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BARS GAAP Manual

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BARS Account Export


Select a government type/Select basis of accounting

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 Alloption to view the entire chart of accounts and contact LGSCFeedback@sao.wa.gov so the listing can be updated.

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. 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 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 without objects which are available in the BARS Manual. The reporting at the subobject level is not required.

This section was last edited by SAO on 01/03/19
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Introduction

2.4 Budget Compliance

2.4.1 Introduction

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

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

2.4.1.30 Glossary of Budgetary Terms:

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

This section was last edited by SAO on 01/23/19
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Accounting and Reporting of Property Tax

3.5 Deferred Outflows/Inflows of Resources

3.5.2 Accounting and Reporting of Property Tax

3.5.2.10 Property tax revenue should be recognized in the period for which levied, regardless of when they are due or collected. It should be reported on the date which the government has an enforceable legal claim to the resources or in the beginning of the period for which levied, if sooner. In Washington State the date for both situations is January 1.

3.5.2.20 Government-Wide Financial Statements

According to above accounting guidance the entity should not recognize any tax in the 201X [1] financial statements for the 201Y [2] fiscal year, except if somebody prepays the 201Y tax; the prepaid tax should be recorded as cash offset by deferred inflow of resources (DR Cash/CR Deferred Inflow of Resources).

So, the 201X financial statements should report tax receivable for uncollected 201X tax (and the tax was already recognized as revenue) and deferred inflows of resources related to prepaid tax for 201Y. This transaction (DR Cash/CR Deferred Inflows of Resources) will be reversed in 201Y when the prepaid tax will become revenues. Since most likely the prepayments don’t happen often, the amounts are immaterial and it will be quite common not to see any deferred inflows related to property tax on government-wide financial statements.

3.5.2.30 Fund Financial Statements

On December 31, 201X an entity should report accounts receivable for uncollected 201X tax. Revenues should be recorded for the outstanding amount expected be collected within the availability period (set by policy, typically 60 days). The amount expected to be collected after the availability period should be recorded as deferred inflows of resources (unavailable tax). The only other deferred inflows of resources related to property tax would be any tax prepaid for 201Y.

In the 201X the amount of deferred inflows would be also adjusted for the previous years’ delinquent taxes.
_____________________________________________________________________________________

[1] 201X indicates reporting year
[2] 201Y indicates subsequent year

This section was last edited by SAO on 01/16/19
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GAAP Reporting Requirements

4.1 Reporting Principles and Requirements

4.1.1 GAAP Reporting Requirements

4.1.1.10 The requirements for financial reporting in accordance with generally accepted accounting principles (GAAP) are established by the Governmental Accounting Standards Board (GASB) in the GASB Statement 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments.

The following diagram illustrates the minimum requirements for general purpose external financial reports.

4.1.1.20 Comparative financial statements mean two complete sets of financial statements for each comparative year. Each set should contain basic financial statements (including notes) and RSI (including MD&A). Both years may be combined in one presentation; however, each element (MD&A, basic financial statements, notes and RSI) have to include information for both years.

1. Management Discussion and Analysis (MD&A)

4.1.1.30 MD&A should introduce the basic financial statements and provide an analytical overview of the local government’s financial activities. It is part of the Required Supplementary Information (RSI), however it should be presented before the basic financial statements. The MD&A should provide an objective and easily readable analysis of the local government’s financial activities. It should include comparisons of current year to the prior year based on the government-wide information. It also includes information regarding the local government budget variances, capital assets, long-term debt activity, and a description of currently known facts, decisions, or conditions expected to have a significant effect on financial position or results of operations.

2. Basic Financial Statements

Government-Wide Financial Statements

4.1.1.40 The government-wide financial statements consist of a statement of net position and a statement of activities. They are prepared using the economic resources measurement focus and the accrual basis of accounting. Each statement distinguishes between the governmental and business-type activities of the primary government and its discretely presented component units.

Statement of Net Position

4.1.1.50 The statement of net position presents the local government as one economic unit rather than a compilation of different funds. The statement focuses on type of activities, rather than type of funds. Local governments should report all capital assets, including infrastructure assets in the government-wide statement of net position. The net position should be reported in three categories: net investment in capital assets, restricted and unrestricted.

Statement of Activities

4.1.1.60 The statement of activities is a report on the results of the local government’s operations. The statement presents the cost of each function and the extent to which each of the local government’s functions, programs or services either contributes to or takes away from the local government’s general revenue.

The required format provides:

  1. Information indicating the extent to which current-year program revenues supported the cost of the current-year services, and

  2. How the local government finances its activities.

Fund Financial Statements

Governmental Fund Financial Statements

4.1.1.70 Governmental funds should be reported using the current financial resources measurement focus and the modified accrual basis of accounting. These funds are presented by general fund; major funds, and aggregated nonmajor funds.

There are two statements required - the balance sheet and the statement of revenues, expenditures and changes in fund balance. General capital assets and general long-term liabilities are not reported in the governmental fund balance sheet. (They are reported in the government-wide financial statements.)

4.1.1.80 The statement of revenues, expenditures and changes in fund balance reports information about the inflows, outflows, and balances of current financial resources of each major governmental fund and for the nonmajor governmental funds in the aggregate.

4.1.1.90 Each statement reports separate columns for the general fund and for other major governmental and enterprise funds. Major funds are funds whose revenues, expenditures/expenses, assets, or liabilities (excluding extraordinary items) are at least 10 percent of corresponding element totals for all funds of that category or type and at least five percent of the corresponding element total for all governmental or enterprise funds combined. The local government may choose to report any other funds as a major fund if they believe they are important to users. The nonmajor funds are reported in aggregate in a separate column.

Proprietary Funds Financial Statements

4.1.1.100 There are three required fund financial statements for proprietary funds:

  1. Statement of Net Position,
  2. Statement of Revenues, Expenses and Changes in Fund Net Position, and
  3. Statement of Cash Flows.

4.1.1.110 Proprietary funds continue to be presented on the economic resources measurement focus and the full accrual basis of accounting. Proprietary funds are reported the same way as in the government-wide financial statements. However, internal service funds should be reported as a fund type (aggregated) in a separate column. Major enterprise funds are reported in separate columns and nonmajor enterprise funds are aggregated in a single column.

4.1.1.120 The proprietary statement of net position presents assets and liabilities in a classified format. Restricted assets are reported separately. Net position should be reported in the following three components: net investment in capital assets, restricted and unrestricted.

4.1.1.130 The proprietary statement of revenues, expenses, and changes in fund net position reports in a specific format prescribed by the GASB Statement 34. All transactions that affect net position are included. Revenues are reported by major source. Expenses are reported by either detail (object) or function level. Revenues and expenses should distinguish between operating and nonoperating.

Fiduciary Fund Financial Statements

4.1.1.140 The following are required financial statements for fiduciary funds:

  1. Statement of Fiduciary Net Position, and
  2. Statement of Changes in Fiduciary Net Position.

The fiduciary statements are prepared using the economic resources measurement focus and full accrual basis of accounting (with some exceptions for liabilities for defined benefit pension plans and certain postemployment health care plans).

4.1.1.160 The statement of fiduciary net position should include information about the assets, liabilities, and net position for each fiduciary fund type and for similarly discretely presented component units of the reporting entity. The local government should provide details for all other fiduciary funds, or clearly indicate where the information is displayed.

4.1.1.170 The statement of changes in fiduciary net position should include information about the additions to, deductions from, and net increase (or decrease) for the year in net position for each fiduciary fund type and similar discretely presented component units. It should provide information about significant year-to-year changes in net position. The local government should provide additional details about investments and provide the level of details for all other fiduciary funds or clearly indicate where the information is displayed.

3. Notes to the Financial Statements

4.1.1.180 Notes to the financial statements are essential to fair presentation of the basic financial statements. The notes include the summary of significant accounting policies and summary disclosure of such matters as significant contingent liabilities, encumbrances outstanding, significant effects of subsequent events, pension plans, accumulated unpaid employee benefits (such as vacation and sick leave), material violations of finance-related legal and contractual provisions, debt service requirements to maturity, commitments under noncapitalized leases, construction and other significant commitments, any excess of expenditures over appropriations in individual funds, deficit balances of individual funds, and interfund receivables and payables. Any other disclosures necessary in the circumstances should also be included.

The NCGA has discussed the notes to financial statements in more detail in its Interpretation 6, which also provides guidance for presenting notes in a logical order.

4. Required Supplementary Information

4.1.1.190 Statements, schedules, statistical data, and other information the GASB deem necessary is reported as required supplementary information (RSI). Except for the MD&A, required supplementary information, including the budgetary comparison information, should be presented immediately following the notes to the financial statements.

There are four types of RSI (other than MD&A) that must be presented:

  • Budgetary comparisons (for the general fund and other individual special revenue funds), [1]
  • Infrastructure condition and maintenance data (for local governments using the modified approach),
  • Pension trend data (for certain pension plans and participating employers),
  • Revenue and claims development trend data (for public-entity risk pools).

Reporting Entity

4.1.1.200 In June 1991, GASB issued the Statement 14, The Reporting Entity, which is effective for financial statements for periods beginning after December 15, 1992. Statement 14 establishes standards for defining and reporting on the financial reporting entity and applies to financial reporting by primary governments, as well as to separately issued financial statements of governmental component units. The Statement 14 defines the financial reporting entity as consisting 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’s financial statements to be misleading or incomplete.

4.1.1.210 A primary government is financially accountable for those organizations that make up its legal entity as well as legally separate organizations if the primary government appoints a voting majority of an organization’s governing body, and either it can impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the primary government.

4.1.1.220 Most organizations determined to be component units under the Statement 14 should be included in the financial reporting entity by discrete presentation that is, by presentation in one or more columns separate from the financial data of the primary government. However, some component units may, in substance, be the same as the primary government and should be reported as part of the reporting entity that is, the component unit’s balances and transactions are reported in a manner similar to those of the primary government, by blending. It is likely that an organization considered to be a component unit under existing standards and blended will continue to be considered a component unit under the Statement 14; however, according to the Statement 14, that component unit will probably be reported by discrete presentation.

The following flowchart will help to determine the reporting status of an organization. Refer to the Statement’s Glossary for definitions of the various terms.

4.1.1.230 In September 2006, GASB issued the Statement 48, Sales and Pledges of Receivables and Future Revenues and Intra-Entity Transfers of Assets and Future Revenues. This Statement applies to all intra-entity transactions (sales and donations) that involve the transfer of financial assets, capital assets and future revenues.

When accounting for the transfer of capital and financial assets and future revenues within the same financial reporting entity, the transferee should recognize the assets or future revenues received at the carrying value of the transferor. The difference between the amount paid (exclusive of amounts that may be refundable) and the carrying value of the assets transferred should be reported as a gain or loss by the transferor (revenue in governmental funds) and as a revenue or expenditure/expense by the transferee in a separately-issued statements, but reclassified as transfers in the financial statements of the reporting entity. Application of this Statement should be the same for both discretely presented and blended component units.

4.1.1.240 Hospital Districts: The General Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards, section Ho5.601 supersedes the June 1996 AICPA Audit and Accounting Guide, Health Care Organizations, to the extent of financial reporting. However, the Guide continues to provide guidance on individual transactions that are unique to healthcare organizations. The Guide is considered Category B guidance in the hierarchy of GAAP.

Notes to Financial Reporting Entity Flowchart

PG = primary government, that is, the entity preparing financial statements
PCU = potential component unit, that is, the entity under consideration

1. An organization has separate legal standing if it is created as a body corporate or a body corporate and politic, or if it otherwise possesses the corporate powers that would distinguish it as being legally separate from the primary government.

2. Corporate powers give an organization the capacity to have a name; the right to sue and be sued in its own name without recourse to another state or local governmental unit; and the right to buy, sell, lease, and mortgage property in its own name.

3. The primary government’s appointment authority should be substantive and continuing. A primary government’s appointment authority is not substantive if the number of candidates is limited by the nominating process or if its responsibility is limited to confirming appointments made by individuals or groups other than the primary government’s officials or appointees. In the absence of continuing appointment authority, the ability of a primary government to unilaterally abolish an organization also provides the basis for ongoing accountability.

4. An organization is fiscally dependent if it cannot meet all three of the following requirements without substantive approval of a primary government:

  • Determine it budget,
  • Levy taxes or set rates or charges, and
  • Issue bonded debt.

It is also important to make a distinction between substantive and ministerial (compliance) approval. Ministerial approval is often a result of the general oversight of the respective state or local governments. This may include evaluation of programs, review for compliance with the statutory requirements, etc. Being subject to ministerial approval does not qualify an organization as fiscally dependent. Also, a primary government that is temporarily under the fiscal control of another government continues to be fiscally independent.

5. The benefit or burden relationship may result from legal entitlements or obligations, or it may be less formalized and exist because of a decision made by the primary government or agreements between the primary government and component unit.

An organization has a financial benefit or burden relationship with the primary government if any one of these conditions exists:

  • The primary government is legally entitled to or can otherwise access the organization’s resources.
  • The primary government is legally obligated or has otherwise assumed the obligation to finance deficits of, or provide financial support to, the organization.
  • The primary government is obligated in some manner for the debt of the organization.

Exchange transactions between organizations and the primary government are not considered a financial benefit or burden relationship.

The effect of the financial benefits or burdens on the primary government can be either direct or indirect. A direct effect occurs when the primary government itself is entitled to the resources or obligated for the deficits or debits of the organization. An indirect relationship occurs when one or more of the primary government’s component units is entitled to the resources and obligated for the deficits or debts of the organization. In both cases, the primary government has the benefit/burden relationship with the organization.

6. Certain organizations warrant inclusion because of the nature and significance of their relationship with the primary government, including their ongoing financial support of the primary government or its other component units. A legally separate, tax exempt organization should be reported as a discretely presented component unit if all of the following criteria are met:

  • The economic resources received or held by the organization are almost entirely for the direct benefit of the primary government, its component units, or its constituents.
  • The primary government is entitles to, or has the ability to otherwise access, a majority of the economic resources received or held by the separate organization.
  • The economic resources received or held by an individual organization that the specific primary government, or its component units, is entitled to, or has the ability to otherwise access, are significant to that primary government.

7. Other organizations should be evaluated as potential component units if they are closely related to or financially integrated with the primary government and included as component units if the nature and significance of their relationship with the primary governments is such that exclusion from the financial reporting entity would render the financial statements incomplete or misleading. It is a matter of professional judgment to determine whether the nature and the significance of a potential component unit’s relationship with the primary government warrant inclusion.

8. A primary government has the ability to impose its will on an organization if it can significantly influence the programs, projects, activities, or level of services performed or provided by the organization. The existence of any one of the following conditions indicates that the primary government has the ability to impose its will on an organization:

  • The ability to remove the appointed members of the organization’s governing body at will.
  • The ability to modify or approve the budget of the organization.
  • The ability to modify or approve the rate or fee changes affective revenues, such as water usage rate increases.
  • The ability to veto, overrule, or modify the decisions (other than those in b and c) of the organization’s governing body.
  • The ability to appoint, hire, reassign, or dismiss those persons responsible for the day-to-day operations (management) of the organization.

There may be other conditions indicating the possibility of imposing will. When assessing them, remember to make the distinction between substantive and ministerial approvals.

A potential component unit for which a primary government is financially accountable may be fiscally dependent on another government. An organization should be included as a component unit of only one reporting entity. Professional judgment should be used to determine the most appropriate reporting entity. A primary government that appoints a voting majority of the governing board of a component unit of another government should make the disclosures required for related organizations.

9. A component unit should be presented as blended when the component unit’s governing body is substantively the same as the governing body of the primary government and (1) there is a financial benefit/burden relationship between the primary government and the component unit or (2) management of the primary government has operational responsibility for the component unit.

Additionally, a component unit should be included using blending method if the component unit is organized as a not-for-profit corporation in which the primary government is the sole corporate member ( GASB Statement 80, Blending Requirements for Certain Component Units).

10. A component unit should be presented as blended when the component unit provides services entirely, or almost entirely, to the primary government or otherwise exclusively, or almost exclusively, benefits the primary government even though it does not provide services directly to it. The essence of this type of arrangement is much the same as an internal service fund – the goods or services are provided to the government itself rather than to the citizenry.

As prescribed in the GASB Statement 85, Omnibus 2017, for a primary government that is a business-type activity and uses a single column for financial statement presentation of its business-type activities, a component unit may be blended only if the component unit meets a criterion for blending in paragraph 53 of the GASB Statement 14, The Financial Reporting Entity.

The GASB Statement 14 (as amended by GASB Statements 34, 39, 61 and 80) allows flexibility in displaying the component units’ financial data. Please refer to the matrix in the Manual for a detailed listing of the possible displays for component units.

______________________________________________________________________________________

[1] As amended by the GASB Statement 39, Determining Whether Certain Organizations are Component Units

This section was last edited by SAO on 01/23/19
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Table of Contents

Index of Sections

CHARTS OF ACCOUNTS 
BARS Account Export 
Object Codes1.4
Revenue/Expenditure/Expense Accounts Overview1.3
Determining Operating/Nonoperating Revenues/Expenses in Proprietary Funds1.5
General Ledger Accounts1.2
Account Structure 
Applicability1.1.1
Structure1.1.2
  
BUDGETING 
Budget Compliance 
Introduction2.4.1
Budget Adoption and Amendments2.4.3
Budget Process2.4.2
  
ACCOUNTING 
Accounting Principles and Internal Control 
Fund Types and Accounting Principles3.1.1
Internal Control3.1.3
Original Supporting Documentation3.1.4
Sources of GAAP3.1.2
  
Assets 
Compensating Balances3.2.5
Deposits and Investments3.2.1
Investment in County's External Investment Pool3.2.2
Joint Ventures3.2.8
Money Held in Trust3.2.4
Special Assessments3.2.7
Sweeping Interest and Investment Returns into County General Fund3.2.3
  
Capital Assets 
Capital Assets Accounting3.3.10
Capital Asset Management3.3.9
Controls over Capital Assets3.3.11
  
Liabilities 
Arbitrage Rebates3.4.6
Bonds and Revenue Warrants3.4.3
Financial Guarantees3.4.12
Issuance of Duplicate Instruments3.4.5
Leases3.4.1
Legal and Other Contingencies3.4.11
Other Post-Employment Benefits (OPEB)3.4.7
Pensions3.4.2
Refunding Debt3.4.4
Risk Management Principles3.4.9
Solid Waste Utilities: Closure and Postclosure Cost Accounting3.4.8
  
Deferred Outflows/Inflows 
Accounting and Reporting of Property Tax3.5.2
Classification of Deferred Outflows/Inflows of Resources3.5.1
  
Revenues 
Cash Receipting3.6.1
County Auditor's Operation and Maintenance Fund (Recording Fees)3.6.2
County Treasurer's Operation and Maintenance Fund3.6.3
Criminal Justice Funding3.6.4
Diversion of County Road Property Tax3.6.5
Electronic Funds Transfer - Receipts3.6.6
Impact Fees3.6.7
Liquor Tax and Profits - Two Percent for Substance Abuse Treatment Programs3.6.8
Prosecuting Attorney's Salaries3.6.12
Revenue Accruals in Governmental Funds3.6.9
Suspense Funds3.6.11
Utility Tax3.6.13
Working Advances from Department of Social and Health Services (DSHS)3.6.10
  
Grants 
Grants Accounting3.7.1
Pass-Through Grants3.7.2
  
Expenditures 
Confidential Funds (Drug Buy Money, Investigative Funds)3.8.9
Electronic Funds Transfer - Disbursements3.8.11
Employee Travel3.8.2
Imprest, Petty Cash and Other Revolving Funds3.8.8
Memberships in Civic and Service Organizations3.8.13
Mobile Devices3.8.3
Paths and Trails - Accounting3.8.10
Purchase Cards3.8.4
Redeemed Warrants/Cancelled Checks3.8.7
Unemployment and Deferred Compensation3.8.1
Use of Payroll and Claims Funds3.8.6
Voter Registration and Election Costs Allocation3.8.12
Voucher Certification and Approval3.8.5
  
Interfund Activities 
Interfund Activities Overview3.9.8
Equipment Rental and Revolving (ER&R) Fund3.9.7
Internal Service Funds3.9.6
Loans3.9.1
Overhead Cost Allocation3.9.5
Property Transfers3.9.2
Reimbursements3.9.4
Utility Surplus Transfers3.9.3
  
Compliance 
Bond Coverage for Public Officials and Employees3.10.3
County Fair Operations3.10.1
Limitation of Indebtedness3.10.5
New Entity Creation and Dissolution Notification3.10.6
Promotional Hosting3.10.7
Public Works Records3.10.4
Reporting Losses of Public Funds or Assets or Other Illegal Activity3.10.2
  
Special Topics 
Transportation Benefit District (TBD)3.11.1
  
REPORTING 
Reporting Principles and Requirements 
GAAP Reporting Requirements4.1.1
BARS Reporting Requirements4.1.2
Summary of Reporting Requirements4.1.4
Certification4.1.3
GAAP versus Cash Reporting4.1.7
  
Government-Wide Financial Statements 
Presentation Requirements4.2.1
Statement of Net Position4.2.2
Statement of Activities4.2.3
Classification of Revenues and Expenses for the Statement of Activities4.2.4
Eliminations4.2.7
Net Position4.2.8
  
(Fund) Financial Statements 
Fund Types4.3.1
Major Funds4.3.2
Governmental Funds Financial Statements4.3.3
Proprietary Funds Financial Statements4.3.4
Internal Service Funds4.3.6
Fiduciary Funds Financial Statements4.3.5
  
Conversion and Reconciliation between Government-Wide and Fund Financial Statements4.4
  
Statement of Cash Flows4.5
  
Notes to Financial Statements 
Instructions4.6.1
  
Required Supplementary Information (RSI)4.7
  
Supplementary and Other Information 
DES Schedule of Expenses - Risk Pools4.14.2
List of Participating Members - Risk Pools4.14.1
Liabilities (Schedule 09)4.8.3
Expenditures of Federal Awards (Schedule 16)4.8.5
  
SAO Annual Report Schedules 
Revenues/Expenditures/Expenses (Schedule 01)4.8.1
Expenditures of State Financial Assistance (Schedule 15)4.8.16
Public Works (Schedule 17)4.8.6
Labor Relations Consultant(s) (Schedule 19)4.8.7
Sales and Use Tax for Public Facilities - Rural Counties (Schedule 20)4.8.8
Risk Management (Schedule 21)4.8.9
Assessment Questionnaire (Schedule 22) (Cash)4.8.14
  
GFOA Financial Reporting Recognition Program4.9
This section was last edited by SAO on 01/23/19
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Overview of Significant Changes

BARS Alerts

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

Overview of Significant Changes – Applicable to the Reporting Year 2018

 

Topic

 

Reference

 

Description of Changes

 

  

CHART OF ACCOUNTS

BARS Account Export

3132500, Housing and Related Services Sale and Use Tax

New account for governments collecting sales and use tax as authorized in RCW 82.14.530.

BARS Account Export

3329330, Medical Transformation Demonstration

New account for revenues for Medicaid payments related to an implementation of the Transformation Plans. The addition was communicated on August 1, 2018 in BARS Alert

BARS Account Export

3329340, Ground Emergency Medical Transportation (GEMT) Payment Program

New account for revenues from Medicaid related to the GEMT program. The addition was communicated on August 1, 2018 in BARS Alert

BARS Account Export

3360211, County Fair Fund

Expanded definition to clarify use of this code.

BARS Account Export

3360700, PFD Lodging Tax Distribution

Code applicable only to Seattle and King County.

BARS Account Export

3432000, Television/Cable/Internet Sales and Services

Expanded the title and the definition to include internet services as authorized by Chapter 186, Laws of 2018.

BARS Account Export

3697000, Pension/OPEB Contributions

Revised title and definition to clarify use of this account for pension and OPEB related revenues only.

BARS Account Export

38110/38120, Interfund Loan Receipts

Removed these accounts since the loans are balance sheet transactions and their reporting on Schedule 01 was always optional.

BARS Account Export

51530, Legal Services

The account was divided between internal and external legal services. Within each category were created more separate accounts for different specific legal expenditures. The change will allow governments to analyze and compare costs much more effectively. This also aligns accounting records with procedures auditors are required by professional standards to perform an audit on legal liabilities, so it will help make the audit process more efficient. This change was already announced in 2016 and was not required for the FY 2017 reports; however, the new accounts will be required for 2018 reporting.

BARS Account Export

58110/58120, Interfund Loan Repayments

Removed these accounts since the loans are balance sheet transactions and their reporting on Schedule 01 was always optional.

Object Codes

 

 

Object code 50 was removed and the definitions of object codes 30 and 40 adjusted to include the transactions which were previously reported using object 50. For other details see BARS Alert issued August 1, 2018.

   
  

ACCOUNTING

Fund Types and Accounting Principles

 

3.1.1

GASB Statement 84, Fiduciary Activities – the Statement is effective for reporting periods beginning after December 15, 2018; however we incorporated the required changes in this version of manual. The additional information will be available on our website under Fiduciary Funds in BARS manual.

Also, updated was the discussion of enterprise [400] funds. There are no new reporting requirements and the update expands the current prescription.

Capital Assets Management

 

3.3.9

The update incorporates the changes to RCW 36.32.210 which removed the annual inventory requirement. The change was communicated on March 21, 2018 in BARS Alert.

Capital Assets Accounting

 

3.3.10

Based on additional research we made the following changes to clarify different areas related to capital assets:

  • Added guidance for options for accounting for replacements;
  • Moved all the guidance for componentization primarily to this section
  • Added GASBS 69 guidance;
  • Added GASBS 89 guidance;
  • Aligned useful life section with current GASB standards and terminology;
  • Clarified and expanded fully depreciated asset section;
  • Clarified and expanded group/composite depreciation section based on research and GASB codification guidance.

Capital Assets Accounting

 

3.3.10.50

Removed requirement to capitalize interests during construction. This is an early implementation of GASBS 89, Accounting for Interest Cost Incurred before the End of Construction Period which is applicable for reporting periods beginning after December 15, 2019.

Refunding Debt

 

3.4.4.91

Added GASBS 86, Certain Debt Extinguishment Issues update regarding accounting and reporting when the debt is refunded with the government’s own resources.

Arbitrage Rebate

 

3.4.6.90

Removed requirement to capitalize interests during construction. This is an early implementation of GASBS 89, Accounting for Interest Cost Incurred before the End of Construction Period which is applicable for reporting periods beginning after December 15, 2019.

Contingencies and Litigations

 

3.4.15

A new section was added to discuss and clarify concepts related to accounting and reporting of contingencies and litigations.

Other Postemployment Benefits (OPEB)

 

3.4.17

The entire section was updated to implement GASBS 74 and 75. [The update contains also notes and RSI requirements.]

County Auditor’s Operation and Maintenance Fund (Recording Fees)

 

3.6.2

The section was updated to reflect the 2018 legislative changes in the amounts of collected surcharges.

ER&R

 

3.9.7

New section was added regarding Equipment Rental and Revolving (ER&R) Fund. This guidance was previously available outside the BARS manual and it is now incorporated into the manual allowing an easy access.

Interfund Activities

 

3.9.8

Added a new section to provide a general overview of interfund transactions.

   
  

REPORTING

  

GASB Statement 84, Fiduciary Activities – the statement is effective for reporting periods beginning after December 15, 2018; however we incorporated the required changes in this version of manual. The following sections were updated: 4.1.1.150 (removed due to the changes in reporting requirements for custodial funds and they impact on CAFR); 4.1.4.20, 4.3.1.40, 4.3.2.70, 4.8.3.50, and 4.9.140. These changes involved only a title change from the agency to custodial funds.

The most significant change involves changes in financial reporting and these are incorporated into 4.3.5, Fiduciary Funds Financial Statements.

Statement of Cash Flows

 

4.5.100

Removed requirement to capitalize interests during construction. This is an early implementation of GASBS 89, Accounting for Interest Cost Incurred before the End of Construction Period which is applicable for reporting periods beginning after December 15, 2019.

Note 1 – Summary of Significant Accounting Policies

Section 7

Removed requirement to capitalize interests during construction. This is an early implementation of GASBS 89, Accounting for Interest Cost Incurred before the End of Construction Period which is applicable for reporting periods beginning after December 15, 2019.

Note X – Capital Assets

Subsection F, Interest Capitalization + Instructions [7]

Removed requirement to capitalize interests during construction. This is an early implementation of GASBS 89, Accounting for Interest Cost Incurred before the End of Construction Period which is applicable for reporting periods beginning after December 15, 2019.

Note X – Long-Term Debt

 

Added reporting requirements of GASBS 88, Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placements. This Statement is applicable for reporting periods beginning after June 15, 2018.

Note X – Tax Abatement

 

Added link to the WA State Department of Revenue page containing information regarding state’s abatements. This update was communicated on March 7, 2018 in the BARS Alert.

Schedule 09

 

 

Clarified that the governments should be reporting both short- and long-term liabilities on the Schedule. Also added new ID. Numbers for registered warrants and lines of credits.

Schedule 16

 

4.8.5.60

4.8.5.120

4.8.5.130

4.8.5180

Note 4, Federal Loans

Revision reflect the clarification for reporting federal grants provided by federal agencies.

Remove discussion of ARRA grants.

The example of reporting FEMA grants was updated.

Updated for changes related to reporting the following grants: EPA Drinking Water (CFDA 66.468), Clean Water (CFDA 66.458), USDA Interim Financing (CFDA10.760) and (CFDA 10.766).

Revised rules for reporting grants with missing CFDA numbers.

Added sentence regarding interim financing.

Schedule 21

 

 

The Schedule was revised to provide relevant information needed in assessing and auditing governments’ risk management circumstances.

   
  

ONLINE FILING

Schedule 09

 

The Schedule 09, Schedule of Liabilities, includes a new validation check for net pension liabilities. Governments will receive a red flag if they have pension related liabilities but do not report them on the Schedule 09 or if they are using the incorrect ID No.

   

BARS Alerts

7/20/2017 BARS Manual Update - Coding Marijuana Excise Tax Distribution (Cities/Counties Only)
3/14/2017 BARS Update - Reporting Court Related Agency Deposits and Remittances (Cities/Counties Only)
1/4/2017 BARS Manuals Update - 2017 Filing System Update

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.

Revenue/Expenditure/Expense Accounts

50138, Depreciation Depletion, Amortization – Combined Water/Sewer/Solid Waste Utilities

Changed title to Depreciation, Depletion, Amortization – Combined Utilities to correctly reflect the RCW.

Revenue/Expenditure/Expense Accounts

50195, Depreciation Depletion, Amortization – Infrastructure

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).

Revenue/Expenditure/Expense Accounts

51830, Maintenance/Security/Insurance/Janitorial Services

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 Deferred Compensation 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 Issues applicable 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.

BARS Alerts

4/21/2016 BARS Manual Update - Revisions to the Schedule of Expenditures of Federal Awards (SEFA/Schedule 16)
4/5/2016 BARS Codes for a New Distribution
2/10/2016 BARS Manual Update - Cash BARS only - Pension Accounting and Reporting
2/10/2016 BARS Manual Update - GAAP BARS only - Pension Liabilities
2/8/2016 BARS Manuals Update - BARS Coding of Miscellaneous Revenue

Overview of Significant Changes – Applicable to the Reporting Year 2016

 

Topic

 

Reference

 

Description of Changes

 

CHART OF ACCOUNTS

Revenue/Expenditure/Expense Accounts

31720, Leasehold Excise Tax

The definition was updated to clarify that this tax can be imposed only by counties and cities and other governments receiving their share of this tax should code the proceeds to 337, Local Grants, Entitlements and Other Payments.

Revenue/Expenditure/Expense Accounts

31740, Timber Excise Tax

The definition was updated to clarify that this tax can be imposed only by counties and other governments receiving their share of this tax should code the proceeds to 337, Local Grants, Entitlements and Other Payments.

Revenue/Expenditure/Expense Accounts

32180, Concessions

A new account was added. This account should be used for revenues from awarding rights to use government’s property. Previously these proceeds were comingled with proceeds from an actual sales and coded to account 36280, Concession Proceeds and 36290, Other Rents, Leases and Concession Proceeds. Proceeds from governments own sales should be accounted for in 34170, Sales of Merchandise.

Revenue/Expenditure/Expense Accounts

32191, Franchise Fees and Royalties

This account was updated to include royalty payments. Previously the royalties were accounted for in 36290, Other Rents, Leases and Concession Proceeds (e.g., property rights, etc.), 34790, Other Fees (e.g., publication royalties, etc.).

Revenue/Expenditure/Expense Accounts

36210, 36230, 36240, 36250, 36260

These accounts were combined into 36200, Rents and Leases. This account is designed only for rentals and leases which are not a part of the governments’ principal operation [those rents and leases should be accounted in the appropriate 340s service and sales accounts]. The new section Determining Operating/Nonoperating Revenues/Expenses in Proprietary Funds provides guidance for classification of revenues/expenses as operating/nonoperating for the proprietary funds.

Revenue/Expenditure/Expense Accounts

36280, Concession Proceeds

Account removed. For revenues from awarding rights to use government’s property use 32180, Concessions. Proceeds from governments own sales should be accounted for in 34170, Sales of Merchandise.

Revenue/Expenditure/Expense Accounts

362900, Other Rents, Leases and Concession Charges

Account removed. The revenues should be accounted in 36200, Rents and Leases, 32191, Franchise Fees and Royalties 34170, Sales of Merchandise or other appropriate account.

Revenue/Expenditure/Expense Accounts

36850, Special Assessment- Operating

The title was changed to Special Assessment – Service and the definition was updated. If the service assessments are related to the governments’ principal operations, they should be coded in 340s as proceeds from sales of goods and services.

Revenue/Expenditure/Expense Accounts

36910, Sale of Scrap and Junk

The title was changed to Sale of Surplus and a definition was added.

Revenue/Expenditure/Expense Accounts

36950, Special Items

The account changed to account 385, Special/Extraordinary Items to better reflect the substance of the transaction [i.e., special items should not be classified as revenue] The account can be also used for extraordinary items, and the title was adjusted to reflect this.

Revenue/Expenditure/Expense Accounts

380, Nonrevenues

  • The title of this section of the chart was changed to Other Increases in Fund Resources.
  • A new account 385, Special/Extraordinary Items was added [previously accounted for in 36950, Special Items – see above row for description].
  • The account 388, Prior Period Adjustments was changed to 38810 and account 38850, Cumulative Effect of Change in Accounting Principle(s) was added.
  • Accounts 386 (1), Agency Deposits and 389, Other Nonrevenues were pooled and rearranged into:
    • 38910, Refundable Deposits,
    • 38920, Retainage Deposits,
    • 38930, Agency Type Collections,
    • 38940, Agency Type Deposits,
    • 38960, Agency Type Interest Earnings, and
    • 38990, Other Custodial Activities.

These accounts are still optional for GAAP governments.

[Updated the definition of these codes to clarify that they should be used for custodial activities only – to record receipts and disbursements from fiduciary funds as well as any custodial activity reported in other fund types. Subaccount detail allows for reporting by major types of custodial activities in order to provide further clarity, align with internal tracking of custodial balances and support analysis.]

(1) The change applicable to the courts’ deposits and remittances was updated on March 14, 2017. The following BARS Alert was sent to all cities and counties at that time.

The BARS codes for agency deposits/remittances were revised this year and BARS account 386/586 was replaced by several 389/589 accounts. However, the recent submissions of the Schedule 01 indicate that this change creates some confusion. To avoid further misunderstanding at this time the Online reporting system will accept court related deposits and remittances coded as 386/586. All other non-court items should be coded to appropriate 389/589 accounts. We have updated the summary of significant changes in the BARS manual.

Revenue/Expenditure/Expense Accounts

51170, Lobbying Activities

New account. The lobbying services were excluded from account 51120, Advisory Services and are now reported separately.

[Lobbying expenditures are subject to specific compliance and reporting requirements, so governments need to separately track them. Also, the separation will allow cross-checking figure against PDC filings.]

Revenue/Expenditure/Expense Accounts

531, Storm Drainage Utilities

The account description was revised to ensure that this account is used only when a local government has a separate utility for storm drainage. The storm drainage projects that are an integral part of streets and roads should be accounted with transportation codes which are generally accounted for in governmental funds.

Revenue/Expenditure/Expense Accounts

580, Nonexpenditures

  • The title of this section of the chart was retitled to Other Decreases in Fund Resources.
  • A new account 585, Special/Extraordinary Items was added [previously accounted for in 36950, Special Items – see account 385 for description].
  • The account 588, Prior Period Adjustments was changed to 58810 and account 58850, Cumulative Effect of Change in Accounting Principle(s) was added.
  • Accounts 586 (1) and 589, Other Nonexpenditures were pooled and rearranged into:
    • 58910, Refunds of Deposits,
    • 58920, Refund of Retainage,
    • 58930, Agency Type Remittances,
    • 58940, Agency Type Disbursements, and
    • 58990, Other Custodial Activities.

These accounts are still optional for GAAP governments.

  • The change applicable to the courts’ deposits and remittances was updated on March 14, 2017. The following BARS Alert was sent to all cities and counties at that time.

The BARS codes for agency deposits/remittances were revised this year and BARS account 386/586 was replaced by several 389/589 accounts. However, the recent submissions of the Schedule 01 indicate that this change creates some confusion. To avoid further misunderstanding at this time the Online reporting system will accept court related deposits and remittances coded as 386/586. All other non-court items should be coded to appropriate 389/589 accounts. We have updated the summary of significant changes in the BARS manual.

Determining Operating/Nonoperating Revenues/Expenses in Proprietary Funds

1.5

A new section was added with a guidance regarding classification of revenues/expenses as operating or nonoperating. This section is applicable only to proprietary GAAP funds. It contains a discussion and a spreadsheet showing the BARS classification. The new section should help governments to resolve the discrepancy between operating/nonoperating categories in their financial statements and in the FIT presentation.

ACCOUNTING

Capital Assets

3.4

Capital asset guidance that was previously split into nine different sections (3.3.1 – 3.3.7 and 4.2.5 – 4.2.6) were consolidated into three. While content has not fundamentally changed, most topics were updated and re-written to improve guidance and match the current environment and user needs. In particular, internal control guidance was expanded to help local governments with management of capital assets.

Deposits and Investments

3.2.1

Updated content to focus on an overview of requirements for deposits and investments and refer to the Office of State Treasurer’s Guide to Public Funds Investing for Local Governments publication for details.

Pensions – Application of GASB Statement 68, Accounting and Financial Reporting for Pensions

3.4.2

The pension section has been updated for the second year of pension reporting.

REPORTING

Liabilities (Schedule 09)

4.8.3.110

Added requirement for cities and counties to provide a BARS code for redemption and specific ID Numbers of debt related to streets/roads to accommodate the DOT Annual Street/Road Finance Report.

Note X – Self-insurance

The note was removed. The information required in this note is already provided in other risk management related disclosures.

Note X – Deposits and Investments

The note was updated to incorporate reporting requirements contained in GASB Statement 72, Fair Value Measurement and Application.

Note X – Pension Plans – Pensions Provided Through Certain Multiemployer Defined Benefit Pension Plans (nongovernmental Plans)

Added a new note required when a government participates in a nongovernmental pension plan (GASBS 78).

Note X – Pension Plans

The note instructions for local government plans that do not comply with GASBS 67/68 have been updated for the first phase of the implementation of GASBS 73.

The pension notes and RSI templates for both state sponsored and local sponsored plans have been updated with 2016 information.

The GAAP-basis pension illustration spreadsheet has been significantly updated for year two reporting including note disclosure examples, amortization tables, and reconciliation examples.

Note X – Tax Abatement

This disclosure is required for fiscal years starting after December 15, 2015 (GASBS 77).

ONLINE FILING

Annual Street/Road Finance Report

Steps added as a pilot project exploring an alternative to the DOT Annual Street/Road Finance Report.

591/594 in GAAP Enterprise Funds

Added validation checking each individual enterprise fund for reporting accounts 591, Debt Repayment and 594, Capital Expenses as indicated in these accounts description. Both accounts should be reported even if the dollar amounts are $0.

Balance sheet footing requirement

Section 4.8.1.25 adds balance sheet/statement of net position minimum variance requirements within $1,000. Validation tests each reporting fund.

BARS Alerts

12/23/2015 BARS Manuals Update - 2016 Filing System Update
10/05/2015 BARS Manual Update - GAAP Cities, Counties and Special Purpose Districts - Upcoming Changes
9/30/2015 BARS Manuals Update - Cities and Counties Only - Cash Basis and GAAP - Marijuana Enforcement Code
3/11/2015 BARS Manuals Update - Cash BARS Only - Reserved and Unreserved Cash and Investments
1/6/2015 BARS Manuals Update - Online Filing System Update

Overview of Significant Changes – Applicable to the Reporting Year 2015

 

Topic

 

 

Reference

 

Description of Changes

CHART OF ACCOUNTS

General Ledger Accounts

1.2

The following accounts were added to accommodate the accounting for pension: 193.50 [Pension Asset], 198.40 [Deferred Outflows: Pension], 264 [Pension Obligation (Net)], 271.80 [Deferred Inflows: Pension]. Reminder: the BARS numbering system in the general ledger is optional. The above codes are for informational purposes only.

The new revenue/expenditure/expense chart of accounts is an interactive application. To see accounts applicable to your government choose an appropriate government type.

Revenue/Expenditure/Expense Account

30810/50810

30880/50880

The accounts 30810/50810 [Beginning/Ending Reserved Fund Balance (GAAP)] were changed to 30819/50819 [Beginning/Ending Restricted Net Position]. The accounts 30880/50880 [Beginning/Ending Unreserved Fund Balance (GAAP)] were changed to 30889/50889 [Beginning/Ending Unrestricted Net Position].

Revenue/Expenditure/Expense Account

3086000

The account Net Investment in Capital Assets was added.

Revenue/Expenditure/Expense Account

3132100

The account title was changed to Public Transportation Systems.

Revenue/Expenditure/Expense Account

3322100

The account Equitable Sharing of Federally Forfeited Property was removed.

Revenue/Expenditure/Expense Account

3350301

The account LEOFF Special Funding was added.

Revenue/Expenditure/Expense Account

3360641

The account Marijuana Enforcement was added.

Revenue/Expenditure/Expense Account

3451100

The detailed codes listed in the 3451100, Soil and Water Conservation Services are optional and not required to be reported on the Schedule 01.

Revenue/Expenditure/Expense Account

3573900

The account Miscellaneous District/Municipal Court Cost Recoupment was removed.

Revenue/Expenditure/Expense Account

3688000

The account Deferred Assessment was removed.

Revenue/Expenditure/Expense Account

5010000

The account Depreciation was added.

Revenue/Expenditure/Expense Account

51860

The account 51860 [Risk Management] was changed to 519; account 51920 [Judgements and Settlement] became 51861, account 51970 [Jobbing and Contacting] became 51862; added account 51863 [General Grants and Financial Assistance to Other Governments].

Revenue/Expenditure/Expense Account

5510000

The account 55920 [Public Housing] was moved to 5510000 [Public Housing Services].

Revenue/Expenditure/Expense Account

8000000

New 800 series accounts - aggregated balance sheet information:

810 Cash, Cash Equivalents and Investments

820 Other Current Assets

830 Other Noncurrent Assets

840 Deferred Outflows

850 Current Liabilities

860 Noncurrent Liabilities

870 Deferred Inflows

were added for GAAP reporting governments.

Object Codes

00

The object 00 was updated to include account 501[Depreciation] and exclude account 508 [Ending Balances].

ACCOUNTING

Cash Receipting

3.6.1.50

Added new section discussing requirements when a local government receives payments through third party vendors.

Electronic Fund Transfer

3.6

The section was divided into two sections: one for receipts (3.6.6) and other for disbursements (3.8.11).

Voucher Certification and Approval

3.8.5

Added checks and electronic payments.

Grants – Accounting

3.7.1

This section was updated for the New Uniform Guidance. The following subsections contain new information: 3.7.1.10, .40, .50 and .60.

Pensions – Implementing GASB Statement 68, Accounting and Financial Reporting for Pensions

3.4.2

This section discusses the new accounting and reporting requirements for single-employer and state sponsored pension plans mandated by GASBS 68. It also contains links to Excel spreadsheets containing instructions and examples of calculation of pension liabilities.

Transportation Benefit Districts (TBD)

3.11.1.120

This new section discusses accounting and reporting requirements for cities and counties assuming the TBDs as authorized by the 2015 legislation.

Accounting and Reporting for Property Tax

3.5.2

This new section provides detailed guidelines for reporting property tax according to GASBS 65.

REPORTING

GAAP Reporting Requirements

4.1.1

The Financial Reporting Entity Flowchart (and accompanying notes) was updated to include relationships other the component units that would have an effect on reporting entity. The GAAP criteria for reporting of component units and other types of relationships did not change; however the new chart will better reflect the existing reporting requirements.

Proprietary Funds Financial Statements

4.3.4

There are no substantive changes in proprietary funds reporting. This section was reformatted to accommodate the inclusion of the stand-alone reporting guidance for ports, transits, PUDs, housing authorities, risk pools, hospital, water, sewer and irrigation districts.

Required Supplementary Information (RSI)

4.7.261-.267

Sections 4.7.260-.330 were replaced with new (GASBS 68) reporting requirements for pensions. The new sections contain links to Excel spreadsheets with examples of required schedules.

Notes to Financial Statements

The notes contain requirements for all different types of local governments. Some notes are applicable to all or most local governments. However some are unique to a very specific type of government. It’s the government responsibility to choose all applicable and necessary disclosures.

Note 1 – Summary of Significant Accounting Policies

The new paragraph regarding pension plan policy was added (E.10). Other than this addition, there are no substantive changes in this disclosure. This note was reformatted to accommodate the inclusion of the stand-alone reporting guidance for ports, transits, PUDs, housing authorities, risk pools, hospital, water, sewer and irrigation districts.

Note X – Long-Term Debt

The note was expanded to incorporate (if applicable) disclosures regarding loans with forgiveness clauses and grants with recoverable clauses.

Note X – Pension Plans

The note was updated to meet the GASBS 68 requirements. It contains links to the WORD version.

Supplementary and Other Information

Schedules 09 (Liabilities) and 16 (SEFA), if applicable, are required from all local governments; however since they are an integral part of the audit reports they were moved from the SAO Annual Report Schedules category to Supplemental and Other Information category to properly align with the audit reports.

Revenues/Expenditures/

Expense (Schedule 01)

4.8.1.25

Local governments completing the Schedule 01 for fiscal years ended on or after December 31, 2015 must ensure the data submitted is accurate. The online filing system will calculate ending fund balances/net position using government-submitted information. If the SAO calculated ending balances/net position result in a variance from the local government’s submitted ending balances of greater than $1,000, the local government will not be able to submit its annual report until corrected.

Liabilities (Schedule 09)

Schedule 09 debt and liability IDs were changed from categorizing by fund type to categorizing based on obligation type (i.e., general obligations, revenue and other non-G.O. obligations and assessment obligations). The change allows for better alignment of categories with the debt limit calculation and avoids the need to allocate certain liabilities between different IDs in different categories. Since Schedule 09 uses general, revenue and assessment obligations as titles, the re-alignment will also improve the accuracy of this presentation. In addition, several ID numbers were added to facilitate calculation of debt limit and an ID number was also added for pension liabilities (264.30). Please review and update ID numbers.

Expenditures of Federal Awards (Schedule 16)

4.8

This is a transition year between the requirements of OMB Circular A-133 and the new Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards 2 CFR 200 (Uniform Guidance). This section has been updated for the new Uniform Guidance as it will be applicable for the majority of the BARS users, specifically those entities with a calendar year end. The effective date for the Audit Requirements, which include the SEFA requirements, of the new Uniform Guidance found in Subpart F of 2 CFR 200 is for fiscal years beginning after December 26, 2014. For those entities which the Audit Requirements of the new Uniform Guidance is not effective yet (fiscal years beginning prior to December 26, 2014), we left the references to the OMB Circular A-133 in parenthesis. Click here for the new Uniform Guidance. Also sections 4.8.5.125 and 126 were added and Question 2 was revised.

Information for Schedule 16 was updated in the BARS Manual in the fall of 2015; however, several items were inadvertently missed in those updates. The changes, which were put into effect on April 20, 2016.

Here are the changes to the SEFA, with corresponding information from the Uniform Guidance:

Amounts passed through to subrecipients: Same information, but a location change.

(b) Schedule of Expenditures of Federal Awards. ... At a minimum, the schedule must:

(4) Include the total amount provided to subrecipients from each Federal program.

Change: Therefore, a column is being added to the SEFA and input for these amounts, and the disclosure will not be needed. No additional information is being requested, since the pass-through information was previously reported in the notes.

Use of de minimis indirect cost rate: Additional affirmative disclosure by governments.

(6) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in § 200.414 Indirect (F&A) costs.

Change: The BARS Manual information for the SEFA notes has been updated, along with an instruction stating that it’s not an optional disclosure.

Basis of Accounting note disclosure: (Minor change) Language was added to the sample note to recognize the fact that pre- and post-Uniform Guidance grants may have different bases for recognizing costs (i.e., cost principles). This disclosure will be needed during the transition period when a mixture of pre- and post-Uniform Guidance awards may be shown on the SEFA.

Risk Management (Schedule 21)

Minor updates to add options and clarify questions encountered in practice.

BARS Alerts






Overview of Significant Changes – Applicable to the Reporting Year 2014

 

Topic

 

 

Reference

 

Description of Changes

CHART OF ACCOUNTS

Revenue/Expenditure/Expense Account

This Excel book contains three spreadsheets. The spreadsheets are different versions of the same BARS chart:

Above&Prescribed contains all prescribed accounts (including grants) and summary accounts which are above prescribed level and indicate categories of revenues and expenditures;

Prescribed_Only contains all prescribed accounts (including grants) but excludes summary accounts;

Prescribed_NoFederal_Grants contains only prescribed accounts and exclude federal grants.

These spreadsheets are just examples of different versions serving different purposes. You may reformat the chart of accounts similarly to meet your needs; however when reporting only valid prescribed accounts applicable to your entity type should be included on Schedule 01.

Account Structure

1.1.2.30

TheLocal Option field was removed from prescribed BARS code structure. The local governments can add additional digits for their internal purposes in any part of their BARS code; however when reporting to the SAO they have to follow the seven digit code requirement. The entire section was adjusted to reflect this update. The change does not have any impact on BARS coding since the removed fields were never prescribed.

Revenue/Expenditure/Expense Account

In previous versions we indicated unprescribed digit with an X. In the current chart of accounts the X was replaced with 0 which, except for two instances where is specifically designated (general fund number and object code for fund balances, nonexpenditures, and transfers-out) indicates unprescribed digit.

Revenue/Expenditure/Expense Account

Coding federal (direct - 331/indirect - 333), ARRA (direct - 3391/indirect - 3392), capital (direct – 374/indirect – 375) grants was simplified. The local governments have to use only first two digits of the CFDA for BARS coding. The BARS code still has to be seven digits long; however the last two digits are not prescribed.

Revenue/Expenditure/Expense Account

3360104

New account 3360104, Court Cost Reimbursement – Children’s Attorney was added.

Revenue/Expenditure/Expense Account

3695000

Added a new account for special items.

Revenue/Expenditure/Expense Account

562

The description of the account 562, Public Health Services contains the link to the DOH listing of elements/subelements for this BARS code. The supplement is no longer listed with BARS manuals.

Object Codes

The object codes are not listed together with revenues and expenditures. They are now listed in a separate section.


BUDGETING

The entire budgeting part of manual was replaced with new one. There are NO changes in requirements. The revision included removal of outdated or unnecessary prescriptions and adding statutory requirements for special purpose districts.

ACCOUNTING

Money Held in Trust

3.2.4

Updated the discussion of interest on deposits. Clarified the accounting requirements for Superior Court trust funds, emphasizing the need to reconcile accounts monthly.

 

Compensating Balances

3.2.5

Clarified the discussion of compensating balances and added informational links to MRSC and GFOA.

Depreciation

3.3.6.15

The new paragraphs describe when the entity should start depreciating an asset.

Financial Guarantees

3.4.12

Added new section discussing financial guarantees (GASBS 70).

Imprest, Petty Cash and Change Funds

3.8.8.30

Imprest, petty cash and change funds are not budgeted because they represent working capital for expenditures that are properly budgeted in other funds. The authorized balance of imprest, petty cash and change funds should be reported as cash in the general ledger. Expenditures should be recorded when such funds are replenished to their authorized balance.

The authorized balance should be reported as cash in the financial statements. All funds should be reconciled and replenished to the authorized balance as of fiscal year end to ensure expenditures are recorded.

Reimbursements

3.9.4.20

Added reminder that the offsetting transactions for reimbursements should be done on an object level.

Overhead Cost Allocation

3.9.5.120

Added new section with additional resources.

Transportation Benefit Districts (TBD)

3.11.1

The new section provides an overview of the transportation benefit districts and the accounting and reporting requirements.

REPORTING

BARS Reporting Requirements

4.1.2.35

Added requirement to report any corrections made to already submitted financial statements.

GAAP versus Cash Reporting

4.1.7

The section discusses advantages and disadvantages of GAAP or cash basis reporting. This information was previously available on the SAO web site and now is incorporated into BARS manual.

Note 1-Summary of Significant Accounting Policies (also Hospital Districts, Housing Authorities, Risk Pools, and Water, Sewer, and Irrigation Districts)

Added reminder for the disclosure of component units to provide sufficient detail to clarify the specific criteria under the GASBS 61 used to justify the inclusion of each individual component unit including both fiscal dependence and the ongoing relationship of financial benefit or burden. For blended component units, clearly state the blending criteria under the GASB Statement 61.

Note X-Changes in Long-Term Liabilities

Updated first column; removed references to unamortized amounts; added lines for premiums and discounts; added pension to OPEB obligations; similar changes were made for business-type activities; also; a row for claims was added. The footnote with examples of claims was added.

Note X-Commitments

This note was incorporated into Note X-Construction and Other Significant Commitments.

Note X-Construction and Other Significant Commitments

The note was expanded to include other commitments; the title was adjusted to reflect new content.

The note was added to the housing authorities, hospital and water, sewer and irrigation districts reporting requirements.

Note X-Pension Plan (Hospitals)

Added link to information in GAAP manual for defined benefit plans.

Note X-Major Component Units

This is not a new requirement; however the note was listed only in the housing authority section of the manual. The note is now available for all GAAP governments.

Note X-Other Debits (Credits)

Removed the note (GASBS 65, paragraph 29).

Note X-Other Disclosures

The most common disclosures were made into separate notes and only very rare transactions are disclosed here. The note has a new title Unique and Unusual Transactions.

Statement of Net Position

Example

Removed line Other Credits.

Revenue/Expenditure/Expense (Schedule 01)

4.8.1.50

In Column 2 added that the government reports only one fund, it should indicate the fund type and use 0XX for the governmental fund and 4XX for the proprietary fund type.

Expenditure of Federal Awards and State Financial Assistance (Schedule 16)

4.8.5

The Schedule of State Assistance was excluded from the Schedule 16 and it became a separate Schedule 15. There are no changes in the reporting requirements for this Schedule. Adjustments related to split of the previous Schedule 16 into two schedules were carried through the Manual.

The federal expenditures should be still reported on the Schedule of Expenditures of Federal Awards (Schedule 16). In addition to the requirement to submit a data collection form and reporting package to the Federal Audit Clearinghouse, governments are required to submit a copy of the reporting package to each pass-through entity per OMB Circular A-133 section .320 (e), which provides the results of the audit. As a courtesy, the SAO will distribute the reporting package to each pass-through agency listed on the SEFA if you will provide the following contact information:

  • Contact name
  • Contact email address
  • Contact phone number

Risk Management (Schedule 21)

4.8.9

Added sample note disclosures for housing authorities (HARRP).

APPENDICES

Glossary of Accounting Terms

Removed the outdated glossary of accounting terms.

Overview of Significant Changes

The listing of changes focuses only on significant ones; revisions which do not have a substantive impact on accounting or reporting are not listed.