ABSTRACT. Previous studies involving internal service fund (ISF) use over the past thirty years point to a decline due to limited usefulness and the ability for local governments to reallocate costs to various departments. In order to determine if this trend is continuing, a thorough analysis was conducted of North Carolina County Comprehensive Annual Financial Reports (CAFRs). Initial findings indicate that there has been a slight increase in ISF use with the province still among larger governments, but the number of services utilized through an ISF continues to decline. Additional survey data suggest less experienced finance officers, a lower number of staff accountants, and a larger budgeted employee base result in a higher probability of using an internal service fund.
Modlin, S.. 2023. Increasing Efficiency through Accounting: Examining Factors Influencing Uses of the Internal Service Fund Among County Governments. The North American Accounting Studies 6 (1): 26-39.