(a) Authority. As authorized by the Texas Health and Safety Code, §551.004, the CEO must be the trustee of a special fund designated as the benefit fund. The CEO may expend the money in any such fund for the education or entertainment of individuals or for the actual expense of maintaining the fund at the financial institution.
(b) Source of funds. The source of benefit funds are:
  (1) private donations or gifts; and
  (2) interest earned from investment of benefit funds.
(c) Use of funds. Except for specific purpose funds, benefit funds may be used only for the purposes of education or entertainment of individuals and be of general benefit to the facility's population. However, this does not mean or imply that every individual must benefit from each expenditure from the benefit fund. Benefit funds must not be spent in a manner that shows partiality or preferential treatment of an individual or selected groups of individuals. Expenditures from the benefit fund must be supported by sales receipts to show the exact purpose and, if practical, to show the name of the individuals' benefiting from the expenditure.
(d) Allowable expenditures. Expenditures from the benefit funds may include items such as:
  (1) supplies for behavior therapy programs, which involve a token economy or point level system;
  (2) outings for individuals, including admission fees and meals for those staff who are required to accompany the individuals;
  (3) coffee for individuals;
  (4) religious items;
  (5) educational books and supplies;
  (6) salaries of temporary teachers, including athletic instructors and recreation assistants;
  (7) playground equipment, televisions, record players, and stereos, for use by individuals as a whole in the living areas; and
  (8) grocery items purchased for classes in home economics.
(e) Unallowable expenditures. Expenditures that cannot be made from the benefit fund include:
  (1) travel of state employees;
  (2) operating supplies;
  (3) supplies for volunteer center training program;
  (4) nursery stock;
  (5) clothing for individuals;
  (6) cash issues to individuals with no personal funds.
  (7) purchase of canteen coupon books for individuals with no personal funds;
  (8) staff salary augmentation;
  (9) transportation for individuals' home visits; and
  (10) furniture and equipment normally purchased from state appropriated funds.
(f) Prohibition on use of funds. Unless prohibited by department policy or state or federal laws and regulations, funds that are donated for a specific purpose must be used for that purpose. If the purpose for the funds is prohibited, the donor is contacted and asked to specify a purpose that permits expenditure in compliance with department policy or state or federal law and regulations.
(g) Depositing funds. The CEO or designee must ensure that all benefit fund receipts are deposited in a financial institution insured by state or federal and all expenditures are made by check according to the TDMHMR Fiscal Manual .
(h) Administrative expenses. The actual expense of maintaining benefit funds may include expenditures to cover administrative errors which arise in the administration or disbursement of benefit funds and personal funds, provided the following restrictions are met:
  (1) the amount of benefit funds expended to cover any single loss does not exceed $250;
  (2) in each instance of loss, prior approval for the use of benefit funds to cover the administrative error must be obtained from the CEO;
  (3) the circumstances surrounding each administrative error must be documented and attached in the supporting records;
  (4) for auditing purposes, the expenditure, if approved and made, must be charged to cash shortage;
  (5) benefit funds must not be used to cover losses that result from the gross negligence of any employee or employees;
  (6) the facility in which the administrative error occurred must take the action necessary to correct the error and/or prevent its recurrence, including, but not limited to, counseling staff on the correct procedure for the administration and disbursement of benefit funds and personal funds; and
  (7) employees responsible for administrative errors in the administration or disbursement of benefit funds and personal funds may be subject to disciplinary action.

Source Note: The provisions of this §417.29 adopted to be effective April 27, 2003, 28 TexReg 3347