Internal Service Funds - State of North Carolina
State of North Carolina
June 30, 2015
INTERNAL SERVICE FUNDS The internal service funds are used to account for and report the operations of state agencies that provide services to other state agencies, component units, or other governments on a cost reimbursement basis.
The following activities are included in the internal service funds: Office of the Governor: Computing Services State Telecommunications Services
Department of Administration: Motor Fleet Management Mail Service Center Temporary Solutions Surplus Property
Department of Insurance: State Property Fire Insurance
247
State of North Carolina COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS June 30, 2015 (Dollars in Thousands) State Property
Motor
Mail
Fire
Fleet
Service
Temporary
Computing
Insurance
Management
Center
Solutions
Services
Assets Current Assets
Cash and cash equivalents........................................ Investments................................................................ Securities lending collateral........................................ Receivables: Accounts receivable, net......................................... Interest receivable................................................... Premiums receivable............................................... Due from other funds.................................................. Due from component units......................................... Inventories................................................................. Prepaid items............................................................. Total current assets.............................................
$
30,270 30,958 5,070
$
33,943 — —
$
99 — —
$
— — —
$
7,381 — —
— 13 654 — — — — 66,965
1,248 — — 2,988 274 128 — 38,581
466 — — — — 34 — 599
6,519 — — 1,093 — — — 7,612
2,740 — — 6,026 2 7 5,847 22,003
— — — 66,965
288 60,618 60,906 99,487
— 163 163 762
— — — 7,612
3,089 42,552 45,641 67,644
121
188
204
66
2,546
4,433 — 1,612 5,070 — 8,004 — 30 19,149
1,191 — — — 5 — — 22 1,218
6 — — — 62 — — 31 99
4 1,369 — — — — — 17 1,390
1,259 — — — 2 — — 607 1,868
— 220 97 317 19,466
— 157 121 278 1,496
— 218 132 350 449
— 102 43 145 1,535
— 3,662 1,980 5,642 7,510
Deferred inflows for pensions.....................................
355
436
477
156
7,358
Net Position Net investment in capital assets.................................... Unrestricted................................................................... Total Net Position.................................................
— 47,265 47,265
60,906 36,837 97,743
163 (123) 40
— 5,987 5,987
45,641 9,681 55,322
Noncurrent Assets
Capital assets-nondepreciable.................................... Capital assets-depreciable, net.................................. Total noncurrent assets........................................ Total Assets......................................................... Deferred Outflows of Resources:
Deferred outflows for pensions................................... Liabilities Current Liabilities
Accounts payable and accrued liabilities: Accounts payable.................................................... Accrued payroll....................................................... Claims payable........................................................ Obligations under securities lending........................... Due to other funds...................................................... Unearned revenue...................................................... Capital leases payable............................................... Compensated absences ............................................ Total current liabilities.......................................... Noncurrent Liabilities
Capital leases payable............................................... Compensated absences ............................................ Net pension liability..................................................... Total noncurrent liabilities..................................... Total Liabilities..................................................... Deferred Inflows of Resources:
$
$
248
$
$
$
State of North Carolina
Exhibit E-1 State Telecommu-
$
$
nications
Surplus
Services
Property
18,520 — —
$
2,213 — —
Totals
$
92,426 30,958 5,070
8,197 — — 3,365 245 — 180 30,507
159 — — — — — — 2,372
19,329 13 654 13,472 521 169 6,027 168,639
— 3,906 3,906 34,413
19 55 74 2,446
3,396 107,294 110,690 279,329
622
110
3,857
1,210 — — — 4 — 72 164 1,450
717 — — — 400 — — 13 1,130
8,820 1,369 1,612 5,070 473 8,004 72 884 26,304
93 988 568 1,649 3,099
— 95 74 169 1,299
93 5,442 3,015 8,550 34,854
2,110
268
11,160
3,741 26,085 29,826
74 915 989
110,525 126,647 237,172
$
$
249
State of North Carolina COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS For the Fiscal Year Ended June 30, 2015 (Dollars in Thousands) State Property Fire Insurance
Operating Revenues Sales and services................................................... Rental and lease earnings....................................... Fees, licenses, and fines......................................... Insurance premiums................................................ Miscellaneous.......................................................... Total operating revenues................................... Operating Expenses Personal services.................................................... Supplies and materials............................................ Services................................................................... Cost of goods sold................................................... Depreciation............................................................ Claims..................................................................... Insurance and bonding............................................ Other....................................................................... Total operating expenses................................... Operating income (loss)..................................... Nonoperating Revenues (Expenses) Noncapital grants..................................................... Investment earnings................................................ Interest and fees...................................................... Insurance recoveries................................................ Gain (loss) on sale of equipment............................. Miscellaneous.......................................................... Total nonoperating revenues (expenses)........... Income (loss) before contributions and transfers............................................... Capital contributions................................................... Transfers in................................................................. Transfers out.............................................................. Change in net position....................................... Net position — July 1, as restated (Note 23)............... Net position — June 30...............................................
$
$
— — — 21,825 — 21,825
Motor Fleet Management
$
36,357 — — — 221 36,578
Mail Service Center
$
3,686 — — — — 3,686
1,698 6 143 — — 978 16,034 74 18,933 2,892
2,630 12,100 2,129 455 11,327 — 1,170 10 29,821 6,757
— 865 — — — (9) 856
— — — 150 2,557 162 2,869
— — — — — — —
3,748 — — — 3,748 43,517 47,265
9,626 1,151 1,829 — 12,606 85,137 97,743
(57) — — — (57) 97 40
$
250
Temporary Solutions
$
2,628 45 932 — 49 — — 89 3,743 (57)
$
$
67,154 — — — — 67,154
Computing Services
$
98,111 — 1,596 — — 99,707
66,012 53 312 — — — — 70 66,447 707
35,245 9,515 21,789 — 6,422 — 142 31,817 104,930 (5,223)
— — — — — — —
128 — — — — 1 129
707 — 419 — 1,126 4,861 5,987
(5,094) — 8,366 (57) 3,215 52,107 55,322
$
State of North Carolina
Exhibit E-2 State Telecommunications Services
$
$
83,633 — — — 62 83,695
Surplus Property
$
2,633 64 52 — 103 2,852
Totals
$
291,574 64 1,648 21,825 386 315,497
8,273 1,471 55,872 — 1,727 — 41 7,437 74,821 8,874
1,487 56 429 — 7 — 22 72 2,073 779
117,973 23,246 81,606 455 19,532 978 17,409 39,569 300,768 14,729
— — (23) — — — (23)
— — — — — 45 45
128 865 (23) 150 2,557 199 3,876
8,851 — — (5,762) 3,089 26,737 29,826
824 — — — 824 165 989
18,605 1,151 10,614 (5,819) 24,551 212,621 237,172
$
$
251
State of North Carolina COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Fiscal Year Ended June 30, 2015 (Dollars in Thousands) State Property Fire Insurance Cash Flows From Operating Activities Receipts from customers.................................................................. Receipts from other funds................................................................. Payments to suppliers....................................................................... Payments to employees.................................................................... Payments for benefits and claims..................................................... Payments to other funds................................................................... Other receipts................................................................................... Other payments................................................................................ Net cash flows provided (used) by operating activities...........................................................
$
10,661 11,176 (16,948) (1,744) (443) (263) — —
Motor Fleet Management $
3,806 33,166 (16,953) (2,679) — (203) 383 (3)
Mail Service Center $
Temporary Solutions
640 3,125 (285) (2,660) — (711) — (10)
$
— 68,262 (189) (68,534) — (289) — (67)
Computing Services $
2,089 96,880 (49,928) (36,571) — (17,129) 1 —
2,439
17,517
99
(817)
(4,658)
Cash Provided From (Used For) Noncapital Financing Activities Grant receipts................................................................................... Transfers from other funds............................................................... Transfers to other funds.................................................................... Total cash provided from (used for) noncapital financing activities....................................................
— — —
— 1,829 —
— — —
— 419 —
128 8,366 (57)
—
1,829
—
419
8,437
Cash Provided From (Used For) Capital and Related Financing Activities Acquisition and construction of capital assets.................................. Proceeds from the sale of capital assets.......................................... Principal paid on capital debt............................................................ Interest paid on capital debt.............................................................. Insurance recoveries......................................................................... Total cash provided from (used for) capital and related financing activities.......................................
— — — — —
(21,037) 3,297 — — 150
— — — — —
— — — — —
(5,594) — — — —
—
(17,590)
—
—
(5,594)
Cash Provided From (Used For) Investment Activities Investment earnings..........................................................................
160
—
—
—
Net increase (decrease) in cash and cash equivalents.................... Cash and cash equivalents at July 1................................................ Cash and cash equivalents at June 30.............................................
$
2,599 27,671 30,270
$
1,756 32,187 33,943
$
99 — 99
$
(398) 398 —
$
(1,815) 9,196 7,381
$
2,892
$
6,757
$
(57)
$
707
$
(5,223)
Reconciliation of Operating Income to Net Cash Provided From (Used For) Operating Activities Operating income (loss).................................................................... Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation................................................................................ Pension expense........................................................................ Nonoperating miscellaneous income (expense)......................... (Increases) decreases in assets and deferred outflows: Receivables................................................................................ Due from other funds.................................................................. Due from component units.......................................................... Inventories.................................................................................. Prepaid items.............................................................................. Deferred outflows for pensions................................................... Increases (decreases) in liabilities: Accounts payable and accrued liabilities.................................... Due to other funds...................................................................... Compensated absences............................................................. Unearned revenue...................................................................... Total cash provided from (used for) operations.................................................................. Noncash Investing, Capital, and Financing Activities Noncash distributions from the State Treasurer Long-Term Investment Portfolio and/or other agents................... Donated or transferred assets ......................................................... Change in fair value of investments.................................................. Change in securities lending collateral.............................................
—
— 41 —
11,327 65 162
49 71 —
— 23 —
6,422 792 1
32 — — — — (122)
574 (72) 113 7 — (140)
80 — — 82 — (151)
(1,017) 2,126 — — — (48)
(1,134) 395 2 — (4,439) (2,546)
(419) — 35 (20)
(1,270) (32) 26 —
(11) (12) 48 —
(2,643) (6) 41 —
704 (59) 427 —
$
2,439
$
17,517
$
99
$
(817)
$
$
1,998 — (1,306) (2,245)
$
— 1,151 — —
$
— — — —
$
— — — —
$
252
(4,658)
— — — —
State of North Carolina
Exhibit E-3 State Telecommunications Services $
17,282 64,799 (62,073) (8,793) — (1,931) — —
Surplus Property $
967 1,716 (237) (1,514) — (60) 147 (65)
Totals $
35,445 279,124 (146,613) (122,495) (443) (20,586) 531 (145)
9,284
954
24,818
— — (5,762)
— — —
128 10,614 (5,819)
(5,762)
—
4,923
(1,566) — (158) (23) —
— — — — —
(28,197) 3,297 (158) (23) 150
(1,747)
—
(24,931)
—
—
160
$
1,775 16,745 18,520
$
954 1,259 2,213
$
4,970 87,456 92,426
$
8,874
$
779
$
14,729
1,727 228 —
7 39 45
19,532 1,259 208
(1,971) 286 70 — (88) (622)
(70) 5 — — — (80)
(3,506) 2,740 185 89 (4,527) (3,709)
1,195 (290) (125) —
77 140 12 —
(2,367) (259) 464 (20)
$
9,284
$
954
$
24,818
$
— — — —
$
— — — —
$
1,998 1,151 (1,306) (2,245)
253
June 30, 2015
INTERNAL SERVICE FUNDS The internal service funds are used to account for and report the operations of state agencies that provide services to other state agencies, component units, or other governments on a cost reimbursement basis.
The following activities are included in the internal service funds: Office of the Governor: Computing Services State Telecommunications Services
Department of Administration: Motor Fleet Management Mail Service Center Temporary Solutions Surplus Property
Department of Insurance: State Property Fire Insurance
247
State of North Carolina COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS June 30, 2015 (Dollars in Thousands) State Property
Motor
Fire
Fleet
Service
Temporary
Computing
Insurance
Management
Center
Solutions
Services
Assets Current Assets
Cash and cash equivalents........................................ Investments................................................................ Securities lending collateral........................................ Receivables: Accounts receivable, net......................................... Interest receivable................................................... Premiums receivable............................................... Due from other funds.................................................. Due from component units......................................... Inventories................................................................. Prepaid items............................................................. Total current assets.............................................
$
30,270 30,958 5,070
$
33,943 — —
$
99 — —
$
— — —
$
7,381 — —
— 13 654 — — — — 66,965
1,248 — — 2,988 274 128 — 38,581
466 — — — — 34 — 599
6,519 — — 1,093 — — — 7,612
2,740 — — 6,026 2 7 5,847 22,003
— — — 66,965
288 60,618 60,906 99,487
— 163 163 762
— — — 7,612
3,089 42,552 45,641 67,644
121
188
204
66
2,546
4,433 — 1,612 5,070 — 8,004 — 30 19,149
1,191 — — — 5 — — 22 1,218
6 — — — 62 — — 31 99
4 1,369 — — — — — 17 1,390
1,259 — — — 2 — — 607 1,868
— 220 97 317 19,466
— 157 121 278 1,496
— 218 132 350 449
— 102 43 145 1,535
— 3,662 1,980 5,642 7,510
Deferred inflows for pensions.....................................
355
436
477
156
7,358
Net Position Net investment in capital assets.................................... Unrestricted................................................................... Total Net Position.................................................
— 47,265 47,265
60,906 36,837 97,743
163 (123) 40
— 5,987 5,987
45,641 9,681 55,322
Noncurrent Assets
Capital assets-nondepreciable.................................... Capital assets-depreciable, net.................................. Total noncurrent assets........................................ Total Assets......................................................... Deferred Outflows of Resources:
Deferred outflows for pensions................................... Liabilities Current Liabilities
Accounts payable and accrued liabilities: Accounts payable.................................................... Accrued payroll....................................................... Claims payable........................................................ Obligations under securities lending........................... Due to other funds...................................................... Unearned revenue...................................................... Capital leases payable............................................... Compensated absences ............................................ Total current liabilities.......................................... Noncurrent Liabilities
Capital leases payable............................................... Compensated absences ............................................ Net pension liability..................................................... Total noncurrent liabilities..................................... Total Liabilities..................................................... Deferred Inflows of Resources:
$
$
248
$
$
$
State of North Carolina
Exhibit E-1 State Telecommu-
$
$
nications
Surplus
Services
Property
18,520 — —
$
2,213 — —
Totals
$
92,426 30,958 5,070
8,197 — — 3,365 245 — 180 30,507
159 — — — — — — 2,372
19,329 13 654 13,472 521 169 6,027 168,639
— 3,906 3,906 34,413
19 55 74 2,446
3,396 107,294 110,690 279,329
622
110
3,857
1,210 — — — 4 — 72 164 1,450
717 — — — 400 — — 13 1,130
8,820 1,369 1,612 5,070 473 8,004 72 884 26,304
93 988 568 1,649 3,099
— 95 74 169 1,299
93 5,442 3,015 8,550 34,854
2,110
268
11,160
3,741 26,085 29,826
74 915 989
110,525 126,647 237,172
$
$
249
State of North Carolina COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS For the Fiscal Year Ended June 30, 2015 (Dollars in Thousands) State Property Fire Insurance
Operating Revenues Sales and services................................................... Rental and lease earnings....................................... Fees, licenses, and fines......................................... Insurance premiums................................................ Miscellaneous.......................................................... Total operating revenues................................... Operating Expenses Personal services.................................................... Supplies and materials............................................ Services................................................................... Cost of goods sold................................................... Depreciation............................................................ Claims..................................................................... Insurance and bonding............................................ Other....................................................................... Total operating expenses................................... Operating income (loss)..................................... Nonoperating Revenues (Expenses) Noncapital grants..................................................... Investment earnings................................................ Interest and fees...................................................... Insurance recoveries................................................ Gain (loss) on sale of equipment............................. Miscellaneous.......................................................... Total nonoperating revenues (expenses)........... Income (loss) before contributions and transfers............................................... Capital contributions................................................... Transfers in................................................................. Transfers out.............................................................. Change in net position....................................... Net position — July 1, as restated (Note 23)............... Net position — June 30...............................................
$
$
— — — 21,825 — 21,825
Motor Fleet Management
$
36,357 — — — 221 36,578
Mail Service Center
$
3,686 — — — — 3,686
1,698 6 143 — — 978 16,034 74 18,933 2,892
2,630 12,100 2,129 455 11,327 — 1,170 10 29,821 6,757
— 865 — — — (9) 856
— — — 150 2,557 162 2,869
— — — — — — —
3,748 — — — 3,748 43,517 47,265
9,626 1,151 1,829 — 12,606 85,137 97,743
(57) — — — (57) 97 40
$
250
Temporary Solutions
$
2,628 45 932 — 49 — — 89 3,743 (57)
$
$
67,154 — — — — 67,154
Computing Services
$
98,111 — 1,596 — — 99,707
66,012 53 312 — — — — 70 66,447 707
35,245 9,515 21,789 — 6,422 — 142 31,817 104,930 (5,223)
— — — — — — —
128 — — — — 1 129
707 — 419 — 1,126 4,861 5,987
(5,094) — 8,366 (57) 3,215 52,107 55,322
$
State of North Carolina
Exhibit E-2 State Telecommunications Services
$
$
83,633 — — — 62 83,695
Surplus Property
$
2,633 64 52 — 103 2,852
Totals
$
291,574 64 1,648 21,825 386 315,497
8,273 1,471 55,872 — 1,727 — 41 7,437 74,821 8,874
1,487 56 429 — 7 — 22 72 2,073 779
117,973 23,246 81,606 455 19,532 978 17,409 39,569 300,768 14,729
— — (23) — — — (23)
— — — — — 45 45
128 865 (23) 150 2,557 199 3,876
8,851 — — (5,762) 3,089 26,737 29,826
824 — — — 824 165 989
18,605 1,151 10,614 (5,819) 24,551 212,621 237,172
$
$
251
State of North Carolina COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Fiscal Year Ended June 30, 2015 (Dollars in Thousands) State Property Fire Insurance Cash Flows From Operating Activities Receipts from customers.................................................................. Receipts from other funds................................................................. Payments to suppliers....................................................................... Payments to employees.................................................................... Payments for benefits and claims..................................................... Payments to other funds................................................................... Other receipts................................................................................... Other payments................................................................................ Net cash flows provided (used) by operating activities...........................................................
$
10,661 11,176 (16,948) (1,744) (443) (263) — —
Motor Fleet Management $
3,806 33,166 (16,953) (2,679) — (203) 383 (3)
Mail Service Center $
Temporary Solutions
640 3,125 (285) (2,660) — (711) — (10)
$
— 68,262 (189) (68,534) — (289) — (67)
Computing Services $
2,089 96,880 (49,928) (36,571) — (17,129) 1 —
2,439
17,517
99
(817)
(4,658)
Cash Provided From (Used For) Noncapital Financing Activities Grant receipts................................................................................... Transfers from other funds............................................................... Transfers to other funds.................................................................... Total cash provided from (used for) noncapital financing activities....................................................
— — —
— 1,829 —
— — —
— 419 —
128 8,366 (57)
—
1,829
—
419
8,437
Cash Provided From (Used For) Capital and Related Financing Activities Acquisition and construction of capital assets.................................. Proceeds from the sale of capital assets.......................................... Principal paid on capital debt............................................................ Interest paid on capital debt.............................................................. Insurance recoveries......................................................................... Total cash provided from (used for) capital and related financing activities.......................................
— — — — —
(21,037) 3,297 — — 150
— — — — —
— — — — —
(5,594) — — — —
—
(17,590)
—
—
(5,594)
Cash Provided From (Used For) Investment Activities Investment earnings..........................................................................
160
—
—
—
Net increase (decrease) in cash and cash equivalents.................... Cash and cash equivalents at July 1................................................ Cash and cash equivalents at June 30.............................................
$
2,599 27,671 30,270
$
1,756 32,187 33,943
$
99 — 99
$
(398) 398 —
$
(1,815) 9,196 7,381
$
2,892
$
6,757
$
(57)
$
707
$
(5,223)
Reconciliation of Operating Income to Net Cash Provided From (Used For) Operating Activities Operating income (loss).................................................................... Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation................................................................................ Pension expense........................................................................ Nonoperating miscellaneous income (expense)......................... (Increases) decreases in assets and deferred outflows: Receivables................................................................................ Due from other funds.................................................................. Due from component units.......................................................... Inventories.................................................................................. Prepaid items.............................................................................. Deferred outflows for pensions................................................... Increases (decreases) in liabilities: Accounts payable and accrued liabilities.................................... Due to other funds...................................................................... Compensated absences............................................................. Unearned revenue...................................................................... Total cash provided from (used for) operations.................................................................. Noncash Investing, Capital, and Financing Activities Noncash distributions from the State Treasurer Long-Term Investment Portfolio and/or other agents................... Donated or transferred assets ......................................................... Change in fair value of investments.................................................. Change in securities lending collateral.............................................
—
— 41 —
11,327 65 162
49 71 —
— 23 —
6,422 792 1
32 — — — — (122)
574 (72) 113 7 — (140)
80 — — 82 — (151)
(1,017) 2,126 — — — (48)
(1,134) 395 2 — (4,439) (2,546)
(419) — 35 (20)
(1,270) (32) 26 —
(11) (12) 48 —
(2,643) (6) 41 —
704 (59) 427 —
$
2,439
$
17,517
$
99
$
(817)
$
$
1,998 — (1,306) (2,245)
$
— 1,151 — —
$
— — — —
$
— — — —
$
252
(4,658)
— — — —
State of North Carolina
Exhibit E-3 State Telecommunications Services $
17,282 64,799 (62,073) (8,793) — (1,931) — —
Surplus Property $
967 1,716 (237) (1,514) — (60) 147 (65)
Totals $
35,445 279,124 (146,613) (122,495) (443) (20,586) 531 (145)
9,284
954
24,818
— — (5,762)
— — —
128 10,614 (5,819)
(5,762)
—
4,923
(1,566) — (158) (23) —
— — — — —
(28,197) 3,297 (158) (23) 150
(1,747)
—
(24,931)
—
—
160
$
1,775 16,745 18,520
$
954 1,259 2,213
$
4,970 87,456 92,426
$
8,874
$
779
$
14,729
1,727 228 —
7 39 45
19,532 1,259 208
(1,971) 286 70 — (88) (622)
(70) 5 — — — (80)
(3,506) 2,740 185 89 (4,527) (3,709)
1,195 (290) (125) —
77 140 12 —
(2,367) (259) 464 (20)
$
9,284
$
954
$
24,818
$
— — — —
$
— — — —
$
1,998 1,151 (1,306) (2,245)
253
