Internal service fund solvency check

Test whether an existing fleet internal service fund is healthy at the rates it charges today: operating cost recovery, working capital against a days-on-hand target, and the rate adjustment that would close the gap.

The method behind this is explained in Moving fleet to an internal service fund .

Everything runs in your browser. Nothing you type is sent anywhere, stored, or logged.

Rates and operations

Annual rate revenue billed ($) What departments are actually charged in a year at today's adopted rates.

Annual fund operating expense ($) Excluding capital outlay and the replacement reserve accrual — those are funded from the reserve, not from operations.

Units billed Used to express any adjustment as a charge per unit per month.

Working capital position

Working capital today ($) Current assets less current liabilities, from the fund's balance sheet.

Of that, replacement reserve cash ($) Cash sitting inside working capital that is really committed to future replacements.

Working capital target (days of operating expense) No published target exists for internal service funds specifically. 60 days is a starting point, not a standard — see the note below.

Replacement reserve

Reserve that should have accrued to date ($) Summed across the fleet: annual accrual per unit multiplied by years into its cycle. The ISF conversion kit in the guide produces this figure.

Reserve already held against units ($) Reserve booked against specific vehicles before the fund existed. Not the same money as the cash above: this is what has already been set aside, the cash above is what would be transferred in to seed the fund.

Catch-up period (years) How long you would give the rates to close a hole rather than closing it with one-time capital.

Working capital on hand

—

against a target of — — —

Working capital reported	—
Less replacement reserve cash	—
Operating working capital	—
Target working capital	—
Surplus / (shortfall)	—

Operating cost recovery

—

Rate adjustment needed

—

At current rates, target reached in

—

Replacement reserve

Should have accrued to date	—
Less reserve held against units	—
Reserve gap	—
Less reserve cash available to seed the fund	—
Residual reserve hole	—

Sources

GFOA — Internal service fund rate development and billing Primary — the standard reference for public-sector rate setting
GASB Statement 34 — proprietary fund reporting Primary
RTA — Why government fleets should move to an internal service fund model — vendor-published