Common use of Recovery of Funding Clause in Contracts

Recovery of Funding. If the Contractor fails to comply with requirements as set forth in this Contract or fails to submit a revised payment request within allotted time frames established by MDHHS in consultation with the Contractor, MDHHS may require the Contractor to reimburse payments made under this Contract which MDHHS has determined that the Contractor was not entitled. If the Contractor becomes aware of any situation involving payments received under this Contract to which the Contractor was not entitled, the overpayment amount must be repaid to MDHHS within 30 days of the Contractor becoming aware. The Contractor is liable for any cost incurred by MDHHS in the recovery of any funding. Upon notification by MDHHS that repayment is required, or upon any other awareness of an overpayment to the Contractor, the Contractor must make payment directly to MDHHS within 30 days or MDHHS may withhold future payments made under this or any other contract(s), between MDHHS and the Contractor. If the Contractor fails to: (1) correct noncompliance activities identified by MDHHS, (2) submit revised xxxxxxxx as requested as part of a Corrective Action Plan when required; or (3) remit overpayments or make arrangements to have the overpayments deducted from future payments within 30 days, such failure must constitute grounds to terminate immediately any or all of MDHHS’ contracts with the Contractor. MDHHS must also report noncompliance of the Contractor to Michigan’s Department of Technology, Management and Budget. Such report may result in the Contractor’s debarment from further contracts with the state of Michigan.