Published: September 16, 2020
Updated: January 7, 2021
Did you know there are over 1,400 codes in the chart of accounts of the Budgeting, Accounting, and Reporting System (BARS) Manuals for GAAP and cash-basis governments? Most governments won’t need all 1,400 BARS codes! Download the specific government type and basis of accounting codes here: GAAP basis and cash basis
Now, let’s talk about BARS code 3480000
Under the chart of accounts, BARS code 3480000 – Internal Service Fund is used solely by internal service funds for proceeds from sales of goods and services to other funds of the same government. The sales to external customers should be coded to revenue codes applicable for the type of service or goods sold.
Internal Service Fund use only
You may use this code only in the Internal Service Fund (ISF) group. The State Auditor’s Office’s (SAO) annual filing system recognizes an ISF through the use of the 500-599 Fund coding numbers on a government’s Schedule 01.
An ISF is generally established by a government that provides goods and services to other funds or departments of the same government, or to other governments on the cost reimbursement basis, and is mostly utilized by City and County governments. Using an ISF is only appropriate if the sponsoring government is the predominant user of the services. Otherwise, you should use an enterprise fund.
An ISF is commonly used for the sales of goods or services of the following types of activities: equipment rental and revolving; equipment maintenance and repairs; central store activities; printing services; and information technology services.
NEW: An ISF can be used for risk management type activities such as unemployment insurance or liability insurance funds. These activities have specific BARS codes and are excluded from the 3480000 coding. Please download the specific government type chart of accounts for more information on risk management type activities.
Allowable use of this code
The 3480000 BARS code should ONLY be used to report the sales of goods or services to other funds or departments of the same government. Use of other revenue codes, such as 362 Rents and Leases, 397 Transfers In, or other 34X Charges for Goods, Service, and Sales codes should not be used to report the sales of goods or services within the same government.
The 362 Rents and Leases and other 34X Charges for Goods, Service, and Sales codes should only be used in an ISF if the Fund has provided the rent, lease, or sale of goods and services to an external customer.
Because the ISF should be self-supporting (charges for goods and services should cover the expenses of the Fund), the 397 Transfer In code should be used when establishing the Fund or on the rare occasion when the government provides additional capital (money) to the Fund.
Red flags in your annual report in fiscal year 2020
Do you report 3480000 BARS codes in your Schedule 01?
For Fiscal Year 2020 annual reporting, the use of the 3480000 in any other fund type will be red-flagged for correction. Only the 500-599 fund codes will get a green flag!
SAO encourages governments to double-check their Schedule 01 process and BARS coding to ensure a smooth 3480000 BARS code submission.
If you have any questions, please submit a HelpDesk request, and we will be happy to help you.
Additional BARS resources:
GAAP BARS – Fund Types and Accounting Principles
GAAP BARS – Internal Service Funds
GAAP BARS – Account Structure (find fund group codes here)
CASH BARS – Fund Types and Accounting Principles