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