42 CFR §1007.5

1. (a)A Unit must be a single, identifiable entity of the State government.
2. (b)To be considered a single, identifiable entity of the State government, the Unit must:
   1. (1)Be a single organization reporting to the Unit director;
   2. (2)Operate under a budget that is separate from that of its parent agency; and
   3. (3)Have the headquarters office and any field offices each in their own contiguous space, unless the Unit demonstrates to OIG that circumstances warrant a different arrangement for certain employees.