8A.123 - DEPARTMENT INTERNAL SERVICE FUNDS.

        8A.123  DEPARTMENT INTERNAL SERVICE FUNDS.
         1.  Activities of the department shall be accounted for within the
      general fund of the state, except that the director may establish and
      maintain internal service funds in accordance with generally accepted
      accounting principles, as defined in section 8.57, subsection 5, for
      activities of the department which are primarily funded from billings
      to governmental entities for services rendered by the department.
      The establishment of an internal service fund is subject to the
      approval of the director of the department of management and the
      concurrence of the auditor of state.  At least ninety days prior to
      the establishment of an internal service fund pursuant to this
      section, the director shall notify in writing the general assembly,
      including the legislative council, legislative fiscal committee, and
      the legislative services agency.
         2.  Internal service funds shall be administered by the department
      and shall consist of moneys collected by the department from billings
      issued in accordance with section 8A.125 and any other moneys
      obtained or accepted by the department, including but not limited to
      gifts, loans, donations, grants, and contributions, which are
      designated to support the activities of the individual internal
      service funds.  The director may obtain loans from the innovations
      fund created in section 8.63 for deposit in an internal service fund
      established pursuant to this section to provide seed and investment
      capital to enhance the delivery of services provided by the
      department.
         3.  The proceeds of an internal service fund established pursuant
      to this section shall be used by the department for the operations of
      the department consistent with this chapter.  The director may
      appoint the personnel necessary to ensure the efficient provision of
      services funded pursuant to an internal service fund established
      under this section.  However, this usage requirement shall not limit
      or restrict the department from using proceeds from gifts, loans,
      donations, grants, and contributions in conformance with any
      conditions, directions, limitations, or instructions attached or
      related thereto.
         4.  Section 8.33 does not apply to any moneys in internal service
      funds established pursuant to this section.  Notwithstanding section
      12C.7, subsection 2, interest or earnings on moneys deposited in
      these funds shall be credited to these funds.
         5. a.  The director shall annually provide internal service
      fund service business plans and financial reports to the department
      of management and the general assembly.  The business plans may
      include the recommendation that a portion of unexpended net income be
      periodically returned to the appropriate funding source.
         b.  The department shall submit an annual report not later
      than October 1 to the members of the general assembly and the
      legislative services agency of the activities funded by and
      expenditures made from an internal service fund established pursuant
      to this section during the preceding fiscal year.  
         Section History: Recent Form
         2003 Acts, ch 35, § 46, 49; 2003 Acts, ch 145, §13
         Referred to in § 8A.111, 8A.126 
         Footnotes
         For future amendment to subsection 2, effective July 1, 2010, see
      2009 Acts, ch 170, §47, 50