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Internal Service Funds <br />Internal Service Funds are used to account for the financing of goods and services provided by <br />one department or agency to other department or agencies of the County on a cost <br />reimbursement basis <br />Workers Compensation Fund was established as a self - insurance fund to accumulate claim <br />reserves and to pay claims and administrative fees from workman's compensation liability. <br />Self- Insured Hospitalization Fund was established as a self - insurance fund for employee <br />health insurance coverage. The employee's premium and the County's contribution are <br />deposited in this fund. Payments for health coverage are made to a third -party administrator for <br />the statement of claims plus administrative expenses. <br />Attachment number 1 <br />1 -3 Page 364 <br />