Current through Register Vol. 35, No. 18, September 24, 2024
A.
Purpose:The SLA shall set-aside funds as described in "Sources of
Set-Aside Funds" for purposes described in "Uses of Set-Aside Funds." The
licensed managers have recommended a set aside fee of net proceeds, as
indicated on the monthly report form (see Appendix 9, BEP Procedures Manual)
[now 9.4.7.20 NMAC].
B.
Sources of set-aside funds:
(1)
cash from application of a set aside fee against the net proceeds of each
vending facility;
(2) cash equal to
the net income of facilities operated temporarily by the SLA;
(3) cash from receipts of vending machines
located on federal property and retained by the SLA;
(4) cash from receipts of vending machines
located on nonfederal property and retained by the SLA;
(5) excess vending machine amounts determined
under Section 9 of this manual;
(6)
interest earned on reserve funds.
C.
Uses of set-aside
funds:Set-aside funds may only be used for the following purposes:
(1) maintenance of equipment in established
vending facility locations;
(2)
replacement of equipment in established vending facility locations;
(3) purchase of new equipment for established
vending facility locations;
(4)
purchase of new equipment for new vending facility locations;
(5) management services;
(6) assuring a fair minimum return to
managers;
(7) if it is so
determined by a majority vote of the managers licensed by the SLA, after the
SLA provides to each manager the information on all matters relevant to the
purposes below, the establishment and maintenance of:
(a) retirement or pension funds;
(b) health insurance contributions;
(c) paid sick leave;
(d) paid vacation time including displaced
manager payments;
(e) workers
compensation for the first year if funding permits;
(8) initial operating costs funded only by
income from vending machines located on nonfederal property and retained by the
SLA and temporary operation of vending facilities on nonfederal
property;
(9) reserves necessary to
accomplish the above purposes on an ongoing basis.
D.
Application of set-aside sources to
uses:
(1) Source: set-aside fee
assessed against the net proceeds of each vending facility. Uses:
(a) maintenance and replacement of
equipment;
(b) purchase of new
equipment;
(c) management
services;
(d) assuring a fair
minimum return to vendors; or
(e)
establishment and maintenance of retirement or pension funds, health insurance
contributions, and provisions for paid sick leave and vacation time, if it is
so determined by a majority vote of licensed managers licensed by the SLA,
after such agency provides to each vendor information on all matters relevant
to such proposed purposes.
(2) Source: temporary operation of vending
facilities on federal property. Uses:
(a)
maintenance of equipment;
(b)
replacement of equipment;
(c)
purchase of new equipment;
(d)
management services;
(e) fair
minimum return;
(f) retirement or
pension funds;
(g) health
insurance;
(h) sick
leave;
(i) vacation
leave;
(j) reserves.
(3) Source: retained vending
machine income from vending machines on federal property. Uses:
(a) maintenance of equipment;
(b) replacement of equipment;
(c) purchase of new equipment;
(d) management services;
(e) fair minimum return;
(f) retirement or pension funds;
(g) health insurance;
(h) sick leave;
(i) vacation leave;
(j) reserves.
(4) Source: temporary operation of vending
facilities on nonfederal property. Uses:
(a)
maintenance of equipment;
(b)
replacement of equipment;
(c)
purchase of new equipment;
(d)
management services;
(e) fair
minimum return;
(f) retirement or
pension funds;
(g) health
insurance;
(h) sick
leave;
(i) vacation
leave;
(j) reserves;
(k) initial operating costs;
(l) general liability insurance.
(5) Source: retained vending
machine income from vending machines on nonfederal property. Uses:
(a) maintenance of equipment;
(b) replacement of equipment;
(c) purchase of new equipment;
(d) management services;
(e) fair minimum return;
(f) retirement or pension funds;
(g) health insurance;
(h) sick leave;
(i) vacation leave;
(j) reserves;
(k) initial operating costs;
(l) general liability insurance.
E.
Budgeting of
set-aside funds and determination of set-aside rate:
(1) The SLA in consultation with the
committee shall provide for the establishment of a set-aside schedule covering
each of the purposes for which set-aside funds are intended to be used. The
method of determining the set-aside rate shall be as follows.
(a) Prior to the beginning of each fiscal
year, an estimate will be made of the amount and sources of funds which will be
required for each of the purposes for which funds are to be set-aside during
the ensuing fiscal year. The estimates of the amounts required as well as the
purposes for which funds are to be set-aside during the fiscal year will be
determined in consultation with the committee. The estimates will take into
account expenditures made for each of the purposes during the preceding fiscal
year and projections for the next fiscal year based on program needs and plans
and funds available from other sources.
(b) After a determination has been made as to
the amount of set-aside funds which will be required, a set aside rate to be
levied against the net proceeds of each licensed manager shall be established
to yield the required funds. The method of establishing the set aside rate
shall be: Total budgeted uses - initial operating costs - total budgeted other
resources = amount to be provided by set aside rate.
Total amount to be
provided ________________________ = Set-Aside Rate
Total net proceeds from 12 full months prior to
calculation
(c) This
methodology is designed to prevent, so far as is practicable, a greater charge
for any purpose than is reasonably required, with allowances for the retention
of reasonable reserves necessary to assure that each such purpose can be
provided on a continuing basis. This schedule of set-aside charges will be
developed in consultation with the committee and shall be submitted for
approval to the RSA commissioner. Any changes in the schedule of set-aside
charges will likewise be submitted to the RSA commissioner for prior approval.
The SLA will maintain adequate records to support the reasonableness of the
charge for each purpose.
(2) Requirements for additional stock
subsequent to provision of initial stock. In circumstances where additional
initial stock is required for efficient operation of the facility, the
set-aside fund may provide additional stock on a loan basis with an agreed upon
payment schedule. The licensed manager accrues equity in this stock to the
extent of his/her repayment of the advance.