§ 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).