NY Ment Hygiene L § 25.11 (2021)
2021 New York Laws MHY - Mental Hygiene Title D - Alcoholism and Substance Abuse Act Article 25 - Funding for Services of the Office of Alcoholism and Substance Abuse Services 25.11 - Distribution of State Aid to a Local Governmental Unit.

§ 25.11 Distribution of state aid to a local governmental unit.   Notwithstanding  section  one hundred twelve of the state finance law, the  office  is  authorized  to  grant  state  aid  annually  to   local governmental units in the following manner:  (a) Local governmental units shall be granted state aid by a state aid funding  authorization  letter  issued  by  the  office for approved net operating costs for voluntary agencies to support  the  base  amount  of state  aid  provided  to  such  voluntary  agencies  for  the prior year provided that the local governmental unit  has  approved  and  submitted budgets  for  the voluntary agencies to the office. The voluntary agency budgets shall identify the nature of the services to be  provided  which must  be  consistent with the local services plan submitted by the local governmental unit pursuant to article forty-one  of  this  chapter,  the areas  to  be  served  and include a description of the voluntary agency contributions and local governmental unit funding  provided.  The  local governmental unit shall enter into contracts with the voluntary agencies receiving   such   state  aid.  Such  contracts  shall  include  funding requirements  set  by  the  office  including   but   not   limited   to responsibilities  of voluntary agencies relating to work scopes, program performance and operations, application of  program  income,  prohibited use  of  funds, recordkeeping and audit obligations. Upon designation by the office, local governmental units shall notify voluntary agencies  as to the source of funding received by such voluntary agencies.  (b) State aid made available to a local governmental unit for approved net  operating  costs  for a program operated by a voluntary agency or a local governmental unit may be reduced where a review of such  voluntary agency's prior year's budget and/or performance indicates:  (1)  that  the  program  operated  by  a  local  governmental  unit or voluntary agency has failed to meet minimum  performance  standards  and requirements  of  the  office including, but not limited to, maintaining service utilization rates and  productivity  standards  as  set  by  the office provided however, that upon determination that the program is not meeting  the minimum standards and requirements, the office shall notify such program operated by a local governmental unit or  voluntary  agency of their deficiencies, and if appropriate, a corrective action plan that includes  specific  actions  to address any deficiencies and a timetable for implementation shall be developed. State aid may  be  reduced  if  a corrective  action  plan  is  not  approved  by  the  office  or  is not implemented in a timely and satisfactory manner;  (2) that the voluntary agency has had an increase in voluntary  agency contributions  that  reduces the approved net operating costs necessary, except where  the  office  has  approved  an  alternative  use  of  such voluntary  agency  contributions  or such voluntary agency contributions are necessary to ensure financial viability.