| Contractor non-compliance under any provisions of the Agreement between County and contractor, applicable laws and/or sound fiscal management practices may result in the default of the Contractor's Agreement with the County. Such non-compliance may be made known through various sources, established processes such as program and financial audits and monitoring reviews and activities, and through reports received directly from concerned individuals or entities. The severity and materiality of non-compliance may result in default with the contractual requirements that will necessitate sanction to mitigate client and financial risk to the County. The Agreement provides suspension of payments to the contractor as a sanction for default. It is, however, in the best interest of the clients, County and contractor that the Los Angeles County Department of Mental Health (DMH/Department) offers the contractor an opportunity to correct areas of non-compliance in order to avert implementation or initiation of suspension of payments.
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| At the sole discretion of the DMH Director, payments to a contractor under the Agreement may be suspended if the DMH Director determines the contractor is in default under any of the provisions of the Agreement which the DMH Director believes related to proper patient/client care and services, compliance with applicable law and/or sound fiscal management practices.
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