Reference Number: 
CTAS-1992

Internal service funds are used to report an activity that provides services or goods to other funds, departments, or agencies to the county, the school system, or component unit on a cost-reimbursement basis. Examples of internal service funds are self-insurance and workers’ compensation funds. Counties that maintain an internal service fund will have to prepare a schedule that presents a breakdown of activity applicable to the county and applicable to the school department. Further detail should be provided to break down the activity between functions (general  government, administration of justice, etc.) within the primary government. Example of a schedule that prorates usage of an internal service  fund.