The document provides an overview of internal service funds (ISFs) used by various public sector entities. ISFs are used to better manage and track cross-departmental operational costs and capital expenditures. They increase fiscal accountability, assess total cost of ownership, and allow customer influence over budgets. The document then discusses examples of ISFs used by Arvada, Fort Collins, and Jefferson County, comparing their structures, chargeback methods, and goals in transitioning to ISFs.

1. Internal Service Fund Overview April 23, 2008 CGAIT Spring Conference 10:45am – 11:45am

6. Internal Service Fund Process Charge for Services -Base Services -Discretionary Services Review Usage / Need Refine Rates Next Fiscal Year Process Changes, Efficiencies and Service Delivery Improvements

7. ISF Road Map 76% 85% 98% IT Staff Centralization ISF All IT Services in ISF Hybrid - General Fund and ISF Type of Fund - General, CIP, ISF, Other $11.2M $7.5M $5.8M Budget for 2008 2,606 1600 600 -# of PCs 81 45 24 (28) -IT Employees 2,840 2,200 700 -Employees Demographics Jeffco Fort Collins Arvada

8. ISF Roadmap Jeffco Fort Collins Arvada Unintended behaviors, “less calls to help desk” Spotlights cost and service allocation inequities; forces debate. General Fund scrutiny could cause staff reductions Cons ISF, increase overall financial awareness of IT budget throughout county, less reductions in tight budgetary times, customers appreciate value of IT Better transparency, protected reserves and working capital through fund balance, Don't compete for CIP Funding for existing infrastructure. Staff costs in GF. Operating Costs in ISF, $ rolls, $5m balance Pros

9. ISF Roadmap Jeffco Fort Collins Arvada Decentralized Hybrid Hybrid Software Decentralized Centralized in IT Centralized in IT Servers Decentralized Centralized in IT Centralized in IT PCs Procurement Practices Yes In process In process Service Catalog Yes A mix Yes Charge Backs No Sort of Yes General Fund Sweep No Yes No General Fund Revenue / Cost Allocation

10. Arvada ISF

13. Arvada Network Charge Backs

14. Divisional Example

16. Annual ISF Revenue

18. Jefferson County ISF

19. Chargebacks Customer: I complain about IT because that is all that I can do!!! I have no direct influence over the level of IT spending or the IT charges I receive. Chargebacks provide checks and balances Chargebacks drive behavior For IT, the behavior is to be competitive For business, the behavior is to obtain value Develop chargeback process with right objective in mind.

20. Finance & Administration ISF Chargeback Methods SBP Service Based Pricing Per measured unit Lowest complexity, cost Highest complexity, cost HLA High Level Allocation Revenue, # of FTE’s LLA Low Level Allocation Accts, Logins, Users DC Direct Cost Time & Materials MRU Resource Usage Actual Consumption TFR Tiered Flat Rate Service Used or Not NFR Negotiate Flat Rate Projected Usage

26. $ 32,667.12 2,124.00 $ 1,107.36 $ 15.38 72.00 A&RM Retrievals - Count $ 258,559.31 12,686.91 $ 5,322.85 $ 20.38 261.18 A&RM Storage - Cubic Foot $ 291,226.43 $ 6,430.21 Cubic Foot/Count $ 84,290.40 1,665.16 $ 429.26 $ 50.62 8.48 EDMS (Livelink) $ 6,919.87 110.40 $ - $ 62.68 0 Records Management $ 33,921.47 421.28 $ - $ 80.52 0 IVR $ 193,218.50 2,680.24 $ - $ 72.09 0 Amanda $ 288,398.54 3,659.88 $ 1,074.83 $ 78.80 13.64 ERP/JDE $ 153,252.84 2,228.16 $ 137.56 $ 68.78 2.00 GIS $ 1,480,823.96 18,706.72 $ 116,571.02 $ 79.16 1,472.60 Development & Consulting $ 9,786.84 91.68 $ - $ 106.75 0 Enterprise Services $ 206,271.38 4,086.20 $ 3,390.24 $ 50.48 67.16 Customer Services/Help Desk $ 190,119.26 2,911.92 $ 817.43 $ 65.29 12.52 Telecommunication $ 172,163.48 2,647.04 $ 1,251.37 $ 65.04 19.24 System Admin $ 2,819,166.54 $ 123,671.70 Hours CUSTOMER SPECIFIC Total ITS County-wide Investment ITS Projected Service County-wide 2008 Customer Expense 2008 ITS Rate Per Metric 2008 Customer Metric Service Metric

27. $ 11,209,924.51 $ 206,193.52 TOTALS (Customer Specfic & Enterprise) $ 185,260.85 37.00 $ 5,007.05 $ 5,007.05 1.00 IVR Applications $ 185,260.85 $ 5,007.05 IVR Applications $ 376,986.96 24,933.00 $ - $ 15.12 0 Amanda Folders $ 376,986.96 $ - Amanda Folders $ 137,965.98 2,610.52 $ 1,152.13 $ 52.85 21.80 Records Management (Enterprise) $ 811,454.04 2,610.52 $ 6,776.31 $ 310.84 21.80 ERP/JDE $ 949,420.02 $ 7,928.44 FTE $ 1,076,199.78 3,299.00 $ 12,396.36 $ 326.22 38.00 Telecommunication $ 1,076,199.78 $ 12,396.36 Phone Lines $ 347,692.52 2,606.00 $ 3,202.08 $ 133.42 24.00 EDMS (Livelink) $ 723,946.80 2,606.00 $ 6,667.20 $ 277.80 24.00 GIS $ 762,124.70 2,606.00 $ 7,018.80 $ 292.45 24.00 Development & Consulting $ 477,810.10 2,606.00 $ 4,400.40 $ 183.35 24.00 Enterprise Services $ 555,833.74 2,606.00 $ 5,118.96 $ 213.29 24.00 Customer Services/Help Desk $ 236,103.60 2,606.00 $ 2,174.40 $ 90.60 24.00 Data Carrier Fees (Sys Admin) $ 2,408,152.48 2,606.00 $ 22,177.92 $ 924.08 24.00 System Admin $ 5,511,663.94 $ 50,759.76 Network Accounts ENTERPRISE

28. ISF Vision New Solutions are new implementations or products. Upgrades are major product releases that often contain significant changes and feature enhancements to the product. Enhancements are new functionality, services or customizations. Discretionary Base Maintenance is the modification of a product after delivery to correct faults. Support is user assistance with specific product problems, but not training and customization. Updates , often referred to as service packs, are occasionally required to bring you necessary fixes or minor modifications to your software. Maintenance, Support & Updates New Solutions, Upgrades & Enhancements

30. Question & Answer Session