Cash Management Improvement Act Agreement

between

The State of Ohio

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 State of Ohio

(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 State of Ohio shall be the Director, Office of Budget and Management in all 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 31

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 shall govern.

3.0 DURATION, AMENDING, TERMINATING, AND MISCELLANEOUS PROVISIONS

3.1 This Agreement shall take effect on 07/01/2018 and shall remain in effect until 06/30/2019.

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.

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 24
4.0 PROGRAMS COVERED

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

fiscal year ending 06/30/2017.

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 $83,691,949.

The following programs meet or exceed the threshold and are not excluded in Section 4.4:

10.551 Supplemental Nutrition Assistance Program

10.553 School Breakfast 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

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 I 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

93.659 Adoption Assistance

93.667 Social Services Block Grant

93.767 Children's Health Insurance Program

93.778 Medical Assistance Program

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

4.5 This further clarifies section 4.4: The Immunization Cooperative Agreements, CFDA 93.268, exceeded the threshold

due to immunizations received into the State. This is a non-cash transaction which would not have interest considerations

within the Treasury-State Agreement; therefore, this program was excluded.

Page 2 of 24
5.0 ENTITIES COVERED

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:

Department of Developmental Disabilities

Department of Education

Department of Health

Department of Job & Family Services

Department of Medicaid

Department of Mental Health & Addiction Services

Department of Transportation

Development Services Agency

Opportunities for Ohioans with Disabilities Agency

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:

U.S. Bank 17.225S Unemployment Insurance -- State Benefit Account

US Bank 17.225F Unemployment Insurance -- Federal Benefit Account and Administrative Costs

Xerox 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 I to ensure

funds will be received and credited to a State account by the times specified in the funding techniques. Exhibit I 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 II - List of State Clearance Patterns. Exhibit II 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 24
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

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

Page 4 of 24
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 - ACH

The State shall request funds such that they are deposited by ACH in a State account on the settlement date of payments

issued by the State. The request shall be made in accordance with the appropriate Federal agency cut-off time specified

in Exhibit I. The amount of the request shall be for the amount of funds that clear the State's account on the settlement

date. This funding technique is interest neutral.

Composite Clearance

The State shall request funds such that they are deposited on the dollar-weighted average number of days required for

funds to be paid out for a series of disbursements, in accordance with the clearance pattern specified in Exhibit II. The

request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit I. The amount of

the request shall be the sum of the payments issued in the series of disbursements. This funding technique is interest

neutral.

Estimated Clearance

The State shall request funds such that they are deposited in a State account in accordance with the clearance pattern

specified in Exhibit II - EC (Estimated Clearance). The request shall be made in accordance with the appropriate Federal

agency cut-off time specified in Exhibit I. The amount of each request will be a percentage of the disbursement, according

to the State's clearance pattern specified in Exhibit II - EC. 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.

Modified Pre-Issuance

Page 5 of 24
The State of Ohio's accounting system requires funding to be available prior to initiating a disbursement. In addition,

disbursements take two business days to produce a payment. Given this fact pattern, State of Ohio agencies are typically

unable to meet the three business day requirement and a five business day average requirement is necessary for agency

compliance with this agreement. The State shall request funds such that they are deposited in a State account not more

than on average five business days prior to the day the State makes a disbursement. The request shall be made in

accordance with the appropriate Federal agency cut-off time specified in Exhibit I. The amount of the request shall be the

amount the State expects to disburse. This funding technique is not interest neutral.

Reimbursable

The State shall request funds such that they are deposited on a weekly, monthly, or quarterly basis. The request shall be

made in accordance with the appropriate Federal agency cut-off time specified in Exhibit I. The amount of the request

shall be equal to the amount of the reimbursement requested by each respective state agency for allowable administrative

and program costs. The State of Ohio voluntarily waives its right to claim federal interest liability. This funding technique

is not 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: Department of Job & Family Services

% of Funds Agency Receives: 99.11

Component: Payments to Beneficiaries - Merchant Payments - ACH

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 0.89

Component: SSI Cash Out Benefits

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

10.553 School Breakfast Program

Recipient: Department of Education

% of Funds Agency Receives: 100.00

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

10.555 National School Lunch Program

Recipient: Department of Education

Page 6 of 24
% of Funds Agency Receives: 100.00

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

10.557 Special Supplemental Nutrition Program for Women, Infants, and Children

Recipient: Department of Health

% of Funds Agency Receives: 100.00

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

10.558 Child and Adult Care Food Program

Recipient: Department of Education

% of Funds Agency Receives: 100.00

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 100.00

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

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

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 1.00

Component: Unemployment Insurance - Federal Benefit Payments

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 99.00

Component: Administrative Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

17.225S Unemployment Insurance -- State Benefit Account

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 100.00

Component: Benefits Costs

Technique: Actual Clearance, ZBA - ACH

Page 7 of 24
Average Day of Clearance: 0 Days

20.205 Highway Planning and Construction

Recipient: Department of Transportation

% of Funds Agency Receives: 100.00

Component: All Costs

Technique: Composite Clearance

Average Day of Clearance: 0 Days

84.010 Title I Grants to Local Educational Agencies

Recipient: Department of Education

% of Funds Agency Receives: 100.00

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

84.027 Special Education -- Grants to States

Recipient: Department of Education

% of Funds Agency Receives: 100.00

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to States

Recipient: Opportunities for Ohioans with Disabilities Agency

% of Funds Agency Receives: 100.00

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

84.367 Improving Teacher Quality State Grants

Recipient: Department of Education

% of Funds Agency Receives: 100.00

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 100.00

Component: All JFS Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

Page 8 of 24
93.563 Child Support Enforcement

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 100.00

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

93.568 Low-Income Home Energy Assistance

Recipient: Development Services Agency

% of Funds Agency Receives: 100.00

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

93.575 Child Care and Development Block Grant

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 100.00

Component: All costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

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

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 100.00

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

93.658 Foster Care -- Title IV-E

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 100.00

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

93.659 Adoption Assistance

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 17.50

Component: Benefits (paid from the State's General Revenue Fund)

Technique: Estimated Clearance

Average Day of Clearance: N/A

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 82.50

Page 9 of 24
Component: Administrative Costs and Benefits (paid from the State's Federal Special Revenue Fund)

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

93.667 Social Services Block Grant

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 88.87

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

Recipient: Department of Developmental Disabilities

% of Funds Agency Receives: 4.94

Component: All Costs

Technique: Reimbursable

Average Day of Clearance: N/A

Recipient: Department of Mental Health & Addiction Services

% of Funds Agency Receives: 6.19

Component: All Costs

Technique: Reimbursable

Average Day of Clearance: N/A

93.767 Children's Health Insurance Program

Recipient: Department of Medicaid

% of Funds Agency Receives: 88.00

Component: Administrative Costs and Provider Payments (paid from the State's General Revenue Fund by EFT)

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

Recipient: Department of Medicaid

% of Funds Agency Receives: 3.00

Component: Administrative Costs and Provider Payments ( paid from the State's General Revenue Fund by Warrant)

Technique: Estimated Clearance

Average Day of Clearance: N/A

Recipient: Department of Medicaid

% of Funds Agency Receives: 9.00

Component: State Agency Reimbursements for Program and Administrative Costs

Technique: Reimbursable

Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: Department of Medicaid

% of Funds Agency Receives: 70.00

Component: Administrative Costs, Provider Payments and County Advances (paid from the State's General Revenue

Fund by EFT)

Page 10 of 24
Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

Recipient: Department of Medicaid

% of Funds Agency Receives: 1.00

Component: Administrative Costs and Provider Payments ( paid from the State's General Revenue Fund by Warrant)

Technique: Estimated Clearance

Average Day of Clearance: N/A

Recipient: Department of Medicaid

% of Funds Agency Receives: 28.00

Component: Hospital Care Assurance, Supplemental Inpatient Payments, Administrative Costs, Provider Payments

including Medicaid Expansion (paid from the State's Federal Special Revenue Fund)

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

Recipient: Department of Medicaid

% of Funds Agency Receives: 1.00

Component: State Agency Reimbursements for Program and Adminsitrative Costs

Technique: Reimbursable

Average Day of Clearance: N/A

6.3.3 Materiality Exemptions

Agencies exempt from coverage on the basis of materiality:

There are currently no agencies exempt from coverage on the basis of materiality.

7.0 CLEARANCE PATTERNS

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

10.551 Supplemental Nutrition Assistance Program

10.553 School Breakfast Program

10.555 National School Lunch Program for Children

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 Food Stamp Program

17.225 F Unemployment Insurance -- Federal Benefit Payments

20.205 Highway Planning and Construction

84.010 Title I 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 Grants

93.558 Temporary Assistance for Needy Families

93.563 Child Support Enforcement

93.568 Low-Income Home Energy Assistance

93.575 Childcare and Development Block Grant

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

Page 11 of 24
93.658 Foster Care -- Title IV-E

93.659 Adoption Assistance

93.667 Social Services Block Grant

93.767 State Children's Health Insurance Program

93.778 Medical Assistance Program

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

The Ohio Office of Budget and Management shall develop the State's clearance patterns.

7.3 The sources of data the State shall use when developing its clearance patterns are as follows:

The source of data the State shall use is the disbursement data from the Ohio Administrative Knowledge System.

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.

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 disbursement those checks represent. This product is the clearance factor.

The dollar-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:

N/A

The State shall also adjust each clearance pattern to reflect:

two additional days due to the State's internal processing time.

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.

Page 12 of 24
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 - ACH

Composite Clearance

Estimated Clearance

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:

Average Clearance:

For all transactions where the State pays out its own funds for program purposes prior to receiving Federal funds, the

Federal interest liability shall be based on the difference in whole days between the average date of clearance for a

disbursement, as specified in Exhibit II, and the date the related Federal funds are credited to a State account. With

Federal-State matching programs, interest shall be calculated on the Federal percentage of the disbursement.

8.3 The Unemployment 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.

Page 13 of 24
At the end of the State's 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 %.

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 State's 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 shall 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 State's 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 State's 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

Page 14 of 24
8.6.1 The State shall 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:

8.6.2.1 Measuring Time Funds Are Held

To determine the total time Federal funds are held, the State shall measure the time between the date Federal funds are

received and credited to a State's account and the date those 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 II.

8.6.2.3 Standards Applied

Census (Average Daily Balance):

The average daily cash balance of Federal funds in the program's account reflects the actual activity of each draw from

the date of deposit to the date of issuance or clearance, whichever is pertinent.

8.6.2.4 Calculation Procedure

Average Daily Balance + Clearance Pattern:

I = {ADB x R} + {P x r x T}, where

I = 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

P = Total annual expenditures of Federal funds for program or component cash flow of program

r = R/365 days

T = Dollar-weighted average day of clearance, as determined by the appropriate clearance pattern in Exhibit II

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

Page 15 of 24
reimbursement, unless the State provides justification with the annual report.

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

The State anticipates incurring cost for Annual Report preparation and Clearance Pattern study.

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

with 31 CFR 205.

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 16 of 24
12.0 AUTHORIZED SIGNATURES

Timothy S. Keen

Director

Office of Budget and Management

Signature:________________________________________Date Signed:_______________

Date Submitted 06/06/2018

Corvelli A. McDaniel

Assistant Commissioner

Revenue Collections Management

Bureau of the Fiscal Service

U.S. Department of the Treasury

Signature:________________________________________Date Signed:_______________

Page 17 of 24

Timothy S. Keen (Jun 29, 2018) Timothy S. Keen

Jun 29, 2018

Corvelli A. McDaniel (Jul 5, 2018)

Corvelli A. McDaniel

Jul 5, 2018
Exhibit I - Funds Request and Receipt Times Schedule

State of Ohio

Federal Agency Payment Type Request Cut-Off Time Receipt Window

Agriculture-FNS ACH 11:59 PM 1 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 1 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 1 day

Energy Fedwire 3:00 PM 0 day

HHS ACH 6:30 PM 1 day

HHS Fedwire 3:00 PM 0 day

HUD ACH 5:30 PM 2 days

HUD Fedwire 3:00 PM 0 day

Interior-FWS ACH 11:59 PM 1 day

Interior-FWS Fedwire 5:45 PM 0 day

Interior-OSM ACH 3:00 PM 1 day

Interior-OSM Fedwire 1:00 PM 0 day

Justice ACH 11:00 PM 6 days

Justice Fedwire 2:00 PM 2 days

Labor-Non-UTF ACH 3:00 PM 1 day

Labor-UTF ACH 3:00 PM 1 day

Labor-UTF Fedwire 3:00 PM 0 day

National Science Foundation (NSF) ACH 8:00 PM 1 day

National Science Foundation (NSF) Fedwire 5:45 PM 0 day

Social Security Administration ACH 11:59 PM 1 day

Social Security Administration Fedwire 5:45 PM 0 day

Transportation (FAA) ACH 2:00 PM 1 day

Transportation (FHWA) ACH 12:00 PM 3 days

Transportation (FHWA) Fedwire 12:00 PM 0 day

Transportation (FTA) ACH 2:00 PM 1 day

Veterans Administration ACH 12:00 PM 3 days

Page 18 of 24
Exhibit II - State of Ohio

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

CFDA Program Name Recipient % Component Technique Round

ed

days

10.551 Supplemental Nutrition

Assistance Program

Department of Job &

Family Services

99.1

1

Payments to

Beneficiaries - Merchant

Payments - ACH

Actual Clearance, ZBA -

ACH

0 Days

10.551 Supplemental Nutrition

Assistance Program

Department of Job &

Family Services

0.89 SSI Cash Out Benefits Modified Pre-Issuance N/A

10.553 School Breakfast

Program

Department of Education 100.

00

All Costs Modified Pre-Issuance N/A

10.555 National School Lunch

Program

Department of Education 100.

00

All Costs Modified Pre-Issuance N/A

10.557 Special Supplemental

Nutrition Program for

Women, Infants, and

Children

Department of Health 100.

00

All Costs Modified Pre-Issuance N/A

10.558 Child and Adult Care

Food Program

Department of Education 100.

00

All Costs Modified Pre-Issuance N/A

10.561 State Administrative

Matching Grants for the

Supplemental Nutrition

Assistance Program

Department of Job &

Family Services

100.

00

All Costs Modified Pre-Issuance N/A

17.225F Unemployment Insurance

-- Federal Benefit

Account and

Administrative Costs

Department of Job &

Family Services

1.00 Unemployment Insurance

- Federal Benefit

Payments

Actual Clearance, ZBA -

ACH

0 Days

17.225F Unemployment Insurance

-- Federal Benefit

Account and

Administrative Costs

Department of Job &

Family Services

99.0

0

Administrative Costs Modified Pre-Issuance N/A

17.225S Unemployment Insurance

-- State Benefit Account

Department of Job &

Family Services

100.

00

Benefits Costs Actual Clearance, ZBA -

ACH

0 Days

20.205 Highway Planning and

Construction

Department of

Transportation

100.

00

All Costs Composite Clearance 0 Days

84.010 Title I Grants to Local

Educational Agencies

Department of Education 100.

00

All Costs Modified Pre-Issuance N/A

84.027 Special Education --

Grants to States

Department of Education 100.

00

All Costs Modified Pre-Issuance N/A

84.126 Rehabilitation Services --

Vocational Rehabilitation

Grants to States

Opportunities for Ohioans

with Disabilities Agency

100.

00

All Costs Modified Pre-Issuance N/A

84.367 Improving Teacher

Quality State Grants

Department of Education 100.

00

All Costs Modified Pre-Issuance N/A

93.558 Temporary Assistance for

Needy Families

Department of Job &

Family Services

100.

00

All JFS Costs Modified Pre-Issuance N/A

93.563 Child Support

Enforcement

Department of Job &

Family Services

100.

00

All Costs Modified Pre-Issuance N/A

93.568 Low-Income Home

Energy Assistance

Development Services

Agency

100.

00

All Costs Modified Pre-Issuance N/A

93.575 Child Care and

Development Block Grant

Department of Job &

Family Services

100.

00

All costs Modified Pre-Issuance N/A

Page 19 of 24
________________________________________________________________________________________________________

I 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:

1. Have been prepared in accordance with the standards provided in 31 CFR 205.20;

CFDA Program Name Recipient % Component Technique Round

ed

days

93.596 Child Care Mandatory

and Matching Funds of

the Child Care and

Development Fund

Department of Job &

Family Services

100.

00

All Costs Modified Pre-Issuance N/A

93.658 Foster Care -- Title IV-E Department of Job &

Family Services

100.

00

All Costs Modified Pre-Issuance N/A

93.659 Adoption Assistance Department of Job &

Family Services

17.5

0

Benefits (paid from the

State's General Revenue

Fund)

Estimated Clearance N/A

93.659 Adoption Assistance Department of Job &

Family Services

82.5

0

Administrative Costs and

Benefits (paid from the

State's Federal Special

Revenue Fund)

Modified Pre-Issuance N/A

93.667 Social Services Block

Grant

Department of

Developmental

Disabilities

4.94 All Costs Reimbursable N/A

93.667 Social Services Block

Grant

Department of Job &

Family Services

88.8

7

All Costs Modified Pre-Issuance N/A

93.667 Social Services Block

Grant

Department of Mental

Health & Addiction

Services

6.19 All Costs Reimbursable N/A

93.767 Children's Health

Insurance Program

Department of Medicaid 88.0

0

Administrative Costs and

Provider Payments (paid

from the State's General

Revenue Fund by EFT)

Actual Clearance, ZBA -

ACH

0 Days

93.767 Children's Health

Insurance Program

Department of Medicaid 9.00 State Agency

Reimbursements for

Program and

Administrative Costs

Reimbursable N/A

93.767 Children's Health

Insurance Program

Department of Medicaid 3.00 Administrative Costs and

Provider Payments ( paid

from the State's General

Revenue Fund by

Warrant)

Estimated Clearance N/A

93.778 Medical Assistance

Program

Department of Medicaid 70.0

0

Administrative Costs,

Provider Payments and

County Advances (paid

from the State's General

Revenue Fund by EFT)

Actual Clearance, ZBA -

ACH

0 Days

93.778 Medical Assistance

Program

Department of Medicaid 1.00 State Agency

Reimbursements for

Program and

Adminsitrative Costs

Reimbursable N/A

93.778 Medical Assistance

Program

Department of Medicaid 1.00 Administrative Costs and

Provider Payments ( paid

from the State's General

Revenue Fund by

Warrant)

Estimated Clearance N/A

93.778 Medical Assistance

Program

Department of Medicaid 28.0

0

Hospital Care Assurance,

Supplemental Inpatient

Payments, Administrative

Costs, Provider

Payments including

Medicaid Expansion (paid

from the State's Federal

Special Revenue Fund)

Modified Pre-Issuance N/A

Page 20 of 24
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: ___________________________________________________________

Printed Name: ____________________________________________________

Certifying Signature: _______________________________________________

Title: ___________________________________________________________

Page 21 of 24

Timothy S. Keen (Jun 29, 2018) Timothy S. Keen

Timothy S. Keen Jun 29, 2018 Director
Cash Management Improvement Act - 2019 Treasury State Agreement

State of Ohio - Exhibit II Estimated Clearance

___________________________________________________________________________________________________________

Effective 07/01/2018 until 06/30/2019

93.659 Adoption Assistance

Benefits (paid from the State's General Revenue Fund)

93.767 Children's Health Insurance Program

Administrative Costs and Provider Payments ( paid from the State's General Revenue Fund by Warrant)

Day % Cleared

Day 1 0.00

Day 2 0.00

Day 3 2.55

Day 4 3.13

Day 5 6.13

Day 6 19.38

Day 7 24.72

Day 8 8.91

Day 9 1.47

Day 10 11.66

Day 11 8.43

Day 12 1.40

Day 13 3.69

Day 14 2.31

Day 15 0.33

Day 16 0.22

Day 17 1.31

Day 18 1.25

Day 19 0.05

Day 20 1.95

Day 21 0.23

Day 22 0.15

Day 23 0.07

Day 24 0.15

Day 25 0.09

Day 26 0.04

Day 27 0.10

Day 28 0.10

Day 29 0.05

Day 30 0.04

Day 31 0.09

Total 100.00

Day % Cleared

Day 1 0.00

Day 2 0.00

Day 3 0.21

Page 22 of 24
93.778 Medical Assistance Program

Administrative Costs and Provider Payments ( paid from the State's General Revenue Fund by Warrant)

Day % Cleared

Day 4 5.23

Day 5 23.54

Day 6 26.06

Day 7 17.69

Day 8 5.83

Day 9 0.00

Day 10 2.24

Day 11 8.62

Day 12 2.55

Day 13 1.13

Day 14 0.80

Day 15 0.60

Day 16 0.00

Day 17 0.09

Day 18 1.60

Day 19 0.15

Day 20 2.12

Day 21 0.34

Day 22 0.26

Day 23 0.00

Day 24 0.24

Day 25 0.18

Day 26 0.18

Day 27 0.14

Day 28 0.08

Day 29 0.12

Day 30 0.00

Day 31 0.00

Total 100.00

Day % Cleared

Day 1 0.17

Day 2 0.00

Day 3 0.79

Day 4 10.53

Day 5 24.56

Day 6 23.86

Day 7 14.92

Day 8 4.56

Day 9 0.00

Day 10 1.64

Day 11 6.95

Day 12 2.95

Day 13 2.01

Day 14 1.34

Day 15 0.73

Day 16 0.00

Day 17 0.51

Page 23 of 24
Certification

I hereby certify that the % Cleared listed in Exhibit II Estimated Clearance of this Treasury State Agreement:

 1. Has been prepared in accordance with the standards provided in 31 CFR 205.20;

 2. Accurately represents the flow of federal funds under the federal assistance programs to which they apply;

 3. Reflects seasonal or other periodic variations in the clearance activities;

 4. Is auditable; and,

 5. Has been certified as accurate by an authorized State Official.

 ___________________________________ ___________________________________

 Signature Date Signed

 ___________________________________

 Printed Name

 ___________________________________

 Printed Title

Day % Cleared

Day 18 1.30

Day 19 0.42

Day 20 0.92

Day 21 0.41

Day 22 0.35

Day 23 0.00

Day 24 0.18

Day 25 0.37

Day 26 0.16

Day 27 0.17

Day 28 0.06

Day 29 0.13

Day 30 0.00

Day 31 0.01

Total 100.00

Page 24 of 24

Timothy S. Keen (Jun 29, 2018) Timothy S. Keen

Director Timothy S. Keen Jun 29, 2018