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• <br /> Page 11 of 12 <br /> J. PROVISION OF TERMINATION <br /> This contract may be terminated for reasons other than non-compliance upon <br /> sixty (60) days written notice by either party. If termination should <br /> occur, the Department shall receive payment only for allowable expenditures. <br /> The State may withhold payment to the Department until the State can <br /> determine whether the Department is entitled to further payment or whether <br /> the State is entitled to a refund. <br /> K. COMPLIANCE <br /> 1. The State shall assure compliance with all terms of this Contract. <br /> a. Upon determination of non-compliance, the State shall give the <br /> Department sixty (60) days written notice to come into compliance. <br /> If the deficiencey is corrected, the Department shall submit a <br /> written report to the State which sets forth the corrective action <br /> taken. <br /> b. If the above deficiencies should not be corrected to the <br /> satisfaction of the State after the sixty (60) day period, <br /> disbursement of funds for the particular activity may be temporarily <br /> suspended pending negotiation of a plan of corrective action. <br /> c. If the deficiency is still not corrected within the next thirty (30) <br /> days following temporary suspension of funding, program funds may be <br /> permanently suspended until the Department can provide evidence that <br /> the deficiencies have been corrected. <br /> d. In the event of the Department's non-compliance with clauses of this <br /> Contract, the State may cancel, terminate, or suspend this Contract <br /> in whole or in part and the Department may be declared ineligible <br /> for further State contracts or agreements. Such terminations for <br /> non-compliance shall not occur until: (1) the provisions of Section <br /> K-1 (a-c) have been followed, documented, and have failed to provide <br /> a resolution, (2) all other reasonable administrative remedies have <br /> been exhausted. <br /> 2. If the Department or the State should be determined out of compliance <br /> with the provisions of this Contract, either party may file a formal <br /> appeal with the Department of Hunan Resources. The appeal shall be <br /> heard by the Department of Human Resources within twenty (20) days of <br /> the written request. After hearing all the facts relative to the <br /> appeal, the Department of Human Resources shall decide within ten (10) <br /> days of the date of the hearing what sanctions, if any, shall be imposed <br /> on the party found out of compliance. <br />