2023 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 › 25.06 - Disclosures by Closely Allied Entities of a Voluntary Agency.

§ 25.06 Disclosures by closely allied entities of a voluntary agency.
(a)  A  closely  allied entity of a voluntary agency that is funded or
has applied for funding from the office shall provide  the  office  with
the following information:
1.  A  schedule  of  the  dates,  nature  and  amounts  of  all fiscal
transactions between the closely allied entity and the voluntary  agency
that is funded or has applied for funding from the office.
2.  A  copy  of the closely allied entity's certified annual financial
statements.
3. With respect to any lease  agreement  between  the  closely  allied
entity,  as  lessor,  and  the  voluntary  agency  that is funded or has
applied for funding from the office, as  lessee,  of  real  or  personal
property:
(i) A certified statement by an independent outside entity providing a
fair  market  appraisal of the real property space to be rented, as well
as of any rental of personal property.
(ii) A statement of projected operating costs  of  the  allied  entity
relative  to any such leased property for the budget period. The closely
allied entity must furnish the office with a certified statement of  its
actual operating costs relative to the leased property.
4.  A  statement of the funds received by the closely allied entity in
connection with its fund raising activities conducted on behalf  of  the
substance use disorder and/or compulsive gambling program that is funded
or  has applied for funding from the office which clearly identifies how
such funds were and will be distributed or applied to such program.
5. Any other data or information which the office may  deem  necessary
for purposes of making a funding decision.
(b)  The  office  shall  have  access  to the books and records of the
closely allied entity for purposes of  verifying  the  accuracy  of  the
information furnished to the office.
(c)  For  purposes  of  this  section, a "closely allied entity" shall
mean,  but  not  be  limited   to,   a   corporation,   partnership   or
unincorporated  association  or  other  body  that has been formed or is
organized to provide financial assistance and aid for the benefit  of  a
voluntary  agency  that  is  funded  or has applied for funding from the
office and which financial assistance and aid shall include, but not  be
limited  to,  engaging  in fund raising activities, administering funds,
holding title to real property, having an interest in personal  property
of  any  nature whatsoever, and engaging in any other activities for the
benefit of any such program. Moreover, an entity shall be deemed closely
allied to a voluntary agency that is funded or has applied  for  funding
from  the  office  to  the extent that such entity and applicable fiscal
transactions are required to be disclosed within  the  annual  financial
statements  of  the  voluntary  agency that is funded or has applied for
funding  from  the  office,  under  the  category   of   related   party
transactions,  as  defined  by and in accordance with generally accepted
accounting principles (GAAP) and generally accepted  auditing  standards
(GAAS),  as  promulgated  by  the American institute of certified public
accountants (AICPA).