Chapter 90 establishes the state reporting policies and procedures governing the accumulation of accounting data for reporting purposes and the preparation of the state of Washington's Comprehensive Annual Financial Report (CAFR).

All agencies are required by RCW 43.88.110 (9) to maintain accounting records and report thereon in a manner prescribed by the Budget and Accounting Act or associated regulations. Additionally, RCW 43.88.027 requires the Governor, through the Director of the Office of Financial Management (OFM), to prepare and publish within six months of the end of the fiscal year, as a matter of public record, an annual financial report that encompasses all funds and account groups of the state.

This chapter is applicable to and binding on all agencies of the state of Washington, unless otherwise exempted by statute or rule. The Budget and Accounting Act (RCW 43.88.020) defines the term "agency" to mean and include "every state office, officer, each institution, whether educational, correctional or other, and every department, division, board and commission, except as otherwise provided."

Agencies may request a waiver from complying with specific requirements of this chapter. Refer to Subsection 1.10.40 for information on how to request a waiver.

AFRS functions as the statewide financial accounting system. The financial data collected in AFRS is used to prepare a variety of reports including analyses for state level executive management and responses to inquiries for information from parties outside OFM. Because of the importance of financial reports in the management of state operations, it is essential that complete and accurate data be submitted to AFRS monthly.

To this end, the following roles and responsibilities have been established:

OFM is responsible to assist agencies to comply with AFRS reporting requirements.

This includes:

• Training and consulting services regarding state policies, procedures, and regulations;

• Assistance in resolving certain processing problems; and

• Notification of missing or erroneous data where possible.

Agencies are responsible for:

• Ensuring that they are in a position to respond to problems encountered with the integrity and/or transmission of agency data, especially during critical times such as AFRS month-end cut-off and during the fiscal year closing process.

• Exercising appropriate control over data security.

• Verifying the completeness, accuracy, and integrity of data submitted.

• Notifying their assigned OFM Accounting Consultant if data or other problems arise.

Agencies that use the batch interface process to submit data are responsible for:

• Ensuring that data is transmitted in a secure and reliable manner consistent with AFRS requirements. The preferred method of transmission is through the statewide communication backbone managed by the Department of Information Services (DIS).

• Coordinating with DIS on matters regarding the transmission and processing necessary to make the data available for processing by AFRS.

Reporting requirements prescribe two methods for reporting component units of the state in the CAFR. Depending upon a component unit's relationship with the state, it is either blended or reported discretely.

• Blended component units are reported as part of the primary state government just like a normal state agency. Data for blended component units is included in AFRS.

• Discretely reported component units are reported in a column separate from the primary state government. Component units discretely reported need to submit audited financial statements to OFM.

The OFM Accounting Consultant assigned to agencies identified as (or having) component units will work with agency personnel to provide additional information and assistance as needed to satisfy reporting requirements. If questions exist regarding component units or potential component units, contact the assigned OFM Accounting Consultant.

Agencies preparing and/or publishing agency financial statements are to use data submitted to AFRS and included as part of the CAFR. Any variance between the final AFRS data and agency issued financial statements is to be reconciled and disclosed in the notes of the agency's financial statements. However, if the separately issued report uses different reporting standards, the agency is to clearly indicate in the notes to their financial statements which standards were used and how they differ from those used in the state's CAFR.

Agencies are to adhere to the published due dates. This adherence allows the data to be consolidated by OFM and reported in accordance with statutory time frames.