Governmental Accounting--Ch. 11: Internal Service Funds
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Created by:
Steve_Heizmann on April 12, 2008
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6 terms
Terms | Definitions |
|---|---|
 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. |
| Economic Resources | the measurement focus for Internal Service Funds |
| Accrual | the basis of accounting for Internal Service Funds. |
| Pre-determined Rates | 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. |
| Self-Insurance Fund | 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. |
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