For internal service funds, what are revenues primarily categorized as?

Revenues for internal service funds are primarily categorized as operating revenues from services provided. Internal service funds are used by governments to offer goods or services to other departments or agencies within the same government. The primary goal of these funds is to charge the user departments for the services rendered, thereby allowing for the recovery of costs associated with providing these services.

The revenues generated by internal service funds come directly from the services that these funds deliver, such as vehicle maintenance, printing services, or information technology services. Consequently, the primary source of revenue is from the operational aspects of these services, which is why they are classified as operating revenues. This classification reflects the ongoing revenue generation activity tied directly to the fund's purpose, in contrast to other types of revenues that may not stem from the core operations of the internal service fund.