N.Y. MHY Law § 25.06 — New York Code / Act MHY / Title D / Article 25 / Section 25.06
Disclosures by closely allied entities of a voluntary agency
Status: in_force

§ 25.06 Disclosures by closely allied entities of a voluntary agency.\n  (a) A closely allied entity of a voluntary agency that is funded or\nhas applied for funding from the office shall provide the office with\nthe following information:\n  1. A schedule of the dates, nature and amounts of all fiscal\ntransactions between the closely allied entity and the voluntary agency\nthat is funded or has applied for funding from the office.\n  2. A copy of the closely allied entity's certified annual financial\nstatements.\n  3. With respect to any lease agreement between the closely allied\nentity, as lessor, and the voluntary agency that is funded or has\napplied for funding from the office, as lessee, of real or personal\nproperty:\n  (i) A certified statement by an independent outside entity providing a\nfair market appraisal of the real property space to be rented, as well\nas of any rental of personal property.\n  (ii) A statement of projected operating costs of the allied entity\nrelative to any such leased property for the budget period. The closely\nallied entity must furnish the office with a certified statement of its\nactual operating costs relative to the leased property.\n  4. A statement of the funds received by the closely allied entity in\nconnection with its fund raising activities conducted on behalf of the\nsubstance use disorder and/or compulsive gambling program that is funded\nor has applied for funding from the office which clearly identifies how\nsuch funds were and will be distributed or applied to such program.\n  5. Any other data or information which the office may deem necessary\nfor purposes of making a funding decision.\n  (b) The office shall have access to the books and records of the\nclosely allied entity for purposes of verifying the accuracy of the\ninformation furnished to the office.\n  (c) For purposes of this section, a "closely allied entity" shall\nmean, but not be limited to, a corporation, partnership or\nunincorporated association or other body that has been formed or is\norganized to provide financial assistance and aid for the benefit of a\nvoluntary agency that is funded or has applied for funding from the\noffice and which financial assistance and aid shall include, but not be\nlimited to, engaging in fund raising activities, administering funds,\nholding title to real property, having an interest in personal property\nof any nature whatsoever, and engaging in any other activities for the\nbenefit of any such program. Moreover, an entity shall be deemed closely\nallied to a voluntary agency that is funded or has applied for funding\nfrom the office to the extent that such entity and applicable fiscal\ntransactions are required to be disclosed within the annual financial\nstatements of the voluntary agency that is funded or has applied for\nfunding from the office, under the category of related party\ntransactions, as defined by and in accordance with generally accepted\naccounting principles (GAAP) and generally accepted auditing standards\n(GAAS), as promulgated by the American institute of certified public\naccountants (AICPA).\n