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 four ISFs that are funded by state agencies: - 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. 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 | 2007
Actual | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Approp | | Dedicated Credits Revenue | $832,300 | $0 | $0 | $0 | $0 | | Premiums | $26,804,200 | $27,040,000 | $24,558,000 | $25,135,300 | $28,649,000 | | Licenses/Fees | $8,100 | $0 | $0 | $0 | $0 | | Interest Income | $3,582,800 | $2,650,600 | $1,492,000 | $464,200 | $1,115,000 | | Dedicated Credits - Intragvt Rev | $95,516,600 | $112,764,800 | $104,376,000 | $100,020,200 | $106,684,000 | | Sale of Fixed Assets | $552,300 | $132,100 | ($191,800) | ($1,345,000) | $0 | | Restricted Revenue | $8,364,000 | $8,069,600 | $8,480,500 | $7,141,900 | $7,517,400 | | Other Financing Sources | $7,300 | $0 | $0 | $0 | $0 | | Total | $135,667,600 | $150,657,100 | $138,714,700 | $131,416,600 | $143,965,400 |
|---|
| | Line Items | 2007
Actual | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Approp | | ISF - Purchasing & General Services | $13,811,300 | $15,871,200 | $16,522,000 | $16,157,500 | $17,519,700 | | ISF - Fleet Operations | $61,671,700 | $71,556,400 | $61,106,300 | $55,169,300 | $61,657,900 | | ISF - Risk Management | $38,313,500 | $37,759,900 | $34,530,300 | $32,741,300 | $37,281,400 | | ISF - Facilities Management | $20,586,300 | $25,469,600 | $26,556,100 | $27,348,500 | $27,506,400 | | Office of State Debt Collection | $1,284,800 | $0 | $0 | $0 | $0 | | Total | $135,667,600 | $150,657,100 | $138,714,700 | $131,416,600 | $143,965,400 |
|---|
| | Categories of Expenditure | 2007
Actual | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Approp | | Personnel Services | $13,331,200 | $15,332,200 | $16,117,800 | $15,468,500 | $15,862,200 | | In-state Travel | $54,400 | $85,400 | $59,600 | $39,100 | $56,000 | | Out-of-state Travel | $37,300 | $44,800 | $29,500 | $18,100 | $28,400 | | Current Expense | $100,054,700 | $111,968,100 | $109,804,700 | $104,138,100 | $110,774,100 | | DP Current Expense | $1,327,100 | $1,315,500 | $1,265,100 | $1,165,900 | $1,375,500 | | Other Charges/Pass Thru | $876,800 | $1,010,100 | $1,235,000 | ($212,800) | $540,300 | | Operating Transfers | $3,706,100 | $3,003,100 | $6,190,600 | $0 | $0 | | Depreciation | $12,922,500 | $13,104,700 | $11,857,200 | $12,237,300 | $13,173,200 | | Total | $132,310,100 | $145,863,900 | $146,559,500 | $132,854,200 | $141,809,700 |
|---|
| | Other Indicators | 2007
Actual | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Approp | | Budgeted FTE | 243.4 | 258.5 | 259.9 | 273.9 | 267.5 | | Authorized Capital Outlay | $14,467,700 | $21,735,200 | $13,416,800 | $14,365,500 | $24,584,400 | | Retained Earnings | $20,837,100 | $24,219,600 | $16,374,700 | $14,937,000 | $23,376,800 | | Vehicles | 136 | 142 | 112 | 117 | 112 |
|
|
|
|
|
|
Subcommittee Table of Contents |