It's that time of year again! The updated 2018 version of the Budgeting, Accounting and Reporting System (BARS) Manual will be available on our website in the third week of December. While users may notice several changes in this update, the most significant revision to the 2018 BARS Manual centers on reporting schedules for cities and counties, and specifically Schedule 07 – Cash Disbursements, and Schedule 11 – Cash Activity.
After observing that governments were reporting fiduciary activities inconsistently, in January 2017 the Governmental Accounting Standards Board (GASB) released Statement No. 84, Fiduciary Activities. The statement clarifies what constitutes fiduciary activity and how to report it. While the standard provides important guidance, the State Auditor's Office is concerned that lack of practical examples may lead government agencies to overlook or misunderstand the new requirements. For some governments, the audit implications of incorrect implementation may be significant.
Implementing effective internal financial policies can be challenging for local governments of any size, which is why the Performance Center teamed up with the Municipal Research and Services Center (MRSC) to simplify the process.
By the Center for Government Innovation
Estimated reading time: 4 minutes
The processes for compiling and presenting financial and federal program reports contain many areas of risk, such as reorganization or personnel changes, and new or revised guidance and rules.
To help governments deal with the many possible challenges, our Office has issued two new risk assessment worksheets, one relating to financial reporting and the other to federal programs. Both are available in the Audit Resources section of our website: portal.sao.wa.gov/PerformanceCenter/
In May 2016, local governments reached out to the State Auditor's Office with concerns that mosquito control districts were not following state law regarding annual assessments for district operations.
We're already halfway through 2017, and 2018 is quickly approaching! GASB Statement No.
Local governments are required to submit an annual financial report within 150 days after their fiscal year end under state law (RCW 43.09.230). Exhibit 1 illustrates that the number of governments meeting this requirement has increased for the fourth consecutive year. Exhibit 2 illustrates that 228 of the 302 governments that missed the filing deadline also missed the deadline in 2015.
The Government Accounting Standards Board issued an invitation to comment on January 4 about potential changes to reporting of government funds
The GAAP and Cash Basis BARS manuals have been updated and are available on our website at www.sao.wa.gov.