BARS GAAP Manual Office of the Washington State Auditor
The Annual Comprehensive Financial Report is a thorough and detailed presentation of the state’s financial condition. The manual is maintained by the State Auditor’s Office with input from the Local Government Advisory Committee. It is continuously reviewed to ensure prescription and instructions remain current and appropriate to meet the needs of intended users. Accounting and reporting guidance incorporates analysis of generally accepted accounting principles (GAAP) published by the Governmental Accounting Standards Board as they become effective. The BARS Manual is currently updated for all applicable GASB Statements required for fiscal year 2024 reporting.
Latest Budget Proposals
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.
While it is possible for suspense funds to be used for a variety of transaction types, local governments would be expected use suspense funds exclusively for receipts. Also, disclose (for each major component units) the nature and amount of significant transactions with the primary government and other component units. The (component unit) operating budget is subject to approval of the (city/county/district) board. The board also approves proposed capital improvements and additions to the (component unit) facilities.
Budgeting Compliance
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 revenue and expenditure accounts overview office of the washington state auditor of property taxes and related interest and penalties (See Note X – Property Tax).
Internally dedicated resources are reported as general revenues rather than program revenues. Taxes and other items not properly included among program revenues are reported instead as general revenues. All funds, organizational units, agencies, departments, offices and activities of an organization that are not legally separate are, for financial reporting purposes, considered part of a primary government. If this request is made, basic financial statements and notes should be prepared. The $2 million threshold calculation excludes any proceeds from issuance of long-term debt and resources held by the government in its fiduciary capacity.
Notes to Financial Statements
The economic resources received or held by an individual organization that the specific primary government, or its component units, is entitled to, or has the ability to otherwise access, are significant to that primary government. For GAAP Proprietary Funds, local governments are required to report depreciation expenses using the appropriate depreciation BARS codes (501.XX). The purchases or cash outflows for capital expenditures are shown in the investing section of the cash flow statement (CFS). When a company buys equipment, for example, they must show the cash outflow on their CFS.
Unassigned fund balance represents fund balance that has not been restricted, committed, or assigned and may be utilized by the (county/city/district) for any purpose. When expenditures are incurred and both restricted and unrestricted resources are available, it is the (county/city/district)’s policy to use restricted resources first, then unrestricted resources in the order of committed, assigned, and then unassigned, as they are needed. For purposes of calculating the restricted net position related to the net pension asset, the (city/county/district) includes the (net pension asset only/net pension asset and the related deferred outflows and deferred inflows/net pension asset and related deferred inflows). Compensated absences are absences for which employees will be paid, such as vacation (and sick) leave. All vacation and sick pay is accrued when incurred in the government-wide and proprietary fund financial statements. In addition to assets, the statement of financial position includes a separate section for deferred outflows of resources.
GAAP Reporting Requirements
Expenditure that appears to go only to a Member State may benefit several or all of them given strong spill overs of EU expenditure, or address a European public good that requires shared financing. Furthermore, the full price of both examples ($12,000 and $4,800, respectively) can be deducted from each company’s taxes the year they pay for the goods in question. When you’re running your SaaS business, dealing with a huge glossary of financial terms daily, it’s to be expected that you might occasionally get two terms with similar meanings mixed up. Capital expenditures represent significant investments of capital that a company makes to maintain or, more often, to expand its business and generate additional profits.
- Accounting and reporting guidance incorporates analysis of generally accepted accounting principles (GAAP) published by the Governmental Accounting Standards Board as they become effective.
- As a result, capital expenditures are typically for larger amounts than revenue expenditures.
- While asset purchases increase the business’s value, revenue expenditures have an immediate effect on cash flow and profit margins.
The primary government is considered to have operational responsibility if it is managing the day-to-day operations of the component unit. The economic resources received or held by the organization are almost entirely for the direct benefit of the primary government, its component units, or its constituents. The primary government is financially accountable for a legally separate organization if the primary government holds a majority equity interest in an organization that does not meet the definition of an investment. The fiduciary statements are prepared using the economic resources measurement focus and full accrual basis of accounting (with some exceptions for liabilities for defined benefit pension plans and certain postemployment health care plans). Pass-through payments include eligible intergovernmental payments, contributions and grants that the government has received from federal, state, or other local governments and are passed through to other entities.
As such, businesses need to be mindful of these expenses and manage them effectively to maximize profits. It’s not enough to say that capital expenditures are everything that revenue expenditures aren’t. When the component unit provides services entirely, or almost entirely, to the primary government or otherwise exclusively, or almost exclusively, benefits the primary government even though it does not provide services directly to it. The essence of this type of arrangement is similar to an internal service fund – the goods or services are provided to the government itself rather than to the citizenry. Typically, the purpose of CAPEX is to expand a company’s ability to generate revenue and earnings. Conversely, revenue expenditures are the operational expenses for running the day-to-day business and the maintenance costs that are necessary to keep the asset in working order.
- The deferred inflow of resources is recognized as revenue over the life of the lease term using the (straight‐line basis/effective interest method).
- In , the (city/county/district) appropriated operating grant of $ to the (organization name).
- Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.
- The BARS Manual is currently updated for all applicable GASB Statements required for fiscal year 2024 reporting.
Debt financing can involve borrowing money from a bank or issuing corporate bonds, which are IOUs to investors who buy them and get paid interest periodically. Equity financing involves issuing shares of stock or equity to investors to raise funds for expansion and capital improvements. Capital expenditures, on the other hand, are recorded as assets on the balance sheet. Acquisition of capital assets is considered long-term investment and not tax deductible until the asset is sold or depreciated over time.
Significant Changes to BARS Account Exports
The component units discussed below are included in the (city/county/district) reporting entity because of the significance of their operational or financial relationships with the (entity type). Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the (city/county/district) are (insert revenue types). 8 Operating expenses for the district include (e.g., the cost of sales and services, administrative expenses, depreciation on capital assets, etc.).
All other outstanding balances between funds are reported as due to/from other funds. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as internal balances. A separate schedule of interfund loans receivable and payable is furnished in Note X – Interfund Balances and Transfers. Fixed budget – Those budgets which set an absolute maximum or ceiling on the expenditures of a particular fund, department, or other specific category.
