SECTION 5.2.1 REPORTING POLICIES & PROCEDURES - GENERAL

5.2.1.1

Purpose and Scope

Effective Date:

June 1, 1998

5.2.1.1.1

The Federal Single Audit Act of 1984, most recently amended in 1996, establishes uniform requirements for audits of federal assistance and promotes the efficient and effective use of audit resources. In addition, the federal Office of Management and Budget (OMB) has published OMB Circular A-133 further delineating requirements for single audits of federal assistance. Under the provisions of the Act and Circular A-133, Washington has exercised the option to obtain a statewide Single Audit to satisfy the single audit requirements for federal assistance received and administered by agencies and institutions of the State. As part of this single audit process, the Office of Financial Management (OFM) coordinates with individual state agencies and institutions in compiling the necessary year end federal financial information required to complete the Circular A-133 mandated, annual, federal "Data Collection Form" and "Reporting Package." The reporting package consists of a statewide Schedule of Expenditures of Federal Awards; the statewide Financial Statements; a Summary Schedule of Prior Findings and a Summary Corrective Action Plan for Findings and Questioned Costs, all complied by OFM, and specified reports compiled by the Auditor. OFM uses the federal disclosure forms in Section 5.2.2 to collect information on the expenditure of awards of federal assistance by individual state agencies and institutions for the state fiscal year.

5.2.1.1.2

For the purposes of this Chapter, federal financial assistance shall be all assistance received, directly or indirectly, from a federal agency in the form of grants, contracts, cooperative agreements, donated surplus property, food commodities, loans, loan guarantees, property, interest subsidies, insurance, direct appropriations or other assistance. It shall not include reimbursements for vendor services provided federal agencies or reimbursements for services rendered to individuals as described in OMB Circular A-133, §___.205(h) and §___.205(i).

5.2.1.2

Authority

Effective Date:

June 1, 1998

This part is issued, as revised, pursuant to the authority granted to the Director of Financial Management to "..adopt and periodically update an accounting procedures manual"(RCW 43.88.160(1).

5.2.1.3

Applicability

Effective Date:

June 1, 1998

5.2.1.3.1

This part is applicable and binding on all agencies of the state of Washington receiving, administering or expending federal assistance, unless otherwise exempted by federal or state law. The Budget and Accounting Act (RCW 43.88.020) 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…"

5.2.1.3.2

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.

5.2.1.4

General Provisions

Effective Date:

June 1, 1998

5.2.1.4.1		For reporting purposes, the state of Washington has divided federal assistance into five reporting elements:
5.2.1.4.1.a	Direct Assistance which includes moneys the state receives directly from federal awarding agencies, normally in the form of grants, contracts or cost-reimbursement agreements. Direct assistance also includes moneys or reimbursements received as the result of federally approved indirect rate or cost allocation plans. It does not include cash assistance provided directly to individuals or vendor services purchased by the federal government.
5.2.1.4.1.b	Statewide Central Service Cost Allocation Plan (SWCAP) recoveries to the state General Fund.
5.2.1.4.1.c	Nonfinancial Assistance which includes consumable inventories (food commodities and immunization supplies), food stamps and donated surplus property.
5.2.1.4.1.d	Loan Assistance which includes assistance from specified loan and loan guarantee programs.
5.2.1.4.1.e	Indirect Federal Assistance or Pass-Through which includes federal assistance received indirectly from other state or local governments and/or private entities.

5.2.1.4.2	Each state agency or institution, that expends awards of federal assistance during a state fiscal year must prepare and submit federal disclosure forms to OFM's Accounting Division. To meet federal reporting requirements, agencies must report all federal assistance received, disbursed, and/or on hand and must complete the "Federal Assistance Certification." Both the agency head and chief financial officer are to certify, to the best of their knowledge, that the agency complied with federal assistance requirements and that the information submitted by the agency is complete and accurate. The due date for federal disclosure forms is published annually as part of the directive implementing these policies.
5.2.1.4.3	Amounts reported as federal assistance should reconcile with amounts reported in the Agency Financial Reporting System (AFRS), if applicable.
5.2.1.4.4	Direct federal assistance is to be reported at the individual federal program and identified by Catalog of Federal Domestic Assistance (CFDA) number, federal program title, and federal program cluster designation (refer to Section 5.2.2.3.1.f.(1) for cluster designations).
5.2.1.4.5	Indirect federal assistance (pass-through) is to be reported at the individual pass-through entity grant, contract or agreement. It is to be identified by the pass-through entity name and grant, contract, or agreement number; the CFDA number, the federal program title and; and the federal program cluster designation.
5.2.1.4.6	Generally, Revenue Source Codes 0310 through 0399 identify reportable direct federal assistance activity. Indirect federal assistance received from other state and local governments or private entities is reported with Revenue Source Code 0446. Revenue Source Code 0301 identifies indirect cost recoveries under the statewide cost allocation plan. Revenue Source Codes 0305 and 0307 identify federal revenues which are not classified as federal assistance. Revenue Source Code 0303 identifies the distribution of certain federal revenues. All federal revenues (Revenue Source Codes 0301-0399 plus 0446) are to be reported on the federal disclosure forms, except the following revenue source codes:
	Source 0305	Nonfederal Assistance - Other: Receipts from a federal agency that are not classified as federal assistance, even though the related expenditures are charged to federal allotment codes.
	Source 0307	Nonfederal Assistance - Vendor Service: Receipts from a federal agency when a state agency provides services and the related expenditures are charged to a federal allotment code.

Revenue Source Codes 0305 and 0307 facilitate the matching of federal revenues and expenditures for budget purposes but are not considered federal financial assistance. As for Revenue Source Code 0303 - Federal Revenue Distributions, distributions of reportable federal revenues need to be reported as expenditures of those program revenues on the applicable federal disclosure form. Revenue Source Code 0303 distributions applicable to revenues coded to Revenue Source Code 0305 need not be reported.

5.2.1.4.7

If adjustments are posted to AFRS subsequent to submission of federal disclosure forms that affect federal revenues or expenditures, the agency is required to submit corrected disclosure forms.