2009-060 Health - State of NC Health Dept

Browse Search

Consolidated A - Finl Page 14 of 19 The State may withhold payment to the Department until the State can determine whether the Department is entitled to further payment or whether the State is entitled to a refund. K. COMPLIANCE The State shall respond to non-compliance with all terms of this ag~~eement as follows: a. Upon determination ofnon-compliance, the State shall give the Department sixty (60) days written notice to come into compliance. If the deficiency is corrected, the Department shall submit a written report to the State that sets forth the corrective action taken. >r_ If the above deficiencies should not be corrected to the satisfaction of the State aRer the sixty (60) day period, disbursement of funds for the particular activity may be temporarily suspended pending negotiation of a plan of corrective action. If the deficiency is still not corrected within the next thirty (30) days following temporary suspension of fimdmg, program funds maybe permanently suspended until the Department can provide evidence that the deficiencies have beat corrected ' d. In the event of the Department's non-compliance with clauses of this agreement, the State may cancel, ternunate, or suspend this agreement in whole or in part and the Department maybe declared ineligible -for further State contracts or amts. Such terminations for non-compliance shall not occur until (1) the provisions of Section K-1 (a-c) have been followed, documented, and have failed to provide a resolution, and (2) aU older reasonable administrative remedies have been exhausted. ~~ Subrecipient Monitoring -OMB Circular A-133 (Audits of States. Local Government, and Non-Profit Organizations) as revised on June 2'I, 2003 requires that pass-through entities monitor the activities of their subrecipierlts as necessary to ensure that federal awards are used for authorized purposes in compliance with laws, regulations and the provision of contracts or grant agreements and that performance goals are achieved. North Carolina establishes comparable monitoring requirements for State funds received by subrecipients in N.C.G.S.143-6.2, Use ojState funds by non State entities, for non-State subrocipients, -and N.C.G.S.158-34, An~rual independent audit: rules and regulations, for local units of government. Also, DHHS-DPH must perform subreeipiemt monitoring as required in the DHHS Policy and Procedure Manual entitled "Monitoring of Programs" dated August 1, 2002. DHHS-DPH conducts monitoring in accordance with its Subrocipient Monitoring Plan dated January, 2006. Additionally, each Local Health Department is required under Circular A-133, N.C.G.S.143-6.2 and N.C.G.S.159-34 to perform monitoring of its subrecipients and to maintain records to support such monitoring activities and results. Accordingly, the Department shall participate fully in subrecipient monitoring by DHHS-DPH and shall appropriately monitor its subrecipients to the extent necessary based on the assessed level of risk.