Md. Code Regs. 13A.11.04.10

Current through Register Vol. 51, No. 22, November 1, 2024

Section 13A.11.04.10 - Set-Aside Charges

A. Determination and Use of Set-Aside Charges. On or before June 1 of each fiscal year, the Division with the active participation of the Committee shall determine the extent, if any, to which funds shall be set aside from the net proceeds of each vending facility during the following State budget year.

B. If the Division and the Committee determine that set-aside charges shall be assessed, the Division shall publish and submit the schedule of set-aside charges to the Commissioner of the Rehabilitation Services Administration, United States Department of Education for approval.

C. Set-Aside charges may only be used in the extent necessary to achieve the following purposes:

(1) Maintenance and replacement of equipment;

(2) Purchase of new equipment for:

(a) Existing vending facilities, and

(b) The establishment of new vending facilities if the Division with the active participation of the Committee determines that the financial stability of the program will be adversely affected through the use of other program funds for this purpose;

(3) Management services performed in accordance with a management services plan jointly developed and reviewed annually by the Division and the Committee; and

(4) Establishment and maintenance of a retirement and health insurance plan and provision of paid sick leave and vacation time, if a majority of licensed vendors in the State holding an Operating Agreement, after having been provided full program and financial information on the benefits, determine that the benefits be provided.

D. Reasonable Charges and Records. If the Division with the active participation of the Committee determines that set aside charges are necessary, the charges may not be assessed for any purpose in an amount greater than that which may reasonably be required for the purpose. The Division shall maintain adequate records to support the reasonableness of the charge for each purpose including any reserves necessary to assure that the purpose can be achieved on a consistent basis.

E. Schedule of Payments.

(1) Vendors shall pay set-aside charges in accordance with a schedule determined annually by the Division with the active participation of the Committee.

(2) If a vendor fails, without good cause, to pay set-aside charges in accordance with the established schedule, the Division shall assess penalties as outlined in the Administrative Manual.

(3) If the vendor fails to pay the set-aside charges and accumulated penalties, if any, the Division may elect to use vending machine income due the vendor as payment.

(4) The vendor is not eligible for transfer to another facility until the set-aside charges are paid.

(5) As a final recourse, the Division may suspend the vendor's Operating Agreement, or terminate the vendor's license in accordance with Regulation .12 of this chapter.

F. Documentation of Reported Set-Aside Expense.

(1) A vendor shall maintain on file all documents, including but not limited to expense paid outs and cash register daily tapes, used in the calculation of the monthly set-aside report:

(a) For a period of at least 3 years; and

(b) Consistent with the requirements established by federal, State, or municipal authorities.

(2) Set-aside reports filed by the vendor are subject to audit by the appropriate taxing authority, the Division, or an accounting firm selected by the Division.

Md. Code Regs. 13A.11.04.10

Regulation .10 amended effective 42:14 Md. R. 881, eff.7/20/2015