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).
Last modified: February 3, 2019