In Which Fund Type Would A Governmental Entity's Debt Service Fund Be Found?

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Return to CHAPTER lxxx

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fourscore.30 State Accounting and Reporting Policies

lxxx.30.05 July 1, 2012

State accounting and reporting principles must conform with Generally Accepted Bookkeeping Principles (GAAP)

The basic principles governing the accounting and reporting activities of the state are required by RCW 43.88.037 to be in conformance with generally accustomed bookkeeping principles (GAAP). The significant bookkeeping and reporting policies of the state of Washington are in conformance with generally accustomed accounting principles (GAAP) as prescribed past the Governmental Accounting Standards Lath (GASB).

80.xxx.10 July one, 2001

What is our fund/account structure?

In accord with GAAP, the country defines a fund/account every bit a fiscal and bookkeeping entity with a self-balancing set of accounts used by agencies to record transactions. Fund/account bookkeeping is designed to demonstrate legal compliance and financial accountability by segregating transactions related to certain government functions or activities. For reporting purposes, the state administratively combines accounts with activity and/or balances into roll-up funds. A roll-up fund is a reporting entity. Information technology is comprised of the various accounts which generally fall within the generic activeness/nature of the curlicue-up fund's title. For reporting purposes, funds can be categorized into one of eleven "roll-up fund types." These eleven fund types tin can exist grouped into three broad categories: governmental funds, proprietary funds, and fiduciary funds. 5 fund types are used to account for the "governmental type" activities of the state and these are categorized as governmental funds. Ii fund types are used to account for the country's "business-type" activities and these are categorized as proprietary funds. The remaining category is for the state'due south fiduciary funds which are used to account for resources that are held past the country as a trustee or agent for individuals/organizations outside the state and cannot be used to support the state's own programs.

80.30.fifteen July ane, 2001

What are subsidiary accounts?

The state uses subsidiary accounts for tracking general uppercase assets and general long-term obligations. Subsidiary accounts are record keeping mechanisms that provide a basis for accountability and tracking the state's general majuscule assets and unmatured portion of full general long-term obligations and sure other long-term accrued liabilities.

lxxx.30.twenty June ane, 2013

What is our measurement focus and basis of accounting?

eighty.30.20.a

The bookkeeping and financial reporting treatment applied to an business relationship is determined by its measurement focus. All governmental fund blazon accounts are accounted for using a menses of current fiscal resources measurement focus. With this measurement focus, just current avails and current liabilities and deferred outflows of resource and deferred inflows of resources by and large are included on the Governmental Funds Balance Sheet. Operating statements for these accounts present inflows (i.due east., revenues and other financing sources) and outflows (i.e., expenditures and other financing uses) of expendable fiscal resource. All proprietary and trust fund blazon accounts are deemed for using a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operations of these accounts are included on their respective statements of internet position. Operating statements present increases (i.eastward., revenues) and decreases (i.e., expenses) in total net position. Net position in proprietary fund type accounts is segregated into 3 components: cyberspace investment in majuscule assets; restricted; and unrestricted. Net position for trust fund type accounts represents assets held in trust for external individuals and organizations. The modified accrual footing of bookkeeping is used past all governmental fund type accounts. Under the modified accrual ground of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the corporeality of the transaction tin be reasonably estimated. "Available" ways collectible inside the electric current menstruation or before long plenty thereafter to be used to pay liabilities of the current menstruum. Primary revenues that are determined to be susceptible to accrual include sales taxes, business concern and occupation taxes, motor fuel taxes, federal grants-in-aid, and charges for services. Revenues from property taxes are determined to be bachelor if collectible within sixty days. Taxes imposed on commutation transactions are accrued when the underlying exchange transaction occurs if collectible within 1 year. Revenue for timber cutting contracts is accrued when the timber is harvested. Revenues from licenses, permits, and fees related to prior services or activity (such as fees based on volume of action) are accrued as acquirement in the period in which the service or activeness occurs. Revenues from licenses, permits, and fees related to a future fourth dimension period (such equally driver and motor vehicle licenses) are recognized as acquirement when received in cash. Revenues related to expenditure driven grant agreements are recognized when the qualifying expenditures are made provided that the availability criteria is met. Pledges are accrued when the eligibility requirements are met and resources are available. All other accrued acquirement sources are determined to be bachelor if collectible within 12 months. Holding taxes are levied in December for the following agenda yr. The first half year collections are due Apr 30 and the second one-half twelvemonth collections are due October 31. Since the land is on a financial yr catastrophe June 30, the first one-half year collections are recognized equally acquirement, if collectible within sixty days of the fiscal year finish. The 2nd one-half year collections are recognized equally receivables offset by unavailable revenue. The lien appointment on property taxes is January 1 of the revenue enhancement levy twelvemonth. Under modified accrual bookkeeping, expenditures are recognized when the related liability is incurred. Exceptions to the general modified accrual expenditure recognition criteria include unmatured involvement on general long-term debt which is recognized when due, and certain compensated absences and claims and judgments which are recognized when the obligations are expected to exist liquidated with expendable available financial resources. All proprietary and trust fund type accounts are accounted for using the accrual basis of accounting. Under the accrual footing of bookkeeping, revenues are recognized when they are earned and expenses are recognized when incurred. In governmental fund type accounts, the country defers recognition of revenue under sure conditions. Unavailable revenues ascend when a potential revenue does non meet both the "measurable" and the "available" criteria for revenue recognition in the current menstruum. In all account types, unearned revenue arises when resource are received past the country before it has a legal merits to them, such as when grant monies are received prior to incurring qualifying expenditures/expenses.

eighty.30.20.b

For government-wide reporting purposes, the land uses the economical resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related greenbacks flows. Property taxes are recognized every bit revenue in the year for which they are levied. Grants and similar items are recognized equally revenue equally soon as all eligibility requirements imposed by the provider have been met.

80.30.25 July i, 2004

General budgetary policies

Governmental fund type accounts are budgeted materially in conformity with GAAP. Certain governmental activities are excluded from monetary reporting because they are not appropriated. These activities include: activities designated as nonappropriated by the Legislature, such every bit the Higher Didactics Special Revenue Fund, College Education Endowment Fund, federal surplus food bolt, electronic food postage benefits, capital leases, note proceeds, and resources collected and distributed to other governments. The differences betwixt budgetary reporting and GAAP reporting are reconciled and disclosed in the notes to the state's budgetary comparing schedules. Refer to Section 85.10.

fourscore.xxx.27 July 1, 2004

Full general reporting policies

80.30.27.a	In accordance with GAAP, the country annually prepares and publishes a Annual Comprehensive Fiscal Report (ACFR), which presents the chief government and its component units, entities for which the state is considered to be financially accountable. Per RCW 43.88.027, the ACFR is required to exist prepared and published within half dozen months of year end.
80.30.27.b	A land agency or component unit of measurement may prepare and publish separate, stand-lonely fiscal reports as deemed necessary. When these reports are prepared in accord with GAAP, the relationship between the agency or component and the state should be disclosed on the cover of the report as well as in the notes to the financial statements. Refer also to Subsection 90.ten.threescore.

80.30.28 June 1, 2005

What is the land of Washington reporting entity?

In defining the state of Washington for financial reporting purposes, management considers: all organizations, institutions, agencies, departments, and offices that are legally part of the state (the primary government); organizations for which the state is financially accountable; and other organizations for which the nature and significance of their human relationship with the state are such that exclusion would cause the state'south financial statements to be incomplete. The primary authorities of the state includes its agencies, colleges and universities, retirement systems, and blended component units. Blended component units, although legally separate entities, are part of the state�s operations in substance. Accordingly, they are reported equally function of the state and composite into the appropriate funds. Discretely presented component units are reported in a separate column in the authorities-wide financial statements. Discretely presented component units are legally separate from the state and primarily serve or benefit those outside of the land. They are financially answerable to the state, or have relationships with the country such that exclusion would cause the reporting entity�south fiscal statements to be misleading or incomplete.

80.30.30 July 1, 2015

Pooled greenbacks and investment policies

Investments of surplus or pooled greenbacks balances are reported by the state every bit "cash and pooled investments." The Office of the Country Treasurer invests state treasury cash surpluses where funds tin be disbursed at any time without prior notice or penalisation. Every bit a result, the cash balances of funds with surplus pooled balances are non reduced for these investments. The country defines investments for reporting purposes as securities or other avails that (a) the state holds primarily for the purpose of income or turn a profit and (b) has a present service capacity that is based solely on its ability to generate greenbacks or be sold to generate cash. Investments are generally valued at off-white value. The techniques used to determine fair value fall into three categories: Level 1 inputs are quoted prices in agile markets. Level 2 inputs are observable either directly or indirectly. Level iii inputs are non observable. The state maximizes the use of techniques that are appropriate under the circumstances and for which sufficient data are bachelor, maximizing the use of relevant observable techniques. Refer to Department 85.52.

eighty.30.35 June i, 2005

Receivables policy

Receivables in the state'south governmental fund type accounts consist primarily of taxes and federal revenues. Receivables in all other accounts arise in the ordinary course of business. Receivables are recorded when either the asset or revenue recognition criteria take been met. Estimates of uncollectible receivables are made and recorded to an allowance for uncollectible receivables. Receivables are reported net of the allowance for uncollectible accounts. For regime-wide reporting purposes, amounts reported in the funds as interfund/interagency receivables and payables are eliminated in the governmental and concern-type activities columns of the Statement of Net Position, except for the internet residual balances due between the governmental and business-blazon activities, which are presented as internal balances. Amounts recorded in governmental and business organisation-type activities as due to or from fiduciary funds are reported equally due to or from other governments. Refer to Section 85.54.

80.30.40 June one, 2014

Inventories policy

Consumable inventories, consisting of expendable materials and supplies held for consumption, are valued and reported for fiscal argument purposes if the fiscal yr-finish residual on paw at an inventory control point exceeds $l,000. Consumable inventories are mostly valued at price using the first-in, kickoff-out method. Donated consumable inventories are recorded at fair value. All merchandise inventories are considered reportable for financial statement purposes. Merchandise inventories are generally valued at toll using the first-in, starting time-out method. Inventories of governmental fund type accounts are valued at cost and are recorded using the consumption method. Proprietary fund type accounts expense inventories when used or sold. For governmental fund financial reporting, inventory balances are recorded as nonspendable fund balance indicating that they do not constitute "available spendable resources", except for certain federally donated consumable inventories which are get-go past unearned acquirement because they are non earned until they are distributed to clients. Refer to Section 85.56.

lxxx.30.45 July 1, 2021

Majuscule assets policy

80.30.45.a	Capitalization. For the country'southward capitalization policy, refer to Subsection 30.xx.20. Except when noted, it is the state's policy to capitalize: All land, including land apply rights with indefinite lives caused with the purchase of the underlying state, and ancillary costs; The motorway arrangement operated by the Department of Transportation; Infrastructure, other than the state highway system, with a toll of $100,000 or greater; Buildings, building improvements, improvements other than buildings, and leasehold improvements with a cost of $100,000 or greater; Intangible assets other than lease assets, either purchased or internally developed, such equally  software, patents, and trademarks, with a cost of $1,000,000 or more that are "identifiable" by meeting i of the post-obit weather condition: The nugget is capable of existence separated or divided and sold, transferred, licensed, rented, exchanged, or The asset arises from contractual or other legal rights, regardless of whether those rights are transferable or separable. Lease assets with total payments over the lease term of $500,000 or greater; All other capital assets with a unit cost (including ancillary costs) of $5,000 or greater, or collections with a total price of $5,000 or greater, unless otherwise noted; and All majuscule assets acquired with Certificates of Participation (COP). Purchased capital letter assets are valued at price where historical records are available and at estimated historical toll where no historical records exist. Capital nugget costs include the buy price plus those costs necessary to place the asset in its intended location and condition for utilize. Normal maintenance and repair costs that do not materially add together to the value or extend the life of the state's upper-case letter assets are not capitalized. Capital assets transferred betwixt agencies are recorded past the bureau receiving the asset at the carrying value of the transferring bureau. Donated capital assets, works of fine art and historical treasures are valued at their estimated acquisition value on the engagement of donation, plus all appropriate coincident costs. The value of assets constructed past agencies for their ain apply includes all directly construction costs and indirect costs that are related to the construction. Art collections, library reserve collections, and museum and historical collections that are considered inexhaustible, in that their value does non diminish over time, are not capitalized by the land if all of the post-obit conditions are met: The collection is held for public exhibition, education, or research in furtherance of public service, rather than financial gain. The collection is protected, kept unencumbered, cared for, and preserved. The collection is subject to policy requirements that the proceeds from sales of drove items be used to learn other items for the collection. Agencies must exist able to provide descriptions of the collections and the reason the collections are not capitalized.
80.30.45.b	Depreciation/acquittal. Depreciation/amortization is calculated on general capital assets with the exception of land, the state highway system; fine art collections, library reserve collections, and museum and historical collections that are considered inexhaustible; construction in progress; and intangible assets with indefinite useful lives. Depreciation/amortization is calculated using the straight-line method over the estimated useful lives of the assets. More often than not, estimated useful lives are as follows: Buildings & building components v - 50 years Furnishings, equipment & collections 3 - 50 years Infrastructure xx - 50 years Intangibles three - 50 years Other improvements 3 - l years The cost and related accumulated depreciation/amortization of capital avails disposed of are removed from the applicable full general ledger codes. Refer to Subsection 30.40.45.
lxxx.30.45.c	Modified approach to depreciation - state highway organization. The state capitalizes the state highway system as a network just does not depreciate it since the organisation is being preserved approximately at or in a higher place a condition level established by the land. That condition level is documented and disclosed. Additionally, the highway system is managed using an asset management arrangement that includes: Maintenance of an upwards-to-engagement inventory of system assets, Performance of condition assessments of the assets at least every 3 years with summarization of the results using a measurement scale, and Annual estimation of the amount to maintain and preserve the avails at the condition level established and disclosed. All expressway system expenditures that preserve the useful life of the system are expensed in the menstruation incurred. Additions and improvements that increase the chapters or efficiency of the arrangement are capitalized. This approach of reporting condition instead of depreciating the highway system is called the Modified Approach.
fourscore.30.45.d	Reporting. For government-wide fiscal reporting purposes, capital assets of the land are reported every bit assets in the applicable governmental or business-blazon activities column on the Argument of Net Avails. Depreciation/amortization expense related to majuscule assets is also reported in the Statement of Activities. Upper-case letter avails and the related depreciation/amortization expense are also reported in the proprietary fund blazon financial statements. In governmental fund type accounts, capital assets are not capitalized in the accounts that acquire or construct them. Instead, capital acquisitions and structure are reflected equally expenditures in governmental fund type accounts and recorded in the General Capital Assets Subsidiary Account. The General Majuscule Avails Subsidiary Account is a tape keeping mechanism that provides a basis for accountability and command over the state'southward upper-case letter assets other than those accounted for in proprietary or fiduciary funds.Refer to Section 85.sixty.

80.30.47 June i, 2015

Deferred outflows/inflows of resources

Deferred outflows of resources correspond a consumption of fund equity that will be reported as an outflow of resources (expenditure/expense) in a future menstruation.  An example of a deferred outflow of resources is the excess of the conveying value of debt being refunded over the reacquisition cost of the refunding debt. Deferred inflows of resources stand for an acquisition of fund disinterestedness that will be recognized every bit an inflow of resources (acquirement) in a hereafter catamenia.  In governmental fund type accounts, a deferred inflow of resources is reported when revenues do non meet the available recognition criteria. Another example of a deferred arrival of resource is the excess of the reacquisition price of refunding debt over the net carrying value of the debt being refunded.

lxxx.30.fifty June 1, 2004

Brusque-term liabilities policy

Short-term liabilities are legal obligations of the land that ascend upon the receipt of goods or services. In governmental fund type accounts, they are payable from current fiscal resources. In proprietary and fiduciary fund type accounts, they represent items payable inside i twelvemonth. In proprietary and fiduciary fund types every bit well as the Full general Long-Term Obligation Subsidiary Account, short-term liabilities also include the brusque-term portion of long-term obligations. The brusque-term portion of long-term obligations is the amount due inside one year. Refer to Section 85.70.

80.30.55 July i, 2009

Compensated absences policy

Vacation leave. Country employees earn vacation leave that, if non used for paid time off, results in full bounty at termination or retirement. It is more often than not the state's policy to liquidate unpaid holiday leave with future resource rather than currently available expendable resources. Accordingly, governmental fund type accounts recognize holiday leave when it is paid upon employee's utilize, resignation, death, or retirement. A liability for accumulated holiday leave, including related employer costs, is recorded for governmental fund type accounts in the Full general Long-Term Obligations Subsidiary Account. Proprietary and trust fund type accounts recognize the expense and record a liability for holiday leave, including related employer costs, as it is earned. Refer to Subsection 85.72.fifty. Sick leave. The state'southward policy with respect to sick leave is that if it is not used for paid time off, so the state is only liable to compensate employees through greenbacks payments for 25 pct of their sick leave when they retire or die. For financial reporting purposes, it is the land's policy to liquidate unpaid ill go out at June 30 from future resources rather than currently available expendable resources. Accordingly, governmental fund type accounts recognize sick go out when information technology is paid. The state records an estimated sick leave buyout liability, including related payroll taxes, for governmental fund type accounts in the General Long-Term Obligations Subsidiary Account. Proprietary and trust fund blazon accounts recognize the expense and accumulate a liability for estimated sick leave buyout as sick leave is earned. Refer to Subsection 85.72.60. Compensatory fourth dimension. Certain land employees earn compensatory time that, if not used for paid time off, results in bounty to be cashed out in accordance with regulations, collective bargaining agreements, or agency policy, as appropriate. A liability for accumulated compensatory fourth dimension, including related employer costs, is recorded for governmental fund blazon accounts in the General Long-Term Obligations Subsidiary Account. Proprietary and trust fund blazon accounts recognize the expense and tape a liability for compensatory fourth dimension, including related employer costs, as it is earned. Refer to Subsection 85.72.65 .

fourscore.thirty.57 July 1, 2006

Termination benefits policy

State employees may receive termination benefits resulting from early on retirement incentives and severance pay.  A liability for termination benefits, including related employer costs, is recorded for governmental fund blazon accounts equally an expenditure and liability.  Governmental fund type accounts recognize termination benefits when the liability volition be paid from expendable available financial resources.  Proprietary and trust fund type accounts recognize the expense and record a liability for termination benefits, including related employer costs, when it is earned.  Refer to Subsection 85.72.lxx.

80.30.60 June 1, 2004

Long-term obligations policy

Long-term obligations expected to be financed from proprietary and fiduciary fund blazon accounts are accounted for in those accounts. Long-term obligations expected to exist financed from resource received in the future past governmental fund type accounts are accounted for in the General Long-Term Obligations Subsidiary Account. The General Long-Term Obligations Subsidiary Account is a record keeping mechanism that provides a basis for accountability and control over the land's long-term obligations other than those accounted for in proprietary and fiduciary funds. For governmental fund type financial reporting, the face (par) amount of the debt issued is reported every bit other financing sources. Original issuance premiums and discounts on debt issuance are besides reported as other financing sources and uses respectively. Event costs are reported equally debt service expenditures. For authorities-wide financial and proprietary fund reporting purposes, long-term obligations of the state are reported as liabilities in the applicable governmental or concern-type activities column on the Statement of Net Assets. Long-term obligations are also reported in the proprietary fund type financial statements. Bonds payable are reported net of applicative original issuance premium or discount. Refer to Section 85.72.

eighty.30.62 June 1, 2015

Commitments and contingencies

An encumbrance represents a commitment of expenditure authority related to unperformed contracts for goods or services and is reported in restricted, committed, or assigned fund residue, equally advisable.  Refer to Section 85.30. A nonexchange financial guarantee represents a commitment on the function of a regime (without receiving equal value in return) to indemnify a third party if the entity that bug the guaranteed obligation does non fulfill its requirements under the obligation.  A liability is recognized for a nonexchange financial guarantee when qualitative factors and historical information indicate that information technology is more than likely than not that the regime volition be required to make a payment related to the guarantee. A loss contingency occurs when it appears reasonably possible that a liability has been incurred or an asset has been dumb, but no loss is recognized because the loss is either not considered probable, or if it is likely, it is not reasonably measurable. A gain contingency occurs when revenue is reasonably possible, simply is never recognized until it has been realized.

80.30.65 June 1, 2015

Fund disinterestedness policy

	Fund equity represents the departure between avails and liabilities.
fourscore.30.65.a	In governmental fund type accounts, fund equity is chosen "fund balance."  Fund balance is reported in the following classifications that reverberate the extent to which the country is bound to honor constraints on the purposes for which the amounts can be spent: Nonspendable fund balance represents amounts are legally or contractually required to remain intact.  In governmental fund type accounts, it also represents amounts that are non in a spendable grade (e.thou., inventories) as well as assets that neither correspond bachelor resource nor will result in acquirement (e.m., long term loans). Restricted fund balance represents amounts for which constraints are placed on their use by the state constitution, enabling legislation or external resource providers such equally creditors, grantors, or laws or regulations of other governments; Committed fund residual represents amounts that tin only be used for specific purposes pursuant to constraints posed by state law as adopted by the country Legislature.  The delivery of fund balance remains in place until the Legislature changes or eliminates the state police force. Assigned fund balance represents the residual amounts that are intended for a specific purpose by management, but are neither restricted nor committed. Unassigned fund residue represents the residual amount for the Full general Fund that is not contained in the other classifications.  Additionally, any deficit fund residuum within other governmental funds is reported as unassigned. When more than one classification of fund balance (excluding nonspendable) are comingled in an account, assuming that an expenditure meets the constraints of more ane of the classifications, the assumed order of spending is restricted first, committed 2d, and finally assigned.
80.xxx.65.b	For government-wide reporting and in proprietary fund blazon accounts, fund equity is called "net position." Net position is comprised of 3 components: Net investment in capital assets consists of upper-case letter assets, net of accumulated depreciation, reduced by outstanding balances of bonds, notes, and other debt too every bit deferred inflows and outflows of resources that are attributed to the acquisition, construction, or comeback of those assets. Restricted cyberspace position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.  Assets are reported as restricted when constraints are placed on apply of the assets by either past external parties or past law through ramble provision or enabling legislation. Unrestricted cyberspace position is the cyberspace corporeality of the assets, deferred outflows of resource, liabilities and deferred inflows of resources that does not meet the definition of the ii preceding categories. When both restricted and unrestricted resources are available for use, it is the state'southward policy to use restricted resources kickoff and then use unrestricted resources as they are needed. Refer to Section 85.80.

80.thirty.67 July 1, 2011

Revenues and expenses policy

80.xxx.67.a	Revenues. For the government-broad Statement of Activities, revenues are classified as either "program" revenues or "full general" revenues. Program revenues kickoff the expenses of major programs. These revenues are identified using the following criteria: Charges to customers for goods and services of the program. A client is ane who directly benefits from the goods or services or is otherwise direct afflicted by the program, such as a land citizen or taxpayer, or other governments or nongovernmental entities. Amounts received from exterior entities that are restricted to ane or more specific programs. These amounts can be operating or majuscule in nature. Earnings on investments that are restricted to a specific plan are as well considered program revenues. General revenues not included in programme revenues are considered general revenues. They are non matched to specific programme expenses. These revenues are from country taxpayers and from state-generated activities. General revenues include the post-obit: Taxes, even those levied for a specific purpose; Involvement earnings non specifically restricted to a specific programme; and Grants and contributions not specifically restricted to a program. Other revenues are contributions to term and permanent endowments, contributions to permanent fund principal, special and extraordinary items, and transfers reported separately from, but in a manner consistent with, general revenues.
lxxx.30.67.b	Expenses. For government-wide reporting purposes, amounts reported as activity expenses include those expenses directly related to a major plan. Depreciation/amortization on upper-case letter assets specifically identified with a given plan is considered a direct expense. All other depreciation/amortization is reported equally part of the "general government" program. Interest expense is non considered a direct expense except in those cases where its exclusion every bit a direct cost of a program would be misleading. In guild to avert "doubling up" of expenses, internal service fund activity is generally eliminated.
eighty.xxx.67.c	Operating/nonoperating. The state's proprietary funds make a distinction between operating and nonoperating revenues and expenses. Operating revenues and expenses mostly result from providing appurtenances and services directly related to the principal operations of the funds. For example, operating revenues for the country'southward workers' compensation and wellness insurance funds consist of premiums collected. Operating expenses consist of claims paid to covered individuals, claims adjustment expenses, costs of commercial insurance coverage, and administrative expenses. All revenues and expenses not meeting this definition are reported equally nonoperating, including interest expense and investment gains and losses.

80.30.seventy May 1, 1999

Insurance activities policy

In instances where the state has retained the gamble of loss related to insurance blazon activities, claims and judgment liabilities are reported when it becomes probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an actuarially adamant amount for claims that have been incurred but non reported. Because actual claims liabilities depend on such complex factors as inflation, changes in legal doctrine, claims adjudication, and judgments, the process used in estimating claims liabilities does not necessarily result in an exact calculation. Claims liabilities are re-evaluated periodically to have into consideration recent settlements, claim frequency, and other economic, legal or social factors. Adjustments to claims liabilities are charged or credited to an expense in the period in which the adjustment is made.

80.xxx.75 July 1, 2001

Interfund activities policy

The land engages in ii major categories of interfund/interagency activity: reciprocal and nonreciprocal. Reciprocal interfund/interagency activity is the internal counterpart to commutation and substitution-like transactions and includes both interfund loans and services provided and used. Nonreciprocal activeness is nonexchange in nature and includes both transfers and reimbursements. As a full general rule, the effect of interfund/interagency activities is eliminated for authorities-wide financial statement reporting purposes. Exceptions to this dominion are charges between the country'southward employee health insurance and workers' bounty insurance programs and diverse other functions of the state. Emptying of these charges would distort the direct costs and program revenues reported for the various activities concerned. Refer to Section 85.90.

80.30.80 July 1, 2003

How to establish accounts

Accounts required past police to be maintained inside the land treasury (Treasury Accounts) are established by legislative activity. Treasury accounts are subject to cribbing unless specifically exempted. The following is an case of the statutory language necessary to establish an account in the land treasury: "The _____(title)_____ account is created in the land treasury. All receipts from _____(source)_____ shall exist deposited into the account. Moneys in the account may exist spent just later cribbing. Expenditures from the account may be used only for _____(purpose)_____." Accounts located outside the state treasury are generally created in statute. Accounts located outside the state treasury are not subject to appropriation, but may be placed in the custody of the Country Treasurer (Treasurer's Trust Accounts). The post-obit is suggested statutory language for creating a non-appropriated account in the custody of the State Treasurer: "The _____(championship)_____ account is created in the custody of the land treasurer. All receipts from _____(source)_____ shall exist deposited into the account. Expenditures from the account may exist used only for _____(purpose)_____. Merely the director of _____(bureau)_____ or the director's designee may qualify expenditures from the business relationship. The account is subject to resource allotment procedures under Chapter 43.88 RCW, but no cribbing is required for expenditures." Local accounts can be established exterior the state treasury by the Office of Financial Management, pursuant to RCW 43.88.195, when an agency presents compelling reasons of economy and efficiency which could not be accomplished past placing such accounts in the state treasury. However, as a matter of convenience to an bureau or statutory requirement, the Land Treasurer may take custody of such accounts and place them in a Treasurer'southward Trust business relationship when conditions exist every bit prescribed in RCW 43.79A.020.

80.thirty.82 July 1, 2010

The country adopted a uniform chart of accounts

	The Office of Financial Management (OFM) adopted a standard organization of classifying agency financial information to fulfill the need for compatible, consistent terminology and classifications to be used for budgeting, bookkeeping and reporting the financial activities of the state. Financial transactions are described past means of alpha numeric indicators which are assigned to descriptive titles. Affiliate 75 of this manual presents the state's uniform nautical chart of accounts. For management purposes, agencies may maintain a more detailed level of bookkeeping data. Optional agency designated codes include acquirement sub-source, sub-program, and sub-subobject not associated with payroll candy through the Human being Resource Direction Organization (HRMS). Refer to Section 75.10.
	Agency Code - The four grapheme numeric code assigned by OFM to designate singled-out operational units of state regime.
	Account Code - The three graphic symbol alpha/numeric lawmaking assigned by OFM to place each specific accounting entity against which transactions are recorded.
	General Ledger (GL) Account Code - The iv character numeric code assigned past OFM to identify the titles which classify, in summary form, all financial transactions of the land.
	Revenue Source Code - The four graphic symbol blastoff/numeric lawmaking assigned by OFM to identify the origin, or originating categories, from which revenues/receipts are derived.
	Expenditure Say-so (EA) Code - The iii grapheme alpha/numeric code assigned by OFM to place each legislative or executive authority to incur expenditures. Agencies are to use only those expenditure authorisation codes that have been authorized in writing by OFM. The assigned codes are valid only for the biennium or fiscal year for which they are established.
	Plan Code - The iii character alpha/numeric code used to identify the bureau functional area and the various major activities within an agency. More often than not program codes are assigned by an agency with the concurrence of OFM, however there are a limited number of mandatory statewide codes used to identify special functions.
	Project Type Code � The ane character alpha/numeric code assigned by OFM to identify specified information engineering expenditures/expenses and to allocate them as new conquering or maintenance and operations.
	Object/Subobject Code - The two graphic symbol alpha code assigned past OFM to identify expenditures/expenses according to the character of the goods or services purchased.
	Sub-subobject Code - The four character alpha/numeric code used to identify a particular expenditure/expense within a sub-object. Statewide sub-subobjects are assigned by OFM for utilise in processing payroll in HRMS.
	The post-obit diagrams illustrate the uniform statewide account code structure format for general ledger, revenue and expenditure/expense accounting:
	Uniform Statewide Account Code Construction

80.30.84 July 1, 2008

Required accounting steps

80.30.84.a	The initial stride in processing accounting information consists of receiving a source document in electronic or paper form, analyzing the transaction to determine its nature and and so assigning the advisable coding. Documents initiating accounting transactions include cash receipts, time sheets, purchase orders, invoice vouchers and periodical vouchers.
80.thirty.84.b	Properly coded source documents are segregated into similar transaction type groupings and posted sequentially in the appropriate volume of original entry. Books of original entry include greenbacks receipts periodical, payroll periodical, and warrant register.
80.30.84.c	As applicable, books of original entry are posted either manually or electronically to subsidiary ledgers and to control accounts in the general ledger.
80.thirty.84.d	Periodic financial reports may be generated to support authoritative and budgetary control. Examples of these reports include budget status report, accounts receivable aging report, and general ledger trial balance.
80.30.84.east	Annually, statewide financial statements are prepared. Chapter xc of this transmission provides specific requirements and procedures for the production of the state's Almanac Comprehensive Financial Report (ACFR). Additionally, agencies may produce bureau financial statements or reports. In doing so, they must use the data submitted to the centralized statewide accounting systems. Whatever variance between centralized statewide data and agency issued financial statements is to be reconciled and disclosed in the notes to the agency's financial statements. However, if the separately issued statements utilise unlike reporting standards, the bureau is to clearly bespeak in the notes to the bureau financial statements which standards were used and how they differ from those used in the state's ACFR.

80.xxx.86 June 1, 2014

Using standard or other accounting forms

Standard forms have been developed and are prescribed for employ past state agencies to support the accounting, budgeting and administrative functions. Privacy Notice: Safeguarding and disposition of personal information collected past agencies on standard forms must be consistent with Executive Lodge 00-03, Apr 25, 2000; OCIO Policy 141; and RCW 42.56.210. Whatsoever revision by an agency to a standard course or the origination of a new form by an agency that is to exist used equally an bookkeeping source certificate to support disbursements or collections of country funds must be approved in writing by the Office of Fiscal Management, Statewide Bookkeeping prior to adoption. Overprinting, such as agency proper noun and address, is not considered a revision and therefore is non subject to approval. Copies of approved revised or new forms, when received from the printer/manufacturer, are to be furnished to Statewide Accounting.

80.30.88 July 1, 2017

Requirements for agencies implementing, maintaining or modifying accounting or reporting systems

fourscore.thirty.88.a

Financial/administrative systems require the approval of the Office of the Chief Information Officeholder (OCIO) and the Office of Financial Management (OFM). Any new or revised financial/authoritative system must comply with the provisions of this manual and the standards and guidelines prescribed by the OCIO and OFM. OFM is the business possessor of all statewide fiscal information; therefore, all financial information generated by agency systems must be compatible with the requirements of the centralized statewide systems (such equally budget, bookkeeping, payroll, purchasing, facilities, contracting).

80.thirty.88.b

Enterprise-wide or multiple bureau systems are the solutions of choice to meet the fiscal/authoritative needs of state agencies. Agencies must obtain written approval from the OCIO and OFM prior to acquiring, developing, implementing, or otherwise investing in an agency specific or agency maintained solution. Agencies must too obtain written approval from the OCIO and OFM before making additional investments in an existing agency specific or bureau maintained solution, or when the investment adds new functionality to an agency specific or agency maintained solution. Definitions of administrative and fiscal systems tin can be found at: https://ocio.wa.gov/enterprise-engineering-dictionary/themes/754. The OCIO is responsible for defining the approving process. Data needed to initiate the procedure tin can exist found at: http://ocio.wa.gov/requests-administrative-fiscal-systems-approval.

lxxx.30.90 July 1, 2009

Monetary data must be maintained

Budgetary data is integrated in the compatible business relationship code structure and is required to be maintained by each agency. The monetary data is used to reflect budget operations such as estimated revenues, expenditure authorities, and estimated expenditures. Department 85.x of this manual provides further information related to budgetary information.

lxxx.30.92 July 1, 2004

Agency financial activities must be organized to provide effective internal command

Agency fiscal activities are to be organized in such a manner as to provide the maximum degree of internal command in the about efficient and effective manner. Specific organization arrangements are left to the discretion of the agency. Due to the diverse nature of state agency operations, examples volition not exist illustrated in this transmission. Agencies are responsible for establishing and maintaining effective internal control over financial reporting. An bureau�s organization of internal controls must comply with the internal control requirements prescribed in Chapter xx of this manual.

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Source: https://ofm.wa.gov/policy/80.30.htm

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