The Department shall monitor, evaluate, and audit HSP providers for program effectiveness taking into consideration criteria, including, but not limited to, all of the following:

• Service quality assurance;
• Cost effectiveness;
• Cost containment;
• Protections for individuals receiving services;
• An equitable rate system; and,
• Compliance with applicable standards of the CARF.

The DOR shall review and determine the extent to which each WAP meets the standards for participation in the HSP, including maintenance of accreditation standards, compliance with the program criteria and the provision of allowable services. [Title 9, California Code of Regulations (CCR), Section 7336(f)]

To monitor WAP compliance with the criteria, the DOR shall:

• Review and approve the initial IHC prepared by the WAPs on all consumers entering the HSP.
• Review and approve IHCs for all HSP consumers on an annual basis and on a semi annual basis for consumers who do not meet minimal goals in productivity, attendance and paid work.

The vendoring Regional Center shall be responsible for ensuring that vendors within its service catchment area comply with the vendorization requirements. When a vendoring Regional Center finds that a vendor is not complying with a vendorization requirement, the Regional Center shall take the actions as appropriate for the violations specified below.Vendorization shall be terminated if any of the following conditions exist:

• The vendor is serving consumers without a current license, credential, registration, certificate, degree or permit that is required for the performance or operation of the service;
• Vendorization has been transferred to another person or entity;
• The vendor has refused to make available any books and records pertaining to the vendored service, including those of the management organization, for audit, inspection or reproduction by Regional Center, DDS or authorized agency representative staff;
• The service currently provided is not the same service that was approved for vendorization;
• The vendor is using planned behavior modification interventions that cause pain or trauma without meeting the conditions specified in Title 17.
• The vendor is transporting consumers using a driver who does not possess a valid driver' s license appropriate for the vehicle being driven.

If a vendor is not in compliance with any requirement specified above, vendorization shall be terminated 30 days after written notification from the vendoring Regional Center. DDS and Regional Centers may monitor services and supports purchased for Regional Center consumers with or without prior notice.

The department may conduct fiscal reviews and audits of the service providers' records.DDS and Regional Center staff involved in monitoring or auditing services provided to the Regional Centers' consumers by a service provider shall have access to the provider's grounds, buildings, and service program, and to all related records, including books, papers, computerized data, accounting records, and related documentation. All persons connected with the service provider's program, including, but not limited to, program administrators, staff, consultants, and accountants, shall provide information and access to facilities as required by the department or Regional Center.

The DDS, in cooperation with Regional Centers, shall ensure that all providers of services and supports purchased by Regional Centers for their consumers are informed of all of the following:

• The responsibility of providers to comply with laws and regulations governing both their service program and the provision of services and supports to people with developmental disabilities.
• The responsibility of providers to comply with conditions of any contract or agreement between the Regional Center and the provider, and between the provider and the department.

The rights of providers established in regulations to appeal actions taken by Regional Centers or the department as a result of their monitoring and auditing findings.