Page 1 of 22

Cash Management Improvement Act Agreement

between

The American Samoa (Territory)

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 American Samoa (Territory)

(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 American Samoa (Territory) shall be the Treasurer of the American Samoa Government 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 10/01/2021 and shall remain in effect until 09/30/2022.

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.

DocuSign Envelope ID: 6206093C-8EB0-44D7-BD29-3948101165A3
Page 2 of 22

4.0 PROGRAMS COVERED

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

year ending 09/30/2020.

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 $1,446,017.

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

CFDA Program Name

10.551 Supplemental Nutrition Assistance Program

10.555 National School Lunch Program

10.557 Special Supplemental Nutrition Program for Women, Infants, and 

Children

15.875 Economic, Social, and Political Development of the Territories 

and the Freely Associated States

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

20.106 Airport Improvement Program

20.205 Highway Planning and Construction

66.600 EPA Consolidated Grant

84.027 Special Education -- Grants to States

84.403 Consolidated Grant to the Outlying Areas

84.425 Education Stabilization Fund

93.224 Consolidated Health Centers

93.575 Child Care and Development Block Grant

93.600 Head Start

93.767 Children's Health Insurance Program

93.778 Medical Assistance Program

97.036 Disaster Grants - Public Assistance (Presidentially Declared 

Disasters)

4.3 The following programs fall below the State's threshold but have been required to be covered by Fiscal Service in 

accordance with the non-compliance provisions of Subpart B of 31 CFR Part 205:

There are currently no programs listed for Section 4.3.

DocuSign Envelope ID: 6206093C-8EB0-44D7-BD29-3948101165A3
Page 3 of 22

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:

American Samoa Medicaid State Agency

Department of Commerce

Department of Education

Department of Human and Social Services

Department of Human Resources

Department of Marine and Wildlife Resources

Department of Port Administration

Department of Public Health

Department of Public Works

Department of Treasury

Enviromental Protection Agency

High Court of American Samoa

Office of Disaster Assistance and Petroleum Management

Office of the Governor

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:

Fiscal Agent CFDA Program Name

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.

DocuSign Envelope ID: 6206093C-8EB0-44D7-BD29-3948101165A3
Page 4 of 22

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):

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 

DocuSign Envelope ID: 6206093C-8EB0-44D7-BD29-3948101165A3
Page 5 of 22

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.

Funding Technique Name Description

Average Clearance The State shall request funds such that they are deposited by ACH on the dollarweighted average day of clearance for the disbursement, 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 for the exact amount of that disbursement. 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 currently 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 currently 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.

Funding Technique Name Description

Modified Issuance - Federal Highway 

Program

The state shall request funds monthly for vendor payments based on the current month 

expenses. Therefore, after program review and approval by FHWA Honolulu 

Regional Office it is then submitted to FHWA Headquarters for final approval. State 

will issue vendor payments within 3 business days of funds deposited in account. 

Timing of payment aligned with FHWA review and approval. Requested amount 

based on current month expenses. This funding technique is not interest neutral.

Reimbursement Schedule - Federal Highway 

Program

Administrative costs including salaries will be requested monthly by the State using 

the amount of funds disbursed the previous month. State does not bill on a weekly 

DocuSign Envelope ID: 6206093C-8EB0-44D7-BD29-3948101165A3
Page 6 of 22

basis so a Federal interest liability will not accrue prior to the State submitting a 

request for funds. Request will be made in accordance with time stipulated above. 

Amounted request based on administrative cost incurred during the period. 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 Human and Social Services

% of Funds Agency Receives: 44

Component: Administrative Cost (Payroll and Indirect Cost)

Technique: Average Clearance

Average Day of Clearance: 5 Days

10.551 Supplemental Nutrition Assistance Program

Recipient: Department of Human and Social Services

% of Funds Agency Receives: 56

Component: Program Payment

Technique: Average Clearance

Average Day of Clearance: 10 Days

10.555 National School Lunch Program

Recipient: Department of Education

% of Funds Agency Receives: 30

Component: Administrative Cost (payroll and Indirect Cost)

Technique: Average Clearance

Average Day of Clearance: 5 Days

10.555 National School Lunch Program

Recipient: Department of Education

% of Funds Agency Receives: 70

Component: Program Payment

Technique: Average Clearance

Average Day of Clearance: 10 Days

10.557 Special Supplemental Nutrition Program for Women, Infants, 

and Children

Recipient: Department of Human and Social Services

% of Funds Agency Receives: 40

Component: Administrative Cost (Payroll and Indirect Cost)

Technique: Average Clearance

Average Day of Clearance: 5 Days

10.557 Special Supplemental Nutrition Program for Women, Infants, 

and Children

Recipient: Department of Human and Social Services

% of Funds Agency Receives: 60

Component: Program Payment

Technique: Average Clearance

Average Day of Clearance: 10 Days

DocuSign Envelope ID: 6206093C-8EB0-44D7-BD29-3948101165A3
Page 

7 of 22

15.875 Economic, Social, and Political Development of the Territories 

and the Freely Associated States

Recipient: Department of Treasury

% of Funds Agency Receives: 3

Component: Program Payment

Technique: Average Clearance

Average Day of Clearance: 10 Days

15.875 Economic, Social, and Political Development of the Territories 

and the Freely Associated States

Recipient: Office of the Governor

% of Funds Agency Receives: 5

Component: Program Payment

Technique: Average Clearance

Average Day of Clearance: 10 Days

15.875 Economic, Social, and Political Development of the Territories 

and the Freely Associated States

Recipient: Department of Treasury

% of Funds Agency Receives: 3

Component: Administrative Cost

Technique: Average Clearance

Average Day of Clearance: 5 Days

15.875 Economic, Social, and Political Development of the Territories 

and the Freely Associated States

Recipient: Department of Marine and Wildlife Resources

% of Funds Agency Receives: 2

Component: Program Payment

Technique: Average Clearance

Average Day of Clearance: 10 Days

15.875 Economic, Social, and Political Development of the Territories 

and the Freely Associated States

Recipient: High Court of American Samoa

% of Funds Agency Receives: 8

Component: Administrative Cost

Technique: Average Clearance

Average Day of Clearance: 5 Days

15.875 Economic, Social, and Political Development of the Territories 

and the Freely Associated States

Recipient: Department of Public Health

% of Funds Agency Receives: 9

Component: Program

Technique: Average Clearance

Average Day of Clearance: 10 Days

15.875 Economic, Social, and Political Development of the Territories 

and the Freely Associated States

Recipient: High Court of American Samoa

% of Funds Agency Receives: 3

Component: Program Payment

Technique: Average Clearance

Average Day of Clearance: 10 Days

15.875 Economic, Social, and Political Development of the Territories 

and the Freely Associated States

Recipient: Department of Education

% of Funds Agency Receives: 30

Component: Program Payment

DocuSign Envelope ID: 6206093C-8EB0-44D7-BD29-3948101165A3
Page 

8 of 22

Technique: Average Clearance

Average Day of Clearance: 10 Days

15.875 Economic, Social, and Political Development of the Territories 

and the Freely Associated States

Recipient: Department of Public Works

% of Funds Agency Receives: 30

Component: Program Payment

Technique: Average Clearance

Average Day of Clearance: 10 Days

15.875 Economic, Social, and Political Development of the Territories 

and the Freely Associated States

Recipient: Office of the Governor

% of Funds Agency Receives: 2

Component: Administrative Cost

Technique: Average Clearance

Average Day of Clearance: 5 Days

15.875 Economic, Social, and Political Development of the Territories 

and the Freely Associated States

Recipient: Department of Marine and Wildlife Resources

% of Funds Agency Receives: 2

Component: Administrative Cost

Technique: Average Clearance

Average Day of Clearance: 5 Days

15.875 Economic, Social, and Political Development of the Territories 

and the Freely Associated States

Recipient: Department of Commerce

% of Funds Agency Receives: 3

Component: Program Payments

Technique: Average Clearance

Average Day of Clearance: 10 Days

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Department of Human Resources

% of Funds Agency Receives: 20

Component: Administrative (Payroll and Indirect Cost)

Technique: Average Clearance

Average Day of Clearance: 5 Days

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Department of Human Resources

% of Funds Agency Receives: 80

Component: Program Payment

Technique: Average Clearance

Average Day of Clearance: 10 Days

20.106 Airport Improvement Program

Recipient: Office of Disaster Assistance and Petroleum Management

% of Funds Agency Receives: 80

Component: Program Payments

Technique: Average Clearance

Average Day of Clearance: 30 Days

20.106 Airport Improvement Program

Recipient: Department of Port Administration

% of Funds Agency Receives: 1

DocuSign Envelope ID: 6206093C-8EB0-44D7-BD29-3948101165A3
Page 

9 of 22

Component: Administrative Cost (Payroll and Indirect Cost)

Technique: Average Clearance

Average Day of Clearance: 5 Days

20.106 Airport Improvement Program

Recipient: Department of Port Administration

% of Funds Agency Receives: 19

Component: Program Payment

Technique: Average Clearance

Average Day of Clearance: 10 Days

20.205 Highway Planning and Construction

Recipient: Department of Public Works

% of Funds Agency Receives: 3

Component: Administrative Costs(Payroll and Indirect)

Technique: Reimbursement Schedule - Federal Highway Program

Average Day of Clearance: N/A

20.205 Highway Planning and Construction

Recipient: Department of Public Works

% of Funds Agency Receives: 97

Component: Program Payments

Technique: Modified Issuance - Federal Highway Program

Average Day of Clearance: N/A

66.600 EPA Consolidated Grant

Recipient: Enviromental Protection Agency

% of Funds Agency Receives: 40

Component: Program Payments

Technique: Average Clearance

Average Day of Clearance: 10 Days

66.600 EPA Consolidated Grant

Recipient: Enviromental Protection Agency

% of Funds Agency Receives: 60

Component: Administrative Cost (Payroll and Indirect Cost)

Technique: Average Clearance

Average Day of Clearance: 5 Days

84.027 Special Education -- Grants to States

Recipient: Department of Education

% of Funds Agency Receives: 40

Component: Program Payments

Technique: Average Clearance

Average Day of Clearance: 30 Days

84.027 Special Education -- Grants to States

Recipient: Department of Education

% of Funds Agency Receives: 60

Component: Administrative Costs(Payroll and Indirect Costs)

Technique: Average Clearance

Average Day of Clearance: 5 Days

84.403 Consolidated Grant to the Outlying Areas

Recipient: Department of Education

% of Funds Agency Receives: 65

Component: Administrative (Payroll and Indirect Cost)

Technique: Average Clearance

Average Day of Clearance: 5 Days

DocuSign Envelope ID: 6206093C-8EB0-44D7-BD29-3948101165A3
Page 10 of 22

84.403 Consolidated Grant to the Outlying Areas

Recipient: Department of Education

% of Funds Agency Receives: 35

Component: Program Payment

Technique: Average Clearance

Average Day of Clearance: 30 Days

84.425 Education Stabilization Fund

Recipient: Department of Education

% of Funds Agency Receives: 40

Component: Program Payment

Technique: Average Clearance

Average Day of Clearance: 30 Days

84.425 Education Stabilization Fund

Recipient: Office of the Governor

% of Funds Agency Receives: 25

Component: Program payment

Technique: Average Clearance

Average Day of Clearance: 10 Days

84.425 Education Stabilization Fund

Recipient: Office of the Governor

% of Funds Agency Receives: 5

Component: Administrative Cost (Payroll and Indirect Cost)

Technique: Average Clearance

Average Day of Clearance: 5 Days

84.425 Education Stabilization Fund

Recipient: Department of Education

% of Funds Agency Receives: 30

Component: Administrative Cost (Payroll and Indirect Cost)

Technique: Average Clearance

Average Day of Clearance: 5 Days

93.224 Consolidated Health Centers

Recipient: Department of Public Health

% of Funds Agency Receives: 65

Component: Administrative Cost (Payroll and Indirect Cost)

Technique: Average Clearance

Average Day of Clearance: 5 Days

93.224 Consolidated Health Centers

Recipient: Department of Public Health

% of Funds Agency Receives: 35

Component: Program Payments

Technique: Average Clearance

Average Day of Clearance: 10 Days

93.575 Child Care and Development Block Grant

Recipient: Department of Human and Social Services

% of Funds Agency Receives: 30

Component: Administrative Costs (Payroll and Indirect Costs)

Technique: Average Clearance

Average Day of Clearance: 5 Days

93.575 Child Care and Development Block Grant

Recipient: Department of Human and Social Services

% of Funds Agency Receives: 70

Component: Program Payments

Technique: Average Clearance

DocuSign Envelope ID: 6206093C-8EB0-44D7-BD29-3948101165A3
Page 11 of 22

Average Day of Clearance: 10 Days

93.600 Head Start

Recipient: Department of Education

% of Funds Agency Receives: 50

Component: Administrative Cost (Payroll & Indirect Cost)

Technique: Average Clearance

Average Day of Clearance: 5 Days

93.600 Head Start

Recipient: Department of Education

% of Funds Agency Receives: 50

Component: Program Payments

Technique: Average Clearance

Average Day of Clearance: 10 Days

93.767 Children's Health Insurance Program

Recipient: American Samoa Medicaid State Agency

% of Funds Agency Receives: 100

Component: Program Payment

Technique: Average Clearance

Average Day of Clearance: 10 Days

93.778 Medical Assistance Program

Recipient: American Samoa Medicaid State Agency

% of Funds Agency Receives: 15

Component: Administrative Cost (Payroll and Indirect Cost)

Technique: Average Clearance

Average Day of Clearance: 5 Days

93.778 Medical Assistance Program

Recipient: American Samoa Medicaid State Agency

% of Funds Agency Receives: 85

Component: Program Payment

Technique: Average Clearance

Average Day of Clearance: 10 Days

97.036 Disaster Grants - Public Assistance (Presidentially Declared 

Disasters)

Recipient: Office of Disaster Assistance and Petroleum Management

% of Funds Agency Receives: 100

Component: Program Payments

Technique: Average Clearance

Average Day of Clearance: 30 Days

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:

Functional payments for program expenses, and administrative costs (payroll included).

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

DocuSign Envelope ID: 6206093C-8EB0-44D7-BD29-3948101165A3
Page 12 of 22

American Samoa Government Treasury Department will develop the clearance patterns.

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

ONESolution (Financial System), Zion Bank, Territorial Bank of American Samoa, and ANZ American Samoa

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:

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

of at least three months.

The State shall also adjust each clearance pattern to reflect:

None

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:

DocuSign Envelope ID: 6206093C-8EB0-44D7-BD29-3948101165A3
Page 13 of 22

Average 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:

Actual Activity:

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

each payment from the date it is paid out of a State account to the date Federal funds are subsequently credited to a State account to 

cover that outlay. The Federal interest liability on each payment shall be based on the difference in whole days between the two events. 

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

8.3 The 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:

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

DocuSign Envelope ID: 6206093C-8EB0-44D7-BD29-3948101165A3
Page 14 of 22

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

Central Accounting System:

The time period from 10/01/2021 to 9/30/2022 shall be determined from information captured by ASG/Treasury One 

Solution System.

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

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.

DocuSign Envelope ID: 6206093C-8EB0-44D7-BD29-3948101165A3
Page 15 of 22

9.0.0 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:

The Territory expects to incur interest calculation cost claims for calculating interest and development and maintenance of clearance 

patterns.

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.

DocuSign Envelope ID: 6206093C-8EB0-44D7-BD29-3948101165A3
Page 16 of 22

12.0 AUTHORIZED SIGNATURES

Malemo L. Tausaga

Treasurer of American Samoa Government

Signature: Date Signed:

Date Submitted 9/25/2021

Sandra R. Paylor

Acting Assistant Commissioner

Revenue Collections Management

Bureau of the Fiscal Service

U.S. Department of the Treasury

Signature: Date Signed:

DocuSign Envelope ID: 6206093C-8EB0-44D7-BD29-3948101165A3

10/1/2021

10/7/2021
Page 17 of 22

Exhibit I - Funds Request and Receipt Times Schedule

American Samoa (Territory)

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 5:00 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

DocuSign Envelope ID: 6206093C-8EB0-44D7-BD29-3948101165A3
Page 18 of 22

Exhibit II - American Samoa (Territory)

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 Rounded 

days

10.551 Supplemental 

Nutrition 

Assistance 

Program

Department of 

Human and 

Social Services

44.0 Administrative Cost 

(Payroll and Indirect 

Cost)

Average Clearance 5 Days

Supplemental 

Nutrition 

Assistance 

Program

Department of 

Human and 

Social Services

56.0 Program Payment Average Clearance 10 Days

10.555 National School 

Lunch Program

Department of 

Education

30.0 Administrative Cost 

(payroll and Indirect 

Cost)

Average Clearance 5 Days

National School

Lunch Program

Department of 

Education

70.0 Program Payment Average Clearance 10 Days

10.557 Special 

Supplemental 

Nutrition Program 

for Women, 

Infants, and 

Children

Department of 

Human and 

Social Services

40.0 Administrative Cost 

(Payroll and Indirect 

Cost)

Average Clearance 5 Days

Special 

Supplemental 

Nutrition Program 

for Women, 

Infants, and 

Children

Department of 

Human and 

Social Services

60.0 Program Payment Average Clearance 10 Days

15.875 Economic, Social, 

and Political 

Development of 

the Territories and 

the Freely 

Associated States

Department of 

Treasury

3.0 Program Payment Average Clearance 10 Days

Economic, Social, 

and Political 

Development of 

the Territories and 

the Freely 

Associated States

Office of the 

Governor

5.0 Program Payment Average Clearance 10 Days

Economic, Social, 

and Political 

Development of 

the Territories and 

the Freely 

Associated States

Department of 

Treasury

3.0 Administrative Cost Average Clearance 5 Days

Economic, Social, 

and Political 

Development of 

the Territories and 

the Freely 

Associated States

Department of 

Marine and 

Wildlife 

Resources

2.0 Program Payment Average Clearance 10 Days

Economic, Social, 

and Political 

Development of 

the Territories and 

the Freely 

Associated States

High Court of 

American Samoa

8.0 Administrative Cost Average Clearance 5 Days

Economic, Social, 

and Political 

Department of 

Public Health

9.0 Program Average Clearance 10 Days

DocuSign Envelope ID: 6206093C-8EB0-44D7-BD29-3948101165A3
Page 19 of 22

Development of 

the Territories and 

the Freely 

Associated States

Economic, Social, 

and Political 

Development of 

the Territories and 

the Freely 

Associated States

High Court of 

American Samoa

3.0 Program Payment Average Clearance 10 Days

Economic, Social, 

and Political 

Development of 

the Territories and 

the Freely 

Associated States

Department of 

Education

30.0 Program Payment Average Clearance 10 Days

Economic, Social, 

and Political 

Development of 

the Territories and 

the Freely 

Associated States

Department of 

Public Works

30.0 Program Payment Average Clearance 10 Days

Economic, Social, 

and Political 

Development of 

the Territories and 

the Freely 

Associated States

Office of the 

Governor

2.0 Administrative Cost Average Clearance 5 Days

Economic, Social, 

and Political 

Development of 

the Territories and 

the Freely 

Associated States

Department of 

Marine and 

Wildlife 

Resources

2.0 Administrative Cost Average Clearance 5 Days

Economic, Social, 

and Political 

Development of 

the Territories and 

the Freely 

Associated States

Department of 

Commerce

3.0 Program Payments Average Clearance 10 Days

17.225 F

Unemployment 

Insurance --

Federal Benefit 

Account and 

Administrative 

Costs

Department of 

Human Resources

20.0 Administrative 

(Payroll and Indirect 

Cost)

Average Clearance 5 Days

Unemployment 

Insurance --

Federal Benefit 

Account and 

Administrative 

Costs

Department of 

Human Resources

80.0 Program Payment Average Clearance 10 Days

20.106 Airport 

Improvement 

Program

Office of Disaster 

Assistance and 

Petroleum 

Management

80.0 Program Payments Average Clearance 30 Days

Airport 

Improvement 

Program

Department of 

Port 

Administration

1.0 Administrative Cost 

(Payroll and Indirect 

Cost)

Average Clearance 5 Days

Airport 

Improvement 

Program

Department of 

Port 

Administration

19.0 Program Payment Average Clearance 10 Days

20.205 Highway Planning 

and Construction

Department of 

Public Works

3.0 Administrative 

Costs(Payroll and 

Indirect)

Reimbursement 

Schedule - Federal 

Highway Program

N/A

Highway Planning 

and Construction

Department of 

Public Works

97.0 Program Payments Modified Issuance -

Federal Highway 

Program

N/A

DocuSign Envelope ID: 6206093C-8EB0-44D7-BD29-3948101165A3
Page 20 of 22

66.600 EPA Consolidated 

Grant

Enviromental 

Protection 

Agency

40.0 Program Payments Average Clearance 10 Days

EPA Consolidated 

Grant

Enviromental 

Protection 

Agency

60.0 Administrative Cost 

(Payroll and Indirect 

Cost)

Average Clearance 5 Days

84.027 Special Education 

-- Grants to States

Department of 

Education

40.0 Program Payments Average Clearance 30 Days

Special Education 

-- Grants to States

Department of 

Education

60.0 Administrative 

Costs(Payroll and 

Indirect Costs)

Average Clearance 5 Days

84.403 Consolidated 

Grant to the 

Outlying Areas

Department of 

Education

65.0 Administrative 

(Payroll and Indirect 

Cost)

Average Clearance 5 Days

Consolidated 

Grant to the 

Outlying Areas

Department of 

Education

35.0 Program Payment Average Clearance 30 Days

84.425 Education 

Stabilization Fund

Department of 

Education

40.0 Program Payment Average Clearance 30 Days

Education 

Stabilization Fund

Office of the 

Governor

25.0 Program payment Average Clearance 10 Days

Education 

Stabilization Fund

Office of the 

Governor

5.0 Administrative Cost 

(Payroll and Indirect 

Cost)

Average Clearance 5 Days

Education 

Stabilization Fund

Department of 

Education

30.0 Administrative Cost 

(Payroll and Indirect 

Cost)

Average Clearance 5 Days

93.224 Consolidated 

Health Centers

Department of 

Public Health

65.0 Administrative Cost 

(Payroll and Indirect 

Cost)

Average Clearance 5 Days

Consolidated 

Health Centers

Department of 

Public Health

35.0 Program Payments Average Clearance 10 Days

93.575 Child Care and 

Development 

Block Grant

Department of 

Human and 

Social Services

30.0 Administrative Costs 

(Payroll and Indirect 

Costs)

Average Clearance 5 Days

Child Care and 

Development 

Block Grant

Department of 

Human and 

Social Services

70.0 Program Payments Average Clearance 10 Days

93.600 Head Start Department of 

Education

50.0 Administrative Cost 

(Payroll & Indirect 

Cost)

Average Clearance 5 Days

Head Start Department of 

Education

50.0 Program Payments Average Clearance 10 Days

93.767 Children's Health 

Insurance 

Program

American Samoa 

Medicaid State 

Agency

100.0 Program Payment Average Clearance 10 Days

93.778 Medical 

Assistance 

Program

American Samoa 

Medicaid State 

Agency

15.0 Administrative Cost 

(Payroll and Indirect 

Cost)

Average Clearance 5 Days

Medical 

Assistance 

Program

American Samoa 

Medicaid State 

Agency

85.0 Program Payment Average Clearance 10 Days

DocuSign Envelope ID: 6206093C-8EB0-44D7-BD29-3948101165A3
Page 21 of 22

97.036 Disaster Grants -

Public Assistance 

(Presidentially 

Declared 

Disasters)

Office of Disaster 

Assistance and 

Petroleum 

Management

100.0 Program Payments Average Clearance 30 Days

Certification

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.

Date: 

Printed Name: 

Certifying Signature: 

Title: 

DocuSign Envelope ID: 6206093C-8EB0-44D7-BD29-3948101165A3

10/1/2021

Levi Reese

DeputyTreasurer
Page 22 of 22

DocuSign Envelope ID: 6206093C-8EB0-44D7-BD29-3948101165A3