Washington Administrative Code Title 82 - Financial Management, Office of
Overview of WAC Title 82 – Office of Financial Management (OFM)
The Office of Financial Management (OFM) is the state’s central financial and administrative planning agency. Title 82 of the WAC contains the rules that implement OFM’s authority, mostly relating to:
State budget development & execution
Accounting and financial reporting
Rulemaking for state employees’ personnel systems (shared with the Department of Enterprise Services in some parts)
Statewide data, population, and forecast functions
Contracts, grants, and interagency agreements
OFM rules provide consistency and accountability across Washington’s state agencies.
Major Areas of Title 82
1) Budgeting & Fiscal Rules
Biennial budget process: OFM sets the instructions and calendar for agencies to submit budget requests.
Allotments: Agencies must submit detailed expenditure plans; OFM approves or modifies them to ensure spending stays within appropriated levels.
Adjustments: OFM issues rules for supplemental budgets, transfers, and reappropriations.
Performance-based budgeting: Agencies must connect funding requests with performance outcomes and measurable objectives.
2) Accounting, Reporting & Auditing
Statewide Accounting Policies: OFM prescribes uniform accounting principles (consistent with GAAP where applicable).
Financial reports: Agencies submit year-end reports to OFM, which consolidates them into the state’s Comprehensive Annual Financial Report (CAFR).
Expenditure classifications: Standard object codes (e.g., salaries, benefits, travel, goods, services) for consistent reporting across agencies.
Internal controls: OFM establishes rules to ensure agencies protect public funds and prevent misuse.
3) Forecasting & Demographic Data
Population estimates: OFM is the official state source for annual population determinations used in revenue distribution (e.g., to cities and counties).
Caseload forecasting: For programs like Medicaid, public assistance, corrections.
Economic forecasts: Used for state revenue projections and budget decisions.
Rules on methodology: WAC defines how population and caseload forecasts are calculated, revised, and published.
4) State Employment & Personnel Systems
OFM oversees statewide human resource systems (though many functions are now under the Department of Enterprise Services).
Personnel rules: Job classification, salary schedules, collective bargaining cost analyses, and reporting requirements.
Exempt employees: OFM defines reporting procedures for exempt positions and salaries.
Leave and benefits reporting: Agencies must report leave liabilities and benefits data to OFM for statewide planning.
5) Capital Budget & Facilities Oversight
Capital project requests: Agencies must submit requests with standardized forms including cost estimates, life-cycle costs, and environmental assessments.
Facilities inventory: OFM maintains rules for how agencies track and report state-owned or leased properties.
Prioritization: OFM rules guide how projects are ranked for governor’s capital budget proposals.
6) Interagency Agreements & Grants
Review requirements: OFM reviews some contracts and interagency agreements for fiscal and legal sufficiency.
Grant administration rules: Agencies must follow OFM-prescribed rules when awarding or managing state or federal grants.
Reporting: Certain high-value agreements require quarterly or annual reporting to OFM.
7) Emergency Fiscal Rules
OFM can issue allotment reductions, freezes, or reserves in case of revenue shortfalls.
Agencies must comply with emergency instructions quickly, often requiring amended spending plans.
How Title 82 Works in Practice
Agencies → OFM: Every state agency must submit budget, accounting, personnel, and performance information to OFM according to WAC rules.
OFM → Governor/Legislature: OFM consolidates and analyzes this data to prepare the Governor’s proposed budget and to monitor compliance with enacted budgets.
Public Impact: OFM rules affect distribution of funds to schools, local governments, transportation, health programs, and employee salaries.
Key Takeaways
Title 82 WAC is the backbone of state financial governance.
It ensures uniform rules across agencies for budgeting, accounting, personnel, forecasting, and capital projects.
The rules are primarily internal-facing (state agencies must comply), but they indirectly affect residents because they determine how public funds are managed and distributed.
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