The following is an excerpt from the State Comptroller's Accounting Procedures Manual for Activity and Welfare Funds. Expenditures for the following items will not be made from activity or welfare funds:
A. Routine expenditures such as equipment, supplies, forms and postage for State use.
B. Repair or maintenance of State equipment (except certain jointly used equipment).
C. Professional books, magazines and memberships in professional organizations not related to specific activity/welfare fund functions or for which the greater benefit does not accrue to clients, inmates or students.
D. Salaries for services that are the responsibility of the institution or agency.
E. Gifts, services, or donations to State employees, private citizens, or organizations (except other entities organized to benefit students, inmates or clients. Example: donations from a class restricted account to a student alumni association). Specific fund raising events for charitable organizations are not excluded and must be accounted for in a restricted account. Only the net profits of the proceeds may be donated to the charitable organization. If the fund-raiser event does not meet the expenditures for the event, proceeds may not be donated to the charity organization. The fund must cover all expenditures of the event. However, if the fund policy provides guidance on this issue, the policy statement prevails.
F. Loans to State employees and persons other than inmates, students, or clients of the institution or agency.
G. Other expenditures that directly benefit the employees, except expenditures from restricted accounts that are established in accordance with Section IV-B.4 (REVENUES-Restricted Accounts). However, expenditures for State Agency sponsored joint ventures participated in by employees in conjunction with patients, clients, inmates or students may be made from activity or welfare funds.
