Our service breaks down complex Internal Service Funds (ISFs) for local governments, providing guidance on setup, rate-setting, billing, and performance tracking, ensuring transparency, cost savings, and compliance without overburdening departments.

What Are Internal Service Funds?

Internal Service Funds (ISFs) are used by local governments to account for activities that provide goods or services to other departments or agencies on a cost-reimbursement basis, such as fleet maintenance, IT support, or central purchasing. In California, ISFs must comply with GASB standards and the State Controller's Office guidelines to ensure proper rate-setting, billing, and fund balance management, preventing over-accumulation and promoting transparency.

At GCP, we demystify these funds by analyzing setup, pricing, and performance, going beyond reporting to explore trends, "what if" scenarios, and root causes for optimized operations. Our services help agencies like yours transform opaque ISFs into efficient tools that support fiscal responsibility and interdepartmental equity. With over 200 California cities and 40 counties as clients (including 24 of the state's 25 largest agencies) we bring proven expertise to clarify and enhance your internal funds.

Key Benefits of Demystifying Internal Service Funds

Operational Transparency

Clarify billing and rate-setting to promote accountability and reduce interdepartmental disputes.

Customized Strategies

Tailor fund setups and rates for specific services like IT or fleet, aligning with your agency's needs.

Cost Savings and Efficiency

Identify overhead reductions and optimize performance, as in our Marin County project (10% overhead cut).

Long-Term Sustainability

Build multi-year tracking processes that enhance fiscal health and support community services without tax increases.

Compliance and Audit Readiness

Ensure funds meet GASB and SCO standards, preventing excess balances and enabling smooth audits.

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Our Proven Process

Fund Assessment

Review your current ISF setup, operations, and financials to identify imbalances like surpluses or deficits.

Cost and Rate Analysis

Calculate full costs, develop pricing models (e.g., usage-based rates), and forecast revenues/expenses over 5-10 years.

Billing and Performance Tracking

Design transparent billing systems and metrics (e.g., turnaround times, stops per day) for ongoing monitoring.

Stakeholder Engagement and Compliance

Conduct outreach, ensure GASB/SCO adherence, and prepare for audits or policy changes.

Implementation and Optimization

Roll out updated funds, provide training, and monitor for sustainability, adjusting as needed.

Real Results: Case Studies

Santa Barbara County, CA

Cindy Sconce crafted proposals that supported community programs without taxpayer burden.

City of Santa Ana, CA

Brad Wilkes assisted in Indirect Cost Rate for public works, optimizing for grant funding.

City of Turlock, CA

Cindy Sconce prepared Engineering Indirect Cost Rate, ensuring compliance for transit.

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Meet Our Internal Service Fund Experts

Brad Wilkes

Integrated ISF guidance with cost allocation for agencies like Sonoma County.

Brad Wilkes Bio

Brad Burgess

Supported ISF strategies in financial services leadership roles.

Brad Burgess Bio

Jeff Wakefield

30+ years demystifying ISFs, with case studies like Marin County for cost reductions.

Jeff Wakefield Bio

Cindy Sconce

Led ISF reviews for Santa Barbara County, ensuring compliance across departments.

Cindy Sconce Bio

Ruben Rivas

Analyzed ISFs in fee studies, like Monterey County for revenue realignment.

Ruben Rivas Bio

Mark Carpenter

Prepared IT Rate Development Process Manuals such as one in Monterey County, CA.

Mark Carpenter Bio