N.Y. Mental Hygiene Law § 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).