Compendium of Budget Information for the 2012 General Session

Infrastructure & General Government
Appropriations Subcommittee

Agency: ISF - Administrative Services

Function

Internal Service Funds (ISF) employ business practices to provide a service or product for other state and governmental agencies. Typical services include motor pools, computer centers, mail processing, facility management, or other large functions that can be centrally coordinated. They are set up to take advantage of economies of scale, to avoid duplication of efforts, and to provide an accounting mechanism to adequately identify costs of certain governmental services.

ISFs operated by the Department of Administrative Services (DAS) provide consolidated services to all state agencies. DAS operates five ISFs that are funded by rates charged to state agencies and others:

Division of Finance
Division of Purchasing and General Services
Division of Fleet Operations
Risk Management
Division of Facilities Construction and Management

The Legislature removed the Division of Information Technology Services (ITS) from DAS during the 2005 General Session and placed it in the new Department of Technology Services (H.B. 109). The change became effective on July 1, 2006 (FY 2007).

In the 2006 General Session, the Legislature changed the Office of State Debt Collection from an internal service fund to a restricted special revenue fund by passing S.B. 214, Office of State Debt Collection Amendments.

In the 2010 General Session the Legislature passed legislation (H.B. 402, Department of Administrative Services Modifications) allowing the department to change the operation of most of its divisions from appropriated to an internal service fund. The Division of Purchasing is currently transitioning from an appropriated entity to an internal service fund in the Division of General Services.

Statutory Authority

In order to control the size, mission and fees charged to state agencies, the Legislature imposes statutory controls (UCA 63J-1-410) that require ISFs to respond to the legislative budget process. No ISF can bill another agency for its services unless the Legislature has:

Approved the ISF's budget request
Approved the ISF's rates, fees, and other charges
Published those annual rates and fees in an appropriations bill
Approved the number of FTE as part of the annual appropriation process
Appropriated the ISF's estimated revenue based upon the rates and fee structure

No capital acquisitions can be made by an Internal Service Fund without legislative approval.

No capital assets can be transferred to an Internal Service Fund without legislative approval.

Working capital for operations (defined as Current Assets less Current Liabilities less Long Term General Fund Borrowing) must be provided from the following sources in the following order:

Operating revenues
Long-term debt
Appropriation from the Legislature

To eliminate negative working capital, an ISF may borrow from the General Fund as long as:

The debt is repaid over the useful life of the asset
The Division of Finance does not allow the ISF to have deficit working capital greater than ninety percent of the value of the ISF's fixed assets

Funding Detail

Dedicated Credits - Intragovernmental Revenue come from charges to customer agencies. Premiums are collected by Risk Management for its insurance programs. Restricted revenue comes from the Workers Compensation Fund administered by the Division of Risk Management.

Sources of Finance	2008 Actual	2009 Actual	2010 Actual	2011 Actual	2012 Approp
Federal Funds	$0	$0	$0	$273,000	$0
Premiums	$27,040,000	$24,558,000	$25,135,300	$30,493,800	$28,751,900
Interest Income	$2,650,600	$1,492,000	$464,200	$425,800	$456,100
Dedicated Credits - Intragvt Rev	$112,764,800	$104,376,000	$100,020,200	$107,721,500	$103,552,300
Sale of Fixed Assets	$132,100	($191,800)	($1,345,000)	$394,500	$0
Restricted Revenue	$8,069,600	$8,480,500	$7,141,900	$7,108,500	$7,000,000
Transfers	$0	$0	$0	$96,400	$0
Total	$150,657,100	$138,714,700	$131,416,600	$146,513,500	$139,760,300

Line Items	2008 Actual	2009 Actual	2010 Actual	2011 Actual	2012 Approp
ISF - Finance	$0	$0	$0	$352,900	$71,700
ISF - Purchasing & General Services	$16,831,300	$17,609,100	$17,211,200	$18,078,600	$19,113,800
ISF - Fleet Operations	$70,596,300	$60,019,200	$54,115,600	$62,831,900	$56,903,000
ISF - Risk Management	$37,759,900	$34,530,300	$32,741,300	$38,028,100	$36,208,000
ISF - Facilities Management	$25,469,600	$26,556,100	$27,348,500	$27,222,000	$27,463,800
Total	$150,657,100	$138,714,700	$131,416,600	$146,513,500	$139,760,300

Categories of Expenditure	2008 Actual	2009 Actual	2010 Actual	2011 Actual	2012 Approp
Personnel Services	$15,332,200	$16,117,800	$15,468,500	$15,800,000	$16,862,500
In-state Travel	$85,400	$59,600	$39,100	$37,900	$42,800
Out-of-state Travel	$44,800	$29,500	$18,100	$40,700	$31,800
Current Expense	$111,968,100	$109,804,700	$104,138,100	$110,930,600	$108,616,300
DP Current Expense	$1,315,500	$1,265,100	$1,165,900	$1,382,700	$1,389,500
Capital Outlay	$0	$0	$0	$147,700	$0
Other Charges/Pass Thru	$1,010,100	$1,235,000	($212,800)	$399,000	$90,900
Operating Transfers	$3,003,100	$6,190,600	$0	$280,000	$23,400
Depreciation	$13,104,700	$11,857,200	$12,237,300	$10,546,000	$12,729,000
Total	$145,863,900	$146,559,500	$132,854,200	$139,564,600	$139,786,200

Other Indicators	2008 Actual	2009 Actual	2010 Actual	2011 Actual	2012 Approp
Budgeted FTE	258.5	259.9	273.9	268.5	269.9
Actual FTE	233.6	238.0	262.2	230.8	0.0
Authorized Capital Outlay	$21,735,200	$13,416,800	$14,365,500	$18,447,627	$24,153,300
Retained Earnings	$24,219,600	$16,374,700	$14,937,000	$21,889,400	$14,006,900
Vehicles	142	112	117	101	117

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