SUBSECTION 5.1.1.1
GENERAL

5.1.1.1.1

Purpose and Scope

Effective Date:

June 1, 1998

This part of the manual establishes the state reporting policies and procedures governing the accumulation of accounting data for reporting purposes and the preparation of the Washington State Comprehensive Annual Financial Report (CAFR).

5.1.1.1.2

Authority

Effective Date:

June 1, 1998

All agencies are required by RCW 43.88.110(8) 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.

5.1.1.1.3

Applicability

Effective Date:

June 1, 1998

5.1.1.1.3.a

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

5.1.1.1.3.b

Agencies may request a waiver from complying with specific requirements of this part. The request must be in writing and must be approved in writing by the Director of OFM before the waiver may take effect. Such waivers automatically expire at the end of the fiscal biennium for which they were granted and must be reapproved in writing to remain in force.

5.1.1.1.4

Agency Financial Reporting System (AFRS) Reporting

Effective Date:

June 1, 1998

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

To achieve the goal of timely and accurate data submission to AFRS, cooperation and commitment is required by all parties involved. To this end, the following roles and responsibilities have been established:

5.1.1.1.4.a

OFM is responsible to assist agencies to comply with AFRS reporting requirements. This includes assistance regarding communication methods; notification of missing or erroneous data where possible; assistance in resolving certain processing problems; and training and consulting services regarding state policies, procedures, and regulations.

5.1.1.1.4.b

Agencies are responsible to ensure that they are in a position to respond to problems encountered with the integrity and/or transmission of agency data during critical times, such as AFRS month end cut off. The critical period for month end processing extends from two working days before to two working days following the published AFRS cut off date. Agencies are responsible to exercise appropriate control over data security. Agencies are also responsible to verify the integrity of data submitted and are to notify their assigned Accounting Consultant if data problems arise.

Batch interface agencies are responsible to ensure that data are transmitted in the most efficient and effective manner consistent with AFRS requirements. The preferred method of transmission is through the statewide communication backbone managed by the Department of Information Services (DIS) since transmission of data using modems and standard phone lines often causes serious problems and delays. Agencies are to coordinate with DIS on all matters regarding the transmission and processing necessary to make the data available for processing by AFRS.

5.1.1.1.5

Component Unit Reporting

Effective Date:

June 1, 1998

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. Blended component units submit data through 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.

5.1.1.1.6

Agency Internal Reports

Effective Date:

June 1, 1998

Agencies generating 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.

5.1.1.1.7

Due Dates

Effective Date:

June 1, 1998

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.