Agency: Natural Resources

Line Item: ISF - DNR Internal Service Fund

Function

The Internal Service Fund (ISF) provides specific services to multiple agencies, allowing for maximization of service and minimization of costs. Each agency that uses ISF services pays its "fair share" of costs. This is an exception to the Budgetary Procedures Act, which requires that funds not be moved between line items of appropriations.

DNR used to have three ISF (Warehouse, Motor Pool, and Data Processing), but during the 2007 General Session the Motor Pool and Data Processing ISF were transferred to the Department of Administrative Services and currently DNR operates only the Warehouse ISF. The Warehouse ISF provides purchasing services. It buys specialized items used by the DNR divisions (e.g. Ranger uniforms). The program stores the articles until requisitioned by the divisions.

Statutory Authority

63J-1-410 governs internal service funds. To guard against abuse, the law does not allow an ISF to bill another agency unless the Legislature has:

• Reviewed and approved the ISF agency's budget request;
• Reviewed and approved the ISF's rates, fees, and other charge
• Included those rates, fees and charges in an appropriations act;
• Approved the number of employees;
• Appropriated the estimated revenue based on the rates and fee structure.

Performance

Retained Earnings: The ISF operation is not intended to make a profit beyond what is needed for working capital operations. The goal is to maintain approximately $40,000 in retained earnings for working capital operations.

Funding Detail

For more detail about a particular source of finance or organizational unit, click a linked entry in the left column of the table(s) below.