12-150 C.M.R. ch. 15, § 10 - SETTING ASIDE OF FUNDS
1. The SLA shall
establish in writing the extent to which funds are to be set aside from the net
proceeds of vending facilities; and, to the extent applicable, from vending
machine income under 34 CFR
§
395.8(c).
2. Funds may be set aside under this section
only for the purposes of:
A. Maintenance and
replacement of equipment;
B.
Purchase of new equipment;
C.
Management services;
D. Fair
minimum return to managers; or
E.
Establishment and maintenance of retirement or pension funds, health insurance
contributions, paid sick leave and vacation time, if it is determined by a
majority vote of managers and those who are licensed and authorized to operate
a facility after the agency provides each manager information on all matters
relevant to the proposed purposes.
3. Adequate records shall be maintained to
support the reasonableness of the charges for set-aside referred to this
section.
4. Set-aside may be
established, with the active participation of the State Committee of Blind
Managers and subject to the approval of Rehabilitation Services Administration
(RSA).
5. Determination of the net
proceeds shall be made by subtracting all expenses including, but not limited
to, merchandise purchased for resale, insurance(s), and wages, but shall not
include pay to the manager or set-aside payments.
6. During any monthly period when net
proceeds are less than an amount equal to the current federal minimum wage rate
multiplied by the number of hours the manager was present in the vending
facility (maximum of 40 hours per week) and during which the facility was open
for business, the requirement to pay the set-aside assessment may be
waived.
7. Charges for the items
listed in Section (2) above shall be determined in the following manner:
A. Equipment shall be replaced or repaired at
the discretion of the SLA in the manner which is most cost effective while
maintaining the facility's current capabilities.
B. The purchase of new equipment shall be at
the discretion of the SLA and in a manner that will maintain the facility's
current capabilities or enhance future profits to the location.
C. Prior to purchase of management services
other than those provided by the program, the SLA shall verify whether such
charges are reasonable in comparison with fees charged for like services
throughout the area in which service is to be performed. Management services
are generally limited to necessary supervisory and inspection services,
merchandising and bookkeeping assistance, display and other business
techniques, and practices to improve the operation of the vending
facility.
8. The purpose
of fair minimum return is to ensure an equitable financial return to the
manager when the net proceeds of the site fail to do so. When a fair minimum
return is established, the SLA, in its discretion, may augment the net proceeds
by an amount necessary to bring the monthly income of the manager up to the
fair minimum return. Wages paid to family members may not exceed one and one
half (1 1/2) times the prevailing minimum wage for 40 hours per week if fair
minimum return is requested.
Fair minimum return is defined as an amount equal to the current federal minimum wage multiplied by the number of hours during which a manager was present in the vending facility (up to a maximum of 40 hours per week) and during which the facility was open for business; fair minimum return is computed by averaging the net proceeds for the number of weeks in the monthly reporting period. Since inventory change and other operating expenses can affect net proceeds, such factors shall be considered when calculating fair minimum return. If the business is seasonal in nature and like businesses normally would not provide the established minimum return, then the fair minimum payment shall not apply.
9. Managers may use checking accounts for
receipts and disbursements pertinent to the operation of the facility. Such
accounts will be used exclusively for the fiscal affairs of the facility, and
the manager will not co-mingle personal or other funds in this account except
to the extent that such funds represent equity in the business.
10. It is the responsibility of the manager
to make certain that the rate of cash withdrawals does not exceed the rate of
net profit to the facility. It is also the manager's responsibility to provide
cash reserves for contingencies such as vacation and sick leave or other
purposes as may be necessary for the proper operation of the
facility.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
1. The SLA shall establish in writing the extent to which funds are to be set aside from the net proceeds of vending facilities; and, to the extent applicable, from vending machine income under 34 CFR § 395.8(c).
2. Funds may be set aside under this section only for the purposes of:
A. Maintenance and replacement of equipment;
B. Purchase of new equipment;
C. Management services;
D. Fair minimum return to managers; or
E. Establishment and maintenance of retirement or pension funds, health insurance contributions, paid sick leave and vacation time, if it is determined by a majority vote of managers and those who are licensed and authorized to operate a facility after the agency provides each manager information on all matters relevant to the proposed purposes.
3. Adequate records shall be maintained to support the reasonableness of the charges for set-aside referred to this section.
4. Set-aside may be established, with the active participation of the State Committee of Blind Managers and subject to the approval of Rehabilitation Services Administration (RSA).
5. Determination of the net proceeds shall be made by subtracting all expenses including, but not limited to, merchandise purchased for resale, insurance(s), and wages, but shall not include pay to the manager or set-aside payments.
6. During any monthly period when net proceeds are less than an amount equal to the current federal minimum wage rate multiplied by the number of hours the manager was present in the vending facility (maximum of 40 hours per week) and during which the facility was open for business, the requirement to pay the set-aside assessment may be waived.
7. Charges for the items listed in Section (2) above shall be determined in the following manner:
A. Equipment shall be replaced or repaired at the discretion of the SLA in the manner which is most cost effective while maintaining the facility's current capabilities.
B. The purchase of new equipment shall be at the discretion of the SLA and in a manner that will maintain the facility's current capabilities or enhance future profits to the location.
C. Prior to purchase of management services other than those provided by the program, the SLA shall verify whether such charges are reasonable in comparison with fees charged for like services throughout the area in which service is to be performed. Management services are generally limited to necessary supervisory and inspection services, merchandising and bookkeeping assistance, display and other business techniques, and practices to improve the operation of the vending facility.
8. The purpose of fair minimum return is to ensure an equitable financial return to the manager when the net proceeds of the site fail to do so. When a fair minimum return is established, the SLA, in its discretion, may augment the net proceeds by an amount necessary to bring the monthly income of the manager up to the fair minimum return. Wages paid to family members may not exceed one and one half (1 ½) times the prevailing minimum wage for 40 hours per week if fair minimum return is requested.
Fair minimum return is defined as an amount equal to the current federal minimum wage multiplied by the number of hours during which a manager was present in the vending facility (up to a maximum of 40 hours per week) and during which the facility was open for business; fair minimum return is computed by averaging the net proceeds for the number of weeks in the monthly reporting period. Since inventory change and other operating expenses can affect net proceeds, such factors shall be considered when calculating fair minimum return. If the business is seasonal in nature and like businesses normally would not provide the established minimum return, then the fair minimum payment shall not apply.
9. Managers may use checking accounts for receipts and disbursements pertinent to the operation of the facility. Such accounts will be used exclusively for the fiscal affairs of the facility, and the manager will not co-mingle personal or other funds in this account except to the extent that such funds represent equity in the business.
10. It is the responsibility of the manager to make certain that the rate of cash withdrawals does not exceed the rate of net profit to the facility. It is also the manager's responsibility to provide cash reserves for contingencies such as vacation and sick leave or other purposes as may be necessary for the proper operation of the facility.