(2) The department may withdraw any particular program or service, except Title III of the Older Americans Act programs, from the area agency, and administer such programs and services. Before such action is taken, the department must consult with the director of the area agency and the chief elected official of the affected local government. Such action shall be taken by the department only when it can be shown that the federal or state laws or rules have not been complied with, that state or federal funds are not being expended for the purposes for which they were intended, or that elderly persons are not receiving appropriate services within available resources. Withdrawal of any particular program or service is appealable to the Governor after requesting a reconsideration by the Director of Human Services. [1981 c.784 §10; 2001 c.900 §78; 2007 c.70 §169]