CHAPTER 1 STATE REPORTING POLICIES AND PROCEDURES

Return to CHAPTER 1: STATE REPORTING POLICIES AND PROCEDURES

SUBSECTION 5.1.3.1
STATE DISCLOSURE FORMS

5.1.3.1.1 Introduction - Disclosure Forms Effective Date: June 1, 1998

State disclosure forms permit the preparation of the state of Washington Comprehensive Annual Financial Report (CAFR) by the Office of Financial Management (OFM). All agencies are to complete a lead sheet to accompany the state disclosure forms submitted to OFM. Indicate on the sheet whether a form is completed or not applicable (N/A) to your agency. Blank "N/A" forms are not required to be submitted. On forms requiring only one section to be filled out, mark the other sections "N/A" and submit the entire disclosure form. Please submit two copies of all forms for your agency to the Office of Financial Management, Accounting Division, PO Box 43123, Olympia, Washington 98504-3123. If forms are submitted in an electronic format, only two copies of the Financial Disclosure Certificate - Form K need accompany the electronic information. Forms are due on the date prescribed in the issuance directive accompanying this policy update. Early submittal is encouraged.

Agency Title _____________________________________

Agency Code _______________

The following is a listing of state CAFR disclosure forms for our agency for Fiscal Year 19__:

	Completed
Cash and Investments Disclosure - Form A (5.1.3.1.2) A PDF File
General Disclosure
Cash on Hand and in Bank Disclosure
Certificates of Deposit Disclosure
Investment Disclosure

Leases, COPs, and Other Long-Term Commitments Disclosure - Form B (5.1.3.1.3) A PDF File
Lease Disclosure
Certificates of Participation Disclosure
Other Long-Term Commitments Disclosure

Inventory Disclosure - Form C (5.1.3.1.4) A PDF File

Bonds Disclosure - Form D (5.1.3.1.5) A PDF File
General Disclosure
General Obligation Bond Disclosure
Revenue Bond Disclosure
Limited Obligation Bond Disclosure
Zero Interest Rate Bond Disclosure
Bond Refunding Activity Disclosure
Refunded Bonds Outstanding Disclosure

Annual Receivables Aging, Past Due and Write-Off Disclosure - Form E (5.1.3.1.6)
Aging Disclosure A PDF File
Past Due Disclosure A PDF File
Write-Off Disclosure A PDF File

Pension Disclosure - Form F (5.1.3.1.7)
Department of Retirement Systems A PDF File
Office of the Administrator for the Courts A PDF File
Washington State Convention and Trade Center A PDF File
All Four-Year Higher Education Institutions and State Board for Community and Technical Colleges A PDF File


Long-Term Construction Commitments Disclosure - Form G (5.1.3.1.8) A PDF File

Statement of Non-Cash Activity Disclosure - Form H (5.1.3.1.9) A PDF File

Audit Resolution Disclosure - Form I (5.1.3.1.10) A PDF File

Taxes Receivable and Deferred Revenue Disclosure - Form J (5.1.3.1.11) A PDF File
Taxes Receivable Disclosure
Deferred Revenue Disclosure

Financial Disclosure Certificate - Form K (5.1.3.1.12 A PDF File	Required

5.1.3.1.2 Cash and Investments Disclosure - Form A
Effective Date:
June 1, 1998

5.1.3.1.2.a General Instructions

Agencies with balances of $1,000 or greater in Petty Cash (GL Code 1130) or any balances in GL Codes 1110, 1120, 1140, 1150, 1205, 1209, 1210, 1215, 1216, 1220, 1230, and 1280 are to complete Form A, "Cash and Investments Disclosure" for each account in which they have balances. The Office of State Treasurer (OST) will provide the information required to report the cash and investment activity for treasury and treasury trust funds for cash balances and activity recorded in GL Code 4310 "Current Treasury Cash Activity (OST Only)," GL Code 4320 "Beginning Treasury Cash Balance (OFM Only)," and GL Code 4325 "Beginning Treasury Cash Balance - Agency Funds."

Section 5.1.3.1.2.b contains ten general questions concerning an agency's cash and investment activity. Information provided should be on an agency-wide basis. Additional descriptions should be attached if applicable.

Section 5.1.3.1.2.c requests information concerning an agency's cash in bank by GL Code as well as information on petty cash funds and undeposited receipts held in cash. Agencies are to report the following:

5.1.3.1.2.a(1) The June 30 total cash balance on hand and as stated by the bank in terms of insurance protection by Federal Deposit Insurance Corporation (FDIC) or collateral protection through Public Deposit Protection Commission of the State of Washington (PDPC) or no protection; and

5.1.3.1.2.a(2) The June 30 book balance as reported in Agency Financial Reporting System (AFRS).

Note: Amounts covered by FDIC are considered to be insured. In general, FDIC insurance separately covers demand deposits and interest bearing deposits for up to $100,000 each per bank. PDPC provides for a collateral pool for protection of balances deposited with qualified Washington public depositories. Uninsured/uncollateralized balances would include those deposited in out-of-state and alien banks.

Book and bank balances will normally be different except for accounts with very little activity.

Section 5.1.3.1.2.d is to be completed if an agency has Certificates of Deposit reported in GL Codes 1110, 1140, 1150, 1205, 1209, or 1210.

Section 5.1.3.1.2.e is used to disclose the types of investments within the account. Agencies are to list the investment by type and categorize each by type of risk. A description of the risk categories to be used is on the form. Agencies are also to report the total fair value at fiscal year end for each type of investment. The carrying amount of investments as reported by an agency is to equal the total reported by the agency in GL Codes 1205, 1209, 1210, 1215, 1216, 1220, 1230, and 1280 in AFRS.

5.1.3.1.3 Leases, COPs, and Other Long-Term Commitments Disclosure - Form B Effective Date: June 1, 1998

5.1.3.1.3.a General Instructions

All agencies with operating and/or capital leases, including OST Certificates of Participation (COPs), are to complete Form B, "Leases, COPs, and Other Long-Term Commitments Disclosure." OST will provide the disclosure of future debt service obligations for capital commitments financed through the COP program. Agencies are to reconcile COP activity during the fiscal year to the year end balance per OST.

Report operating and capital leases (GL Codes 5172 and 5272 "Leases Payable") in Section 5.1.3.1.3.b An operating lease is rental of an asset with a term of more than one year. A capital lease is a lease that transfers substantially all the benefits and risks inherent in the ownership of property to the state. Refer to Section 3.1.2.2.4 of this manual for further information pertaining to capital leases.

OST financed capital acquisitions (GL Codes 5173 and 5273 "Certificates of Participation/ Notes Payable") are classified as COPs.

Section 5.1.3.1.3.b(1) reports the total operating lease payments for the fiscal year.

Section 5.1.3.1.3.b(2) reports total future minimum lease payments for all operating leases having initial or remaining noncancelable term in excess of one year and capital leases as of June 30 for each of the five succeeding fiscal years and a total for all remaining years thereafter.

Section 5.1.3.1.3.b(3) reports executory and imputed interest costs for capital leases. Executory costs pertain to insurance, maintenance, and taxes, whether paid by the lessor or lessee. Imputed interest costs reduce the net minimum future lease payments to present value. The interest rate to be used in determining the present value of the minimum lease payments is the interest rate the state of Washington would pay on its major bond issues at inception of the lease.

Section 5.1.3.1.3.b(4) represents the net present value of the future minimum lease payments for capital leases [Section 5.1.3.1.3.b(2) minus Section 5.1.3.1.3.b(3)].

Section 5.1.3.1.3.b(5) reconciles lease disclosures to AFRS. Capital lease balances in Form B pertaining to the General Long-Term Obligations Account Group (Account 999) and Enterprise and Internal Service Funds are to be reconciled to AFRS. Instructions to accomplish this are contained in Section 5.1.3.1.3.b(5) of the form. If a variance exists, an explanation of the variance is to accompany the lease disclosure form.

Section 5.1.3.1.3.c reports debt service requirements to maturity for COPs (OST only).

Section 5.1.3.1.3.d reconciles agency COP activity/balances in governmental and expendable trust funds to OST (all agencies with COPs).

Section 5.1.3.1.3.e reports components of GL Code 5299 "Other Obligations - Long-Term."

5.1.3.1.4 Inventory Disclosure - Form C Effective Date: June 1, 1998

5.1.3.1.4.a General Instructions

There are two types of inventories - consumable inventories (GL Code 1410) and merchandise inventories (GL Codes 142X, 1430, 1440, and 1450). Consumable inventories are assets that are consumed in the course of an agency's business. Merchandise inventories, on the other hand, are assets held for resale.

Merchandise and consumable inventories are mutually exclusive and are accounted for separately. Agencies have alternative methods for valuing inventories. A general description of these methods is listed on Form C.

For consumable inventories (GL Code 1410), Form C, "Inventory Disclosure," must be completed when the value exceeds $25,000 at fiscal year end.

All agencies with merchandise inventories (GL Codes 142X, 1430, 1440, and 1450) are to complete Form C for all accounts that have inventory on hand at fiscal year end regardless of the value.

Form C, Section 5.1.3.1.4.b, requires disclosing inventory balances as shown in AFRS Report #MWP150A. Circle the method used to value each type of inventory.

5.1.3.1.5 Bonds Disclosure - Form D Effective Date: June 1, 1998

5.1.3.1.5.a General Instructions

All agencies with balances in GL Codes 516X and 526X "Bonds Payable," are required to complete Form D, "Bonds Disclosure." The state is required to disclose debt service to maturity and other information for bonds payable. Form D accumulates this information by the general ledger codes that are established to track each type of bond.

Form D also collects required disclosure information on bond refunding activities at Section 5.1.3.1.5.g and on balances of refunded debt outstanding at Section 5.1.3.1.5.h.

Section 5.1.3.1.5.b contains two general questions concerning an agency's bond activity. Attach additional descriptions if applicable.

There are four types of bonds. A brief description of each follows:

5.1.3.1.5.a(1) General Obligation Bonds - Section 5.1.3.1.5.c - These bonds are backed by the full faith and credit of the state of Washington. General obligation bonds primarily fund capital facilities' construction and municipal construction of water, sewage, and correctional facilities.

5.1.3.1.5.a(2) Revenue Bonds - Section 5.1.3.1.5.d - Current state statute empowers certain state agencies to issue bonds not supported, or not intended to be supported, by the full faith and credit of the state. Agencies issue revenue bonds for various purposes including housing, dining, and parking facilities at higher education institutions and fees generated by these facilities are used to service the debt.

5.1.3.1.5.a(3) Limited Obligation Bonds - Section 5.1.3.1.5.e - These bonds, while backed by the full faith and credit of the state, are payable primarily from dedicated revenue of the state's motor vehicle fuel excise tax and other miscellaneous dedicated revenue. Limited obligation bonds are issued to provide funds for public school plant facilities; state, county, and city arterials; and state capital buildings and facilities.

5.1.3.1.5.a(4) Zero-Interest Rate General Obligation Bonds - Section 5.1.3.1.5.f - These bonds are also backed by the full faith and credit of the state of Washington. The only difference between these and general obligation bonds is the way investors earn a rate of return. Zero-interest rate bonds pay no annual interest; interest is accreted each year until paid or the bonds are redeemed. Zero-interest rate bonds are issued primarily to provide funds for acquisition and construction of capital facilities for public and common schools and higher education.

After each agency reviews the debt service data as of fiscal year end, the agency is to summarize data for each bond type on the bond disclosure Form D (Section 5.1.3.1.5) section that corresponds to the recorded general ledger code. Each agency is also to respond to the general questions in Form D (Section 5.1.3.1.5.b).

The OST will summarize and report all bonds recorded in the General Long-Term Obligations Account Group (Account 999) and will also report OST refunding activity and OST refunded balances. Other agencies are to complete the appropriate Form D (Section 5.1.3.1.5) for the bonds recorded in their individual operating accounts and are to reconcile Form D (Section 5.1.3.1.5) with amounts recorded in bonds payable general ledger codes in AFRS. The amount recorded in the bonds payable general ledger codes is to equal the principal amount shown in the debt service schedules. When the OST performs actual debt service on the bonds summarized on Form D (Section 5.1.3.1.5), agencies are encouraged to verify the outstanding principal to OST's records. Other agencies are also to report their current year refunding activities and the year end outstanding balance of bonds that they have refunded.

5.1.3.1.6 Annual Receivables Aging, Past Due, and Write-Off Disclosure - Form E Effective Date: June 1, 1998

5.1.3.1.6.a General Instructions

Form E consists of three reports: "Annual Receivables Aging Summary Report," "Annual Gross Past Due Receivables Comparison Report," and the "Annual Write-Off Report." Agencies which meet the criteria contained in Sections 5.1.3.1.6.b or d are to complete Form E. The amounts reported should agree with your agency's fiscal year end records. All amounts are to be rounded to the nearest dollar. Refer to Part 2 of this manual for further accounting pertaining to receivables.

5.1.3.1.6.b Annual Receivables Aging Summary Report A PDF File

All agencies with accounts receivable balances of $200,000 or more in GL Code Series 13XX and 16XX exclusive of governmental receivables in GL Code Series 1351 through 1355 and GL Code Series 1651 through 1656, are to prepare Form E "Annual Receivables Aging Summary Report." This report summarizes all receivables except those due from other governmental units/funds and is to contain the following:

5.1.3.1.6.b(1) Agency code, agency name, preparer's name and phone number, and the period ending date,

5.1.3.1.6.b(2) Account, general ledger codes and their titles,

5.1.3.1.6.b(3) For each general ledger code, within each account, provide the gross amount of the receivable, the allowance (estimated uncollectible portion), and the net amount (gross minus allowance) for each of the following categories:

Current receivables (amounts not due on the report date, but due within twelve months thereof),
Receivables 1-90 days past due,
Receivables over 90 days past due,
Long-term receivables (due more than twelve months from the report date),
Total receivables.

5.1.3.1.6.b(4) Subtotals by account for all headings in (3) above.

5.1.3.1.6.b(5) Subtotals by account for all headings in (3) above.

A sample Form E, "Annual Receivables Aging Summary Report," is contained on the following page. Please follow this format when reporting. Also please note, total receivable and allowance balances provided should agree to the final adjusted AFRS balances on report MWP150A.

5.1.3.1.6.c Annual Gross Past Due Receivables Comparison Report A PDF File

Agencies, that must report under the criteria in Section 5.1.3.1.6.b, also must report gross past due receivables from nongovernmental sources at the end of the fiscal year on Form E, "Annual Gross Past Due Receivable Comparison Report." In this report, agencies are to comply with the following for all general ledger control accounts that have past due nongovernmental receivables.

5.1.3.1.6.c(1) List all general ledger codes that have past due nongovernmental receivables. Examples of receivable categories include fines, student loans, sales taxes, benefit overpayments, fire assessments etc. Categories of receivables that contain no past due accounts do not need to be included in this report.
Note: No Long-Term Receivables (GL Codes 16XX) should be included on this report by virtue of the fact that they are not yet due the state and therefore cannot be past due.

5.1.3.1.6.c(2) For all categories of receivables listed under (1) above, show the fiscal year end gross past due receivable totals for the prior and current years and the percentage change. For this report, "current year" is the fiscal year just ended. Total current fiscal year gross past due receivables for this report should agree to the sum of the "1-90 days past due" and "over 90 days past due" gross columns on the "Annual Receivables Aging Summary Report" (Section 5.1.3.1.6.b).

5.1.3.1.6.c(3) Give a brief explanation of any increases or decreases of more than ten percent shown in (2) above.

5.1.3.1.6.c(4) Give a brief explanation of any increases or decreases of more than ten percent in past due receivables expected during the following fiscal year in any category of receivable listed under (1) above. Estimates of percentage changes are not required.

5.1.3.1.6.c(5) All amounts are to be rounded to the nearest dollar.

A sample Form E, "Annual Gross Past Due Receivables Comparison Report," is contained on the following page. Please follow this format when reporting.

5.1.3.1.6.d Annual Write-Off Comparison Report A PDF File

All agencies that have written off $10,000 or more in nongovernmental receivables during the current fiscal year are to prepare Form E, "Annual Write-Off Comparison Report." These are write-offs of receivables in GL Codes 13XX and 16XX exclusive of GL Code Series 1351 through 1355 and GL Code Series 1651 through 1656. For the current and prior fiscal year, the report is to disclose the number and dollar value of accounts written off and the reasons for the write-off. Variances in the dollar value of write-offs of greater than 10 percent from the prior year are to be footnoted with the reason for the change. Reporting is to be in standardized categories discussed below. Refer to Section for 2.4.4.3.4 for accounting procedures addressing write-offs.

Report write-offs classified under two major categories: (1) amounts that are uncollectible and (2) amounts that are no longer owed to the state.

5.1.3.1.6.d(1) Accounts written off due to uncollectability are to be reported in the following categories:

Bankruptcies
Corporations with no assets
Unable to locate debtor
Costs exceed benefits of further collection procedures
Statute of limitations
Hardship
Negotiated compromises
Collection remedies exhausted
Other (Please define further if greater than 10 percent of the dollar value of current year write-offs.)

5.1.3.1.6.d(2) Write-offs due to reductions in debt owed to the state are to be reported in the following categories:

Reduced by court decision
Reduced by administrative board
Change in child custody status
Other (Please define further if greater than 10 percent of the dollar value of current year write-offs.)

5.1.3.1.7 Pension Disclosure - Form F Effective Date: June 1, 1998

5.1.3.1.7.a General Instructions

All agencies with pensions as described below need to complete Form F, "Pension Disclosure." GASB Statements 25 requires certain disclosures for retirement plans administered by Washington State. Additionally, GASB Statement 27 requires certain disclosures for those retirement plans in with the state participates. Form F, "Pension Disclosure," is used to accumulate the information required to prepare the note disclosures to the state's Comprehensive Annual Financial Report (CAFR). The disclosures in the CAFR are intended to provide information that is useful in assessing:

the stewardship of plan resources and the ongoing ability of the plan to pay pension benefits when due;

the effect of plan operations and pension benefit commitments on the need for contributions by plan members, employers and other contributors, and

compliance with finance-related statutory, regulatory and contractual requirements.

Pension disclosure information is required from the following agencies:
Department of Retirement Systems A PDF File
Office of the Administrator for the Courts A PDF File
Washington State Convention and Trade Center A PDF File
All Four-Year Higher Education Institutions and State Board for Community and Technical Colleges A PDF File

Section 5.1.3.1.7.b is to be submitted by the Department of Retirement Systems and is to include information pertaining to Public Employees' Retirement System (PERS) Plans I & II; Teachers' Retirement System (TRS) Plans I, II/III Defined Benefit (DB), and III Defined Contribution (DC); Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF) Plans I & II; Washington State Patrol Retirement System (WSP); Judicial Retirement System (JRS); and the Judges Retirement System (JUDGES). The following information is required:

Total plan covered payroll and contributions made by employers, plan members and other contributors for all plans as well as covered payroll and contribution information specific to Washington State.

Section 5.1.3.1.7.c subdivisions (1) Administrator for the Courts, (2) Supreme Court, and (3) Court of Appeals are to be completed by the Office of the Administrator for the Courts. These amounts are to represent payroll and contribution information for both Washington State and other employers pertaining to the Judges Retirement System and the Judicial Supplemental Retirement Account. In addition, report pension contributions made by the plan members.

Section 5.1.3.1.7.d is to be completed by the Washington State Convention and Trade Center. The information required pertains to total payroll, total covered payroll [payroll for employees covered under the 401 (K) pension plan], the total pension contributions made by the state as employer, and the total pension contributions made by the employees.

Section 5.1.3.1.7.e subdivisions (1) and (2) are to be completed by all four-year higher education institutions and the State Board for Community and Technical Colleges. Subdivision (1) requests information which pertains to TIAA/CREF participants. The total payroll is to reflect amounts for both participants in TIAA/CREF and for those on "waiting" status. "Waiting" status employees are those who are eligible but have not yet elected to join TIAA/CREF. Covered payroll is to reflect amounts for TIAA/CREF participants only. The employee and employer contributions are to reflect amounts contributed by each into the plan. Subdivision (2) requires disclosure of total Higher Education Supplement contributions paid to the retirees.
NOTE: All amounts are to be expressed in thousands.

5.1.3.1.8 Long-Term Construction Commitments Disclosure - Form G Effective Date: June 1, 1998

5.1.3.1.8.a General Instructions

All agencies with long-term construction commitments are to complete Form G, "Long-Term Construction Commitments." The state is required to disclose significant long-term commitments not recognized in the financial statements. Construction commitments are the most common commitment of this type.

Form G (Section 5.1.3.1.8) is a form designed to collect both the construction in progress project information for the fiscal year end and long-term construction project commitment information not disclosed in financial statements. Commitment is viewed as the estimated dollars necessary to complete a project.

In Section 5.1.3.1.8.b, agencies are to list each significant project on a separate line. A project is to be considered significant if the amount of GL Code 2510 "Construction in Progress" at fiscal year end exceeds $2 million or if the remaining unencumbered commitment exceeds $10 million. All projects that do not meet the criteria for a significant project are to be totaled and entered on the bottom line as "Other Miscellaneous."

Note: Those amounts to be shown in the "Remaining Unencumbered Commitment" column are those remaining commitments not reflected in the financial statements; i.e., not recorded as a disbursement, accrual or encumbrance in fiscal year end agency financial activity. For example, the reporting of a project encumbrance at fiscal year end would reduce "Remaining Unencumbered Commitment" but would not increase fiscal year end construction in progress by the same amount. Occasionally an agency may have a construction project that involves a significant commitment for the future, but no construction in progress has been recorded. Such commitments should be disclosed by recording the information on a separate line with zero ($0) in the current "Fiscal Year End Construction in Progress" column. The columns for "Remaining Unencumbered Commitment" plus "Encumbered Commitment" should equal "Total Project Commitment."

5.1.3.1.9 Statement of Noncash Activity Disclosure - Form H Effective Date: June 1, 1998

5.1.3.1.9.a General Instructions

All agencies are to report the noncash transactions of proprietary funds and nonexpendable trust funds on Form H, "Statement of Noncash Activity." The state is required to disclose this information as part of the Statement of Cash Flows. Agencies that have Enterprise, Internal Service, and Nonexpendable Trust funds need to identify those activities not requiring the use of cash during current fiscal year.

Information is needed about all changes in assets or liabilities, and financing activities that do not use cash; e.g., fixed asset write-offs, refunding bond activity, and certificate of participation or capital lease acquisitions, although depreciation and amortization need not be disclosed.

5.1.3.1.10 Audit Resolution Disclosure - Form I Effective Date: June 1, 1998

5.1.3.1.10.a General Instructions

All agencies with audit findings relating to an audit report covering period(s) ending June 30, 1997, or special audit reports issued during Fiscal Year 1998, are to complete the worksheet for Audit Resolution, Section 5.1.3.1.10.b

All agencies with audit findings relating to an audit report covering period(s) ending June 30, 1997, and any special audit reports issued during Fiscal Year 1998, are to complete Section 5.1.3.1.10.b using a separate form for each finding. Agencies are to provide a description of corrective action taken including, but not limited to, a summary of types of personnel action taken, costs and types of litigation, and value of recouped goods or services.

5.1.3.1.11 Taxes Receivables and Deferred Revenues Disclosure - Form J Effective Date: June 1, 1998

5.1.3.1.11.a General Instructions

All agencies with taxes receivable as of fiscal year end are to complete the worksheet for Taxes Receivable, Section 5.1.3.1.11.b All agencies with balances in GL Codes 5192, 5195 and 5292 are to complete the worksheet for Deferred Revenues, Section 5.1.3.1.11.c
All agencies with taxes receivable as of fiscal year end are to complete Section 5.1.3.1.11.b Balances in GL Codes 1311, 1328 and 1611, need to be reported using the revenue categories as shown on this form. Balances in the related allowance GL Codes 1341, 1348, and 1641 are also required to be reported.

All agencies with balances in GL Codes 5192 and 5292 "Deferred Revenues," and GL Code 5195 "Deferred Expenditure Recoveries - Short Term" need to report their deferred revenue balances using the categories as shown in Section 5.1.3.1.11.c by fund type for the agency as a whole.

5.1.3.1.12 Financial Disclosure Certificate - Form K Effective Date: June 1, 1998

5.1.3.1.12.a General Instructions

All agencies are required to complete Form K, "Financial Disclosure Certificate." The agency head and chief financial officer are to certify, to the best of their knowledge, that the following information submitted by their agency is complete and accurate:

Any exceptions to the following certifications are to be attached with a narrative detailing the variance(s) and any proposed or completed corrective actions.

5.1.3.1.12.a(1) As to the accuracy, conformity with GAAP, and legal compliance of the information provided for each account noted in the form.

5.1.3.1.12.a(2) That the agency's system of internal control complies with the prescribed requirements as contained in Part 6 of this manual.

5.1.3.1.12.a(3) That there are no outstanding litigations, contingencies or known frauds in the agency which will materially affect the stated balances or, if such conditions exist, a disclosure of such conditions is attached to the form.

5.1.3.1.12.a(4) That the balances shown for fixed assets in AFRS reflect fairly the agency's capital fixed assets on June 30; and that these balances have been reconciled to assets $5,000 and over in the agency's authorized fixed asset subsidiary system.

Return to CHAPTER 1 STATE REPORTING POLICIES AND PROCEDURES

5.1.3.1.2.a	General Instructions
	Agencies with balances of $1,000 or greater in Petty Cash (GL Code 1130) or any balances in GL Codes 1110, 1120, 1140, 1150, 1205, 1209, 1210, 1215, 1216, 1220, 1230, and 1280 are to complete Form A, "Cash and Investments Disclosure" for each account in which they have balances. The Office of State Treasurer (OST) will provide the information required to report the cash and investment activity for treasury and treasury trust funds for cash balances and activity recorded in GL Code 4310 "Current Treasury Cash Activity (OST Only)," GL Code 4320 "Beginning Treasury Cash Balance (OFM Only)," and GL Code 4325 "Beginning Treasury Cash Balance - Agency Funds." Section 5.1.3.1.2.b contains ten general questions concerning an agency's cash and investment activity. Information provided should be on an agency-wide basis. Additional descriptions should be attached if applicable. Section 5.1.3.1.2.c requests information concerning an agency's cash in bank by GL Code as well as information on petty cash funds and undeposited receipts held in cash. Agencies are to report the following:
5.1.3.1.2.a(1)	The June 30 total cash balance on hand and as stated by the bank in terms of insurance protection by Federal Deposit Insurance Corporation (FDIC) or collateral protection through Public Deposit Protection Commission of the State of Washington (PDPC) or no protection; and
5.1.3.1.2.a(2)	The June 30 book balance as reported in Agency Financial Reporting System (AFRS).
	Note: Amounts covered by FDIC are considered to be insured. In general, FDIC insurance separately covers demand deposits and interest bearing deposits for up to $100,000 each per bank. PDPC provides for a collateral pool for protection of balances deposited with qualified Washington public depositories. Uninsured/uncollateralized balances would include those deposited in out-of-state and alien banks. Book and bank balances will normally be different except for accounts with very little activity. Section 5.1.3.1.2.d is to be completed if an agency has Certificates of Deposit reported in GL Codes 1110, 1140, 1150, 1205, 1209, or 1210. Section 5.1.3.1.2.e is used to disclose the types of investments within the account. Agencies are to list the investment by type and categorize each by type of risk. A description of the risk categories to be used is on the form. Agencies are also to report the total fair value at fiscal year end for each type of investment. The carrying amount of investments as reported by an agency is to equal the total reported by the agency in GL Codes 1205, 1209, 1210, 1215, 1216, 1220, 1230, and 1280 in AFRS.

5.1.3.1.5.a	General Instructions
	All agencies with balances in GL Codes 516X and 526X "Bonds Payable," are required to complete Form D, "Bonds Disclosure." The state is required to disclose debt service to maturity and other information for bonds payable. Form D accumulates this information by the general ledger codes that are established to track each type of bond. Form D also collects required disclosure information on bond refunding activities at Section 5.1.3.1.5.g and on balances of refunded debt outstanding at Section 5.1.3.1.5.h. Section 5.1.3.1.5.b contains two general questions concerning an agency's bond activity. Attach additional descriptions if applicable. There are four types of bonds. A brief description of each follows:
5.1.3.1.5.a(1)	General Obligation Bonds - Section 5.1.3.1.5.c - These bonds are backed by the full faith and credit of the state of Washington. General obligation bonds primarily fund capital facilities' construction and municipal construction of water, sewage, and correctional facilities.
5.1.3.1.5.a(2)	Revenue Bonds - Section 5.1.3.1.5.d - Current state statute empowers certain state agencies to issue bonds not supported, or not intended to be supported, by the full faith and credit of the state. Agencies issue revenue bonds for various purposes including housing, dining, and parking facilities at higher education institutions and fees generated by these facilities are used to service the debt.
5.1.3.1.5.a(3)	Limited Obligation Bonds - Section 5.1.3.1.5.e - These bonds, while backed by the full faith and credit of the state, are payable primarily from dedicated revenue of the state's motor vehicle fuel excise tax and other miscellaneous dedicated revenue. Limited obligation bonds are issued to provide funds for public school plant facilities; state, county, and city arterials; and state capital buildings and facilities.
5.1.3.1.5.a(4)	Zero-Interest Rate General Obligation Bonds - Section 5.1.3.1.5.f - These bonds are also backed by the full faith and credit of the state of Washington. The only difference between these and general obligation bonds is the way investors earn a rate of return. Zero-interest rate bonds pay no annual interest; interest is accreted each year until paid or the bonds are redeemed. Zero-interest rate bonds are issued primarily to provide funds for acquisition and construction of capital facilities for public and common schools and higher education.
	After each agency reviews the debt service data as of fiscal year end, the agency is to summarize data for each bond type on the bond disclosure Form D (Section 5.1.3.1.5) section that corresponds to the recorded general ledger code. Each agency is also to respond to the general questions in Form D (Section 5.1.3.1.5.b).
	The OST will summarize and report all bonds recorded in the General Long-Term Obligations Account Group (Account 999) and will also report OST refunding activity and OST refunded balances. Other agencies are to complete the appropriate Form D (Section 5.1.3.1.5) for the bonds recorded in their individual operating accounts and are to reconcile Form D (Section 5.1.3.1.5) with amounts recorded in bonds payable general ledger codes in AFRS. The amount recorded in the bonds payable general ledger codes is to equal the principal amount shown in the debt service schedules. When the OST performs actual debt service on the bonds summarized on Form D (Section 5.1.3.1.5), agencies are encouraged to verify the outstanding principal to OST's records. Other agencies are also to report their current year refunding activities and the year end outstanding balance of bonds that they have refunded.

5.1.3.1.6.a	General Instructions
	Form E consists of three reports: "Annual Receivables Aging Summary Report," "Annual Gross Past Due Receivables Comparison Report," and the "Annual Write-Off Report." Agencies which meet the criteria contained in Sections 5.1.3.1.6.b or d are to complete Form E. The amounts reported should agree with your agency's fiscal year end records. All amounts are to be rounded to the nearest dollar. Refer to Part 2 of this manual for further accounting pertaining to receivables.
5.1.3.1.6.b	Annual Receivables Aging Summary Report A PDF File
	All agencies with accounts receivable balances of $200,000 or more in GL Code Series 13XX and 16XX exclusive of governmental receivables in GL Code Series 1351 through 1355 and GL Code Series 1651 through 1656, are to prepare Form E "Annual Receivables Aging Summary Report." This report summarizes all receivables except those due from other governmental units/funds and is to contain the following:
5.1.3.1.6.b(1)	Agency code, agency name, preparer's name and phone number, and the period ending date,
5.1.3.1.6.b(2)	Account, general ledger codes and their titles,
5.1.3.1.6.b(3)	For each general ledger code, within each account, provide the gross amount of the receivable, the allowance (estimated uncollectible portion), and the net amount (gross minus allowance) for each of the following categories:
	Current receivables (amounts not due on the report date, but due within twelve months thereof), Receivables 1-90 days past due, Receivables over 90 days past due, Long-term receivables (due more than twelve months from the report date), Total receivables.
5.1.3.1.6.b(4)	Subtotals by account for all headings in (3) above.
5.1.3.1.6.b(5)	Subtotals by account for all headings in (3) above.
	A sample Form E, "Annual Receivables Aging Summary Report," is contained on the following page. Please follow this format when reporting. Also please note, total receivable and allowance balances provided should agree to the final adjusted AFRS balances on report MWP150A.

5.1.3.1.6.c	Annual Gross Past Due Receivables Comparison Report A PDF File
	Agencies, that must report under the criteria in Section 5.1.3.1.6.b, also must report gross past due receivables from nongovernmental sources at the end of the fiscal year on Form E, "Annual Gross Past Due Receivable Comparison Report." In this report, agencies are to comply with the following for all general ledger control accounts that have past due nongovernmental receivables.
5.1.3.1.6.c(1)	List all general ledger codes that have past due nongovernmental receivables. Examples of receivable categories include fines, student loans, sales taxes, benefit overpayments, fire assessments etc. Categories of receivables that contain no past due accounts do not need to be included in this report. Note: No Long-Term Receivables (GL Codes 16XX) should be included on this report by virtue of the fact that they are not yet due the state and therefore cannot be past due.
5.1.3.1.6.c(2)	For all categories of receivables listed under (1) above, show the fiscal year end gross past due receivable totals for the prior and current years and the percentage change. For this report, "current year" is the fiscal year just ended. Total current fiscal year gross past due receivables for this report should agree to the sum of the "1-90 days past due" and "over 90 days past due" gross columns on the "Annual Receivables Aging Summary Report" (Section 5.1.3.1.6.b).
5.1.3.1.6.c(3)	Give a brief explanation of any increases or decreases of more than ten percent shown in (2) above.
5.1.3.1.6.c(4)	Give a brief explanation of any increases or decreases of more than ten percent in past due receivables expected during the following fiscal year in any category of receivable listed under (1) above. Estimates of percentage changes are not required.
5.1.3.1.6.c(5)	All amounts are to be rounded to the nearest dollar.
	A sample Form E, "Annual Gross Past Due Receivables Comparison Report," is contained on the following page. Please follow this format when reporting.

5.1.3.1.6.d	Annual Write-Off Comparison Report A PDF File
	All agencies that have written off $10,000 or more in nongovernmental receivables during the current fiscal year are to prepare Form E, "Annual Write-Off Comparison Report." These are write-offs of receivables in GL Codes 13XX and 16XX exclusive of GL Code Series 1351 through 1355 and GL Code Series 1651 through 1656. For the current and prior fiscal year, the report is to disclose the number and dollar value of accounts written off and the reasons for the write-off. Variances in the dollar value of write-offs of greater than 10 percent from the prior year are to be footnoted with the reason for the change. Reporting is to be in standardized categories discussed below. Refer to Section for 2.4.4.3.4 for accounting procedures addressing write-offs. Report write-offs classified under two major categories: (1) amounts that are uncollectible and (2) amounts that are no longer owed to the state.
5.1.3.1.6.d(1)	Accounts written off due to uncollectability are to be reported in the following categories:
	Bankruptcies Corporations with no assets Unable to locate debtor Costs exceed benefits of further collection procedures Statute of limitations Hardship Negotiated compromises Collection remedies exhausted Other (Please define further if greater than 10 percent of the dollar value of current year write-offs.)
5.1.3.1.6.d(2)	Write-offs due to reductions in debt owed to the state are to be reported in the following categories:
	Reduced by court decision Reduced by administrative board Change in child custody status Other (Please define further if greater than 10 percent of the dollar value of current year write-offs.)

5.1.3.1.7.a	General Instructions
	All agencies with pensions as described below need to complete Form F, "Pension Disclosure." GASB Statements 25 requires certain disclosures for retirement plans administered by Washington State. Additionally, GASB Statement 27 requires certain disclosures for those retirement plans in with the state participates. Form F, "Pension Disclosure," is used to accumulate the information required to prepare the note disclosures to the state's Comprehensive Annual Financial Report (CAFR). The disclosures in the CAFR are intended to provide information that is useful in assessing:
	the stewardship of plan resources and the ongoing ability of the plan to pay pension benefits when due; the effect of plan operations and pension benefit commitments on the need for contributions by plan members, employers and other contributors, and compliance with finance-related statutory, regulatory and contractual requirements.
	Pension disclosure information is required from the following agencies: Department of Retirement Systems A PDF File Office of the Administrator for the Courts A PDF File Washington State Convention and Trade Center A PDF File All Four-Year Higher Education Institutions and State Board for Community and Technical Colleges A PDF File
	Section 5.1.3.1.7.b is to be submitted by the Department of Retirement Systems and is to include information pertaining to Public Employees' Retirement System (PERS) Plans I & II; Teachers' Retirement System (TRS) Plans I, II/III Defined Benefit (DB), and III Defined Contribution (DC); Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF) Plans I & II; Washington State Patrol Retirement System (WSP); Judicial Retirement System (JRS); and the Judges Retirement System (JUDGES). The following information is required:
	Total plan covered payroll and contributions made by employers, plan members and other contributors for all plans as well as covered payroll and contribution information specific to Washington State.
	Section 5.1.3.1.7.c subdivisions (1) Administrator for the Courts, (2) Supreme Court, and (3) Court of Appeals are to be completed by the Office of the Administrator for the Courts. These amounts are to represent payroll and contribution information for both Washington State and other employers pertaining to the Judges Retirement System and the Judicial Supplemental Retirement Account. In addition, report pension contributions made by the plan members. Section 5.1.3.1.7.d is to be completed by the Washington State Convention and Trade Center. The information required pertains to total payroll, total covered payroll [payroll for employees covered under the 401 (K) pension plan], the total pension contributions made by the state as employer, and the total pension contributions made by the employees. Section 5.1.3.1.7.e subdivisions (1) and (2) are to be completed by all four-year higher education institutions and the State Board for Community and Technical Colleges. Subdivision (1) requests information which pertains to TIAA/CREF participants. The total payroll is to reflect amounts for both participants in TIAA/CREF and for those on "waiting" status. "Waiting" status employees are those who are eligible but have not yet elected to join TIAA/CREF. Covered payroll is to reflect amounts for TIAA/CREF participants only. The employee and employer contributions are to reflect amounts contributed by each into the plan. Subdivision (2) requires disclosure of total Higher Education Supplement contributions paid to the retirees. NOTE: All amounts are to be expressed in thousands.

5.1.3.1.12.a	General Instructions
	All agencies are required to complete Form K, "Financial Disclosure Certificate." The agency head and chief financial officer are to certify, to the best of their knowledge, that the following information submitted by their agency is complete and accurate: Any exceptions to the following certifications are to be attached with a narrative detailing the variance(s) and any proposed or completed corrective actions.
5.1.3.1.12.a(1)	As to the accuracy, conformity with GAAP, and legal compliance of the information provided for each account noted in the form.
5.1.3.1.12.a(2)	That the agency's system of internal control complies with the prescribed requirements as contained in Part 6 of this manual.
5.1.3.1.12.a(3)	That there are no outstanding litigations, contingencies or known frauds in the agency which will materially affect the stated balances or, if such conditions exist, a disclosure of such conditions is attached to the form.
5.1.3.1.12.a(4)	That the balances shown for fixed assets in AFRS reflect fairly the agency's capital fixed assets on June 30; and that these balances have been reconciled to assets $5,000 and over in the agency's authorized fixed asset subsidiary system.