COBI 2015 - ISF - Administrative Services

Overview
Issues
Performance
Background
Financials

Sources Uses

FY 2016 Appropriation

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.

Funding History

Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $168,402,700 from all sources for ISF - Administrative Services. This is a 4 percent increase from Fiscal Year 2015 revised estimated amounts from all sources. The total includes $150,000 in new approprations from the General/Education Funds.

Appropriation Adjustments

In addition to statewide compensation and internal service fund cost increases, the following appropriation adjustments were made during the 2015 General Session:

DescriptionOngoingOne-Time DAS Finance Reallocation of Nonlapsing Balance$0$250,000

OngoingOne-TimeFinancing Source

$0$250,000Beginning Nonlapsing - Finance

DAS Finance Reallocation of Nonlapsing Balance

Underground Storage Tank Amendments$0$150,000

OngoingOne-TimeFinancing Source

$0$150,000General Fund, One-time

Enactment of this legislation likely will not materially impact state revenue. Enactment of this legislation appropriates $150,000 from the General Fund ongoing in FY 2016 to the Division of Fleet Operations for costs associated with underground storage tanks.

The following are performance measures tracked within this organization.

Administrative Costs as a Percentage of Division Costs

Internal Adjusters Ratings

Operations and Maintenance Cost Per Square Foot

Spending Via Purchasing Cards

Freight and Postage Cost Avoidance

State Purchasing Cooperative Contracts

Return on Investment for Motor Pool Vehicles

Statute

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

ISFs operated by the Department of Administrative Services (DAS) provide consolidated services to all state agencies. DAS operates several 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.

n 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.

Intent Language

HB0003: Item 143

The Legislature intends that appropriations for Fleet Operations not lapse capital outlay authority granted within Fiscal Year 2015 for vehicles not delivered by the end of Fiscal Year 2015 in which vehicle purchase orders were issued obligating capital outlay funds.

SB0002: Item 198

The Legislature intends that the Finance Internal Service Fund Consolidated Budget & Accounting Program may add up to two FTE if new customers or tasks come on line. Any added FTE will be reviewed and may be approved by the Legislature in the next legislative session.

SB0002: Item 200

The Legislature intends that the Division of Fleet Operations discontinue charging agencies a flat rate for fuel, and that the fuel pass-through charged by the Division be actual cost as reflected in Senate Bill 8, State Agency Fees and Internal Service Fund Rate Authorization and Appropriations.

SB0002: Item 202

The Legislature intends that the DFCM Internal Service Fund may add up to three FTEs and up to two vehicles beyond the authorized level if new facilities come on line or maintenance agreements are requested. Any added FTEs or vehicles will be reviewed and may be approved by the Legislature in the next legislative session.

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.

Display By:

Line Item

Funding Source

Expenditure Category

Appropriation Type:

Appropriation History by

Line Items	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
ISF - Finance	352,900	321,100	1,624,500	1,675,000	1,860,900	(111,500)	1,749,400	43,200	1,792,600
ISF - Purchasing and General Services	18,078,600	19,590,600	20,423,100	19,741,200	19,178,800	(1,371,600)	17,807,200	2,042,800	19,850,000
ISF - Information Technology Services	0	0	0	0	0	0	0	0	0
ISF - Fleet Operations	62,831,900	65,250,900	68,925,200	69,293,400	71,362,500	(1,638,200)	69,724,300	3,649,000	73,373,300
ISF - Risk Management	38,028,100	37,461,600	38,122,800	39,516,000	42,432,800	1,054,200	43,487,000	266,800	43,753,800
ISF - Facilities Management	27,222,000	26,454,900	28,051,500	28,540,300	29,160,200	3,400	29,163,600	469,400	29,633,000
ISF - DFCM Planning and Design	0	0	0	0	0	0	0	0	0
Office of State Debt Collection	0	0	0	0	0	0	0	0	0
Total	$146,513,500	$149,079,100	$157,147,100	$158,765,900	$163,995,200	($2,063,700)	$161,931,500	$6,471,200	$168,402,700

Sources of Finance	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
General Fund, One-time	0	0	0	0	0	0	0	150,000	150,000
Federal Funds	273,000	18,500	0	0	0	0	0	0	0
Premiums	30,493,800	30,196,900	30,761,400	31,998,500	33,080,900	1,151,800	34,232,700	266,500	34,499,200
Interest Income	425,800	339,600	256,700	265,800	311,000	(96,600)	214,400	0	214,400
Dedicated Credits - Intragvt Rev	107,721,500	111,000,500	118,325,300	118,596,000	120,934,900	(1,067,900)	119,867,000	4,404,400	124,271,400
Sale of Fixed Assets	394,500	598,500	691,900	754,000	627,500	(400,000)	227,500	0	227,500
Transfers	96,400	0	0	(100,000)	0	(1,900,000)	(1,900,000)	1,900,000	0
Risk Management - Workers Compensation	7,108,500	6,925,100	7,104,800	7,251,600	9,040,900	(1,000)	9,039,900	300	9,040,200
Beginning Nonlapsing - Finance	0	0	0	0	0	250,000	250,000	(250,000)	0
Closing Nonlapsing	0	0	7,000	0	0	0	0	0	0
Total	$146,513,500	$149,079,100	$157,147,100	$158,765,900	$163,995,200	($2,063,700)	$161,931,500	$6,471,200	$168,402,700

Categories of Expenditure	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Personnel Services	15,800,000	16,320,000	18,198,800	18,294,800	19,150,300	274,700	19,425,000	224,200	19,649,200
In-state Travel	37,900	34,700	55,500	43,000	32,300	2,900	35,200	0	35,200
Out-of-state Travel	40,700	41,700	37,500	36,600	27,600	1,400	29,000	0	29,000
Current Expense	110,930,600	122,469,100	130,722,200	127,224,900	130,896,600	(1,094,300)	129,802,300	1,775,600	131,577,900
DP Current Expense	1,382,700	1,264,500	1,232,600	1,442,400	1,220,300	(265,500)	954,800	300	955,100
DP Capital Outlay	0	0	9,900	2,400	0	2,400	2,400	115,700	118,100
Capital Outlay	147,700	0	11,661,300	155,500	0	171,100	171,100	25,700	196,800
Other Charges/Pass Thru	399,000	883,000	(336,000)	494,100	704,800	(115,800)	589,000	(240,200)	348,800
Depreciation	10,546,000	11,141,200	20,800	12,310,200	13,009,100	(779,600)	12,229,500	22,100	12,251,600
Transfers	280,000	2,000,000	1,630,000	145,400	0	0	0	0	0
Total	$139,564,600	$154,154,200	$163,232,600	$160,149,300	$165,041,000	($1,802,700)	$163,238,300	$1,923,400	$165,161,700

Show Table | Show Additional Information

Other Indicators	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Budgeted FTE	268.50	271.58	294.60	297.70	298.68	(0.02)	298.66	1.34	300
Actual FTE	230.78	263.08	281.90	278.40	0	0	0	0	0
Authorized Capital Outlay	18,447,627	18,684,500	22,737,500	19,198,200	25,625,100	(10,333,100)	15,292,000	5,961,900	21,253,900
Retained Earnings	21,889,400	16,816,519	9,062,500	7,524,000	5,769,400	448,100	6,217,500	2,405,600	8,623,100
Vehicles	101	124	117	112	119	(7)	112	0	112

COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.