Relating to the receivership of a single-source continuum contractor providing child welfare services.

Contracts

• Vendor Risk Assessment: Subcontractors (CPAs, RTCs) and vendors must review Master Service Agreements. The Receiver has statutory authority to petition the court to void or modify contracts deemed "unreasonable" or above market rates.
• Loan Covenants: SSCCs must review credit agreements. The appointment of a receiver typically triggers an immediate "Event of Default" with lenders.
• Executive Employment: Executive contracts are effectively voidable; the Receiver has the explicit power to discharge any employee, including the CEO, without adhering to existing severance agreements.

Hiring/Training

• Financial Compliance Training: Finance teams must be trained that administrative errors resulting in "insufficient funds" (bounced checks) or missed utility payments are no longer just operational errors—they are now prima facie evidence of insolvency justifying state takeover.
• Data Entry Protocols: Staff must be retrained on case file integrity. Under Sec. 264.1915(4), failure to provide "adequate information" regarding a child is a specific statutory trigger for receivership.

Reporting & Record-Keeping

• Exit Notice: SSCCs must implement a protocol to notify DFPS 60 days prior to ceasing operations. Failure to provide this notice triggers automatic receivership eligibility.
• Solvency Defense File: SSCCs must maintain a real-time "break-glass" file containing proof of liquidity (lines of credit, bank attestations) to rebut *ex parte* insolvency claims immediately.

Fees & Costs

• Receivership Funding: The SSCC is liable for the full cost of the Receiver’s compensation and benefits. This is a court-ordered priority expense that will deplete corporate assets before other creditors are paid.