(a) On an ongoing basis, the department shall monitor and review local plan implementation, and where it finds substantive noncompliance with the plan, the department may withhold reimbursement for claims submitted for services that are not in compliance with the plan. Such monitoring must focus on: achievement of activities and objectives as defined in the plan and annual implementation reports of each social services district, and compliance with applicable laws and regulations. Written monitoring reports shall be prepared by the department on a regular basis.

(b) Any social services district aggrieved by a determination of the department to withhold reimbursement pursuant to this section is entitled to a hearing in accordance with the provisions of section 407.8(g) of this Part.