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Section II:

Budget and Finance


Canteen or Vending Income

Current Effective Date:

May 31, 2005

Revision History:


Original Effective Date:




The purpose of this policy is to set specific guidelines for the Department of Health and Human Services (DHHS) division/facility/school generating canteen or vending income.


  1. Canteen or vending income may be used for the benefit of individuals served by the program (residents or students) and for certain employee activities under the following conditions:
    1. At least 50% of canteen or vending income generated each year must be used for the benefit of residents or students.
    2. Division/facility/school must utilize competitive vending contracts in order to maximize funds available for use.
    3. Division/facility/school directors must establish the percentage of canteen or vending income that will be available for use by non-residents or students (employees) employees. If no percentage is established by a division/facility/school director, then 100% of canteen or vending income must be used for the benefit of residents or students. The percentage is established, as needed, prior to the beginning of the fiscal year.
    4. Employee activities must meet approved guidelines and be available equally to all employees.
  2. A standing committee of at least five (5) members must be established for vending receipts. The members of the committee are to be appointed by the division/facility/school director and shall consist of the following:
    1. The division/facility/school director or the school superintendent (who will chair the committee).
    2. One (1) budget or fiscal officer.
    3. A representative from each section of the organizational structure.
    4. Others as deemed appropriate by the division/facility/school director.

      At the division/facility/school director’s option, two (2) committees may be formed – resident/student fund and employee activity fund. The employee activity fund committee must be composed as described in a-b above. The resident/student vending receipts committee shall be composed of the division/facility/school director or school superintendent (who will serve as chair), a budget or fiscal officer, one or more representatives from direct care sections, and others as deemed appropriate by the director or superintendent.
  3. Any exception to establishing a vending receipts committee must be granted by the DHHS Division of Budget and Analysis. The exception must be approved prior to the budgeting and expenditure of any vending receipts.

  4. Allowable Activities and Expenditures for the Resident/Student Fund:
    1. Transportation for indigent residents.
    2. Personal care items for indigent residents.
    3. Attendant services for residents.
    4. Spending allowance for indigent residents or students.
    5. Critical equipment needs related to residents’ care (not to replace nor supplant other funding sources).
    6. Resident and student outings including admission, tickets, refreshments (trips to parks, circus, movies, on-campus special events, etc.)
    7. Purchase of games, videos, audiocassettes, CDs, and (if resident/student has no available funds) repair service for TV, VCR/DVD, CD Player, etc.
  5. Allowable Activities and Expenditures for the Employee Activities Fund:
    1. Holiday socials and dinners.
    2. Service awards banquets.
    3. Plaques, food, supplies, and decorations associated with awards banquet/employee appreciation event.
    4. Employee and staff family picnics.
    5. Employee and staff sport events.
    6. Retirement parties (provided that all employees are treated equally).
    7. Hospital/facility/school equipment.
    8. Health/wellness activities.
  6. The employees’ activity fund may not be used for monetary awards and/or personal gift items to employees for outstanding service, longevity, random prizes, or raffles; however, it may be used for small monetary gift items such as gift certificates and Christmas awards, as long as every staff member uniformly receives the same gift at the same value.


  1. Division/facility/school directors must appoint a committee or committees.

  2. Duties of the Vending Receipts Committee(s):
    1. Develop policies/guidelines relative to the resident/student fund and the employee activity fund.
    2. Develop a budget to utilize projected or available revenues.
    3. Solicit employee input into activities to be funded.
    4. Publicize on campus the activities that are to be funded so that all employees and staff are aware of activities and expenditures that have been approved.
    5. Ensure that any activities or expenditures funded are available to all employees and staff.
    6. Approve disbursements.
  3. Any proposed expenditure must be budgeted via a BD-606 and approved by the Division of Budget and Analysis and the Office of State Budget and Management.

  4. Resident/student vending receipt funds and employee vending receipt funds must be accounted for in separate funds.

For questions or clarification on any of the information contained in this policy, please contact The Division of Budget and Analysis. For general questions about department-wide policies and procedures, contact the DHHS Policy Coordinator.

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