other governmental units, and/or other funds. These include (a) investment trust funds, (b) pension (and other employee benefit) trust funds, (c) private-purpose trust funds, and (d) custodial funds.
Codes 600-609- Investment Trust Funds – should be used to report fiduciary activities from the external portion of investment pools and individual investment accounts that are held in a trust that meets the following criteria: the assets are (a) administered through a trust in which the government itself is not a beneficiary, (b) dedicated to providing benefits to recipients in accordance with the benefit terms, and (c) legally protected from the creditors of the government.
In addition to the trust criteria requirements above, all individual investment accounts are required to be reported in an Investment Trust Fund.
Codes 610-619- Pension (and Other Employee Benefit) Trust Funds – should be used to report fiduciary activities for the following:
Pension plans and OPEB plans that are administered through trusts that meet the criteria in paragraphs 3 of GASB Statement 67 or paragraph 3 of GASB Statement 74, respectively.
Other employee benefit plans for which (1) resources are held in trust that meets the following criteria: the assets are (a) administered through a trust in which the government itself is not a beneficiary, (b) dedicated to providing benefits to recipients in accordance with the benefit terms, and (c) legally protected from the creditors of the government and (2) contributions to the trust and earnings on these contributions are irrevocable.
Codes 620-629 - Private-Purpose Trust Funds – should be used to report all fiduciary activities that (a) are not required to be reported in pension (and other employee benefit) trust funds or investment trust funds, and (b) are held in a trust that meets the following criteria: the assets are (a) administered through a trust in which the government itself is not a beneficiary, (b) dedicated to providing benefits to recipients in accordance with the benefit terms, and (c) legally protected from the creditors of the government.
Code 630-698 - Custodial Funds – should be used to report all fiduciary activities that are not required to be reported in pension (and other employee benefit) trust funds, investment trust funds or private purpose trust funds. The external portion of the investment pools that are not held in trust that meets criteria listed above should be reported in a separate external investment pool fund column under the custodial funds classification.
Note: The custodial funds are required to be used by business-type activities and enterprise funds, except when the resources will normally be held for less than ninety (90) days.
Code 699 - External Investment Pool Fund – The external portion of the investment pools that are not held in trust and meet criteria listed above. Although this is considered a custodial fund, it should be reported in a separate external investment pool fund column under the custodial funds classification.
Governments should establish and maintain those funds required by law and sound financial administration. Only the minimum number of funds consistent with legal and operating requirements should be established. Using numerous funds results in inflexibility, undue complexity and inefficient financial administration.
Local governments should periodically undertake a comprehensive evaluation of their fund structure to ensure that individual funds that became superfluous are eliminated from accounting and reporting.
Elected officials should be educated to the fact that accountability may be achieved effectively and efficiently by judicious use of department, program and other available account coding or cautious use of managerial (internal) funds.
A clear distinction should be made between general capital assets and capital assets of proprietary and fiduciary funds. Capital assets of proprietary funds should be reported in both the government-wide and fund financial statements. Capital assets of fiduciary funds should be reported only in the statement of fiduciary net position. All other capital assets of the government are general capital assets. They should not be reported as assets in governmental funds but should be reported in the governmental activities column in the government-wide statement of net position. The Capital Assets (BARS 3.3.9, 3.3.10 and 3.3.11) sections of the BARS manual provide additional information regarding accounting and reporting of capital assets.
A clear distinction should be made between fund long-term liabilities and general long-term liabilities. Long-term liabilities directly related to and expected to be paid from proprietary funds should be reported in the proprietary fund statement of net position and in the government-wide statement of net position. Long-term liabilities directly related to and expected to be paid from fiduciary funds should be reported in the statement of fiduciary net position. All other unmatured general long-term liabilities of the governmental unit should not be reported in governmental funds but should be reported in the governmental activities column in the government-wide statement of net position.
Measurement focus and basis of accounting in the basic financial statements
3.1.1.100 Government-wide financial statements
The government-wide statement of net position and statement of activities should be prepared using the economic resources measurement focus and the accrual basis of accounting. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions should be recognized when the exchange takes place. Revenues, expenses, assets, and liabilities resulting from nonexchange transactions should be recognized in accordance with the GASB Statements 24 and 33.
In fund financial statements, the modified accrual or accrual basis of accounting, as appropriate, should be used in measuring financial position and operating results.
a. Financial statements for governmental funds should be presented using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues should be recognized in the accounting period in which they become available and measurable. Expenditures should be recognized in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on general long-term liabilities, which should be recognized when due.
b. Proprietary fund statements of net position and revenues, expenses, and changes in fund net position should be presented using the economic resources measurement focus and the accrual basis of accounting.
c. Financial statements of fiduciary funds should be reported using the economic resources measurement focus and the accrual basis of accounting, except for the recognition of certain liabilities of defined benefit pension plans and certain postemployment healthcare plans.
d. Transfers should be reported in the accounting period in which the interfund receivable and payable arise.
Note: The various fund types may be grouped in the following manner to more clearly portray their relationship to an accounting basis:
Flow of Current Financial Resources Measurement Focus Funds – use the modified accrual basis:
000
General (Current Expense) Fund
100
Special Revenue Funds
200
Debt Service Funds
300
Capital Projects Funds
700
Permanent Funds
Flow of Economic Resources Measurement Focus Funds – use full-accrual basis:
3.1.1.120 Budgeting, budgetary control and budgetary reporting
a. An annual/biennial budget should be adopted by every government.
b. The accounting system should provide the basis for appropriate budgetary control.
c. Budgetary comparison schedules should be presented as required supplementary information for the general fund and for each major special revenue fund that has a legally adopted annual/biennial budget. The budgetary comparison schedule should present both (a) the original and (b) the final appropriated budgets for the reporting period ad well as (c) actual inflows, outflows, and balances, stated on the government’s budgetary basis.
3.1.1.130 Transfer, revenue, expenditures and expense account classifications
a. Transfers should be classified separately from revenues and expenditures or expenses in the basic financial statements.
b. Proceeds of general long-term debt issues should be classified separately from revenues and expenditures in the governmental fund financial statements.
c. Governmental fund revenues should be classified by fund and source. Expenditures should be classified by fund, function (or program), organization unit, activity, character, and principal classes of objects.
d. Proprietary fund revenues should be reported by major sources, and expenses should be classified in essentially the same manner as those of similar business organizations, functions, or activities.
e. At a minimum, the statement of activities should present:
(1) Activities accounted for in governmental funds by function, to coincide with the level of detail required in the governmental fund statement of revenues, expenditures, and changes in fund balances.
(2) Activities accounted for in enterprise funds by different identifiable activities.
a. General purpose external financial reports should be prepared and published. Governments engaged in governmental and business-type activities should include, at a minimum:
(1) Management’s discussion and analysis (MD&A).
(2) Basic financial statements. The basic financial statements should include:
(a) Government-wide financial statements. (b) Fund financial statements. (c) Notes to the financial statements.
(3) Required supplementary information (RSI) other than MD&A.
Governments engaged only in business-type activities should present only the financial statements required for proprietary funds. They should include:
(1) Management’s discussion and analysis (MD&A)
(2) Proprietary fund financial statements consisting of:
(a) Statement of net position (b) Statement of revenues, expenses, and changes in fund net position (c) Statement of cash flows
(3) Notes to the financial statements
(4) Required supplementary information (RSI) other than MD&A, if applicable.
b. The statements and reports listed above follow national standards of financial reporting. They should not be confused with legal reporting requirements, which are prescribed by the State Auditor’s Office for all local governments in Washington State. The legal requirements are consistent with these national standards, but they are not identical. Specific legal reporting requirements are contained in reporting part of this Manual.
c. An ACFR may be prepared and published, covering all activities of the primary government (including its blended component units) and providing an overview of all discretely presented component units of the reporting entity including introductory section, management's discussion and analysis (MD&A), basic financial statements, required supplementary information other than MD&A, combining and individual fund statements, schedules, narrative explanations, and statistical section. The reporting entity is the primary government (including its blended component units) and all discretely presented component units.
d. The financial reporting entity consists of (1) the primary government, (2) organizations for which the primary government is financially accountable, and (3) other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’ basic financial statements to be misleading or incomplete. The reporting entity's government-wide financial statements should display information about the reporting government as a whole distinguishing between the total primary government and its discretely presented component units as well as between the primary government's governmental and business-type activities. The reporting entity’s fund financial statements should present the primary government's (including its blended component units, which are, in substance, part of the primary government) major funds individually and nonmajor funds in the aggregate. Funds and component units that are fiduciary in nature should be reported only in the statements of fiduciary net position and changes in fiduciary net position.
e. The nucleus of a financial reporting entity usually is a primary government. However, a governmental organization other than a primary government (such as a component unit, joint venture, jointly governed organization, or other stand-alone government) serves as the nucleus for its own reporting entity when it issues separate financial statements. For all of these entities, the provisions the GASB Statement 14 should be applied in layers from the bottom up. At each layer, the definition and display provisions should be applied before the layer is included in the financial statements of the next level of the reporting government.
Custodial credit risk for deposits is the risk that, in event of a failure of a depository financial institution, the (city/county/district) would not be able to recover deposits or will not be able to recover collateral securities that are in possession of an outside party. The (city/county/district’s) deposits and certificates of deposit are mostly covered by federal depository insurance (FDIC) or by collateral held in a multiple financial institution collateral pool administered by the Washington Public Deposit Protection Commission (PDPC).
The (city/county/district) does not have a deposit policy for custodial credit risk. The bank balances that were exposed to custodial credit risks are:
It is the (city/county/district’s) policy to invest all temporary cash surpluses. The interest on these investments is prorated to the various funds (or ifnot prorated, explain your unique circumstances). [3]
Investments are subject to the following risks.
Interest Rate Risk: Interest rate risk is the risk the (city/county/district) may face should interest rate variances affect the fair value of investments. The (city/county/district) does not have a formal policy that addresses interest rate risk.
In addition to the interest rate risk disclosed above, the (city/county/district) includes investments with fair value highly sensitive to interest rate changes.
Credit Risk: Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The (city/county/district) does not have a formal policy that addresses credit risk.
At December 31, 20__, (city/county/district’s) investments had the following credit quality distribution for securities with credit exposure:
Custodial Credit Risk: Custodial credit risk is the risk that, in the event of the failure of the counterparty, the (city/county/district) will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The (city/county/district) does not have a formal policy for custodial credit risk.
Concentration of Credit Risk: Concentration of credit risk is the risk of loss attributable to the magnitude of an investment in a single issuer. The (city/county/district) does not have a formal policy for concentration of credit risk.
Investments in Local Government Investment Pool (LGIP)
The (city/county/district) is a voluntary participant in the Local Government Investment Pool, an external investment pool operated by the Washington State Treasurer. The pool is not rated and not registered with the SEC. Rather, oversight is provided by the State Finance Committee in accordance with RCW 43.250. Investments in the LGIP are reported at amortized cost, which is the same as the value of the pool per share. The LGIP does not impose any restrictions on participant withdrawals.
The Office of the State Treasurer prepares a stand-alone financial report for the pool. A copy of the report is available from the Office of the State Treasurer, PO Box 40200, Olympia, Washington 98504-0200, online at www.tre.wa.gov.
The (city/county/district) is a participant in the (county investment pool), an external investment pool operated by the County Treasurer. The pool is not rated or registered with the SEC. Rather, oversight is provided by the County Finance Committee in accordance with RCW 36.48.070. The (city/county/district) reports its investment in the pool at (amortized cost / fair value), which is (the same as the value of the pool per share / or disclose the difference between the reported amount and the value of pool shares). (The pool does not impose any restrictions on participant withdrawals / disclose any liquidity fees, redemption gates or other restrictions).
The (city/county/district) measures and reports investments at fair value using the valuation input hierarchy established by generally accepted accounting principles, as follows:
Level 1: Quoted prices in active markets for identical assets or liabilities;
Level 2: These are quoted market prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other than quoted prices that are not observable;
Level 3: Unobservable inputs for an asset or liability.
At December 31, 20__, the (city/county/district) had the following investments measured at fair value:
Foreign currency risk is the risk that changes in exchange rates will adversely affect deposits or investments. The (city/county/district) does not have a formal policy for foreign currency risk (or briefly describe the policy to manage or limit foreign currency risk). The exposure to foreign currency risk for deposits as of December 31, 20__ is as follows:
Instructions for preparer:
The city/county/district should briefly describe the types of investments authorized by legal and contractual provisions. If there are material violations of these provisions, they should be disclosed. If the types of investments authorized for different funds, fund types, or component units differ significantly from those authorized for the primary government and those funds, fund types, or component units have material investment activity compared with the combined primary government activity, the difference in the authorized investment types should be disclosed. The city/county/district should also disclose its own policies that are related to risks. If a city/county/district has no deposits or investments policy that addresses a specific type of risk that it is exposed to, the disclosure should indicate that fact.
This disclosure is required for a primary government as a whole. Risk disclosures should also be made for governmental and business/type activities, individual major funds, nonmajor funds in aggregate, or fiduciary fund types when the risk exposures are significantly greater than the deposit and investment risk of the primary government.
Disclosures should distinguish between the primary government and it’s discretely presented component units. The financial statements should make those discretely presented component unit disclosures that are essential to fair presentation of the basic financial statements.
Disclosure is limited to types of investment held at year-end.
[1] The following disclosures are required regarding cash deposits with financial institutions:
Legal and contractual provisions regarding deposits;
Policies governing deposits;
Exposure to custodial risk as of the date of the balance sheet or statement of net position;
Defaults and recovery of prior period losses
If the city/county/district has bank balances subject to custodial credit risk, provide a brief description of its deposit policies related to deposit custodial credit risk or state that it does not have a deposit policy for custodial credit risk. Disclose only that portion of the total bank balance that was subject to deposit custodial credit risk. If no bank balance was subject to deposit custodial credit risk, do not include a discussion of deposit custodial credit risk in Note 2. Return to Reference 1
[2] The following general disclosures are required regarding investments:
Types of investments authorized by legal or contractual provisions (if types of investments authorized for different funds, fund types, blended component units, or discretely presented component units differ significantly from those authorized for the primary government and have material investment activity compared with the reporting entity’s investment activity, the differences in authorized investment types should be disclosed)
Significant violations during the period of legal or contractual provisions for investments and actions taken to address such violations
Description of investments policies that are related to the following risks:
Interest rate risk
Credit risk
Custodial credit risk
Concentration of credit risk
Ifapplicable, provide disclosures for the following types of risk. If the city/county/district does not have any investments exposed to risks identified below, delete risk description. Risk disclosures applicable to investments should be reported separately by investment type.
Interest rate risk − information should be organized by investment type and amount using one of the following methods:
segmented time distribution
specific identification
weighted average maturity
duration
simulation model.
Any assumption made in process of applying these methods need to be disclosed.
Describe the highly sensitive investments. For additional information see the Governmental Accounting Standards Board (GASB) Statement 40, paragraph 16 and 57 (examples listed were asset-backed securities) and Illustration 7. Illustration includes CMO’s, inverse variable rate notes, and variable coupon note with multiplier as examples of investments with fair values highly sensitive to interest rate changes.
Governments that participate in a pooled arrangement (other than an external pools investment pool) should disclose interest rate risk for the pooling arrangement. This disclosure is limited to investments in debt mutual funds, external debt investment pools, or other pooled debt investments.
Governments should also disclose any contractual terms for debt investments that expose those investments to the risk of significant changes in fair value resulting from interest rate fluctuation (e.g., coupon multipliers benchmark indices, embedded options, etc.).
Credit risk - disclose credit ratings for investments in debt securities, whether held directly or indirectly including the credit ratings for positions in external investment pools. If a rating is not available, that fact should be disclosed. (This requirement does not apply to the debt securities of the U.S. government or obligations of the U.S. government agencies that are explicitly guaranteed by the U.S. government.) The city/county/district should use the various rating categories (e.g., AAA, Aaa, etc.) set by nationally recognized statistical rating organizations (e.g., Fitch Ratings, Moody’s Investor Services, Standard & Poor’s, etc.).
Custodial credit risk– disclose for investments only if unregistered/uninsured securities are held either by the counterparty or by the counterparty’s trust department or agent, but not in government’s name.
[Note: The Washington Public Deposit Protection Commission eased collateral requirements on uninsured public deposits under Resolution 2016-1, for public depositaries categorized as Well Capitalized as defined in Subsection (b)(a)(A) of Section 38 of the Federal Deposit Insurance Act (FDIA) or hereafter amended and as determined by federal regulatory authority for that public depositary, may collateralize uninsured public deposits at no less than fifty percent. All public depositaries not categorized as Well Capitalized as defined in Section 38 of the FIA are required to fully collateralize uninsured public deposits pursuant to Resolution 2009-1.]
Concentration of credit risk - disclose amount and issuer of investments that represents 5 percent or more of total investments. (This requirement does not apply to investments issued or explicitly guaranteed by the U.S government and investments in mutual funds, external investment pools, and other pooled investments.)
In addition, governments should make the following disclosures in the notes to the financial statements:
the policy for determining which investments, if any, are reported at amortized cost;
for any investments in external investment pools that are not SEC-registered, a brief description of any regulatory oversight for the pool and whether fair value of the position in the pool is the same as the value of the pool shares;
any involuntary participation in an external investment pool;
if an entity cannot obtain information from a pool sponsor to allow it to determine the fair value of its investment in the pool, the methods used and significant assumptions made in determining that fair value and the reasons for having had to make such an estimate;
for any investments in external investment pools that report their investments at amortized cost in accordance with the GASB Statement 79, the presence of any limitations or restrictions on withdrawals (such as notice periods, maximum transaction amounts, and the qualifying external investment pool’s authority to impose fees or redemption gates);
any income from investments associated with one fund that is assigned to another fund.
Governments should disclose policies relevant to each of different types of risks, but only for those types of risks actually faced by the government. If a government does not have a policy that covers one or more of the risks it is facing, that fact must be disclosed.
Participants in external investment pools must disclose:
For pools that are not SEC-registered, a brief description of any regulatory oversight for the pool and whether fair value of the position in the pool is the same as the value of the pool shares.
Whether participation is voluntary or involuntary.
Whether investments in the pool are reported at amortized cost or fair value.
For pools reported at amortized cost, any limitations or restrictions on withdrawals from external investment pools (such as redemption notice periods, maximum transaction amounts, and the external investment pool’s authority to impose liquidity fees or redemption gates).
If the government cannot obtain information from a pool sponsor to make one or more disclosures, the government’s understanding of the pool should be disclosed along with the fact that the government was unable to obtain confirmation from the pool about this understanding. SeeGASB Statement 79, Certain External Investment Pools and Pool Participants, paragraphs 42 and 43 for details. Return to Reference 4
[5] Investments should generally be reported at their fair value. If there are no such investments, this section should be deleted.
Fair value measurement at the end of the reporting period,
Level of fair value hierarchy,
A description of the valuation techniques used,
For any significant changes in valuation techniques, the changes and the reason for making them.
Disclosure is required for the reason for any nonrecurring measurements.
Disclosure should be organized by type of investment. Appropriate grouping by type is a professional judgement based on:
Nature, characteristics and risks of the asset or liability,
Level of fair value hierarchy within which the fair value measurement is categorized,
Whether standards specify a type for an asset or liability,
Identifying transactions that are not orderly,
Objective or the mission of the government,
Characteristics of the government,
Relative significance of assets and liabilities,
Whether separately issued financial statements are available,
Line items presented in the statement of net position.
However, governments have the option of reporting certain investments at cost or amortized cost. For example, investments held by external investment pools meeting requirements ofGASB Statement 79, Certain External Investment Pools and Pool Participants, and money market investments and participating interest-earning investment contracts with a remaining maturity at time of purchase of one year or less, provided that the fair value is not significantly affected by credit impairments or other factors.
Level 1 inputs Level 1 inputs are quoted (unadjusted) prices in active markets for identical assets or liabilities that the government can access at the measurement date. Observable markets include exchange markets, dealer markets, brokered markets and principal-to-principal markets.
Level 2 inputs These are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Inputs are derived from or corroborated by observable market data through correlation or by other means.
Quoted prices for similar assets or liabilities in active markets,
Quoted prices for identical or similar assets or liabilities in inactive markets,
Inputs other than quoted prices that are observable for the asset or liability, such as:
Interest rate and yield curves observable at commonly quoted intervals
Implied volatilities
Credit spreads
Market-corroborated inputs.
Level 3 inputs Unobservable inputs for the asset or liability; only should be used when relevant Level 1 and 2 inputs are unavailable. Government may use their own data to develop unobservable inputs if there is no information available.
The SSAP should indicate whether the government used this option and, if so, for which one specific categories of investment. Also, if a government uses some other than quoted market prices to estimate the fair values, the methods and significant assumptions should be disclosed.
Note: Governments using a pricing service or custody bank for fair values will need closely review statement to ensure valuation changes are correctly reported.
Determine what the source of the fair value information will be for each item. Do not simply rely on the fair value reported to you on monthly bank statement or brokerage statements. Contact the financial institution to understand how they determine fair value.
A government can use NAV per share, as a practical expedient, for investments in nongovernmental entity that does not have a readily determinable fair value (also known as “alternative investments”). The NAV is not permitted for valuation if it is probable the government will sell the investment at a different price. Investments measured at NAV would be excluded from the fair value hierarchy (Level 1, 2, or 3). Note: Investment pools containing language for NAV at fair value or amortized cost should be reported in accordance with other investments at fair value or amortized cost, and not as investments using NAV as a practical expedient.
Alternative investments measured using NAV require additional disclosure for financial statement users to understand the investment’s nature and risks due to the increased uncertainty and subjectivity of the investment and whether such investments are likely to be sold at an amount different from NAV per share. The required disclosure includes:
Fair value measurement of the investment type and description of the significant investment strategies;
For investments that can never be redeemed with the investees, the government’s estimate of the liquidation period;
Amount of unfunded commitments;
General description of the redemption terms and conditions;
Redemption restrictions, estimate of length of restriction period or how long restriction has been in place;
Any other selling restrictions;
Fair value of investments for any planned sales at an amount different from NAV per share and any remaining actions required to complete the sale;
If a sale is planned but not all assets have been identified, the government’s plans to sell and any remaining actions required to complete the sale.
[7] Optional disclosure for cash and investments reconciliation. There is no requirement to reconcile the disclosures required for cash equivalents or deposits and investments to the statement of cash flows or to the statement of net position/balance sheet. Many of the deposits and investments that are subject to disclosure requirements may be reported in the statement of net position/balance sheet as cash and cash equivalents. Other may be reported in the statement of net position/balance sheet using titles that do not identify their nature as deposits and investments. Disclosure of such reconciliation can provide useful information to the users of the financials. Return to Reference 7
[8] If in the period covered by the financial statements, the city/county/district participated in the securities lending transactions, the following information should be disclosed:
legal or contractual authorization for the securities lending transactions;
significant violations of legal and contractual provisions during the period;
actions taken to address such violations;
general description of the securities lending transactions:
type of securities lent,
type of collateral received,
whether the government has the ability to pledge or sell collateral securities without a default,
the amount by which the value of the collateral provided is required to exceed the value of underlying securities,
any restrictions on the amount of the loans that can be made,
any loss indemnification (i.e., a securities lending agent’s guarantee that it will protect the lender from certain losses);
fair values of underlying securities at the balance sheet date;
whether the maturities of the investments made with cash collateral generally match the maturities of their securities loans, as well as the extent of such matching at the balance sheet date;
the amount of credit risk, if any, related to the securities lending transactions (if the lender has not credit risk, that fact should be stated);
the amount of any losses on the securities lending transactions during the period resulting from the default of a borrower or lending agent and amounts recovered from prior period losses, if not separately disclosed in the operating statement.
Securities lending transactions are subject to custodial risk disclosure requirements addressed in paragraph 9 ofGASB Statement 40, Deposits and Investments Risk Disclosures. See paragraph 10 of the above statement for applicability of this disclosure.
[9] Local government may disclose realized gains and losses computed as the difference between the proceeds of the sale and the original cost of the investments sold. They also should disclose that:
a. The calculation of realized gains and losses is independent of a calculation of the net change in the fair value of investments.
b. Realized gains and losses on investments that had been held in more than one fiscal year and sold in the current year were included as a change in the fair value of investments reported in the prior year(s) and the current year.
[10] If applicable, disclose the U.S. dollar value of any deposits or investments denominated in foreign currency, organized by each different foreign currency denomination and type of investment. Return to Reference 10
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.
