8.6.2.1 Measuring Time Funds Are Held

Deposit to Issuance; Issuance to Clearance:

To determine the total time Federal funds are held, the State shall separately measure two time periods: (1) the date
Federal funds are deposited to the date checks are issued; and (2) the date checks are issued to the date funds are
debited from the State's account.

8.6.2.2 Source of Data

Clearance Patterns:
The time period from issuance of funds to the date funds are debited from the State's account shall be determined by the
appropriate clearance pattern specified in Exhibit Il.

8.6.2.3 Standards Applied
Not Applicable
8.6.2.4 Calculation Procedure

Average Daily Balance:
|= ADB x R, where

| = State's total interest liability
ADB = Average Daily Balance of cash in a program's account, measured from deposit to clearance

R = Annualized rate equal to the average equivalent yields of 13-week Treasury bills auctioned during a State's fiscal year
9.0 REVERSE FLOW PROGRAMS

The State is not required to cover any reverse flow programs under the terms of this Agreement because the State does
not participate in the program.

10.0 INTEREST CALCULATION COSTS

10.1 As set forth in 31 CFR 205.27, interest calculation costs are defined as those costs necessary for the actual
calculation of interest, including the cost of developing and maintaining clearance patterns in support of the interest
calculations. Interest calculation costs do not include expenses for normal disbursing services, such as processing of
checks or maintaining records for accounting and reconciliation of cash balances, or expenses for upgrading or
modernizing accounting systems. Interest calculation costs in excess of $50,000 in any year are not eligible for
reimbursement, unless the State provides justification with the annual report.

10.2 The State expects to incur the following types of interest calculation costs:

Costs of calculating interest, including the cost of developing and maintaining clearance patterns in support of interest
calculations.

10.3 The State shall submit all claims for reimbursement of interest calculation costs with its Annual Report in accordance
with 31 CFR 205.

Page 20 of 27



Technique: Bi-Weekly Reimbursable Funding
Average Day of Clearance: 0 Days

Recipient: DSS-Department of Children and Families
% of Funds Agency Receives: 1.00

Component: Indirect Cost

Technique: Cost Allocation Plan Monthly

Average Day of Clearance: 0 Days

93.767 Children’s Health Insurance Program

Recipient: EHS-Executive Office of Health and Human Services
% of Funds Agency Receives: 55.00 ~

Component: Service Providers

Technique: Quarterly Draw Closeout

Average Day of Clearance: 0 Days

Recipient: EHS-Executive Office of Health and Human Services
% of Funds Agency Receives: 45.00

Component: Service Providers

Technique: Weekly Reimbursable Funding

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: EHS-Executive Office of Health and Human Services
% of Funds Agency Receives: 1.00

Component: Direct Administrative Cost

Technique: Bi-Weekly Reimbursable Funding

Average Day of Clearance: 0 Days

Recipient: EHS-Executive Office of Health and Human Services
% of Funds Agency Receives: 3.00

Component: indirect Administrative Costs

Technique: Cost Allocation Plan - Quarterly

Average Day of Clearance: 0 Days

Recipient: EHS-Executive Office of Health and Human Services
% of Funds Agency Receives: 27.00

Component: Service Providers, Direct Program Cost
Technique: Daily Reimbursable Funding

Average Day of Clearance: 0 Days

Recipient: EHS-Executive Office of Health and Human Services
% of Funds Agency Receives: 14.00

Component: Service Providers, Direct Program Cost
Technique: Monthly Reimbursable Funding

Average Day of Clearance: 0 Days

Page 14 of 27



Exhibit Il - Commonwealth of Massachusetts
LIST OF STATE CLEARANCE TIMES
(Rounded Dollar-Weighted Average Day of Clearance)
Clearance Times Where the Timing of A Draw Down Is Based on A Clearance

Pattern
eee ee i i
10.551 |Supplementai Nutrition [WEL-Department of 100. |EBT Daily Draw - EBT 0 Days
Assistance Program Transitional Assistance {00
10.555 {National School Lunch DOE-Department Of 400. |Vendor Payment Weekly Automated 0 Days
Program Elementary And 00 Central Draw Actual
Secondary Education Reimbursable Funding
10.557 |Special Supplemental DPH-Department of 99.0 |Vendor Payments and | Weekly Automated 0 Days
Nutrition Program for Public Health 0 Payroll Central Draw Actual
‘Women, Infants, and Reimbursable Funding
Children.
10.557 |Special Supplemental DPH-Department of 1.00 |Indirect Cost Automated Central Draw |0 Days
Nutrition Program for Public Health indirect Cost Rates -
‘Women, Infants, and Monthly
Children.
10.558 — | Child and Adult Care DOE-Department Of 99.0 |Vendor Payment Weekly Automated 0 Days
Food Program Elementary And 0 ‘Central Draw Actual
Secondary Education Reimbursable Funding
10.558 [Child and Adult Care DOE-Department Of 1.00 Indirect Cost Automated Central Draw /0 Days
Food Program Elementary And Indirect Cost Rates -
Secondary Education Monthly
10.561 |State Administrative |WEL-Department of 100. |Estimated SNAP Weekly Draw - Approved |0 Days
Matching Grants for the |Transitional Assistance |00 |administrative draws ICAP Expenditures.
Supplemental Nutrition
Assistance Program
12.401 |National Guard Military | MIL- Military Affairs 100. |Vendor Payments, Bi-Weekly Reimbursable {0 Days
Operations and . 00 =| Payroll Funding
Maintenance (O&M)
Projects
14.881 |Moving to Work OCD-Department of 1.00 |Indirect Costs HUD Payment Schedule |0 Days
Demonstration Program {Housing and Community .
Development
14.881 {Moving to Work. |OCD-Department of 99.0 |Vendor Payments HUD Payment Schedule |0 Days
Demonstration Program {Housing and Community |0
Development
17.225F |Unemployment Insurance |EOL-Department of 1.00 |Adminstrative Costs Weekly Reimbursable 0 Days
-- Federal Benefit Labor and Workforce (payroll and direct admin) |Funding
Account and Development
Administrative Costs
17.225F |Unemployment Insurance |EOL-Department of 1.00 ||ndirect costs (reallocated |Non Central Draw 0 Days
-- Federal Benefit Labor and Workforce costs) Indirect Cost Rate -
Account and Development Monthly
Administrative Costs
17.225F {Unemployment Insurance |EOL-Department of 98.0 |FECA and EUCA benefit |Daily Reimbursable 10 Days
-- Federal Benefit Labor and Workforce 0 payments Funding
Account and Development
Administrative Costs
17.2258 |Unemployment Insurance |EOL-Department of 100, |benefit payments Actual Clearance, ZBA- |0 Days
-- State Benefit Account Labor and Workforce 00 Same Day Payment
evelopment

Page 24 of 27



availability, the State's request will be expedited and supplemental funding will be issued within 5 days of ACF receiving
the request. The State will be notified by the Regional Office when the supplemental award has been transmitted to the
Payment Management System (PMS) and when it may initiate drawdowns against the supplemental funding.

Additional guidance on this policy is provided in the U.S. Department of Health & Human Services, Administration for
Children and Families, letter (May 19, 2004) to State Administrators from the Deputy Assistant Secretary for
Administration.

6.2 Description of Funding Techniques

6.2.1 The following are terms under which standard funding techniques shall be implemented for all transfers of funds to
which the funding technique is applied in section 6.3.2 of this Agreement.

Actual Clearance, ZBA - Same Day Payment

The State shall request funds the same day it pays out funds, in accordance with the appropriate Federal agency cut-off
time specified in Exhibit I. A Federal agency will deposit funds in a State account the same day as requested. The amount
of the request shail be for the amount of funds that clear the State's account that day. This funding technique is interest
neutral.

6.2.2 The following are terms under which funding techniques for administrative costs shall be implemented for all
transfers of funds to which the funding technique is applied in section 6.3.2 of this Agreement.

There are no funding techniques listed in Section 6.2.2

6.2.3 The following are terms under which miscellaneous funding techniques shall be implemented for all transfers of
funds to which the funding technique is applied in section 6.3.2 of this Agreement.

There are no funding techniques listed in Section 6.2.3

6.2.4 The following are terms under which State unique funding techniques shall be implemented for all transfers of funds
to which the funding technique is applied in section 6.3.2 of this Agreement.

Automated Central Draw Indirect Cost Rates - Monthly

The State shail request funds once a month, such that they are deposited on the median day of the month. The request
shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit 1. The amount of the
request shail be calculated in the Commonwealths financial system (MMARS) by applying the indirect cost rate to the
appropriate cost base of the prior month. This funding technique is interest neutral.

Bi-Weekly Reimbursable Funding

The State shall request funds such that they are deposited in a State account in accordance with the clearance pattern
specified in Exhibit I, The request shall be made in accordance with the appropriate Federal agency cut-off specified in
Exhibit !. The amount of the request shall be the actual sum of expenditures that have been incurred, recorded, identified
and reconciled as billable since the last two-week draw cycle request was processed. In all the cases the request for
funds will occur after the state has disbursed funds. This funding technique is interest neutral.

Cost Allocation Plan - Quarterly

Page 5 of 27



11.0 NON-COMPLIANCE

11.1 The provisions of 31 CFR Part 205.29 and 31 CFR Part 205.30 shall apply in cases of non-compliance with the
terms of this Agreement.

Page 21 of 27



1. Have been prepared in accordance with the standards provided in 31 CFR 205.20;
2. Accurately represent the flow of Federal funds under the Federal assistance programs to which they apply;
3. Reflect seasonal or other periodic variations in the clearance activities; and,

4. Are auditable.

Date: 4 <| 12

Printed Name: Se fire hap? 2

Certifying Signature:

tite: Graet Dod, Cngho! ler

Page 27 of 27



Exhibit | - Funds Request and Receipt Times Schedule

Commonwealth of Massachusetts

[Federal Agency - : nt Type |Reques f Time
|Agriculture-FNS ACH. 44:59 PM. 4 day
|Agriculture-FNS Fedwire 5:45 PM. 0 day
|Agriculture-FS. ACH 3:00 PM 1 day
Air National Guard ACH 12:00 PM 15 days
Army National Guard ACH 12:00 PM 15 days
Commerce-NOAA ACH 2:00 PM 4 day
Dept of Homeland Security (FEMA) Fedwire 2:00 PM 2 days
Dept of Homeland Security (ODP) ACH 2:00 PM 2 days
Dept of Homeland Security (ODP) Fedwire 2:00 PM 2 days
EPA ACH 2:00 PM 2 days
EPA Fedwire 2:00 PM 0 day
Education ACH 3:00 PM 1 day
Education Fedwire 2:00 PM. 0 day
Energy [ACH 4:00 PM 1day
Energy Fedwire 3:00 PM 0 day
HHS ACH 5:00 PM i day
HHS. Fedwire 3:00 PM Oday
HUD ACH §:30 PM 2 days
HUD Fedwire 3:00 PM O day
Interior-FWS_ [ACH 41:59 PM iday
Interior-FWS. Fedwire 5:45 PM 0 day
Interior-OSM ACH 3:00 PM Aday
Interior-OSM Fedwire 4:00 PM 0 day
Justice ACH 41:00 PM 6 days
Justice Fedwire 2:00 PM 2 days
Labor-Non-UTF. |ACH 3:00 PM 1day
Labor-UTF ACH 3:00 PM 4 day
Labor-UTF Fedwire 3:00 PM Q day
National Science Foundation (NSF) ACH 8:00 PM. dday
National Science Foundation (NSF) Fedwire. 5:45 PM 0 day
Social Security Administration ACH 41:59 PM. 4day
Social Security Administration Fedwire 5:45 PM 0 day
Transportation (FAA) ACH 2:00 PM. 4 day
‘Transportation (FHWA) ACH 12:00 PM. 3 days
Transportation (FHWA) Fedwire 12:00 PM 0 day
Transportation (FTA) ACH 2:00 PM iday
Veterans Administration ACH 42:00 PM 3 days

Page 23 of 27



Monthly Reimbursable Funding

Non Central Draw Indirect Cost Rate - Monthly

Quarterly Draw Closeout

Quarterly Reimbursable Funding

Weekly Automated Central Draw Actual Reimbursable Funding
Weekly Draw - Approved CAP Expenditures

Weekly Reimbursable Funding

Weekly Reimbursible Funding- CSE

8.1.2 The State shall maintain information on disbursements and receipts of funds to verify the implementation of any
funding technique and document interest liabilities.

For each disbursement, the State shall be able to identify:

(1) amount of the issuance

(2) date of issuance

(3) date Federal funds are received and credited to a State account

(4) amount of Federal funds received

(5) date funds were requested

8.2 Federal Interest Liabilities

8.2.1 A Federal interest liability shall accrue from the day the State pays out its own funds for program purposes to the
day Federal funds are credited to a State account. With regard to funds transferred out of the Federal Highway Trust
Fund, if a State does not bill at least weekly for current project costs, the Federal interest liability shall not accrue prior to
the day the State submits a request for funds.

8.2.2 The State shall use the following method to calculate Federal interest liabilities:

Actual Activity:

For all transactions where the State pays out its own funds for program purposes prior to receiving Federal funds, the
State shall track each payment from the date it Is paid out of a State account to the date Federal funds are subsequently
credited to a State account to cover that outlay. The Federal interest liability on each payment shall be based on the
difference in whole days between the two events. With Federal-State matching programs, interest shall be calculated on
the Federal percentage of the disbursement.

8.3 The Unemploynient Trust Fund

8.3.1 The State shall use the following method to calculate State interest liabilities on funds withdrawn from the several
accounts in the Unemployment Trust Fund:

The State shall use the following methodology to calculate State interest liabilities on funds withdrawn from the several
accounts in the UTF under the Unemployment Insurance program.

Based on statements provided by its financial institution, or other appropriate source, the State shall determine the actual
interest earnings and the related banking costs attributable to funds withdrawn from its account in the UTF.

At the end of the States fiscal year, the State shall calculate the percentage of its total unemployment compensation
expenditures for (1) funds withdrawn from the State account in the UTF, or the State %, and (2) funds withdrawn from the
Federal Employees Compensation Account (FECA) and the Extended Unemployment Compensation Account (EUCA)
and any other accounts of Federal funds in the UTF, or the Federal %.

Page 18 of 27



Technique: HUD Payment Schedule
Average Day of Clearance: 0 Days

47.225F Unemployment Insurance -- Federal Benefit Account and Administrative Costs
Recipient: EOL-Department of Labor and Workforce Development

% of Funds Agency Receives: 98.00

Component: FECA and EUCA benefit payments

Technique: Daily Reimbursable Funding

Average Day of Clearance: 0 Days

Recipient: EOL-Department of Labor and Workforce Development
% of Funds Agency Receives: 1.00

Component: Indirect costs (reallocated costs)

Technique: Non Central Draw Indirect Cost Rate - Monthly
“Average Day of Clearance: 0 Days

Recipient: EOL-Department of Labor and Workforce Development
% of Funds Agency Receives: 1.00

Component: Adminstrative Costs (payroll and direct admin)
Technique: Weekly Reimbursable Funding

Average Day of Clearance: 0 Days

17.2258 Unemployment insurance -- State Benefit Account
Recipient: EOL-Department of Labor and Workforce Development
% of Funds Agency Receives: 100.00

Component: benefit payments

Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: 0 Days

20.205 Highway Planning and Construction

Recipient: DOT-Massachusetts Department Of Transportation
% of Funds Agency Receives: 100.00

Component: Vendor Payments/Construction and consulting
Technique: FHWA Weekly Actual Reimbursement

Average Day of Clearance: 0 Days

84.010 Title | Grants to Local Educational Agencies

Recipient: DOE-Department Of Elementary And Secondary Education
% of Funds Agency Receives: 1.00

Component: Indirect Cost

Technique: Automated Central Draw Indirect Cost Rates - Monthly
Average Day of Clearance: 0 Days

Recipient: DOE-Department Of Elementary And Secondary Education
% of Funds Agency Receives: 99.00

Page 10 of 27



Monthly Reimbursable Funding

The State shall request funds such that they are deposited in a State account in accordance with the clearance pattern
specified in Exhibit II. The request shall be made in accordance with the appropriate Federal agency cut-off specified in
Exhibit |. The amount of the request shall be the actual sum of expenditures that have been incurred, recorded, identified
and reconciled as billable since the last monthly draw cycle request was processed. In all the cases the request for funds
will occur after the state has disbursed funds. This funding technique is interest neutral.

Non Central Draw Indirect Cost Rate - Monthly

The State shall request funds once a month, such that they are deposited on the median day of the month. The request
shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit 1. The amount of the
request shall be calculated by applying the indirect cost rate to the appropriate cost base of the prior month. This
funding technique is interest neutral.

Quarterly Draw Closeout

The State shall request funds such that they are deposited in a State account in accordance with the clearance pattern
specified in Exhibit !I. The request shall be made in accordance with the appropriate Federal agency cut-off specified in
Exhibit 1. The amount of funds requested for direct program costs shall be based on the amount of expenses submitted
on the quarterly expenditure reports. Reconciliation between actual expenditures and actual draws is completed. A
closeout draw reflecting the reconciliation is submitted on a quarterly basis. This funding technique is interest neutral.

Quarterly Reimbursable Funding

The State shall request funds such that they are deposited in a State account in accordance with the clearance pattern
specified in Exhibit Il. The request shall be made in accordance with the appropriate Federal agency cut-off specified in
Exhibit {. The amount of the request shall be the actual sum of expenditures that have been incurred, recorded, identified
and reconciled as billable since the last 3 month draw cycle request was processed. In all the cases the request for funds
will occur after the state has disbursed funds. This funding technique is interest neutral.

Weekly Automated Central Draw Actual Reimbursable Funding

The State shall request funds such that they are deposited in a State account in accordance with the clearance pattern
specified in Exhibit |I. The request shall be made in accordance with the appropriate Federal agency cut-off specified in
Exhibit 1. The amount of the request shall be the actual sum of expenditures that have been incurred, recorded, identified
and reconciled as billable from the preceding Friday, Monday, Tuesday, Wednesday and Thursday. In ail the cases the
request for funds will occur after the state has disbursed funds. This funding technique is interest neutral.

Weekly Draw - Approved CAP Expenditures

The State shall request funds such that they are deposited in a State account in accordance with the clearance pattern
specified in Exhibit ll. The request shall be made in accordance with the appropriate Federal agency cut-off specified in
Exhibit |. The Commonwealth shall draw-down estimated food stamp administrative draws on a weekly basis. The
estimates are derived using historical expenditure information from previous federal fiscal years. Upon the submission of
quarterly expenditure reports, reflective of the Department 's approved cost allocation plan, a reconciliation between actual
expenditures and estimated weekly draws is completed. A closeout draw reflecting the reconciliation is submitted. This
funding technique is interest neutral.

Page 7 of 27



The State shall request funds such that they are deposited in a State account in accordance with the clearance pattern
specified in Exhibit lI. The request shall be made in accordance with the appropriate Federal agency cut-off specified in
Exhibit I. The state shall request funds once a per quarter, the amount of the request shall be based on actual costs
distributed in accordance with the State's approved cost allocation plan. The amount of the funds requested for the draw
shall be based on the actual amount of expenditures recorded. This funding technique is interest neutral.

Cost Allocation Plan Monthly

The State shall request funds such that they are deposited in a State account in accordance with the clearance pattern
specified in Exhibit I!. The request shall be made in accordance with the appropriate Federal agency cut-off specified in
Exhibit |. The state shall request funds once a month, the amount of the request shall be based on actual costs distributed
in accordance with the State's approved cost allocation plan. The amount of the funds requested for the draw shall be
based on the actual amount of expenditures recorded. This funding technique is interest neutral.

Daily Draw - EBT

The State shall request funds such that they are deposited in a State account in accordance with the clearance pattern
specified in Exhibit Il. The request shall be made in accordance with the appropriate Federal agency cut-off specified in
Exhibit |. The Commonwealth will request the draw down of funds daily for Electronic Benefit Transfers costs. The
drawdown of funds shall be the same day EBT expenditures are reflected on the Luminist report # DTAEBO40. Funds will
always be drawn on the same day that the report is available. The Commonwealth will draw down a fixed percentage of
TANF funds on a daily basis. This fixed percentage rate will be based on the lowest claiming quarter for TANF/MOE
during the prior calendar year. The fixed percentage rate will also be updated annually This funding technique is
interest neutral.

Daily Reimbursable Funding

The State shall request funds such that they are deposited in a State account in accordance with the clearance pattern
specified in Exhibit l. The request shall be made in accordance with the appropriate Federal agency cut-off specified in
Exhibit |. The amount of the request shall be the actual sum of expenditures that have been incurred, recorded, identified
and reconciled as billable since the last daily draw request was processed. The drawdown of funds shall occur two
business days after the actual expenditure has been disbursed and is reflected in a standard query of the
Commonwealths General Ledger. In all the cases the request for funds will occur after the state has disbursed funds.
This funding technique is interest neutral.

FHWA Weekly Actual Reimbursement

The State shall request funds such that they are deposited in a State account in accordance with the clearance pattern
specified in Exhibit II. The request shall be made in accordance with the appropriate Federal agency cut-off specified in
Exhibit |. The amount of the request shall be the actual sum of expenditures that have been incurred, recorded, identified
and reconciled as billable from the preceding Tuesday, Wednesday, Thursday, Friday and Monday. In all the cases the
request for funds will occur after the state has disbursed funds. This funding technique is interest neutral.

HUD Payment Schedule

HUD (Housing and Urban Development) pays a calculated amount on the 2nd or 3rd business day of each month. An
annual budget submitted by the state is approved by HUD at the beginning of each caiendar year. The amount of the
monthly allocation is documented in the annual budget approved by HUD. This funding technique is interest neutral.

Page 6 of 27



The State shall calculate the actual interest earnings and the related banking costs attributable to funds withdrawn from
the State account in the UTF by multiplying the State % by the amount of the actual interest earnings and the related
banking costs of the account as a whole. The States liability for interest on funds withdrawn from its account in the UTF
shall consist of the actual interest earnings attributable to such funds less the related banking costs attributed to such
funds.

The State shail determine the average daily cash balance of its unemployment compensation benefit payment account for
its fiscal year. The State shall calculate the average daily cash balance of Federal funds by multiplying the Federal % by
the average daily cash balance of the benefit payment account on the whole. The States liability for interest on funds
withdrawn from the FECA and EUCA (and any other benefit accounts of Federal funds in the UTF from which the State
draws funds) shall be the average daily cash balance of Federal funds multiplied by the annualized rate equal to the
average equivalent yields of 13-week Treasury bills auctioned during the States fiscal year.

8.4 Refund Liabilities

8.4.1 The State shall be liable for interest on refunds from the date the refund is credited to a State account until the date
the refund is debited from the State account for program purposes. The State shall apply a $50,000 refund transaction
threshold below which the State shall not incur or calculate interest liabilities on refunds. A transaction is defined as a
single deposit.

8.4.2 For each refund, the State shall maintain information identifying:

(1) date a refund is credited to a State account

(2) date of the subsequent deposit of Federal funds against which the refund is offset
(3) amount of the refund

8.4.3 The State shall use the following methodology to calculate interest liabilities on refunds:

With programs to which applicable interest neutral funding techniques are applied, the State interest liability shall be
based on the difference in whole days between the date the refund is deposited in a State account and the date the
refund is offset against a subsequent deposit of Federal funds.

8.5 Exemptions

8.5.1 Where more than one State agency is a recipient of Federal funds under a program, a particular State agency's
funding may be excluded from interest calculation procedures if the State agency receives an amount of funds less than 5
% of the State's threshold for major Federal assistance programs. Notwithstanding this potential exemption, however, in
no case shall less than 90% of a program's total funding be subject to interest calculation procedures.

Proration of calculations: If less than total program funding is subject to interest calculation procedures, the resulting
interest liability calculations shall be prorated to 100% of program funding,

8.6 State Interest Liabilities

8.6.1 The State shail be liable for interest on Federal funds from the date Federal funds are credited to a State account
until the date those funds are paid out for program purposes.

8.6.2 The State shall use the following method to calculate State interest liabilities on Federal funds:

Page 19 of 27



Average Day of Clearance: 0 Days

Recipient: DPH-Department of Public Health

% of Funds Agency Receives: 99.00

Component: Vendor Payments and Payroll

Technique: Weekly Automated Central Draw Actual Reimbursable Funding
Average Day of Clearance: 0 Days

10.558 Child and Adult Care Food Program

Recipient: DOE-Department Of Elementary And Secondary Education
% of Funds Agency Receives: 1.00

Component: indirect Cost

Technique: Automated Central Draw Indirect Cost Rates - Monthly
Average Day of Clearance: 0 Days

Recipient: DOE-Department Of Elementary And Secondary Education

% of Funds Agency Receives: 99.00

Component: Vendor Payment

Technique: Weekly Automated Central Draw Actual Reimbursable Funding
Average Day of Clearance: 0 Days

10,561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program

Recipient: WEL-Department of Transitional Assistance
% of Funds Agency Receives: 100.00

Component: Estimated SNAP administrative draws
Technique: Weekly Draw - Approved CAP Expenditures
Average Day of Clearance: 0 Days

12.401 National Guard Military Operations and Maintenance (O&M) Projects
Recipient: MIL- Military Affairs

% of Funds Agency Receives: 100.00

Component: Vendor Payments, Payroll

Technique: Bi-Weekly Reimbursabie Funding

Average Day of Clearance: 0 Days

14.881 Moving to Work Demonstration Program

Recipient: OCD-Department of Housing and Community Development
% of Funds Agency Receives: 1.00

Component: Indirect Costs

Technique: HUD Payment Schedule

Average Day of Clearance: 0 Days

Recipient: OCD-Department of Housing and Community Development
% of Funds Agency Receives: 99.00
Component: Vendor Payments

Page 9 of 27



20.205

=
DOT-Massachusetts

0 Days

Highway Planning and 400. |Vendor FHWA Weekly Actual
Construction Department Of 00 |Payments/Construction |Reimbursement
Transportation and consulting
84.010 Title | Grants to Local DOE-Department Of 99.0 |Vendor Weekly Automated 0 Days
Educational Agencies Elementary And 0 Payments/Payments to |Central Draw Actual
‘Secondary Education Local Education Reimbursable Funding
Agencies
84.010 | Title | Grants to Local DOE-Department Of 4.00 {Indirect Cost Automated Central Draw |0 Days
Educational Agencies Elementary And Indirect Cost Rates -
Secondary Education Monthly,
84.027 |Special Education — DOE-Department Of 99.0 {Payments Vendor Weekly Automated 0 Days
Grants to States Elementary And 0 Central Draw Actual
Secondary Education Reimbursable Funding
84,027 |Special Education -- DOE-Department Of 1.00 -j Indirect Cost Automated Central Draw |0 Days
Grants to States Elementary And Indirect Cost Rates -
Secondary Education Monthly
84.126 {Rehabilitation Services - | MRC- Massachusetts 31.0 | Vendor Payments Weekly Automated 0 Days
Vocational Rehabilitation |Rehabilitation 0 Central Draw Actual
Grants to States Commission Reimbursable Funding
84.126 | Rehabilitation Services -- | MRC- Massachusetts 68.0 | Payroll Weekly Automated 0 Days
Vocational Rehabilitation |Rehabilitation 0 Central Draw Actual
Grants to States Commission Reimbursable Funding
84.126 | Rehabilitation Services -- | MRC- Massachusetts 1.00 |indirect Costs Automated Central Draw 10 Days
Vocational Rehabilitation |Rehabilitation Indirect Cost Rates -
Grants to States Commission Monthly
84.367 —|Improving Teacher DOE-Department Of 99.0 |Vendor Payments Weekly Automated ‘0 Days
Quality State Grants Elementary And 0 Central Draw Actual
Secondary Education Reimbursable Funding
84.367 {Improving Teacher DOE-Department Of 1.00 |indirect Costs Automated Central Draw |0 Days
Quality State Grants Elementary And Indirect Cost Rates -
Secondary Education Monthly
93.558 | Temporary Assistance for|WEL-Department of 10.0 |Direct Program Costs Bi-Weekly Reimbursable }0 Days
Needy Families Transitional Assistance _|0 Funding
93.558 | Temporary Assistance for|WEL-Department of 22.0 |Direct Program Costs Quarterly Reimbursable {0 Days
Needy Families Transitional Assistance _|0 Funding
93.558 |Temporary Assistance for|WEL-Department of 68.0 | Direct Program Cost Monthly Reimbursable 0 Days
Needy Families Transitional Assistance _|0 ‘unding
93,563 |Child Support DOR- Department of 23.9 |Vendor Payments and Weekly Automated 0 Days
Enforcement Revenue 6 Payroll Central Draw Actual
Reimbursable Funding
93.563 |Child Support DOR- Department of 6.56 |Indirect Cost Weekly Reimbursible 0 Days
Enforcement Revenue Funding- CSE.
93.563  |Child Support DOR- Department of 69.4 |Vendor payments Weekly Reimbursible 0 Days
Enforcement Revenue 8 Funding- CSE
93.568 |Low-Income Home OCD-Department of 4.00 {Indirect Cost Cost Allocation Plan 0 Days
Energy Assistance Housing and Community Monthly
Development.
93.568 |Low-Income Home OCD-Department of 99.0 |Vendor Payments/ Weekly Automated 0 Days
Energy Assistance Housing and Community {0 Beneficiary Payments Central Draw Actual
Development Reimbursable Funding
93.575 |Child Care and EEC-Department of Early |100. | Vendor Payments Monthly Reimbursable [0 Days
Development Block Grant | Education & Care ‘00 Funding
93.596 |Child Care Mandatory EEC-Department of Early }100. |Vendor Payments. Monthly Reimbursable 0 Days
and Matching Funds of |Education & Care 00 Funding
the Child Care and
Development Fund
93.658 |Foster Care -- Title |\V-E |DSS-Department of 1.00 |Indirect costs ‘Cost Allocation Plan 0 Days
Children and Families Monthly
93.658 | Foster Care -- Title IV-E |DSS-Department of 70.0 |Vendor Payments and Bi-Weekly Reimbursable |0 Days
Children and Families 0 Administrative Costs Funding
93.658 |Foster Care -- Title IV-E | DSS-Department of 29.0 |Vendor Payments Quarterly Reimbursable {0 Days
Children and Families } Funding

Page 25 of 27



Cash Management Improvement Act Agreement
between
The Commonwealth of Massachusetts
and
The Secretary of the Treasury,
United States Department of the Treasury

The Secretary of the Treasury, United States Department of the Treasury (hereafter ‘Secretary'), and Commonwealth of
Massachusetts (hereafter 'State’), in order to implement Section 5 of the Cash Management Improvement Act of 1990, as
amended (hereafter ‘Act’), agree as follows:

1.0 AGENTS OF THE AGREEMENT

1.1 The Authorized Official(s) for the Commonwealth of Massachusetts shall be the Comptrolier of the Commowealth in alt
matters concerning this Agreement.

1.2 The Assistant Commissioner, Revenue Collections Management, Bureau of the Fiscal Service (Fiscal Service), U.S.
Department of the Treasury, shall act as the Secretary's representative in all matters concerning this Agreement.

2.0 AUTHORITY

2.1 The authority for this Agreement is the Cash Management Improvement Act of 1990 (Public Law 101-453), as.
amended by the Cash Management Improvement Act of 1992 (Public Law 102-589), codified at 31 U.S.C. 6501 and 34
U.S.C. 6503.

2.2 The regulations codified at 31 CFR Part 205 shall apply to all matters pertaining to this Agreement, and are
incorporated herein by reference. In the event of any inconsistency between this Agreement and 31 CFR Part 205, the
regulations shail govern.

3.0 DURATION, AMENDING, TERMINATING, AND MISCELLANEOUS PROVISIONS
3.1 This Agreement shail take effect on 07/01/2017 and shall remain in effect until 06/30/2018.

3.2 This Agreement may be amended at any time by written, mutual consent of the State and the Fiscal Service. This
Agreement shall be amended annually to incorporate new programs that qualify as major Federal assistance programs
and remove programs that no longer qualify as major Federal assistance programs. A State must notify the Fiscal Service
in writing within 30 days of the time the State becomes aware of a change that involves additions or deletions of programs
subject to Subpart A, changes in funding techniques, and/or changes in clearance patterns. The notification must include
a proposed amendment for review by the Fiscal Service. I

3.3 Notwithstanding section 3.2, in the event of Federal or State non-compliance with Subpart B of 31 CFR, Part 205, the
Fiscal Service may amend this Agreement at any time to incorporate additional programs and the entities that administer
those programs.

3.4 This Agreement may be terminated by either party with 30 days written notice. If this Agreement is terminated, the
Fiscal Service will prescribe the funding techniques, clearance patterns, and methods for calculating interest liabilities to
be used by the State.

Page 1 of 27



Technique: Weekly Automated Central Draw Actual Reimbursable Funding
Average Day of Clearance: 0 Days

93.558 Temporary Assistance for Needy Families
Recipient: WEL-Department of Transitional Assistance
% of Funds Agency Receives: 10.00

Component: Direct Program Costs

Technique: Bi-Weekly Reimbursable Funding
Average Day of Clearance: 0 Days

Recipient: WEL-Department of Transitional Assistance
% of Funds Agency Receives: 68.00

Component: Direct Program Cost

Technique: Monthly Reimbursable Funding

Average Day of Clearance: 0 Days

Recipient: WEL-Department of Transitional Assistance
% of Funds Agency Receives: 22.00

Component: Direct Program Costs

Technique: Quarterly Reimbursable Funding

Average Day of Clearance: 0 Days

93.563 Child Support Enforcement

Recipient: DOR- Department of Revenue

% of Funds Agency Receives: 23.96

Component: Vendor Payments and Payroll

Technique: Weekly Automated Central Draw Actual Reimbursable Funding
Average Day of Clearance: 0 Days

Recipient: DOR- Department of Revenue

% of Funds Agency Receives; 6.56
Component: Indirect Cost

Technique: Weekly Reimbursible Funding- CSE
Average Day of Clearance: 0 Days

Recipient: DOR- Department of Revenue

% of Funds Agency Receives: 69.48
Component: Vendor payments

Technique: Weekly Reimbursible Funding- CSE
Average Day of Clearance: 0 Days

93.568 Low-Income Home Energy Assistance

Recipient: OCD-Department of Housing and Community Development
% of Funds Agency Receives: 1.00

Component: indirect Cost

Technique: Cost Allocation Plan Monthly

Page 12 of 27



Component: Vendor Payments/Payments to Local Education Agencies
Technique: Weekly Automated Central Draw Actual Reimbursable Funding
Average Day of Clearance: 0 Days

84.027 Special Education -- Grants to States

Recipient: DOE-Department Of Elementary And Secondary Education
% of Funds Agency Receives: 1.00

Component: Indirect Cost

Technique: Automated Central Draw Indirect Cost Rates - Monthly
Average Day of Clearance: 0 Days

Recipient: DOE-Department Of Elementary And Secondary Education

% of Funds Agency Receives: 99.00

Component: Payments Vendor

Technique: Weekly Automated Central Draw Actual Reimbursable Funding
Average Day of Clearance: 0 Days

84,126 Rehabilitation Services -- Vocational Rehabilitation Grants to States
Recipient: MRC- Massachusetts Rehabilitation Commission

% of Funds Agency Receives: 1.00

Component: Indirect Costs

Technique: Automated Central Draw Indirect Cost Rates - Monthly
Average Day of Clearance: 0 Days

Recipient: MRC- Massachusetts Rehabilitation Commission

% of Funds Agency Receives: 68.00

Component: Payroll

Technique: Weekly Automated Central Draw Actual Reimbursable Funding
Average Day of Clearance: 0 Days

Recipient: MRC- Massachusetts Rehabilitation Commission

% of Funds Agency Receives: 31.00

Component: Vendor Payments

Technique: Weekly Automated Central Draw Actual Reimbursable Funding
Average Day of Clearance: 0 Days

84.367 Improving Teacher Quality State Grants .

Recipient: DOE-Department Of Elementary And Secondary Education
% of Funds Agency Receives: 1.00

Component: Indirect Costs

Technique: Automated Central Draw Indirect Cost Rates - Monthly
Average Day of Clearance: 0 Days

Recipient: DOE-Department Of Elementary And Secondary Education
% of Funds Agency Receives: 99.00
Component: Vendor Payments

Page 11 of 27



Weekly Reimbursable Funding

The State shall request funds such that they are deposited in a State account in accordance with the clearance pattern
specified in Exhibit li. The request shall be made in accordance with the appropriate Federal agency cut-off specified in
Exhibit |. The amount of the request shall be the actual sum of expenditures that have been incurred, recorded, identified
and reconciled as billable since the last weekly draw request was processed. In all the cases the request for funds will
occur after the state has disbursed funds. This funding technique is interest neutral.

Weekly Reimbursible Funding- CSE

The State shall request funds using the Reimbursable Funding Technique such that they are deposited in a State account
on a weekly basis. The request shall be made in accordance with the appropriate Federal agency cut-off specified in
Exhibit |. Upon the submission of the quarterly expenditure report, reflective of the departments approved cost allocation
plan, a reconciliation between actual allowable expenditures, net federal offsets, and actual weekly draws is completed at
the end of each quarter. A closeout balance forward reflecting the reconciliation will be applied against the next quarters
anticipated Federal offsets. The amount of the request shall be the actual sum of the expenditures that have been
incurred, recorded, identified and reconciled as billable since the last weekly draw was processed with consideration for
pending Federal offsets for the quarter in process. This funding technique is interest neutral.

6.3 Application of Funding Techniques to Programs

6.3.1 The State shall apply the following funding techniques when requesting Federal funds for the component cash flows
of the programs listed in sections 4.2 and 4.3 of this Agreement.

6.3.2 Programs
Below are programs listed in Section 4.2 and Section 4.3.

10.551 Supplemental Nutrition Assistance Program
Recipient: WEL-Department of Transitional Assistance
% of Funds Agency Receives: 100.00

Component: EBT

Technique: Daily Draw - EBT

Average Day of Clearance: 0 Days

10.555 National School Lunch Program

Recipient: DOE-Department Of Elementary And Secondary Education

% of Funds Agency Receives: 100.00

Component: Vendor Payment

Technique: Weekly Automated Central Draw Actual Reimbursable Funding
Average Day of Clearance: 0 Days

10.557 Special Supplemental Nutrition Program for Women, Infants, and Children
Recipient: DPH-Department of Public Heaith

% of Funds Agency Receives: 1.00

Component: indirect Cost

Technique: Automated Central Draw Indirect Cost Rates - Monthly

Page 8 of 27



12.0 AUTHORIZED SIGNATURES

yr Thomas G. Shack III, Esq.
Comptroller of the Commonwealth

Signature:

Date Signed: ks /t 2

Date Submitte

Corvelli A. McDaniel
Assistant Commissioner
Revenue Collections Management
Bureau of the Fiscal Service
U.S. Department of the Treas) ty

Signature:

Date Signed: v) a / t7

Page 22 of 27



increase in costs due to unforeseen circumstances.
The State will comply with all Federal program agency policies and procedures for requesting supplemental grant funding.

The State will comply with the following guidelines when requesting supplemental funding for the Medical Assistance
Program and associated administrative payments (CFDA 93.778):

The State must submit a revised Medicaid Program Budget Report (CMS-37) to request supplemental funding. The CMS
guidelines and instructions for completing the CMS-37 are provided in Section 2600F of the State Medicaid Manual
(SMM). The CMS/CO must receive the revised Form CMS-37 through the Medicaid Budget Expenditure
System/Children's Budget Expenditure System (MBES/CBES) no later than 10 calendar days before the end of the
quarter for which the supplemental grant award is being requested.

Additional guidance on this policy is available from the respective CMS Regional Office, U.S. Department of Health &
Human Services.

The State will comply with the following guidelines when requesting supplemental funding for TANF (CFDA 93.558),
CCDF (CFDA 93.575), CSE (93.563), and the FC/AA (CFDA 93.658 and CFDA 93.659) programs administered by the
U.S. Department of Human Services, Administration for Children and Families (HHS/ACF):

a. Timing of the Request

A State should initiate its request for supplemental funding during a quarter as soon as it becomes aware of the fact that a
shortfall does/will exist. For the TANF and CCDF grants, supplemental funding requests (estimates) may be submitted by
a State, for consideration by ACF, up through and including the 15th day of the third month of the first, second or third
quarter of any fiscal year, Since TANF and CCDF are block grant programs, all unawarded portions of the annual
allotment will automatically be issued at the beginning of the fourth quarter. Therefore, supplemental funding requests will
not be available during the fourth quarter for these programs. For the CSE and FC/AA programs, supplemental funding
requests may be submitted by a state, for consideration by ACF, up through and including the 15th day of the third month
of any quarter of a fiscal year.

b. Justification for the Request

The request for a supplemental funding for any of the above mentioned programs should contain a justification clearly
documenting the need for the additional funding authority during the current quarter. This documentation should be in the
form of State accounting records or similar documents that will show the actual expenditures through the most recent
month for.which such data are available, as well as the State's most accurate projection of its anticipated expenditures
during the remaining month(s) of the quarter, For either the TANF or the CCDF program, the State's justification should
also include an explanation of the activities requiring the obligation and/or expenditure of amounts that exceed the normal
quarterly grant award restrictions and why these activities could not have been delayed until the next quarter.

c. Form Submittal
Supplemental funding requests should be made by completing the appropriate ACF quarterly report of expenditures and ;
estimates applicable to the particular program for which the grant award request is being made.

d. Approval Process
Upon receipt of the state's request for additional funding authority for a quarter, the ACF Regional Office will promptly

teview the supporting documentation. If the request is properly justified, so long as ACF has adequate funding

Page 4 of 27



Recipient: EHS-Executive Office of Health and Human Services
% of Funds Agency Receives: 6.00

Component: Service Providers, Direct Program Cost
Technique: Quarterly Draw Closeout

Average Day of Clearance: 0 Days

Recipient: EHS-Executive Office of Health and Human Services
% of Funds Agency Receives: 49.00

Component: Service Providers, Direct Program Cost
Technique: Weekly Reimbursable Funding

Average Day of Clearance: 0 Days

93.959 Block Grants for Prevention and Treatment of Substance Abuse
Recipient: DPH-Department of Public Health

% of Funds Agency Receives: 2.00

Component: Indirect Costs

Technique: Automated Central Draw Indirect Cost Rates - Monthly
Average Day of Clearance: 0 Days

Recipient: DPH-Department of Public Health

% of Funds Agency Receives: 98.00

Component: Vendor Payments and Payroll

Technique: Weekly Automated Central Draw Actual Reimbursable Funding
Average Day of Clearance: 0 Days

96.001 Social Security -- Disability Insurance

Recipient: MRC- Massachusetts Rehabilitation Commission

% of Funds Agency Receives: 14.00

Component: Indirect Costs

Technique: Automated Central Draw Indirect Cost Rates - Monthly
Average Day of Clearance: 0 Days

Recipient: MRC- Massachusetts Rehabilitation Commission
% of Funds Agency Receives: 53.00

Component: Payroll
Technique: Weekly Automated Central Draw Actual Reimbursable Funding
Average Day of Clearance: 0 Days

Recipient: MRC- Massachusetts Rehabilitation Commission

% of Funds Agency Receives: 33.00

Component: Vendor Payments

Technique: Weekly Automated Central Draw Actual Reimbursable Funding

Average Day of Clearance: 0 Days

97.036 Disaster Grants - Public Assistance (Presidentially Declared Disasters)
Recipient: CDA - Emergency Management Agency

Page 15 of 27



7.6 The State shall use the following method to calculate the dollar-weighted average day of clearance:

To determine the number of days each check was outstanding (clearance time), the issue date shall be subtracted from
the date the check cleared the State's account.

To determine the percentage of the disbursement paid out each day following issuance, the amount of the checks that
clear the State's account each day shall be summed and then divided by the amount of the total disbursement.

For each day following issuance, the clearance time of the checks paid out that day shall be multiplied by the percentage
of the total disoursement those checks represent. This product is the clearance factor.

The doliar-weighted average day of clearance for the disbursement shall be determined by summing the clearance factor
of each day following the disbursement.

7.7 The State shall adjust each clearance pattern to reflect the dollar-weighted proportion of funds paid out by EFT/Direct
payroll, with the following exceptions:

Not Applicable
The State shail also adjust each clearance pattern to reflect:

Not Applicable

7.8 Each of the State's clearance patterns is calculated in calendar days.

7.9 An authorized State official shall certify that each clearance pattern developed by the State accurately corresponds to
the clearance activity of the programs to which it is applied. This certification shall be provided to the Fiscal Service prior
to the effective date of the Agreement. The State shall recertify its clearance patterns at least every five years.

7.10 The State shall follow the procedures of 31 CFR 205 if it has actual or constructive knowledge, at any time, that a
clearance pattern does not correspond to a program's clearance activity.

8.0 INTEREST CALCULATION METHODOLOGY
8.1 General Terms

8.1.1 The State and the Secretary agree that no interest liabilities will be incurred for transfers of funds made in
accordance with the procedures specified in section 6 of this Agreement where the following funding techniques are
applied:

Actual Clearance, ZBA - Same Day Payment
Automated Central Draw Indirect Cost Rates - Monthly
Bi-Weekly Reimbursable Funding

Cost Allocation Plan - Quarterly

Cost Allocation Plan Monthly

Daily Draw - EBT

Daily Reimbursable Funding

FHWA Weekly Actual Reimbursement

HUD Payment Schedule

Page 17 of 27



5.1 State agencies and instrumentalities that meet the definition of a State per 31 CFR Part 205, shall be subject to the
terms of this Agreement. The following is a list of such entities that administer funds under the programs listed In Section
4.0 of this Agreement:

CDA - Emergency Management Agency

DOE-Department Of Elementary And Secondary Education
DOR- Department of Revenue

DOT-Massachusetts Department Of Transportation
DPH-Department of Public Heaith

DSS-Department of Children and Families
EEC-Department of Early Education & Care
EHS-Executive Office of Health and Human Services
EOL-Department of Labor and Workforce Development
MIL- Military Affairs

MRC- Massachusetts Rehabilitation Commission
OCD-Department of Housing and Community Development
WEL-Department of Transitional Assistance

5.2 Entities that meet the definition of a Fiscal Agent per 31 CFR Part 205 shall be subject to the terms of this Agreement.
The following is a list of Fiscal Agents that administer funds under the programs listed in the Section 4.0 of this
Agreement:

Wells Fargo/ACS 10.551 Supplemental Nutrition Assistance Program
6.0 FUNDING TECHNIQUES
6.1 General Terms

6.1.1 The State shall request Federal funds in accordance with the appropriate cut-off times shown in Exhibit | to ensure
funds will be received and credited to a State account by the times specified in the funding techniques. Exhibit | is
incorporated by reference herein.

6.1.2 The State shall schedule the receipt of Federal funds such that the funds are received and credited to a State
account in accordance with the clearance patterns specified in Exhibit Il - List of State Clearance Patterns. Exhibit Il is
incorporated by reference herein.

6.1.3 In instances where the receipt of funds is scheduled for a Saturday, the State shall request funds for deposit on
Friday. In instances where the receipt of funds is scheduled for a Sunday, the State shall request funds for deposit on
Monday. In instances where the receipt of Federal funds is scheduled for deposit on a day when the State is not open for
business, the State shall request funds for deposit the day following the scheduled day; in instances where the receipt of
Federal funds is scheduled for deposit on a day when the Federal Government is not open for business, the State shall
request funds for deposit the day prior to the scheduled day.

6.1.4 Estimates and Reconciliation of Estimates:

Where estimated expenditures are used to determine the amount of the drawdown, the State will indicate in the terms of
the State unique funding technique how the estimated amount is determined and when and how the State will reconcile
the difference between the estimate and the State's actual expenditures.

6.1.5 Supplemental Funding:
Unless otherwise defined by program rules, Supplemental Funding is the award of additional funds to provide for an

Page 3 of 27



93.667

Indirect Cost

Declared Disasters)

Social Services Block DSS-Department of 1.00 Cost Allocation Plan 0 Days
Grant Children and Families Monthly
93.667 | Social Services Block DSS-Department of 99.0 |Vendor Payments Bi-Weekly Reimbursable |O Days
Grant Children and Families 0 Funding
93.767  |Children’s Health EHS-Executive Office of |55.0 |Service Providers Quarterly Draw Closeout |O Days
Insurance Program Health and Human [
Services -
93.767 |Children's Health EHS-Executive Office of /45.0 |Service Providers Weekly Reimbursable 0 Days
Insurance Program Health and Human 0 Funding
Services
93.778 |Medical Assistance EHS-Executive Office of [1.00 |Direct Administrative Bi-Weekly Reimbursable |0 Days
Program Health and Human Cost Funding
Services
93.778 {Medical Assistance EHS-Executive Office of {6.00 | Service Providers, Direct |Quarterly Draw Closeout |0 Days
Program Health and Human Program Cost
Services
93.778 |Medical Assistance EHS-Executive Office of |14.0 | Service Providers, Direct | Monthly Reimbursable 0 Days
Program Heaith and Human o Program Cost Funding
Services
93.778 |Medical Assistance EHS-Executive Office of |49.0 |Service Providers, Direct |Weekly Reimbursable 0 Days
Program Health and Human 0o Program Cost Funding
Services
93.778 |Medical Assistance EHS-Executive Office of /3.00 [Indirect Administrative Cost Allocation Plan - 0 Days
Program Health and Human Costs Quarterly
Services
93.778 |Medical Assistance EHS-Executive Office of |27.0 |Service Providers, Direct |Daily Reimbursable 0 Days
Program Health and Human ie) Program Cost Funding
Services
93.959  |Block Grants for DPH-Department of 98.0 |Vendor Payments and | Weekly Automated 0 Days
Prevention and Public Health ie) Payroll Central Draw Actual
Treatment of Substance Reimbursable Funding
Abuse
93.959 | Block Grants for DPH-Department of 2.00 |Indirect Costs Automated Central Draw |O0 Days
Prevention and Public Health Indirect Cost Rates -
Treatment of Substance Monthly .
Abuse
96.001 |Social Security - MRC- Massachusetts 53.0 |Payroll Weekly Automated 0 Days
Disability Insurance Rehabilitation 0 Central Draw Actual
Commission Reimbursable Funding
96.001 |Social Security -- MRC- Massachusetts 33.0 |Vendor Payments ‘Weekly Automated 0 Days
Disabitity Insurance Rehabilitation 0 Central Draw Actual
Commission Reimbursable Funding
96.001 |Social Security ~ MRC- Massachusetts 14.0 |Indirect Costs Automated Central Draw |0 Days
Disability Insurance Rehabilitation 0o Indirect Cost Rates -
Commission Monthly
97.036 |Disaster Grants - Public |CDA - Emergency 49.0 |Vendor Payments Weekly Automated 0 Days
[Assistance (Presidentially /Management Agency to) Central Draw Actual
Declared Disasters} Reimbursable Funding
97.036 |Disaster Grants - Public |CDA - Emergency 5.00 |Administrative Cost Weekly Automated 0 Days
Assistance (Presidentially |Management Agency Central Draw Actual
Declared Disasters) Reimbursable Funding
97.036 |Disaster Grants - Public |CDA - Emergency 1.00 |Indirect Cost Weekly Automated 0 Days
Assistance (Presidentially |Management Agency Central Draw Actual
Declared Disasters) Reimbursable Funding
97.036 | Disaster Grants - Public |CDA - Emergency 45.0 |Vendor Payments Monthly Reimbursable {0 Days
‘Assistance (Presidentially |Management Agency 0 Funding

(hereby certify that an authorized State official has certified at least every five years that the "Rounded Days of Clearance" listed in

Exhibit 2 of this Treasury-State Agreement:

Page 26 of 27



4.0 PROGRAMS COVERED

4.1 The State's threshold and its major Federal assistance programs shall be determined based on the Commonwealth's

Single Audit report for fiscal year ending 06/30/2016.

All major Federal assistance programs shall be covered by this Agreement, unless otherwise specified in section 4.4 of
this Agreement.

4.2 The State's threshold for major Federal assistance programs is $30,000,000.
The following programs meet or exceed the threshold and are not excluded in Section 4.4:

10.551 Supplemental Nutrition Assistance Program

10,555 National School Lunch Program

10.557 Special Supplemental Nutrition Program for Women, Infants, and Children
10.558 Child and Adult Care Food Program

10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program
12.401 National Guard Military Operations and Maintenance (O&M) Projects

14.881 Moving to Work Demonstration Program

17.225F Unemployment Insurance -- Federal Benefit Account and Administrative Costs
17.225S Unemployment Insurance -- State Benefit Account

20.205 Highway Planning and Construction

84.010 Title | Grants to Local Educational Agencies

84.027 Special Education -- Grants to States

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to States

84.367 Improving Teacher Quality State Grants

93.558 Temporary Assistance for Needy Families

93.563 Child Support Enforcement

93.568 Low-Income Home Energy Assistance

93.575 Child Care and Development Block Grant

93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund
93.658 Foster Care -- Title IV-E

93.667 Social Services Block Grant

93,767 Children's Health Insurance Program

93.778 Medical Assistance Program

93.959 Block Grants for Prevention and Treatment of Substance Abuse

96.001 Social Security -- Disability Insurance

97,036 Disaster Grants - Public Assistance (Presidentially Declared Disasters)

4.3 The following programs fall below the State's threshold but have been required to be covered by Fiscal Service in
accordance with the non-compliance provisions of Subpart B of 31 CFR Part 205:

There are currently no programs listed for Section 4.3.

4.4 The following programs exceed the State's threshold but have been excluded from coverage for the reason indicated:

93.268 Immunization Grants --- Exclusion:Non-Cash

5.0 ENTITIES COVERED

Page 2 of 27



Average Day of Clearance: 0 Days

Recipient: OCD-Department of Housing and Community Development

% of Funds Agency Receives: 99.00

Component: Vendor Payments/ Beneficiary Payments

Technique: Weekly Automated Central Draw Actual Reimbursable Funding
Average Day of Clearance: 0 Days

93.575 Child Care and Development Block Grant
Recipient: EEC-Department of Early Education & Care
% of Funds Agency Receives; 100.00

Component: Vendor Payments

Technique: Monthly Reimbursable Funding

Average Day of Clearance: 0 Days

93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund

Recipient: EEC-Department of Early Education & Care
% of Funds Agency Receives: 100.00

Component: Vendor Payments

Technique: Monthly Reimbursable Funding

Average Day of Clearance: 0 Days

93.658 Foster Care -- Title IV-E

Recipient: DSS-Department of Children and Families

% of Funds Agency Receives: 70.00

Component: Vendor Payments and Administrative Costs
Technique: Bi-Weekly Reimbursable Funding

Average Day of Clearance: 0 Days

Recipient: DSS-Department of Children and Families
% of Funds Agency Receives: 1.00

Component: Indirect costs

Technique: Cost Allocation Plan Monthly

Average Day of Clearance: 0 Days

Recipient: DSS-Department of Children and Families
% of Funds Agency Receives: 29.00

Component: Vendor Payments

Technique: Quarterly Reimbursable Funding
Average Day of Clearance: 0 Days

93.667 Social Services Block Grant

Recipient: DSS-Department of Children and Families
% of Funds Agency Receives: 99.00

Component: Vendor Payments

Page 13 of 27


% of Funds Agency Receives: 45.00
Component: Vendor Payments

Technique: Monthly Reimbursable Funding
Average Day of Clearance: 0 Days

Recipient: CDA - Emergency Management Agency

% of Funds Agency Receives: 5.00

Component: Administrative Cost

Technique: Weekly Automated Central Draw Actual Reimbursable Funding
Average Day of Clearance: 0 Days

Recipient: CDA - Emergency Management Agency

% of Funds Agency Receives: 1.00

Component: Indirect Cost

Technique: Weekly Automated Central Draw Actual Reimbursable Funding
Average Day of Clearance: 0 Days

Recipient: CDA - Emergency Management Agency

% of Funds Agency Receives: 49.00

Component: Vendor Payments

Technique: Weekly Automated Central Draw Actual Reimbursable Funding

Average Day of Clearance: 0 Days

6.3.3 Materiality Exemptions

Agencies exempt from coverage on the basis of materiality:

No exempt agencies.

7.0 CLEARANCE PATTERNS.

7.1 The State shall develop separate clearance patterns for each of the following:

Not Applicable

7.2 The following shall develop the State's clearance patterns:

The Bank shall develop clearance patterns for Vendor and Payroll accounts.

7.3 The sources of data the State shall use when developing its clearance patterns are as follows:
The Commonwealth's controlled disbursement accounts.

7.4 The State shall use the following methodology when developing its clearance patterns:

When developing each clearance pattern, the State shall track at least 99% of the funds disbursed, from issuance to
clearance, for a period of at least three months.

7.5 The State shall identify for each check or warrant (hereafter, check) in the population: (1) the date the check was
released for payment; (2) the date the check was debited from the State's account, and, (3) the amount of the check.

Page 16 of 27