Internal Service Funds
are established to finance, administer, and account for departments or agencies of a government whose exclusive or nearly exclusive purpose is to provide goods or services (e.g. printing services) to the government's other departments on a cost-reimbursement basis.
so much per mile, page, or order. Preferable because departments need to know charges at the time the work is done. Actual cost charges may result in inequitable allocations among departments.
Central Stores Fund
used to centralize purchasing and warehousing operations. It enhances economy, efficiency, and control and holds inventory until requested by departments. Billing is based on direct inventory cost plus overhead factor.
state and local governments sometimes find insurance coverage for some types of risk to be overly expensive or unavailable. Partly, as a result, some governments "self-insure" part or all of their properties, potential liabilities for claims and judgments, and other risks. Often a government that self-insures part (or all) of its risks also centralizes its risk financing activities.