203 SETTING ASIDE OF FUNDS

203.1 The Program shall be supported principally through the use of set-aside funds.203.2 The licensing agency shall enter into a servicing agreement with a nominee organization for overall managerial services.203.3 The budget for the nominee organization shall be funded completely by funds set aside from the net proceeds from the operation of vending facilities.203.4 Licensing agency funding shall provide for activities not assignable under a servicing agreement, in addition to the training of prospective vendors and the monitoring of the servicing agreement.203.5 Funds shall be set aside as follows:- (a) Thirty-three percent (33%) of the net proceeds of facilities with annual net proceeds of thirty-six thousand dollars (\$36,000), or more; and

- (b) Twenty-eight percent (28%) of the net proceeds of all facilities with annual net proceeds of less than thirty-six thousand dollars (\$36,000).203.6 Set-aside funds shall be spent only for the following purposes, unless the majority of vendors elects to use unassigned vending income for a retirement plan, paid health insurance, or paid sick leave and vacation:- (a) Maintenance and replacement of equipment;

- (b) Purchase of new equipment;

- (c) Management services; and

- (d) Guarantee of a fair minimum return.203.7 The schedule of set-aside funds shall be the following:- (a) Twenty-three percent (23%) for maintenance and replacement of equipment;

- (b) Twenty-five percent (25%) for the purchase of new equipment;

- (c) Forty-nine percent (49%) for management services; and

- (d) Three percent (3%) to guarantee a fair minimum return.203.8 Financial records for the Program shall be prepared and maintained by the nominee organization in accordance with written instructions from the licensing agency.203.9 Each vendor shall be provided with a monthly profit and loss statement reflecting the business of the individual facility.203.10 The nominee organization shall maintain records reflecting a full financial picture of the program. Special emphasis shall be placed on accountability and justification for expenditures within the four (4) categories set forth in §203.5.

SOURCE: DCRR Title 6C, as amended by Final Rulemaking published at 27 DCR 4611 (October 17, 1980).