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Internal Service Funds <br />Background <br />Internal Service Funds are established to administer and, account for va,rious activities whose purpose is to provide <br />for goods and services to support other departments, for their ongoing operational and programming needs. The <br />delivery ofthese services isrecovered onacost recovery basis. <br />Purpose <br />It is the intent of the Internal Service Fund Reserve Policy to establish general guidelines as to the establishment <br />of proper recovery rote structure and define an appropriate level of reserves for each internal Service Fund. It <br />will also establish criteria for the use of reserves and establish a process by which to replenish reserves if utilized. <br />Although this policy only addresses the Risk Management Funds (i.e. Liability and property Insurance and Workers <br />Compensation Fund), it is the intent to build upon and include all internal service funds within this policy. <br />Risk Management <br />The Risk Management programs are established to protect the Ot/s assets through the administration of a <br />properly funded liability c(a[m and insurance program and by minimizing the cost and effect of work -related <br />injuries. Rates for these programs are established onabiennial actuarial basis. <br />Reserves <br />Reserves for these accounts will be funded at not less than 80% as defined in the actuarial study. In addit�om, <br />three months of operational reserves will be included to address any variations related to revenues and <br />expenditures. Any surplus amounts defined in these accounts from general agencies shall be available for transfer <br />to the General Fund until such time that the General Fund reserve meets the minimum requirement of1596 or to <br />establish the reserve for Economic Uncertainty. Transfers shall be submitted toCouncil for approval. There after <br />any surplus can be used 1ofund any deficits identified in other Internal Service Fund reserves, as well as other <br />unfunded capit�a\and deferred related maintenance. <br />Budget & Financial PoHces (Rev, 6/2017) Page S <br />