(a) A host agency must, for the Ombudsman Program implemented by a local ombudsman entity, expend for a federal fiscal year at least the amount of federal funds expended as required by the Older Americans Act, §306(a)(9). In determining the amount of funds expended, the host agency may include all funds except, in the discretion of the State Ombudsman, an amount of state general revenue funds allocated to the host agency described in §88.105(b)(3) of this chapter (relating to Fiscal Management of a Local Ombudsman Entity). The State Ombudsman will notify host agencies of the specific amount of state general revenue funds to be excepted from the determination of funds expended by a communication published on the Long-Term Care Ombudsman website.(b) A function of the Ombudsman Program performed by a local ombudsman entity that is paid for with funds allocated by HHSC must be an allowable activity in accordance with the Ombudsman Policies and Procedures Manual.(c) A purchase of a service, material, equipment, or good by a host agency for the Ombudsman Program implemented by a local ombudsman entity with funds allocated by HHSC must meet the criteria described in 45 CFR Part 75.