Part IV. Fiscal: Income and Distribution of Funds
22VAC45-20-110. Setting aside of funds.
A. Funds will be set aside from the net proceeds of the operations of the vending facilities under the program and from retained vending machine income according to the formula submitted to and approved by the U.S. Commissioner of Rehabilitation Services Administration and the U.S. Secretary of Education in an amount determined to be reasonable.
B. These charges shall be assessed quarterly. Statements shall be prepared and rendered, along with settlement, to each blind vendor at least quarterly.
C. Moneys collected from the setting aside of funds shall be used solely for the following purposes:
1. Maintenance and replacement of equipment;
2. Purchase of new equipment;
3. Management services;
4. Assuring a fair minimum return to vendors; and
5. The establishment and maintenance of retirement or pension funds, health insurance contributions, and provision for paid sick leave and vacation time, if it is so determined by a majority vote of blind vendors licensed by the state licensing agency, after such agency provides to each vendor information on all matters relevant to such proposed purposes.
D. The charge for each of the listed purposes will be determined by the department on the basis of records or expenditures made for each of these purposes over a reasonable period of time, with allowances for reasonable charges for improving services, fluctuation in costs, and for program expansion. The charges shall be reviewed and approved by the commissioner of the department with the assistance of the operations management team. Charges will be reevaluated periodically and necessary adjustments made. Adequate records will be maintained by the department to support the reasonableness of the charge for each of the purposes listed, including any reserves necessary to assure that such purposes can be achieved on a consistent basis.
E. The policy on setting aside of funds shall be reviewed annually with the active participation of the vending facility vendors council.
Statutory Authority
§§ 51.5-65 and 51.5-78 of the Code of Virginia.
Historical Notes
Derived from VR670-02-1 § 4.1, eff. March 28, 1990; amended, Virginia Register Volume 35, Issue 23, eff. August 23, 2019.
22VAC45-20-120. Distribution and use of income from vending machines.
A. Income from vending machines (with the exception of revenues derived from the state highway vending program), shall accrue to each vendor operating a vending facility on such property. The amount shall not exceed the average net income of the total number of blind vendors within the Commonwealth as determined each fiscal year on the basis of each prior year's operation, except that vending machine income shall not accrue to any blind vendor in any amount exceeding the average net income of the total number of blind vendors in the United States.
B. No blind vendor shall receive less vending machine income than that vendor was receiving during the calendar year prior to January 1, 1974, as a direct result of any limitation imposed on such income under this ceiling.
C. No limitation shall be imposed on income from vending machines combined to create a vending facility when such facility is maintained, serviced, or operated by a blind vendor.
D. The department will disburse vending machine income to eligible blind vendors on at least a quarterly basis.
E. The department shall retain vending machine income that is in excess of the amount eligible to accrue to a blind vendor in a facility. Funds received from these facilities will be used for:
1. The establishment and maintenance of retirement or pension plan;
2. Contributions toward a health insurance program; and
3. The provision of paid sick leave and vacation time for blind licensees.
The purposes stated must be approved by a majority vote of the licensed vendors after each licensee has been furnished information relevant to such purpose.
F. Any vending machine income not necessary for such purposes shall be used for one or more of the following:
1. Maintenance and replacement of equipment;
2. Purchase of new equipment;
3. Management services; and
4. Assuring a fair minimum return to vendors.
G. Any assessment charged to blind vendors shall be reduced pro rata in an amount equal to the total of such remaining vending machine income.
Statutory Authority
§§ 51.5-65 and 51.5-78 of the Code of Virginia.
Historical Notes
Derived from VR670-02-1 § 4.2, eff. March 28, 1990; amended, Virginia Register Volume 35, Issue 23, eff. August 23, 2019.
22VAC45-20-130. Administrative review of income and distribution of funds.
A. The department shall receive on an annual basis a budget prepared by the nominee which sets forth the anticipated revenue and the designated uses thereof.
B. The budget shall be developed with the active participation of the vending facility vendors council.
C. Quarterly updates to the revenue projections and revisions to the proposed budget will be submitted by the nominee to the commissioner of the department.
D. An annual budget summary will be submitted to the commissioner of the department at the end of the budget cycle.
E. The commissioner of the department shall determine the time of submission for such documents.
F. The proposed budget of the nominee shall be submitted by the commissioner to the board of the department for review and comment.
G. The nominee shall submit to the commissioner and to the board of the department an annual financial audit. The audit is to be performed by an independent firm of certified public accountants to be secured in accordance with the Virginia Procurement Act, §§ 11-35 through 11-80 of the Code of Virginia.
Statutory Authority
§§ 51.5-65 and 51.5-78 of the Code of Virginia.
Historical Notes
Derived from VR670-02-1 § 4.3, eff. March 28, 1990.