Monitoring of Purchased Services – MDCPS will monitor the activities of its sub-

Monitoring of Purchased Services – MDCPS will monitor the activities of its sub- grantees by following the Single Audit Act Amendments of 1996 (PL 104-156), the Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and the OMB Circular A-133 Compliance Supplement. MDCPS will monitor each project, program, sub-grant, function, or activity supported by the federal award to assure compliance with applicable federal regulations and that performance goals are achieved in fulfilling the terms of the contract. Contractors who provide human or social services must: 1. have sufficient human and financial resources to fulfill the terms of the contract; and 2. be licensed or otherwise legally authorized to provide the contracted services. Contracts for MDCPS shall include: 1. service quality, client satisfaction, and outcomes that accord with MDCPS’ expectations; 2. criteria for evaluating vendor performance; and 3. protocols for routine communication of related data. Improvement Plans If the contracting monitoring identifies areas of concern, MDCPS shall: 1. develop an improvement plan in conjunction with the contractor; and 2. ensure contractor follow-up and remediation The Initial Report of Findings and Recommendations that is forwarded to the sub- grantee will require a written response from the sub-grantee within fifteen (15) working days. Upon receipt of the response from the sub-grantee, the Agency will assess each response for adequacy. If all responses are adequate, the response will be accepted by a letter to the sub-grantee clearing all findings. If any responses do not adequately address the findings, the sub-grantee will be notified in writing by the issuance of a Status Report, which will require a second response from the sub- grantee within ten (10) working days. If the sub-grantee fails to satisfactorily resolve all of the monitoring findings, the Agency will issue a Final Notice Letter to the sub-grantee demanding that the sub- grantee refund the amount of questioned costs and advising the sub-grantee of the procedures to follow if they wish to request an administrative hearing. If the sub-grantee does not respond to the Final Notice Letter, the sub-grantee will be referred to the Office of the Attorney General to recover the unresolved questioned costs, and MDCPS will begin procedures for debarment and suspension against the sub-grantee organization and the sub-grantee authorized official.