Annual Comprehensive Financial Report Office of Financial Management
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.
Revenues
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.
Capital assets, which include property, plant, equipment and infrastructure assets 16 (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type columns in the government-wide financial statements. Capital assets are defined by the (city/county/district) as assets with an initial, individual cost of more than $__________ and an estimated useful life in excess of ____ year(s). Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation.
Special Topics
Links to other websites and documents for budget resources, publications and reports, tax information, and higher education. The financial resources provided in this section are produced by other Washington state agencies and are not maintained by the Office of the State Treasurer. Find financial data and reports pertaining to Washington state finances produced by the Office of the State Treasurer and other Washington state agencies. The (city/county/district) uses its estimated incremental borrowing rate as the discount rate for leases (or describe how the discount rate is determined if a different method is used).
Significant Changes to Note 1 – Summary of Significant Accounting Policies
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.
Cities, Counties and Special Purpose Districts (GAAP)
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.
However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. When accounting for the transfer of capital and financial assets and future revenues within the same financial reporting entity, the transferee should recognize the assets or future revenues received at the carrying value of the transferor. Application of this Statement should be the same for both discretely presented and blended component units.
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Capital expenditures consist of the purchase of long-term assets, which are assets that last for more than one year but typically have a useful life of many years. Capital expenditure—frequently shortened to CapEx—is another common financial term. The (city/county/district) is also responsible for appointing the members of the board of (organization name), but the accountability for this organization does not extend beyond making the appointments. In , the (city/county/district) appropriated operating grant of $ to the (organization name). The deferred inflow of resources is recognized as revenue over the life of the lease term using the (straight‐line basis/effective interest method).
The component unit’s outstanding debt or leases are expected to be repaid entirely or almost entirely from the resources of the primary government. The benefit or burden relationship may result from legal entitlements or obligations, or it may be less formalized and exist because of a decision made by the primary government or agreements between the primary government and component unit. The NCGA has discussed the notes to financial statements in more detail in its Interpretation 6, which also provides guidance for presenting notes in a logical order. 1 Required only for local governments with total revenues usually less than $300,000. Minor clarification of terms and updated requirements to match the refreshed annual filing system. 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.
Significant Changes to Object Codes
- Taxes and other items not properly included among program revenues are reported instead as general revenues.
- It accounts for all financial resources of the general government, except those required or elected to be accounted for in another fund.
- BARS Codes to Fund TypeBARS codes may be restricted for use in the annual report filing system.
- Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting.
- Capital expenditures represent significant investments of capital that a company makes to maintain or, more often, to expand its business and generate additional profits.
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 (component unit) is governed by the (number)-member board appointed by the (city/county/district) board.
- Includes data for police, fire and national park authorities for April 2021 to March 2022.
- BARS Account ExportDownload a government specific BARS Chart of Accounts in the export box at the bottom of this page.
- The purchases or cash outflows for capital expenditures are shown in the investing section of the cash flow statement (CFS).
- For financial reporting purposes, it is expected that all suspended receipts at fiscal year-end would be resolved – and corrections reflected in the accounting records – by the time the annual report is submitted.
Effectively managing finances is crucial to achieving sustainable growth and long-term success. Tracking revenue expenditures is an essential part of this process, as it allows business owners and professionals to clearly understand their company’s financial health. If there is significant (in relation to the total component units’ column) long-term debt of any component unit, the disclosure of the debt service requirements to maturity should be made. The data for this (these) unit(s) is (are) presented in the fiduciary financial statements.
The lease/SBITA asset is amortized using the (straight‐line basis/effective interest method) over its useful life. Ability to modify or approve revenue and expenditure accounts overview office of the washington state auditor the rate or fee changes affective revenues, such as water usage rate increases. Added amortization, right-to-use lease asset, and right to use subscription asset. Reports and charts for revenue by biennium, fund details, revenue sources, fees, and taxes. Use the Search page to find information in budget data, bills, website pages and documents.