b. Internal service funds.
- For each internal service fund or similar activity with an operating
budget of $5 million or more, the plan shall include: a brief description of
each service; a balance sheet for each fund based on individual accounts
contained in the governmental unit's accounting system; a revenue/expenses
statement, with revenues broken out by source, e.g., regular billings, interest
earned, etc.; a listing of all non-operating transfers (as defined by Generally
Accepted Accounting Principles (GAAP)) into and out of the fund; a description
of the procedures (methodology) used to charge the costs of each service to
users, including how billing rates are determined; a schedule of current rates;
and, a schedule comparing total revenues (including imputed revenues) generated
by the service to the allowable costs of the service, as determined under this
Circular, with an explanation of how variances will be handled.
- Revenues shall consist of all revenues generated by the service,
including unbilled and uncollected revenues. If some users were not billed for
the services (or were not billed at the full rate for that class of users), a
schedule showing the full imputed revenues associated with these users shall be
provided. Expenses shall be broken out by object cost categories (e.g.,
salaries, supplies, etc.).
c. Self-insurance funds. For each self-insurance fund, the plan shall
include: the fund balance sheet; a statement of revenue and expenses including
a summary of billings and claims paid by agency; a listing of all non-operating
transfers into and out of the fund; the type(s) of risk(s) covered by the fund
(e.g., automobile liability, workers' compensation, etc.); an explanation of
how the level of fund contributions are determined, including a copy of the
current actuarial report (with the actuarial assumptions used) if the
contributions are determined on an actuarial basis; and, a description of the
procedures used to charge or allocate fund contributions to benefitted
activities. Reserve levels in excess of claims (1) submitted and adjudicated
but not paid, (2) submitted but not adjudicated, and (3) incurred but not
submitted must be identified and explained.
d. Fringe benefits. For fringe benefit costs, the plan shall include: a
listing of fringe benefits provided to covered employees, and the overall
annual cost of each type of benefit; current fringe benefit policies*; and
procedures used to charge or allocate the costs of the benefits to benefitted
activities. In addition, for pension and post-retirement health insurance
plans, the following information shall be provided: the governmental unit's
funding policies, e.g., legislative bills, trust agreements, or State-mandated
contribution rules, if different from actuarially determined rates; the pension
plan's costs accrued for the year; the amount funded, and date(s) of funding;
a copy of the current actuarial report (including the actuarial assumptions);
the plan trustee's report; and, a schedule from the activity showing the value
of the interest cost associated with late funding.
