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e) disallow costs and credit for matching funds, if any, for all or part of the activities or action <br />not in compliance; <br />f) temporarily withhold cash payments. Temporarily withholding cash payments means the <br />temporary withholding of a working capital advance, if applicable, or reimbursements or <br />payments to Contractor for proper charges or obligations incurred, pending resolution of <br />issues of noncompliance with conditions of this Contract or indebtedness to the United States <br />or to the State of Texas; <br />Section 16.03 Notice of Remedies or Sanctions. <br />Department will formally notify Contractor in writing when a remedy or sanction is imposed (with <br />the exception of accelerated monitoring, which may be unannounced), stating the nature of the <br />remedies and sanction(s), the reasons for imposing them, the corrective actions, if any, that must be <br />taken before the actions will be removed and the time allowed for completing the corrective actions, <br />and the method, if any, of requesting reconsideration of the remedies and sanctions imposed. Other <br />than in the case of repayment or recoupment, Contractor is required to file, within fifteen (15) <br />calendar days of receipt of notice, a written response to Department acknowledging receipt of such <br />notice. If requested by the Department, the written response must state how Contractor shall correct <br />the noncompliance (corrective action plan) or demonstrate in writing that the findings on which the <br />remedies or sanction(s) are based are either invalid or do not warrant the remedies or sanction(s). If <br />Department determines that a remedy or sanction is warranted, unless the remedy or sanction is <br />subject to review under a federal or state statute, regulation, rule, or guideline, Department's decision <br />is final. Department will provide written notice to Contractor of Department's decision. If required <br />by the Department, Contractor shall submit a corrective action plan for DSHS approval and take <br />corrective action as stated in the approved corrective action plan. If DSHS determines that <br />repayment is warranted, DSHS will issue a demand letter to Contractor for repayment. If full <br />repayment is not received within the time limit stated in the demand letter, and if recoupment is <br />available, DSHS will recoup the amount due to DSHS from funds otherwise due to Contractor under <br />this Contract. <br />Section 16.04 Emergency Action. <br />In an emergency, Department may immediately terminate or suspend all or part of this Contract, <br />temporarily or permanently withhold cash payments, deny future contract awards, or delay contract <br />execution by delivering written notice to Contractor, by any verifiable method, stating the reason for <br />the emergency action. An "emergency" is defined as the following: <br />a) Contractor is noncompliant and the noncompliance has a direct adverse effect on the public or <br />client health, welfare or safety. The direct adverse effect may be programmatic or financial <br />and may include failing to provide services, providing inadequate services, providing <br />unnecessary services, or using resources so that the public or clients do not receive the <br />benefits contemplated by the scope of work or performance measures; or <br />b) Contractor is expending funds inappropriately. <br />Whether Contractor's conduct or noncompliance is an emergency will be determined by Department <br />on a case -by -case basis and will be based upon the nature of the noncompliance or conduct. <br />ARTICLE XVII CLAIMS AGAINST THE DEPARTMENT <br />General Provisions (Core Subrecipient) 2015 (July 1, 2014) 43 <br />