Internal service fund definition
/What is an Internal Service Fund?
An internal service fund is a fund used in governmental accounting to track goods or services shifted between departments on a cost reimbursement basis. This type of fund is used to identify the cost of providing certain goods and services. These funds should only be used for those activities designed to be operated on a break-even basis.
Example of an Internal Service Fund
As an example of an internal service fund, a maintenance department provides equipment maintenance services to other departments.