Treasurer

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Financial Policy and Fund Structure

The City of East Wenatchee uses the revenue and expenditure classifications contained in the Budgeting, Accounting, and Reporting System (BARS) manual. The manual is prescribed by the State Auditor's Office under the authority of Washington State Law, Chapter 43.09 RCW.

The City of East Wenatchee was incorporated in 1935 and operates under the laws of the State of Washington applicable to a non-charter code city with a mayor-council form of government. The City of East Wenatchee is a general-purpose government and provides public safety, street improvements, community development, municipal court, prosecuting attorney, and general administrative services. The City of East Wenatchee uses single entry, cash basis accounting, which is a departure from generally accepted accounting principles (GAAP).

Fund Accounting

The accounts of the City of East Wenatchee are organized on the basis of funds, each of which is considered a separate accounting entity. Each fund is accounted for with a separate set of single-entry accounts that comprises its cash, investments, revenues, and expenditures, as appropriate. The City of East Wenatchee's resources are allocated to and accounted for in individual funds depending on their intended purpose. The following are the fund types used by the City of East Wenatchee:

GOVERNMENT FUND TYPES:

General (Current Expense) Fund

This fund is the primary operating fund of the City of East Wenatchee. It accounts for all financial resources except those required or elected to be accounted for in another fund.

Special Revenue Funds

These funds account for revenues that are legally restricted or designated to finance particular activities of the City of East Wenatchee.

Debt Service Funds

These funds account for the accumulation of resources to pay principal, interest, and related costs on general long-term debt.

Capital Projects Funds

These funds account for financial resources which are designated for the acquisition or construction of general government capital projects.

Permanent Funds

These funds account for financial resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support programs for the benefit of the government or its citizenry.

PROPRIETARY FUND TYPES:

Internal Service Funds
These funds account for operations that provide goods or services to other departments or funds of the City of East Wenatchee on a cost-reimbursement basis.

FIDUCIARY FUND TYPES:

Fiduciary funds account for assets held by the City of East Wenatchee in a trustee capacity or as an agent on behalf of others.

Agency Funds

These funds are used to account assets that the City of East Wenatchee holds for others in an agency capacity.

Basis of Accounting

Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Revenues are recognized only when cash is received and expenditures are recognized when paid, including those properly chargeable against the report year(s) budget appropriations as required by state law.

Purchases of capital assets are expensed during the year of acquisition. There is no capitalization of capital assets, nor allocation of depreciation expense. Inventory is expensed when purchased.

The basis of accounting described above represents a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America.

Budgets

Annual appropriated budgets are adopted for all funds. The financial statements include budgetary comparisons for those funds.

Annual appropriated budgets are adopted at the fund level (except the General (Current Expense) Fund, where budgets are adopted at the department level). The budgets constitute the legal authority for expenditures at that level. Annual appropriations for all funds laps at the fiscal period end.

The City Treasurer is authorized to transfer budgeted amounts between departments within any fund/object classes within departments; however, any revisions that alter the total expenditures of a fund, or that affect the number of authorized employee positions, salary ranges, hours, or other conditions of employment must be approved by the City of East Wenatchee's legislative body.

 

Financial Statements and Federal Single Audit Report
Accountablility Audit Report

 

Any questions?
Contact the Finance Department