GAAP Reporting Requirements Office of the Washington State Auditor
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. 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.
Major Funds
Final amended budget – The original budget revenue and expenditure accounts overview office of the washington state auditor 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. This manual is designated for all GAAP cities, counties and special purpose districts. BARS codes 591.XX – Updated description to reference principal payments of interfund loans.
Reporting Principles and Requirements
Special assessments receivable consists of current and delinquent assessments and related interest and penalties. As of December 31, 20__, $_________ of special assessments receivable were delinquent. Taxes receivable consists of property taxes and related interest and penalties (See Note X – Property Tax).
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. In addition to liabilities, the statement of financial position includes a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. As required by the generally accepted accounting principles the financial statements present (city/county/district), the primary government, and its component units.
- The (governing body) can modify or rescind a commitment of resources through passage of a new resolution.
- Effectively managing finances is crucial to achieving sustainable growth and long-term success.
- 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.
- Revenue expenditures are usually less expensive than capital expenditures, small enough to be expensed against a shorter revenue period.
What’s in the annual financial report?
If you need assistance resolving required or warning errors, please see available annual filing system resources on the BARS & Annual Filing FAQ page, specifically the Error Guide. The purpose of a suspense fund is to temporarily hold unclassified transactions while a decision is being made as to their classification. This allows for immediate recording of transactions in the general ledger and accounting control over unclassified transactions. The (city/county/district) uses the interest rate charged by the lessor/vendor as the discount rate.
The primary government is obligated in some manner for the debt of the organization. If you are preparing an Annual Comprehensive Financial Report, there are additional statements, schedules, and statistical data that must be included in the report. For more information, see BARS Manual 4.9, GFOA Financial Reporting Recognition Programs. Updated requirements to match the filing requirements in the refreshed annual filing system.
Cities, Counties and Special Purpose Districts (GAAP)
BARS Account ExportDownload a government specific BARS Chart of Accounts in the export box at the bottom of this page. BARS codes 334.XX – Changed the above prescribed title to State Grants, Awards, and Other Contributions. BARS codes 333.XX – Changed the above prescribed title to Federal Indirect Awards. BARS codes 331.XX -Changed the above prescribed title to Federal Direct Awards.
The budget amounts shown in the financial statements are the final authorized amounts as revised during the year. The component unit is organized as a not-for-profit corporation in which the primary government is the only corporate member. The primary government is legally entitled to or can otherwise access the organization’s resources.
Select a government typeThe government type selection will limit the BARS accounts that are applicable to the selected government type. If all is selected, the export will include BARS accounts for all government types. Washington State Auditor’s Office – The Office of the Washington State Auditor holds state and local government accountable for the use of public resources and has the statutory authority to audit every and all governments in the state. If an employee terminates with at least ten years of service, he or she will be paid for sick leave balances up to thirty days, at one-half his or her final pay rate. Also list the organizations that are excluded from the combined financial statements. Inventories in proprietary funds are valued by the (FIFO/LIFO/weighted average) method (which approximates the market value).
- Costs for additions or improvements to capital assets are capitalized when they increase the effectiveness or efficiency of the asset.
- Also list the organizations that are excluded from the combined financial statements.
- The deferred inflow of resources is recognized as revenue over the life of the lease term using the (straight‐line basis/effective interest method).
- All vacation and sick pay is accrued when incurred in the government-wide and proprietary fund financial statements.
- Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.
Reporting
With regard to a voting majority, the primary government’s appointment authority should be substantive and continuing. A primary government’s appointment authority may not be substantive if candidates are limited by a nominating process or if its responsibility is limited to confirming appointments made by individuals or groups other than the primary government’s officials or appointees. In the absence of continuing appointment authority, the ability of a primary government to unilaterally abolish an organization also provides the basis for ongoing accountability. Sometimes the (city/county/district) will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government‐wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the (city/county/district)’s policy to consider restricted net position to have been depleted before unrestricted net position is applied.
Appropriations for general and special revenue funds lapse at year-end (except for appropriations for capital outlays, which are carried forward from year to year until fully expended or the purpose of the appropriation has been accomplished or abandoned). As a general rule the effect of the interfund activity has been eliminated for the government-wide financial statements. The primary government is entitles to, or has the ability to otherwise access, a majority of the economic resources received or held by the separate organization. Exchange transactions between organizations and the primary government are not considered a financial benefit or burden relationship.