“Piggybacking” refers to one local government making purchases from contracts awarded by another government or group of governments via an interlocal agreement or contract. Piggybacking is a convenient way to procure goods or services. However, our Office has seen an increasing number of local governments use this alternative method without completing the process properly. National purchasing cooperatives are becoming more widely used, and many of these are based in other states where the laws do not align with Washington law.
The key to maintaining compliance when procuring through piggybacking is to ensure your local government’s own bidding requirements are still met. State law
(RCW 39.34.030), which allows for piggybacking, does not relieve any public agency of any obligation or responsibility with respect to purchasing, except for the notice of bids or advertising requirements. As long as the lead agency satisfies its own requirements for advertising and posts the solicitation on the internet, the piggybacking government’s advertising requirements are considered met.
We’re already halfway through 2017, and 2018 is quickly approaching! GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, is effective for fiscal years ending in 2018.
Implementing this complex standard requires planning and information sharing. The State Auditor’s Office participates in several OPEB standards implementation workgroups to help identify and share common questions and concerns.
The Government Accounting Standards Board (GASB) recently issued a new standard, GASB Statement 83, to provide accounting guidance on asset retirement obligations (AROs). The GASB issued this standard because many governments have not been reporting these liabilities or may have been applying other guidance (such as FAS 143). The standard is expected to resolve these inconsistencies and may result in some governments recording potentially significant liabilities.
The new standard is effective for financial statements on years ending after June 15, 2018, with early implementation encouraged. The pronouncement is available online at www.gasb.org.
If you have questions regarding ARO, please submit a HelpDesk request (login required). If you have questions about other GASB standards, please contact Debra.Burleson@sao.wa.gov.
Local governments are required to submit an annual financial report within 150 days after their fiscal year end under state law (RCW 43.09.230). Exhibit 1 illustrates that the number of governments meeting this requirement has increased for the fourth consecutive year. Exhibit 2 illustrates that 228 of the 302 governments that missed the filing deadline also missed the deadline in 2015.
The State Auditor’s Office has emphasized the importance of filing timely annual reports and has provided assistance in a variety of ways. Most recently, we offered 27 free filing workshops statewide to help all local governments that were having difficulty meeting the requirement. Of the 350 governments that attended the workshops, 321 were able to file timely annual reports. This included 50 governments that did not meet the requirement last year.
We will continue to evaluate ways to increase the number of timely filings in the future. Please contact DuaneWalz@sao.wa.gov for questions or suggestions.
(Repost from MRSC’s blog. Original available here.)
By Toni Nelson, MRSC
Financial policies are an essential component of any local government’s financial health, but financial policy needs vary considerably from jurisdiction to jurisdiction. Different types of entities (cities, towns, counties, and special purpose districts) have different needs depending on size, scope of activities, organizational and staffing structures, contractual and program structures, and the governing body’s values and priorities. A boilerplate, one-size-fits-all approach will not work – but how do you know what policies you need, or what approach is right for your jurisdiction?
Well, MRSC is here to help! Working in partnership with the State Auditor’s Office Local Government Performance Center, we’ve just launched a series of online resources to help local governments in Washington State develop and adopt effective financial policies and procedures, as well as complying with SAO’s policy requirements as currently prescribed by BARS and recommended during audits. Continue reading
We are excited to announce that for the first time in the history of the National State Auditor’s Association (NSAA) IT Conference, Washington is the host state! This year’s conference takes place October 3rd through 6th at the beautiful and modern Hotel Murano in Tacoma.
If you are a state or local government IT auditor (internal or external), this conference is for you. It will provide participants with valuable IT audit training at an affordable price. Plus, there will be ample opportunities to network with other IT auditors from across the country. Don’t worry if you haven’t yet had much experience in IT auditing–the trainings are designed to span the spectrum of experience.
Be sure to check out NSAA’s website for more information, like a draft agenda when it becomes available. You can also check out the event page on Facebook!
Since the original issuance of Governmental Accounting Standards Board (GASB) Statement 34 in 1999, the Office of the Washington State Auditor has found the resulting financial statement presentations to be unnecessarily complex, less timely and more costly for state and local governments to prepare and have audited. These presentations are also more challenging to understand.
Financial statements prepared by state and local government entities in the United States are longer than those prepared by other organizations in the United States and around the world, due to the use of different accounting methods (e.g. modified-accrual and full-accrual) within the presentation.
School districts have asked the State Auditor’s Office to let them know in advance the areas they can expect auditors to emphasize in upcoming audits. This list will help your district prepare for audits examining FY 2016. If you have questions, your local audit team is available year round: they can answer technical questions and point you to additional guidance on specific areas of audit. Continue reading
The State Auditor’s Office is excited to bring back the popular annual report filing workshops. These workshops are designed to help local governments file their annual financial reports, and to meet the statutory requirement of submitting the report within 150 days of the close of their fiscal year.
New this year, participants can select a one-hour time slot for individualized assistance from a Local Government Support Specialist. Laptops will be provided. If you bring the materials you need to file your report, you may be able to complete and file during your appointment.
If you are interested, sign up for a one-hour time slot online at the training EventBrite website. These workshops are offered at no cost to local government participants. If you have questions, please contact Heidi Walter at 360-725-5621. For more information and updates, visit our website.
The Government Accounting Standards Board issued an invitation to comment on January 4 about potential changes to reporting of government funds, which GASB Chair Dave Vaudt recently described in a short video. The Board is seeking input on these ideas from local governments and other users during the preliminary stage of its project to re-evaluate the financial statement reporting model. Generally Accepted Accounting Principles (GAAP) for all state and local governments nationwide is set by GASB in accordance with an open, due process.
The State Auditor’s Office encourages local governments to follow the Board’s activities and provide input on potential accounting standards they will eventually need to follow.