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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 All option 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 in the export without object codes. Object codes are available in the BARS Manual. The reporting at the subobject level is not required.

This section was last edited by SAO on 07/30/19
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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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Bank Reconciliations

3.1. Assets

3.1.9 Bank Reconciliations
3.1.9.5 Purpose

The purpose of a bank reconciliation is to compare cash and investment balances and activity (also known as a “proof of cash”) according to the bank to the government’s accounting records and reconcile or follow up on any differences.

Depending on the government’s organization, the bank reconciliation process may be done in stages or parts.  For example, separate reconciliations may be done on different schedules or by different people for checking accounts, investment accounts or zero balance accounts, which are later aggregated as part of a global reconciliation.

Bank reconciliations are a necessary control to safeguard cash against fraud and losses and to ensure the accuracy of accounting records. Reconciliation of cash activity is necessary to demonstrate that activity is valid and to safeguard against certain types of fraud. A global reconciliation is necessary to effectively compare and reconcile bank accounts to accounting records since individual bank accounts do not normally correspond exactly to individual cash accounts in the accounting records.  It also demonstrates the completeness of the reconciliation by showing that all bank accounts and all cash accounts in the accounting records are able to be compared.

In this section, “cash” is inclusive of cash and investments.  “Bank accounts” and “bank reconciliations” are likewise inclusive of investment accounts (such as certificates of deposit and bonds), zero-balance accounts (such as clearing accounts described in BARS 3.8.6 and transmittal accounts described in BARS 3.6.1) and accounts kept by fiscal agents.  For governments that use the County as their treasurer, bank reconciliations would refer to the reconciliation of the government’s accounting records to the county treasurer’s report.

3.1.9.10 Accounting

Accounting records typically track cash by fund and classification.  This does not normally result in a one-for-one relationship between bank accounts and general ledger accounts.  In absence of specific legal or contractual requirements, is it not necessary for governments to use separate bank accounts to segregate funds so long as accounting records separately track cash balances by fund in sufficient detail.

Money receipted by fiduciaries or third party vendors on behalf of the government should be considered a cash receipt for the government as described in BARS 3.6.1.60.  If such deposits are remitted to the government, they may need to be identified as a deposit in transit on the bank reconciliation.  If the government’s funds are receipted and held by others in a fiduciary capacity, the report from the fiscal agent may need to be treated similar to a bank or county treasurer account during the bank reconciliation process.

Imprest and petty cash funds should be recorded at their authorized amounts as described in BARS 3.8.7.  Since these accounts are subject to separate monthly controls, the authorized balance is typically used as a reconciling item between accounting records and bank accounts.

Funds should not have a negative cash balance in the accounting records. Any negative cash balance in the accounting records should be resolved with an interfund loan as described in BARS 3.9.1.

3.1.9.15 Controls

Governments must document a global bank reconciliation that includes reconciliation of both the ending balance of cash as well as cash activity at least monthly.

A global bank reconciliation consists of:

  1. Compiling the ending balance, receipts and deposits for the month across all bank statements. This will normally be done by creating a schedule to summarize (or series of schedules that are then aggregated, if the reconciliation is done in parts or stages).
  1. Compiling the ending balance, additions and deductions for the month for all cash accounts in the accounting records. This will normally be done by running a report from the accounting system.
  1. Identifying reconciling items for differences between bank receipts, deposits and ending balance and the corresponding accounting record revenues, expenditures and ending balance. Reconciling items could include any of the following items:

a. Timing differences between when a transaction is recorded in the accounting records and when it affects the bank account. For example, some of these reconciling items would include deposits in transit, outstanding items or open period items.

b. Bank activity that is not recorded in the accounting records. For example, some of these reconciling items would include transfers between bank accounts or transactions that are netted when recorded in the accounting records.

c. Reportable activity recorded in the accounting records that is not a receipt or deposit in the bank records. For example, some of these reconciling items would include interfund transfers, loans or taxes, internal service fund charges, or the difference between gross and net amounts from offsetting agreements.

  1. Identifying transactions from the bank accounts need to be recorded in the accounting records. For example, some of these items could include interest earned, bank fees or charges, NSF checks, and unrecorded deposits (such as lockbox transactions, EFTs, or other electronic deposits made directly into the bank account by outside parties).

    Accounting records should be updated for all such transactions identified in the bank statements.  Unrecorded deposits should be investigated and recorded.  If unknown at the time of the reconciliation, they should be recorded to a suspense fund until they can be investigated and resolved as described in BARS 3.6.11.
  1. Following up on any unreconciled differences. After adjusting for reconciliations, there should be no further differences between bank statements and accounting records. If there are, research should be performed to determine the cause of the differences – that is, what bank or accounting record transaction is the source of the difference and what does it represent.  If it is an error in the accounting records, it should be corrected.  If it is a bank error, it should be communicated and resolved with the bank.

Governments should consider more frequent reconciliations, such as daily reconciliations for accounts with a large amount of activity or that are at higher risk for fraud or invalid payments, such as the main checking account for a larger government.

SAO does not prescribe how governments might organize their bank accounts or the corresponding accounting records.  However, the number and type of accounts, banking practices, organization of accounting records, and the methods, division and stages of reconciliation established by the government should not represent a barrier to effective control.

This section was last edited by SAO on 01/10/20
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Note X - Deposits and Investments

Note X ‑ Deposits and Investments

A. Deposits [1]

Cash on hand at December 31, 20__ was $_________. The carrying amount of the (city/county/district’s) deposits, including certificates of deposit, was $_________ and the bank balance was $________.

Custodial Credit Risk [1A]

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:

-OR-

Foreign Currency Risk [1B]

Foreign currency risk for deposits is the risk that changes in exchange rates will adversely affect the deposit. The (city/county/district’s) policy is to limit deposits subject to foreign currency risk to five percent of total deposits. The exposure to foreign currency risk for deposits as of December 31, 20__ is as follows:

B. Investments [2]

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.

Foreign Currency Risk: Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an investment. The (city/county/district) does not have a formal policy for foreign currency risk.

Investments in Local Government Investment Pool (LGIP)

The (city/county/district) is a participant in the Local Government Investment Pool was authorized by Chapter 294, Laws of 1986, and is managed and operated by the Washington State Treasurer. The State Finance Committee is the administrator of the statute that created the pool and adopts rules. The State Treasurer is responsible for establishing the investment policy for the pool and reviews the policy annually and proposed changes are reviewed by the LGIP advisory Committee.

Investments in the LGIP, a qualified external investment pool, are reported at amortized cost which approximates fair value. The LGIP is an unrated external investment pool. The pool portfolio is invested in a manner that meets the maturity, quality, diversification and liquidity requirements set forth by the GASBS 79 for external investments pools that elect to measure, for financial reporting purposes, investments at amortized cost. The LGIP does not have any legally binding guarantees of share values. The LGIP does not impose liquidity fees or redemption gates on participant withdrawals.

The Office of the State Treasurer prepares a stand-alone LGIP financial report. A copy of the report is available from the Office of the State Treasurer, PO Box 40200, Olympia, Washington 98504-0200, online at http://www.tre.wa.gov.

Investments in (county investment pool) [3]

The (city/county/district) is a participant in the (county investment pool), an external investment pool. The (city/county/district) reports its investment in the Pool at the fair value amount, which is the same as the value of the Pool per share. The responsibility for managing the pool resides with the County Treasurer. The Pool is established from the RCW 36.29 which authorizes the County Treasurer to invest the funds of participants. The (county’s) investment policy is established by the [describe (i.e. Finance Committee)] consisting of the (describe Committee members and objectives). The county external investment pool does not have a credit rating and had a weighted average maturity of __ years as of December 31, 20__.

[Note: include additional disclosures for investment pools as required by accounting standards]

Investments Measured at Fair Value [4]

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: [5]

Investments Measured at Net Asset Value (NAV) [6]

C. Summary of Deposit and Investment Balances [7]

Reconciliation of (city/county/district’s) deposits and investment balances as of December 31, 20__, is as follows:

D. Securities Lending [8]

E. Gains and Losses on Investments [9]

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; and
  • Exposure to foreign currency risk.

[1A] 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.

[1B] If the city/county/district has balances subject to foreign currency risk, provide a brief description of its policies that are related to foreign currency risk or state that it does not have a policy for foreign currency risk. Disclose only if the city/county/district has deposits denominated in foreign currency. Disclose the U.S. dollar balances of such deposits organized by currency denomination. If there are no deposits denominated in foreign currency, do not include a discussion of foreign currency risk for balances.

[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
  • Credit risk
  • Custodial Credit risk
  • Concentration of Credit risk
  • Interest Rate risk
  • Foreign Currency risk
  • Credit risk
  • Custodial Credit risk
  • Concentration of Credit risk
  • Interest Rate risk
  • Foreign Currency risk

If the city/county/district does not have any investments exposed to risk identified below, delete risk description. Risk disclosures applicable to investments should be reported separately by investment type. Dissimilar securities should not be aggregated into a single investment type.

Disclose custodial credit risk 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.]

Governments should disclose the credit quality ratings of external investment pools and other pooled investments of fixed-income securities. If the investment is unrated, the disclosure should indicate that.

If applicable, provide additional disclosures for following types of risk:

1.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.).

2. Concentration 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.)

3. 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 GASBS 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.).

4. Foreign currency risk − disclose the U.S. dollar value of any investments denominated in foreign currency, organized by each different foreign currency denomination and type of investment.

5. 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 GASBS 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.

Example for investment income allocation for internal pool

Internal Investment Pool

This is an internal investment pool that is utilized for the investment of the funds. Fund ownership is measured using the ___________ method. Under this method, each participating fund’s investment balance is determined on (explain basis for distribution). The investment strategy, including the selection of investment managers, is based on the directives of the (city/county/district’s treasurer or ).

6. Describe additional risks, if applicable.

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.

For more information see GASB Statements 3, 28, 31, 40, 59 and 72.

[3] This applies only to PARTICIPANTS in investment pools (For Sponsoring a County investment pool see Note X - County Sponsored Investment Pools and Accounting County Sponsored Investment Pools): Governments with investments in mutual funds, external investment pools, or other pooled investments that do not meet the criteria established to report at amortized cost under the GASBS 79, should disclose interest rate risk information according to one of the methods.

Governments should disclose the credit quality ratings of external investment pools and other pooled investments of fixed-income securities. If the investment is unrated, the disclosure should indicate that.

Disclose 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). (GASB Statement 79, Certain External Investment Pools and Pool Participants, paragraphs 42 and 43.)

[4] Investments should generally be reported at their fair value. The following disclosures are required for assets and liabilities reported at fair value. Remove reference to liabilities if no liabilities are measured at 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 asset or liability. 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. See list below:

  • Investment held by external investment pools meeting requirements of GASB Statement 79, Certain External Investment Pools and Pool Participants (amortized cost).
  • Money market investments and participating interest-earning investment contracts that have remaining maturity at time of purchase of one year or less provided that the fair value of those investments is not significantly affected by the impairment of the credit standing of the issuer or by other factors and are held by governments other than external investment pools (amortized cost).
  • Investments in nonparticipating interest-earning investment contracts (cost-based measure).
  • Investments in unallocated insurance contracts (should be reported as interest-earning investment contracts according to the provisions of GASB Statement 31 or Statement 59).
  • Synthetic guaranteed investment contracts that are fully benefit-responsive (contract value).
  • Investments in life insurance contracts that do not meet the definition of a life settlement contract (cash surrender value).

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.

[5] Example:

If there are derivatives investments identified as hedging instruments, an additional disclosure is required per GASB Statement 53, Accounting and Financial Reporting for Derivative Instruments (amended by GASBS 64).

[6] Investments Measured at Net Asset Value (NAV)

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.

[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 of GASB Statement 40, Deposits and Investments Risk Disclosures. See paragraph 10 of the above statement for applicability of this disclosure.

(For more details, see the GASB Statement 28, Accounting and Financial Reporting for Securities Lending Transactions as amended by the GASB Statement 40, Deposits and Investments Risk Disclosures)

[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.

For more details, see the GASB Statement 31, Accounting and Financial Reporting for Certain Investments and for External Investments Pools, as amended by the GASB Statement 40, Deposits and Investments Risk Disclosures.

This section was last edited by SAO on 01/10/20
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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

01/13/2020Annual update, see changes below

Overview of Significant Changes – Applicable to the Reporting Year 2019

 Topic

 

Reference

 

Description of Changes

 

  

CHART OF ACCOUNTS

BARS Account Export 3952000, Compensation for Loss/Impairment of Capital Assets3952000, 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.
BARS Account Export3132700, 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 Account ExportDepartment of Health supplementFor BARS codes 5620000
Added the link to the new Department of Health supplement for BARS codes 5620000 which provides the detailed codes.
BARS Account Export5100000 GuidanceBARS codes 5100000, General government function, these codes should only be used by cities, towns, and counties.
BARS Account Export5990000 GuidanceBARS 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.
Revenue/Expenditure Accounts Overview 1.3.10 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.
Object CodesRemoved the reminder that 2018 was the final year for use of object code 50.
General Ledger Accounts 1.2.30Updated the General Ledger Chart to match the Schedule 09 coding requirement and simplified other sections.
   
  

ACCOUNTING

Internal Control3.1.33.1.3.10 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.
Original Supporting Documentation3.1.43.1.4.10 Updated the link to the Local Government Records Retention Schedule.
Fund Types and Accounting Principles3.1.73.1.7.50 Added clarifying information about Debt service funds, Capital project funds, and Fiduciary funds.
Bank Reconciliations3.1.9New section on bank reconciliations.
Transportation Benefit Districts (TBD)3.11.13.11.1.70 Removed reference to object code 50 in reference to contract expenditure and updated to object code 40.
County's External Investment Pool3.2.2Counties - Rewrote the entire section for counties to report external investments in accordance with GASB 84.
Capital Assets Management System Requirements

3.3.9

3.3.9.40 Added information that is required to be recorded for each capital asset, and clarified some of the tracking system requirements.

Other Postemployment Benefits (OPEB)

3.4.163.4.16.30 Included information about OPEB reporting requirements and the types of OPEB plans.
County Auditor’s Operation and Maintenance Fund (Recording Fees)3.6.2Counties - 3.6.2.75 Added reference to RCW 36.22.240 and requirements.
Electronic Funds Transfer - Receipts3.6.6Removed "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."
Electronic Funds Transfer - Disbursement3.8.11Removed "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."
Electronic Funds Transfer - Disbursement3.8.11Added 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."
   
  

REPORTING

GAAP Reporting Requirements4.1.14.1.1.210 Updated the guidelines for financial accountability.
Governmental Funds Financial Statements4.3.34.3.3.31 Added information about the category Classification of Fund Balances.
Fiduciary Funds Financial Statements4.3.5Counties - 4.5.5.53 Provided the guidance for counties reporting external investment pools.
Statement of Cash Flows4.5.130Updated the illustration - added a line for "other (payments)."
Required Supplementary Information4.7.10Clarified the RSI requirements.
Required Supplementary Information4.7.20Removed references to GASB 43 and 45 and replaced with GASB 74 and 75.
Required Supplementary Information4.7.340Other 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.
Expenditures of Federal Awards (Schedule 16)4.8.54.8.5.40 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.
Note X - Deposits and InvestmentsInstructions to preparers, footnote 3 -
Included instructions for participants in investment pools.
Note X - External Investment PoolNew Note
Counties - Provided guidance for disclosing external investment pools.
Note X - Pension and /or OPEB Plans - Defined ContributionsAdded information that the requirement to report defined contribution plans is only when the government contributes.
Note X - Pension and /or OPEB Plans - Nongovernmental PlansAdded clarification on when to use the Nongovernmental Plans note.
Note X - Pension PlansAdded guidance for defined contribution pension plans when a government contributes.
Note X - SolvencyRisk Pools - Updated part B. of the note template regarding the requirements for health and welfare pools (joint pools).
   
  

ONLINE FILING

Schedule 01Red FlagsGovernments will receive a red flag if they report functional codes in custodial funds. Note only applicable 36X and 389/589 codes may be used.
Schedule 09263.93, Environmental liabilities Added 263.93 to the Schedule 09 codes for reporting Environmental liabilities (e.g. pollution remediation, certain asset retirement, etc.).
   

BARS Alerts

8/19/2019New BARS Code (This alert applies only to counties and cities)
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.