Cash Management Improvement Act Agreement

between

The State of Oregon

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 Oregon

(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 Oregon shall be the Director of the Oregon Department of Administrative

Services 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.

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4.0 PROGRAMS COVERED

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

of Expenditures of Federal Awards 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 $60,000,000.

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

10.561 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

93.558 Temporary Assistance for Needy Families

93.563 Child Support Enforcement

93.658 Foster Care -- Title IV-E

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:

There are currently no programs listed for Section 4.4.

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:

100---Department of Human Services

137 - Oregon Department of Justice

443 - Oregon Health Authority

471---Employment Department

581---Department of Education

730---Department of Transportation

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

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Agreement:

EFD eFunds Corporation 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

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):

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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.

6.1.6 Issuance of Payments:

A State Attorney General's opinion, dated February 10, 1992, addresses certain issues dealing with implementation of the

Act. The Attorney General has concluded that funds must be on deposit prior to the issuance of payments. Therefore,

the State shall use various funding techniques, including Pre-Issuance Funding, Average Clearance, and Estimated

Clearance. Some programs may utilize more than one technique. 

The State and Fiscal Service agree that the Pre-Issuance Funding technique will be used as little as possible. The

Attorney General's opinion requires that the State apply Pre-Issuance to a limited number of programs. The State intends

to use an Estimated Clearance or Average Clearance Funding technique to the extent that State funds are available to

draw the check or warrant against. When State funds are not available, the State shall switch to the Pre-Issuance Funding

technique. These programs are described in section 6.3. Each State entity shall be responsible for determining when this

switch is to take place.

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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.

Post-Issuance

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.

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.

Cost Allocation Plans - Estimated Allocation - Monthly

The State shall request funds once a month, such that they are deposited on the median day of the month, to fund the

costs incurred during that month. 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 an estimate based on the actual allocation of costs to the

program for the preceding six months. This funding technique is interest neutral.

Cost Allocation Plans - Monthly

The State shall request funds once a month, such that they are deposited on the median day of the month, to fund activity

of the prior month. The request shall be made in accordance with the appropriate Federal agency cut-off time specified in

Exhibit I. The amount of the request for a given month's activity shall be based on actual costs distributed in accordance

with the State's approved cost allocation plan. This funding technique is interest neutral.

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Direct Administrative Costs - Drawdowns on a Payroll Cycle

The State shall request funds for all direct administrative costs such that they are deposited on the dollar-weighted

average date of clearance of payroll. The request shall be made in accordance with the appropriate Federal agency cutoff time specified in Exhibit I. The amount of funds requested shall be based on the amount of liabilities recorded for direct

administrative costs since the last request for funds. This funding technique is interest neutral.

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.

Actual Clearance, ZBA-ACH (Modified)

The State shall request funds such that they are deposited by ACH in a State account the following day. The request shall

be made in accordance with the appropriate Federal agency cut-off times specified in Exhibit 1. The amount of the

request shall be for the amount of funds that clear the State's account the previous day. This funding technique is interest

neutral.

Estimated Clearance (Truncated)

For the first ten (10) business days, the State shall request funds such that they are deposited in accordance with the

clearance pattern specified. The State shall make a request for all funds outstanding after ten business days such that

the funds are deposited on the dollar-weighted average day of clearance for the outstanding funds, in accordance with the

clearance pattern specified. The request for funds shall be made in accordance with the appropriate Federal agency cutoff time specified in Exhibit 1. This funding technique is interest neutral.

6.2.5 When the average clearance funding technique is used, average clearance days will be rounded down from .01

through .49 and rounded up from .50 through .99.

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: 100---Department of Human Services

% of Funds Agency Receives: 100.00

Component: EBT Payments

Technique: Actual Clearance, ZBA-ACH (Modified)

Average Day of Clearance: 0 Days

10.555 National School Lunch Program

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Recipient: 581---Department of Education

% of Funds Agency Receives: 100.00

Component: Program Payments & Direct Administrative Costs

Technique: Post-Issuance

Average Day of Clearance: N/A

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

Recipient: 443 - Oregon Health Authority

% of Funds Agency Receives: 100.00

Component: EBT Payments

Technique: Actual Clearance, ZBA-ACH (Modified)

Average Day of Clearance: 0 Days

10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program

Recipient: 100---Department of Human Services

% of Funds Agency Receives: 16.00

Component: Allocated Administrative Costs

Technique: Cost Allocation Plans - Estimated Allocation - Monthly

Average Day of Clearance: 0 Days

Recipient: 100---Department of Human Services

% of Funds Agency Receives: 69.00

Component: Indirect Payroll Costs

Technique: Cost Allocation Plans - Estimated Allocation - Monthly

Average Day of Clearance: 0 Days

Recipient: 100---Department of Human Services

% of Funds Agency Receives: 15.00

Component: Program Payments

Technique: Estimated Clearance (Truncated)

Average Day of Clearance: 2 Days

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

Recipient: 471---Employment Department

% of Funds Agency Receives: 30.00

Component: ACH Program Payments

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

Recipient: 471---Employment Department

% of Funds Agency Receives: 14.00

Component: Allocated Administrative Costs

Technique: Cost Allocation Plans - Monthly

Average Day of Clearance: 0 Days

Recipient: 471---Employment Department

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% of Funds Agency Receives: 53.00

Component: Payroll Costs & Direct Administrative Costs

Technique: Direct Administrative Costs - Drawdowns on a Payroll Cycle

Average Day of Clearance: 0 Days

Recipient: 471---Employment Department

% of Funds Agency Receives: 3.00

Component: Program Payments (clearance pattern based on calendar days)

Technique: Estimated Clearance

Average Day of Clearance: N/A

17.225S Unemployment Insurance -- State Benefit Account

Recipient: 471---Employment Department

% of Funds Agency Receives: 91.00

Component: ACH Program Payments

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

Recipient: 471---Employment Department

% of Funds Agency Receives: 9.00

Component: Program Payments (clearance pattern based on calendar days)

Technique: Estimated Clearance

Average Day of Clearance: N/A

20.205 Highway Planning and Construction

Recipient: 730---Department of Transportation

% of Funds Agency Receives: 100.00

Component: All Components

Technique: Composite Clearance

Average Day of Clearance: 4 Days

84.010 Title I Grants to Local Educational Agencies

Recipient: 581---Department of Education

% of Funds Agency Receives: 99.00

Component: Program Payments & Direct Administrative Costs

Technique: Post-Issuance

Average Day of Clearance: N/A

Recipient: 581---Department of Education

% of Funds Agency Receives: 1.00

Component: Payroll Costs

Technique: Post-Issuance

Average Day of Clearance: N/A

84.027 Special Education -- Grants to States

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Recipient: 581---Department of Education

% of Funds Agency Receives: 97.00

Component: Program Payments & Direct Administrative Costs

Technique: Post-Issuance

Average Day of Clearance: N/A

Recipient: 581---Department of Education

% of Funds Agency Receives: 3.00

Component: Payroll Costs

Technique: Post-Issuance

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families

Recipient: 100---Department of Human Services

% of Funds Agency Receives: 3.00

Component: ACH Payments

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

Recipient: 100---Department of Human Services

% of Funds Agency Receives: 41.00

Component: EBT Payments

Technique: Actual Clearance, ZBA-ACH (Modified)

Average Day of Clearance: 0 Days

Recipient: 100---Department of Human Services

% of Funds Agency Receives: 4.00

Component: Allocated Administrative Costs

Technique: Cost Allocation Plans - Estimated Allocation - Monthly

Average Day of Clearance: 0 Days

Recipient: 100---Department of Human Services

% of Funds Agency Receives: 46.00

Component: Indirect Payroll costs

Technique: Cost Allocation Plans - Estimated Allocation - Monthly

Average Day of Clearance: 0 Days

Recipient: 100---Department of Human Services

% of Funds Agency Receives: 6.00

Component: Program Payments

Technique: Estimated Clearance (Truncated)

Average Day of Clearance: 4 Days

93.563 Child Support Enforcement

Recipient: 137 - Oregon Department of Justice

% of Funds Agency Receives: 100.00

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Component: Program Payments

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

93.658 Foster Care -- Title IV-E

Recipient: 100---Department of Human Services

% of Funds Agency Receives: 19.00

Component: ACH Payments

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

Recipient: 100---Department of Human Services

% of Funds Agency Receives: 44.00

Component: Indirect Payroll Costs

Technique: Cost Allocation Plans - Estimated Allocation - Monthly

Average Day of Clearance: 0 Days

Recipient: 100---Department of Human Services

% of Funds Agency Receives: 15.00

Component: Allocated Administrative Costs

Technique: Cost Allocation Plans - Estimated Allocation - Monthly

Average Day of Clearance: 0 Days

Recipient: 100---Department of Human Services

% of Funds Agency Receives: 22.00

Component: Program Payments

Technique: Estimated Clearance (Truncated)

Average Day of Clearance: 4 Days

93.767 Children's Health Insurance Program

Recipient: 443 - Oregon Health Authority

% of Funds Agency Receives: 92.00

Component: ACH Payments

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

Recipient: 443 - Oregon Health Authority

% of Funds Agency Receives: 1.00

Component: Allocated Administrative Costs

Technique: Cost Allocation Plans - Estimated Allocation - Monthly

Average Day of Clearance: 0 Days

Recipient: 443 - Oregon Health Authority

% of Funds Agency Receives: 7.00

Component: Program Payments

Technique: Estimated Clearance (Truncated)

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Average Day of Clearance: 4 Days

93.778 Medical Assistance Program

Recipient: 443 - Oregon Health Authority

% of Funds Agency Receives: 87.00

Component: ACH Payments

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

Recipient: 443 - Oregon Health Authority

% of Funds Agency Receives: 1.00

Component: Indirect Payroll Costs

Technique: Cost Allocation Plans - Estimated Allocation - Monthly

Average Day of Clearance: 0 Days

Recipient: 443 - Oregon Health Authority

% of Funds Agency Receives: 12.00

Component: Program Payments

Technique: Estimated Clearance (Truncated)

Average Day of Clearance: 4 Days

6.3.3 Materiality Exemptions

Agencies exempt from coverage on the basis of materiality:

107 - Department of Administrative Services

109 - Department of Aviation

114 - Long-Term Care Ombudsman

121 - Office of the Governor

123 - Business Oregon

141 - Department of State Lands- Secretary of State

198 - Judicial Department

213 - Oregon Crimminal Justice Commission

248 - Oregon Military Department

250 - Oregon State Marine Board

257 - Oregon State Police

259 - Board on Public Safety Standards & Training

274 - Department of Veteran's Affairs

291 - Department of Corrections

330 - Department of Energy

340 - Department of Environmental Quality

415 - Oregon Youth Authority

440 - Oregon Department of Consumer and Business Services

525 - Higher Education Coordinating Commission

543 - Oregon State Library

585 - Commission for the Blind

603 - Department of Agriculture

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628 - Oregon Forest Resources Institute

629 - Department of Forestry

632 - Oregon Department of Geology & Mineral Industries

634 - Oregon Parks and Recreation

635 - Oregon Department of Fish and Wildlife

660 - Department of Land Conservation and Development

690 - Water Resources Department

691 - Oregon Watershed Enhancement Board

839 - Bureau of Labor & Industries

851 - Oregon State Board of Nursing

860 - Public Utility Commission

914 - Housing and Community Services Department

7.0 CLEARANCE PATTERNS

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

10.561 State Administrative Matching Grants for Food Stamp Program

17.225F Unemployment Insurance-Federal Benefit Account and Administrative Costs

17.225S Unemployment Insurance-State Benefit Account

93.558 State Family Assistance Grant

93.658 Foster Care - Title IV-E

93.767 State Children's Insurance Program

93.778 Medical Assistance Program

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

The agencies administering the Federal programs shall develop the State's clearance patterns, or use an alternative as

outlined in Section 7.3.

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

Agency accounting records, State treasury records, banking records and other records appropriate.

For Programs where the actual State warrant clearance information is not available, alternate methods of developing

clearance patterns shall be used. These other methods shall consist of the clearance patterns developed by Fiscal

Service or use of valid statistical sampling techniques.

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.

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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:

N/A

7.8 Each of the State's clearance patterns is calculated in business 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 - ACH

Actual Clearance, ZBA-ACH (Modified)

Composite Clearance

Cost Allocation Plans - Estimated Allocation - Monthly

Cost Allocation Plans - Monthly

Direct Administrative Costs - Drawdowns on a Payroll Cycle

Estimated Clearance

Estimated Clearance (Truncated)

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

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(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.

8.2.4 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:

Federal Funds Interest Neutral, State Funds not:

The State shall use the following methodology to calculate State interest liabilities on funds withdrawn from the State's

account in the UTF under the Unemployment Insurance program.

Based on statements provided by its financial institution (or other appropriate sources), 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 actual interest earnings of the benefit payment account on the whole constitute the actual interest earnings

attributable to funds withdrawn from the State's account in the UTF, since the State shall apply an appropriate interest

neutral funding technique, to funds withdrawn from the FECA and EUCA and any other benefit accounts of Federal funds

in the UTF from which the State draws.

The State shall calculate the related banking costs attributable to funds withdrawn from the State's account in the UTF by

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multiplying the State % by the amount of the related banking costs of the benefit payment 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 of

the benefit payment account on the whole less the related banking costs attributed to such funds.

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 to Interest Neutral Programs:

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.

8.4.4 Refunds Deposited to Non-Interest Neutral Programs - Part of Liability Captured Under State's Pre-Issuance

Calculation:

With programs to which Pre-Issuance funding is applied, the State interest liability, payment subject to lawfully available

funds, shall be based on two periods: (1) the difference in whole days between the date the refund is deposited to a State

account and the date the refund is offset against a subsequent deposit of Federal funds; (2) the difference in whole days

between the date the refund is offset against a subsequent deposit of Federal funds and the date the refund is paid out for

program purposes.

Interest on refunds during period 1 will be calculated using the information recorded in a separate account. Interest on

refunds during period 2 will be captured under the State method for calculating interest under pre-issuance funding.

Under this method, interest is calculated on totals disbursed, which includes refunds on hand as well as amounts drawn.

The reported interest liability for refunds, therefore, will reflect period 1 only.

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 15 of 25
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

Deposit to Clearance:

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

Bank or Agency:

The time period from deposit to clearance shall be determined from information captured by agency accounting records,

State Treasury records, banking records, and other records as appropriate.

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:

I = ADB x R, 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

8.6.7 Agencies not using the model in Sections 8.6.2 through 8.6.5, due to either cost/benefit or administrative capability

considerations, shall calculate interest using appropriate statistical sampling methodology. The sampling populations

shall include individual programs or logical groups of programs. The State shall conduct statistical sampling in

accordance with 31 CFR Part 205.19 of the regulations.

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 16 of 25
reimbursement, unless the State provides justification with the annual report.

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

Prorated portion of consultant's contract related to development of clearance patterns and interest calculation

methodologies. 

Agency and State Treasury personnel time to calculate clearance patterns and interest. 

Agency and State Treasury EDP costs (not including system upgrades) incurred in the calculation of clearance patterns

and interest.

Other costs identified that qualify under 31 CFR 205.27.

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 17 of 25
12.0 AUTHORIZED SIGNATURES

Katy Coba

State Chief Operating Officer and DAS Director

Signature:________________________________________Date Signed:_______________

Date Submitted 04/30/2018

Corvelli A. McDaniel

Assistant Commissioner

Revenue Collections Management

Bureau of the Fiscal Service

U.S. Department of the Treasury

Signature:________________________________________Date Signed:_______________

Page 18 of 25

Katy Coba (Jun 29, 2018)

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 Oregon

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 19 of 25
Exhibit II - State of Oregon

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

100---Department of

Human Services

100.

00

EBT Payments Actual Clearance, ZBAACH (Modified)0 Days

10.555 National School Lunch

Program

581---Department of

Education

100.

00

Program Payments &

Direct Administrative

Costs

Post-Issuance N/A

10.557 Special Supplemental

Nutrition Program for

Women, Infants, and

Children

443 - Oregon Health

Authority

100.

00

EBT Payments Actual Clearance, ZBAACH (Modified)0 Days

10.561 State Administrative

Matching Grants for the

Supplemental Nutrition

Assistance Program

100---Department of

Human Services

15.0

0

Program Payments Estimated Clearance

(Truncated)

2 Days

10.561 State Administrative

Matching Grants for the

Supplemental Nutrition

Assistance Program

100---Department of

Human Services

16.0

0

Allocated Administrative

Costs

Cost Allocation Plans -

Estimated Allocation -

Monthly

0 Days

10.561 State Administrative

Matching Grants for the

Supplemental Nutrition

Assistance Program

100---Department of

Human Services

69.0

0

Indirect Payroll Costs Cost Allocation Plans -

Estimated Allocation -

Monthly

0 Days

17.225F Unemployment Insurance

-- Federal Benefit

Account and

Administrative Costs

471---Employment

Department

30.0

0

ACH Program Payments Actual Clearance, ZBA -

ACH

0 Days

17.225F Unemployment Insurance

-- Federal Benefit

Account and

Administrative Costs

471---Employment

Department

14.0

0

Allocated Administrative

Costs

Cost Allocation Plans -

Monthly

0 Days

17.225F Unemployment Insurance

-- Federal Benefit

Account and

Administrative Costs

471---Employment

Department

53.0

0

Payroll Costs & Direct

Administrative Costs

Direct Administrative

Costs - Drawdowns on a

Payroll Cycle

0 Days

17.225F Unemployment Insurance

-- Federal Benefit

Account and

Administrative Costs

471---Employment

Department

3.00 Program Payments

(clearance pattern based

on calendar days)

Estimated Clearance N/A

17.225S Unemployment Insurance

-- State Benefit Account

471---Employment

Department

91.0

0

ACH Program Payments Actual Clearance, ZBA -

ACH

0 Days

17.225S Unemployment Insurance

-- State Benefit Account

471---Employment

Department

9.00 Program Payments

(clearance pattern based

on calendar days)

Estimated Clearance N/A

20.205 Highway Planning and

Construction

730---Department of

Transportation

100.

00

All Components Composite Clearance 4 Days

84.010 Title I Grants to Local

Educational Agencies

581---Department of

Education

1.00 Payroll Costs Post-Issuance N/A

84.010 Title I Grants to Local

Educational Agencies

581---Department of

Education

99.0

0

Program Payments &

Direct Administrative

Costs

Post-Issuance N/A

Page 20 of 25
________________________________________________________________________________________________________

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;

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.

CFDA Program Name Recipient % Component Technique Round

ed

days

84.027 Special Education --

Grants to States

581---Department of

Education

3.00 Payroll Costs Post-Issuance N/A

84.027 Special Education --

Grants to States

581---Department of

Education

97.0

0

Program Payments &

Direct Administrative

Costs

Post-Issuance N/A

93.558 Temporary Assistance for

Needy Families

100---Department of

Human Services

3.00 ACH Payments Actual Clearance, ZBA -

ACH

0 Days

93.558 Temporary Assistance for

Needy Families

100---Department of

Human Services

6.00 Program Payments Estimated Clearance

(Truncated)

4 Days

93.558 Temporary Assistance for

Needy Families

100---Department of

Human Services

4.00 Allocated Administrative

Costs

Cost Allocation Plans -

Estimated Allocation -

Monthly

0 Days

93.558 Temporary Assistance for

Needy Families

100---Department of

Human Services

46.0

0

Indirect Payroll costs Cost Allocation Plans -

Estimated Allocation -

Monthly

0 Days

93.558 Temporary Assistance for

Needy Families

100---Department of

Human Services

41.0

0

EBT Payments Actual Clearance, ZBAACH (Modified)0 Days

93.563 Child Support

Enforcement

137 - Oregon Department

of Justice

100.

00

Program Payments Actual Clearance, ZBA -

ACH

0 Days

93.658 Foster Care -- Title IV-E 100---Department of

Human Services

19.0

0

ACH Payments Actual Clearance, ZBA -

ACH

0 Days

93.658 Foster Care -- Title IV-E 100---Department of

Human Services

22.0

0

Program Payments Estimated Clearance

(Truncated)

4 Days

93.658 Foster Care -- Title IV-E 100---Department of

Human Services

44.0

0

Indirect Payroll Costs Cost Allocation Plans -

Estimated Allocation -

Monthly

0 Days

93.658 Foster Care -- Title IV-E 100---Department of

Human Services

15.0

0

Allocated Administrative

Costs

Cost Allocation Plans -

Estimated Allocation -

Monthly

0 Days

93.767 Children's Health

Insurance Program

443 - Oregon Health

Authority

92.0

0

ACH Payments Actual Clearance, ZBA -

ACH

0 Days

93.767 Children's Health

Insurance Program

443 - Oregon Health

Authority

7.00 Program Payments Estimated Clearance

(Truncated)

4 Days

93.767 Children's Health

Insurance Program

443 - Oregon Health

Authority

1.00 Allocated Administrative

Costs

Cost Allocation Plans -

Estimated Allocation -

Monthly

0 Days

93.778 Medical Assistance

Program

443 - Oregon Health

Authority

87.0

0

ACH Payments Actual Clearance, ZBA -

ACH

0 Days

93.778 Medical Assistance

Program

443 - Oregon Health

Authority

12.0

0

Program Payments Estimated Clearance

(Truncated)

4 Days

93.778 Medical Assistance

Program

443 - Oregon Health

Authority

1.00 Indirect Payroll Costs Cost Allocation Plans -

Estimated Allocation -

Monthly

0 Days

Page 21 of 25
Date: ___________________________________________________________

Printed Name: ____________________________________________________

Certifying Signature: _______________________________________________

Title: ___________________________________________________________

Page 22 of 25

Katy Coba (Jun 29, 2018)

Jun 29, 2018 Director and COO Katy Coba
Cash Management Improvement Act - 2019 Treasury State Agreement

State of Oregon - Exhibit II Estimated Clearance

___________________________________________________________________________________________________________

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

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

Program Payments (clearance pattern based on calendar days)

17.225S Unemployment Insurance -- State Benefit Account

Program Payments (clearance pattern based on calendar days)

Day % Cleared

Day 1 0.00

Day 2 0.00

Day 3 0.00

Day 4 11.00

Day 5 3.00

Day 6 14.00

Day 7 27.00

Day 8 15.00

Day 9 6.00

Day 10 4.00

Day 11 3.00

Day 12 2.00

Day 13 2.00

Day 14 2.00

Day 15 11.00

Day 16 0.00

Day 17 0.00

Day 18 0.00

Day 19 0.00

Day 20 0.00

Day 21 0.00

Day 22 0.00

Day 23 0.00

Day 24 0.00

Day 25 0.00

Day 26 0.00

Day 27 0.00

Day 28 0.00

Day 29 0.00

Day 30 0.00

Day 31 0.00

Total 100.00

Day % Cleared

Day 1 0.00

Day 2 0.00

Day 3 0.00

Page 23 of 25
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

 ___________________________________

Day % Cleared

Day 4 11.00

Day 5 3.00

Day 6 14.00

Day 7 27.00

Day 8 15.00

Day 9 6.00

Day 10 4.00

Day 11 3.00

Day 12 2.00

Day 13 2.00

Day 14 2.00

Day 15 11.00

Day 16 0.00

Day 17 0.00

Day 18 0.00

Day 19 0.00

Day 20 0.00

Day 21 0.00

Day 22 0.00

Day 23 0.00

Day 24 0.00

Day 25 0.00

Day 26 0.00

Day 27 0.00

Day 28 0.00

Day 29 0.00

Day 30 0.00

Day 31 0.00

Total 100.00

Page 24 of 25

Katy Coba (Jun 29, 2018)

Jun 29, 2018 Katy Coba
 Printed Name

 ___________________________________

 Printed Title

Page 25 of 25 Director and COO