Section 25.06. Disclosures by closely allied entities of substance abuse programs

(a) A closely allied entity of  a  substance  abuse  program  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 substance abuse
  program 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 substance abuse program 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  abuse  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 substance
  abuse program that is funded or has applied for funding from the  office
  which  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 substance abuse program
  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 substance  abuse
  program 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).