Background

Direct Pay, also referred to as Elective Pay, was passed in the Inflation Reduction Act (IRA) in 2022 and allows tax-exempt entities such as states, local governments, and nonprofit organizations to access federal clean energy tax credits for the first time. Direct pay has finally given tax-exempt public and nonprofit entities a real opportunity to bring clean energy’s job-creating and energy cost- and pollution-cutting benefits directly to more communities.

Agencies are required to establish and maintain an effective system of internal control to reasonably assure that the transactions are valid and represent a valid business purpose. This requirement applies to agency-maintained systems as well as all operations surrounding Workday.

Some agencies start transactions within an agency system and route transactions for approval within that system. Once all approvals are applied in the agency system, the agency represents the transactions are fully approved for posting. These transactions are then sent to Workday via an integration.

The state of Washington is preparing to transition to Workday, a cloud-based enterprise resource planning (ERP) system for finance, procurement, budget, human resources, and payroll processes. The first phase of implementation, Phase1A – Core Financials, includes replacement of the Agency Financial Reporting System (AFRS).

Statewide Accounting will continue to update this website as new policies, procedures, and resources are developed. In addition, the currently posted resources and policies may change as the Workday design is finalized and as we receive feedback and questions.

Download the 2023 Single Audit Report as a single document or choose report sections below.

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