12.0 AUTHORIZED SIGNATURES

DeAnn Hill
Chief Fina

Signature:.

Date Signed:_Sune 22) t> V7

Date Submitted 05/13/2017

Corvelli A. McDaniel

Assistant Commissioner
Revenue Collections Management
Bureau of the Fiscal Service
U.S. a) of the Tregéury

A meld

Signature:,

Date Signed: of af 2

Page 14 of 17


The State shall request funds such that they are deposited in a State account after the State issues checks, but before the
checks clear. 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 of the disbursement. This funding technique is not interest
neutral.

Pre-Issuance

The State shall request funds such that they are deposited in a State account not more than three 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 |. The amount of the request shall be the amount the State expects to disburse. This
funding technique is not 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.

There are no funding techniques listed in Section 6.2.4
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 for Children and Families

% of Funds Agency Receives: 100.00

Component: Benefit

Technique: Post-Issuance

Average Day of Clearance: N/A

10.553 School Breakfast Program

Recipient: Department of Education

% of Funds Agency Receives: 100.00

Component: Benefit-Pass Thru to service providers
Technique: Pre-Issuance

Average Day of Clearance: N/A

Page 5 of 17


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:

No exceptions.

The State shall also adjust each clearance pattern to reflect:

No adjustments necessary.

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:

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:

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

Page 10 of 17


Average Day of Clearance: N/A

Recipient: Department of Labor

% of Funds Agency Receives: 77.60
Component: Administration
Technique: Pre-Issuance

Average Day of Clearance: N/A

17.225S Unemployment Insurance — State Benefit Account
Recipient: Department of Labor

% of Funds Agency Receives: 100.00

Component: benefit

Technique: Post-Issuance

Average Day of Clearance: N/A

20.205 Highway Planning and Construction
Recipient: Department of Transportation

% of Funds Agency Receives: 100.00
Component: All

Technique: Post-Issuance

Average Day of Clearance: N/A

84.010 Title | Grants to Local Educational Agencies
Recipient: Department of Education

% of Funds Agency Receives: 1.00

Component: Administrative

Technique: Pre-Issuance

Average Day of Clearance: N/A

Recipient: Department of Education

% of Funds Agency Receives: 99.00

Component: Benefit - Pass thru to service providers
Technique: Pre-Issuance

Average Day of Clearance: N/A

84.027 Special Education - Grants to States
Recipient: Department of Education

% of Funds Agency Receives: 2.00
Component: Administrative

Technique: Pre-Issuance

Average Day of Clearance: N/A

Recipient: Department of Education
% of Funds Agency Receives: 98.00
Component: Benefit - Pass thru to service providers

Page 7 of 17


10.555 National School Lunch Program

Recipient: Department of Education

% of Funds Agency Receives: 100.00

Component: Benefit-Pass Thru to service providers
Technique: Pre-lssuance

Average Day of Clearance: N/A

10.557 Special Supplemental Nutrition Program for Women, Infants, and Children
Recipient: Department of Health and Environment

% of Funds Agency Receives: 37.00

Component: Administrative

Technique: Pre-lssuance

Average Day of Clearance: N/A

Recipient: Department of Health and Environment
% of Funds Agency Receives: 63.00

Component: Benefit

Technique: Pre-lssuance

Average Day of Clearance: N/A

140.558 Child and Adult Care Food Program
Recipient: Department of Education

% of Funds Agency Receives: 1.50
Component: Administrative

Technique: Pre-Issuance

Average Day of Clearance: N/A

Recipient: Department of Education

% of Funds Agency Receives: 98.50
Component: Pass Thru to Service Providers
Technique: Pre-lssuance

Average Day of Clearance: N/A

14.195 Section 8 Housing

Recipient: Kansas Housing Resources Corporation
% of Funds Agency Receives: 100.00

Component: Benefit

Technique: Pre-lssuance

Average Day of Clearance: N/A

17.225F Unemployment Insurance — Federal Benefit Account and Administrative Costs
Recipient: Department of Labor

% of Funds Agency Receives: 22.40

Component: Benefit

Technique: Post-Issuance

Page 6 of 17


Component: Benefit

Technique: Pre-Issuance

Average Day of Clearance: N/A

6.3.3 Materiality Exemptions

Agencies exempt from coverage on the basis of materiality:

None

7.0 CLEARANCE PATTERNS

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

Basis for Development
Functional Payment - Currently the State has achieved a 99.9% payroll direct deposit participation rate.

Program Specific - The State will use actual activity as the methodology to develop a separate clearance pattern for the
programs utilizing Estimated Clearance funding technique and Composite Clearance. Currently, the State uses either the
pre-issuance or post-issuance methodology for its programs.

7.2 The following shall develop the State's clearance patterns:
The Department of Administration, Office of the Chief Financial Officer.
7.3 The sources of data the State shall use when developing its clearance patterns are as follows:

The State shall use data contained in the Statewide Management Accounting and Reporting Tool (SMART) to develop the
warrant clearance pattern for those programs where a clearance pattern is needed. The information contained in SMART
records the check issue date and when the check was redeemed by the State Treasurer's Office.

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.

Page 9 of 17


Cash Management Improvement Act Agreement
between
The State of Kansas
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 Kansas
(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 Kansas shall be the Chief Financial Officer 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 07/01/2017 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.

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 17


Federal financial status reports. For each program, the State shall estimate the number of days that refunds are held prior
to being offset against a subsequent deposit of Federal funds. This shall be calculated as the average number of days
between drawdown deposits, which is determined by dividing the total number of drawdowns into 365, and assuming that
all refunds are received at the midpoint of the average number of days between drawdowns.

With programs to which applicable non-interest neutral funding techniques shall be applied, the State shall also calculate
the time refunds are in a State account by comparing the date the refund is offset against a subsequent deposit of Federal
funds and the date the refund is paid out for program purposes. This period will be measured for each program in
accordance with the State method for calculating interest under pre-issuance funding, and will be applied independently to
the amount of refunds under each program to calculate the interest on refunds.

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 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 credit to a State's account and the date those funds are debited from the State's account.

8.6.2.2 Source of Data

The time period from 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 shall be determined from information captured in the Statewide Management Accounting
and Reporting Tool (SMART).

8.6.2.3 Standards Applied

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

|= ADB x R, where

| = State's total interest liability

Page 12 of 17


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 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.

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 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 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 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 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:

Refunds Deposited Randomly to Program:
With programs to which applicable interest neutral funding techniques shall be applied, the State shall determine the
actual amount of refunds received during the State fiscal year for each program using the information in its standard

Page 11 of 17


Technique: Pre-Issuance
Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families
Recipient: Department for Children and Families
% of Funds Agency Receives: 15.00

Component: Administration

Technique: Pre-Issuance

Average Day of Clearance: N/A

Recipient: Department for Children and Families
% of Funds Agency Receives: 85.00
Component: Benefit

Technique: Pre-Issuance

Average Day of Clearance: N/A

93.568 Low-Income Home Energy Assistance
Recipient: Department for Children and Families
% of Funds Agency Receives: 100.00
Component: Benefit

Technique: Pre-Issuance

Average Day of Clearance: N/A

93.767 Children's Health Insurance Program
Recipient: Department of Health and Environment
% of Funds Agency Receives: 10.00

Component: Administration

Technique: Pre-Issuance

Average Day of Clearance: N/A

Recipient: Department of Health and Environment
% of Funds Agency Receives: 90.00

Component: Benefit

Technique: Pre-Issuance

Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: Department of Health and Environment
% of Funds Agency Receives: 6.80

Component: Administration

Technique: Pre-lssuance

Average Day of Clearance: N/A

Recipient: Department of Health and Environment
% of Funds Agency Receives: 93.20

Page 8 of 17


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
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.

Post-Issuance

Page 4 of 17


Exhibit | - Funds Request and Receipt Times Schedule
State of Kansas

Agricultu NS 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 iday
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 iday
HHS Fedwire 3:00 PM Q 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 O 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 iday
Labor-UTF ACH 3:00 PM iday
Labor-UTF Fedwire 3:00 PM 0 day
National Science Foundation (NSF) ACH 8:00 PM iday
National Science Foundation (NSF) Fedwire 5:45 PM 0 day
Social Security Administration ACH 11:59 PM ida
Social Security Administration Fedwire 5:45 PM 0 day
Transportation (FAA) ACH 2:00 PM 1 day
Transportation (FHWA) |ACH 42:00 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 15 of 17


93.767 \Children's Health Department of Health and|90.0 | Benefit Pre-Issuance
Insurance Program Environment i}

93.778 | Medical Assistance Department of Health and|6.80 |Administration Pre-Issuance N/A
Program Environment

93.778 | Medical Assistance Department of Health and|93.2 | Benefit Pre-Issuance N/A
Program Environment t)

| 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;

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: June 22, FIT

Printed Name:__De finn Hall

Certifying Signature:

Tite: Chef Finananal Officer
Greve ot Mansa

Page 17 of 17


Department of Transportation
Kansas Housing Resources Corporation

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:

E-Funds Corp 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
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 &

Page 3 of 17


4.0 PROGRAMS COVERED

4.1 The State's threshold and its major Federal assistance programs shall be determined based on Single Audit 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 $29,256,739.
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

14.195 Section 8 Housing

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

93.558 Temporary Assistance for Needy Families

93.568 Low-Income Home Energy Assistance

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:

84.038 Federal Perkins Loan Program — Federal Capital Contributions — Exciusion:Non-State
84.063 Federal Pell Grant Program — Exclusion:Non-State
84.268 Federal Direct Student Loan — Exclusion:Non-State

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 for Children and Families
Department of Education

Department of Health and Environment
Department of Labor

Page 2 of 17


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:

development and maintenance of clearance patterns, data compilation and analysis for the calculation of interest and/or
the development and maintenance of clearance patterns, interest calculation, and annual report preparation and
submittal.

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.

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Exhibit Il - State of Kansas
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

10.551 |Supplemental Nutrition |Department for Children |100. |Benefit Post-Issuance N/A
Assistance Program and Families 00
10.553 | School Breakfast Department of Education |100. |Benefit-Pass Thru to Pre-Issuance N/A
Program 00__|service providers
10.555 | National School Lunch Department of Education | 100. |Benefit-Pass Thru to Pre-Issuance N/A
Program 00__|service providers
10.557 | Special Supplemental Department of Health and|63.0 |Benefit Pre-Issuance N/A
Nutrition Program for Environment 0
Women, Infants, and |
Children |
10.557 |Special Supplemental —_| Department of Health and|37.0 |Administrative Pre-Issuance NIA
Nutrition Program for Environment 0
Women, Infants, and
Children
10.558 | Child and Adult Care Department of Education |1.50 |Administrative Pre-Issuance NIA
Food Program
10.558 | Child and Adult Care Department of Education |98.5 |Pass Thru to Service Pre-Issuance N/A
Food Program, it) Providers
14.195 | Section 8 Housing Kansas Housing 100. |Benefit Pre-Issuance N/A
Resources Corporation _|00.
17.225F |Unemployment Insurance |Department of Labor 77.6 |Administration Pre-lssuance NIA
-- Federal Benefit 0
Account and
Administrative Costs
17.225F_|Unemployment Insurance | Department of Labor 22.4 |Benefit Post-lssuance N/A
— Federal Benefit ie)
Account and
Administrative Costs
17.225S |Unemployment Insurance | Department of Labor 100. |benefit Post-Issuance N/A
-— State Benefit Account 00
20.205 |Highway Planning and —_—| Department of 100. |All Post-Issuance N/A
i Construction Transportation 00
|84.010 | Title | Grants to Local Department of Education |99.0 | Benefit - Pass thru to Pre-Issuance N/A
| Educational Agencies ie} service providers
84.010 | Title | Grants to Local Department of Education |1.00 |Administrative Pre-Issuance NIA
Educational Agencies
84.027 |Special Education —- Department of Education |2.00 |Administrative Pre-Issuance N/A
Grants to States
84.027 | Special Education ~ Department of Education |98.0 | Benefit - Pass thru to Pre-Issuance NIA
Grants to States i} service providers
93.558 | Temporary Assistance for |Department for Children | 15.0 | Administration Pre-Issuance N/A
Needy Families and Families i}
93.558 | Temporary Assistance for|Department for Children |85.0 |Benefit Pre-Issuance NIA
Needy Families and Families ie)
93.568 [Low-Income Home Department for Children | 100. |Benefit Pre-Issuance N/A
Energy Assistance and Families 00
93.767 | Children's Health Department of Health and} 10.0 |Administration Pre-Issuance N/A
Insurance Program Environment i}

Page 16 of 17