N.J. Admin. Code § 6A:23A-16.11

Current through Register Vol. 57, No. 1, January 6, 2025

Section 6A:23A-16.11 - Internal service funds

(a) Internal service funds are used to account for and report any activity that provides goods and services from one department or office to other departments or offices of the district board of education or charter school or renaissance school project board of trustees, or to other district boards of education, boards of trustees, and governmental units, on a cost-reimbursement basis. Internal service funds are cost accounting and distribution entities and are intended to recover their costs annually or over a reasonable time period.

(b) A district board of education or charter school or renaissance school project board of trustees providing a shared service under a shared service agreement with another district board of education, board of trustees, or external entity shall account for the shared service costs in an internal service fund in accordance with GAAP.

1. The district board of education or charter school or renaissance school project board of trustees providing the shared service shall allocate the costs on a user-charge basis to all participating entities on an annual basis at a minimum.

i. A district board of education or charter school or renaissance school project board of trustees that is receiving the services shall report user charges in the applicable line item account for the goods or services received.

ii. A district board of education or charter school or renaissance school project board of trustees shall report as revenues the sales and purchases of goods and services for a price approximating their external exchange value ("Services Provided to Other Funds") in provider/seller funds.

2. The district board of education or charter school or renaissance school project board of trustees shall ensure that the shared service agreement includes an agreed-upon mechanism for the use and/or distribution of any unexpended balance(s).

3. The district board of education or charter school or renaissance school project board of trustees shall evaluate annually any unexpended balance(s) to determine the amount of monies, if any, due back to the shared service entities.

(c) A district board of education or charter school or renaissance school project board of trustees providing a shared service within the school district may allocate costs on a user charge or other basis.

N.J. Admin. Code § 6A:23A-16.11

Amended by 49 N.J.R. 1079(a), effective 5/1/2017

Amended by 56 N.J.R. 2166(a), effective 11/4/2024