(a) When a contractor accepts funds, it also accepts the authority of federal and state governments, including DADS as an agency of a state government, to perform reviews and audits and to have access to records.
(b) DADS conducts monitoring reviews of a contractor's services to determine if the contractor is in compliance with the contract and program rules and requirements. A monitoring review is conducted at the location where the contractor is providing the services unless DADS specifies a different location.
(c) At the conclusion of the review, DADS determines the level of compliance on each guardianship principle reviewed. Guardianship principles are set forth in the DADS guardianship provider handbook. If DADS considers the contractor substantially out of compliance with the contract and with the program rules and requirements, the contractor is subject to corrective action and may be subject to sanctions.
(d) During the monitoring review, the contractor must provide:
  (1) adequate working space for reviewing the records; and
  (2) all records DADS requests for review.
(e) During the monitoring review, DADS may:
  (1) review a sample of wards' records to determine the contractor's compliance with contract requirements;
  (2) interview wards and staff;
  (3) observe wards and staff;
  (4) interview individuals with whom agency staff interact on a regular basis, such as individuals associated with the probate courts; and
  (5) conduct other activities as appropriate.
(f) DADS may conduct a follow-up monitoring review to determine if the contractor has corrected the findings identified at a preceding monitoring review. A follow-up monitoring review may:
  (1) be a focused review using targeted samples; and
  (2) focus only on those guardianship principles that DADS determined to be out of compliance at the immediately preceding monitoring review.
(g) DADS may expand a monitoring review period or the review sample at any time.

Source Note: The provisions of this §361.201 adopted to be effective September 1, 2006, 31 TexReg 6797; amended to be effective February 9, 2015, 40 TexReg 609; transferred effective March 15, 2022, as published in the February 25, 2022 issue of the Texas Register, 47 TexReg 983