Q$11-1$ What advantages would a government unit expect from the use of an Internal Service $F_{\text{u}\text{n}\text{d}}$

to account for the acquisition, storage, and provision of supplies for the various departments?

$011-2$ What major benefits should accrue from accurate cost data being maintained for activities

accounted for through the Internal Service Fund?

$011-3$ Why are Internal Service Funds sometimes not subject to fixed budgetary control?

$011-4$ Internal Service Funds are required to be reported by fund type in the basic financial state.

ments. Discuss the significance of this requirement. Compare and contrast the financial reporting

required in the basic financial statements and the supplemental statements and schedules.

$011-5$ In what ways might the original capital required to establish an Internal Service Fund be acquired?

$011-6$ Under what circumstances would the direct cost of the goods or services provided $($with no

additions to acquisition cost for such items as depreciation or overhead$)$ be the appropriate basis

for Internal Service Fund reimbursement? Explain.

$011-7$ An Internal Service Fund established by a county is intended to operate on a breakeven basis,

How might a government dispose of increases or decreases in net position remaining at year end?

Q$11-8$ Accounting for an Internal Service Fund that is controlled by a fixed budget may be

referred to as double accounting. Why?

$011-9$ An Internal Service Fund was established $10$ years ago through the sale of $20-$year bonds.

What disposition should be made of the assets of the fund if it is dissolved?

$011-10$ In general, what approaches may a government use to establish the charges that a Self.

Insurance Internal Service Fund should levy on user funds?

Q$11-11$ What funds may a government use to account for centralized risk financing activities?

Q$11-12$ Internal Service Fund net position is sometimes increased over time as a result of

charges for services being established at a level that exceeds the costs of providing the services.

Why does this practice occur? What concerns should governments have about the practice?