Cash Management Improvement Act Agreement

between

The District of Columbia

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 District of Columbia

(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 District of Columbia shall be the Deputy Chief Financial Officer /Treasurer, OCFO 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 10/01/2019 and shall remain in effect until 09/30/2020.

3.2 This Agreement may be amended at any time by written, mutual consent of the State and the Fiscal Service. This

Agreement shall be amended annually to incorporate new programs that qualify as major Federal assistance programs

and remove programs that no longer qualify as major Federal assistance programs. A State must notify the Fiscal Service

in writing within 30 days of the time the State becomes aware of a change that involves additions or deletions of programs

subject to Subpart A, changes in funding techniques, and/or changes in clearance patterns. The notification must include

a proposed amendment for review by the Fiscal Service.

3.3 Notwithstanding section 3.2, in the event of Federal or State non-compliance with Subpart B of 31 CFR, Part 205, the

Fiscal Service may amend this Agreement at any time to incorporate additional programs and the entities that administer

those programs.

3.4 This Agreement may be terminated by either party with 30 days written notice. If this Agreement is terminated, the

Fiscal Service will prescribe the funding techniques, clearance patterns, and methods for calculating interest liabilities to

be used by the State.

Page 1 of 19
4.0 PROGRAMS COVERED

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

published Schedule of Expenditures of Federal Awards (SEFA) data for the A-133 Single Audit Report for fiscal year

ending 09/30/2018.

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 $24,118,056.

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

10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program

14.218 Community Development Block Grants/Entitlement Grants

14.239 HOME Investment Partnerships 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

84.370 DC School Choice Incentive Program

93.558 Temporary Assistance for Needy Families

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:

84.268 Federal Direct Student Loan --- Exclusion:Federal Statute - Full Exemption

97.067 Homeland Security Grant Program --- Exclusion:Federal Statute - Full Exemption

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:

Child and Family Services Agency

Department of Employment Services

Department of Health Care Finance

Department of Housing and Community Development

Department of Human Services

Page 2 of 19
District Department of Transportation

District of Columbia Public Schools

Office of the State Superintendent of Education

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:

FIS Government Solutions 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.

Page 3 of 19
Additional guidance on this policy is available from the respective CMS Regional Office, U.S. Department of Health &

Human Services.

The State will comply with the following guidelines when requesting supplemental funding for TANF (CFDA 93.558),

CCDF (CFDA 93.575), CSE (93.563), and the FC/AA (CFDA 93.658 and CFDA 93.659) programs administered by the

U.S. Department of Human Services, Administration for Children and Families (HHS/ACF):

a. Timing of the Request

A State should initiate its request for supplemental funding during a quarter as soon as it becomes aware of the fact that a

shortfall does/will exist. For the TANF and CCDF grants, supplemental funding requests (estimates) may be submitted by

a State, for consideration by ACF, up through and including the 15th day of the third month of the first, second or third

quarter of any fiscal year. Since TANF and CCDF are block grant programs, all unawarded portions of the annual

allotment will automatically be issued at the beginning of the fourth quarter. Therefore, supplemental funding requests will

not be available during the fourth quarter for these programs. For the CSE and FC/AA programs, supplemental funding

requests may be submitted by a state, for consideration by ACF, up through and including the 15th day of the third month

of any quarter of a fiscal year.

b. Justification for the Request

The request for a supplemental funding for any of the above mentioned programs should contain a justification clearly

documenting the need for the additional funding authority during the current quarter. This documentation should be in the

form of State accounting records or similar documents that will show the actual expenditures through the most recent

month for which such data are available, as well as the State's most accurate projection of its anticipated expenditures

during the remaining month(s) of the quarter. For either the TANF or the CCDF program, the State's justification should

also include an explanation of the activities requiring the obligation and/or expenditure of amounts that exceed the normal

quarterly grant award restrictions and why these activities could not have been delayed until the next quarter.

c. Form Submittal

Supplemental funding requests should be made by completing the appropriate ACF quarterly report of expenditures and

estimates applicable to the particular program for which the grant award request is being made.

d. Approval Process

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

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

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 For State agencies that cannot follow the schedule provided in 6.1.3, and where the receipt of funds is scheduled for

a Saturday, Sunday, or a day when the Federal Government is not open for business, the State shall request funds for

deposit on the next business day.

6.2 Description of Funding Techniques

Page 4 of 19
6.2.1 The following are terms under which standard funding techniques shall be implemented for all transfers of funds to

which the funding technique is applied in section 6.3.2 of this Agreement.

Actual Clearance, ZBA - Same Day Payment

The State shall request funds the same day it pays out funds, in accordance with the appropriate Federal agency cut-off

time specified in Exhibit I. A Federal agency will deposit funds in a State account the same day as requested. The amount

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

neutral.

Average Clearance

The State shall request funds such that they are deposited by ACH on the dollar-weighted 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 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.

Grants Where Payments to Vendors Occur Randomly

The State shall request funds such that they are deposited on the Composite Clearance Date for a series of

disbursements, as specified in the appropriate clearance pattern 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.

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 Costs-Modified Clearance

The District shall request funds once a month such that funds are deposited on or about the 25th of the 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 based on the actual expenditures incurred that are available for drawdown and have cleared the

District's account. This funding technique is interest neutral.

Bi-Weekly Actual

The District shall request funds bi-weekly based on the actual expenditures made during the previous two week period.

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

amount of each request shall equal the total expenditures posted during the District's bi-weekly billing cycle. This funding

technique is interest neutral.

Direct Costs

Page 5 of 19
The State shall request funds only after related cash expenditures have been recorded in the System of Accounting and

Reporting (SOAR). Because the process is a manual one, we expect reimbursement from FHWA two business days after

wire requests are made. In the event of a treasury offset, which results in an ACH transfer, this may delay receipt of

federal funds by up to an additional two business days. The amount of the request shall be the actual sum of cash

expenditures that have been incurred, recorded, identified, and reconciled as billable from the preceding week. This

funding technique is interest neutral.

Modified Average Clearance - Non Personal Services

The District shall request a bi-weekly draw for deposit on the dollar-weighted average day of clearance for the

disbursement, in accordance with the clearance pattern in Exhibit II. Any required adjustments will be made with the first

draw down of the following quarter. Child and Family Services Agency will request quarterly draw for deposit based on

CB-496 Financial claiming reports submitted to the Department of Health and Human Services, Administration for

Children and Families. The request for funds shall be made in accordance with the appropriate Federal agency cut-off

time specified in Exhibit I. Non Personal Service expenditures will be based on the average expenditure cost of the

previous quarter. This funding technique is interest neutral.

Modified Average Clearance - Payroll

The District shall request a bi-weekly draw for deposit on the dollar-weighted average day of clearance for the

disbursement, in accordance with the clearance pattern in Exhibit II. Payroll will be based on the average payroll cost of

the previous quarter. Any required adjustments will be made with the first draw down of the following quarter. Child and

Family Services Agency will request quarterly draw for deposit based on quarterly CB-496 Financial claiming reports

submitted to the Department of Health and Human Services, Administration for Children and Families. The request for

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

the funds request is determined by the agency. This funding technique is interest neutral.

OSSE Billable Costs

The State shall request funds only after related cash expenditures have been recorded in the System of Accounting and

Reporting (SOAR). The request for funds 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 actual sum of cash expenditures that have been incurred,

recorded, identified, and reconciled as billable from the preceding week. This funding technique is interest neutral.

6.3 Application of Funding Techniques to Programs

6.3.1 The State shall apply the following funding techniques when requesting Federal funds for the component cash flows

of the programs listed in sections 4.2 and 4.3 of this Agreement.

6.3.2 Programs

Below are programs listed in Section 4.2 and Section 4.3.

10.551 Supplemental Nutrition Assistance Program

Recipient: Department of Human Services

% of Funds Agency Receives: 100.00

Component: Benefit Payments

Technique: Actual Costs-Modified Clearance

Average Day of Clearance: 0 Days

Page 6 of 19
10.555 National School Lunch Program

Recipient: Office of the State Superintendent of Education

% of Funds Agency Receives: 100.00

Component: Program Payments

Technique: OSSE Billable Costs

Average Day of Clearance: N/A

10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program

Recipient: Department of Human Services

% of Funds Agency Receives: 100.00

Component: Benefit Payments

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

14.218 Community Development Block Grants/Entitlement Grants

Recipient: Department of Housing and Community Development

% of Funds Agency Receives: 20.00

Component: Administrative Costs

Technique: Bi-Weekly Actual

Average Day of Clearance: N/A

Recipient: Department of Housing and Community Development

% of Funds Agency Receives: 80.00

Component: Program Payments

Technique: Bi-Weekly Actual

Average Day of Clearance: N/A

14.239 HOME Investment Partnerships Program

Recipient: Department of Housing and Community Development

% of Funds Agency Receives: 90.00

Component: Program Payments

Technique: Bi-Weekly Actual

Average Day of Clearance: N/A

Recipient: Department of Housing and Community Development

% of Funds Agency Receives: 10.00

Component: Administrative Costs

Technique: Bi-Weekly Actual

Average Day of Clearance: N/A

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

Recipient: Department of Employment Services

% of Funds Agency Receives: 10.00

Component: Non Personal Services

Technique: Bi-Weekly Actual

Page 7 of 19
Average Day of Clearance: N/A

Recipient: Department of Employment Services

% of Funds Agency Receives: 90.00

Component: Payroll

Technique: Bi-Weekly Actual

Average Day of Clearance: N/A

17.225S Unemployment Insurance -- State Benefit Account

Recipient: Department of Employment Services

% of Funds Agency Receives: 100.00

Component: Benefit Payments

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

20.205 Highway Planning and Construction

Recipient: District Department of Transportation

% of Funds Agency Receives: 100.00

Component: Program Payments

Technique: Direct Costs

Average Day of Clearance: N/A

84.010 Title I Grants to Local Educational Agencies

Recipient: Office of the State Superintendent of Education

% of Funds Agency Receives: 0.20

Component: Administrative Costs

Technique: OSSE Billable Costs

Average Day of Clearance: N/A

Recipient: Office of the State Superintendent of Education

% of Funds Agency Receives: 1.00

Component: Payroll

Technique: OSSE Billable Costs

Average Day of Clearance: N/A

Recipient: Office of the State Superintendent of Education

% of Funds Agency Receives: 98.80

Component: Program Payments

Technique: OSSE Billable Costs

Average Day of Clearance: N/A

84.370 DC School Choice Incentive Program

Recipient: District of Columbia Public Schools

% of Funds Agency Receives: 56.00

Component: Program Payments

Page 8 of 19
Technique: Average Clearance

Average Day of Clearance: 1 Day

Recipient: District of Columbia Public Schools

% of Funds Agency Receives: 44.00

Component: Program Payments

Technique: Grants Where Payments to Vendors Occur Randomly

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families

Recipient: Department of Human Services

% of Funds Agency Receives: 88.00

Component: Benefit Payments

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

Recipient: Department of Human Services

% of Funds Agency Receives: 2.00

Component: Administrative Costs

Technique: Actual Costs-Modified Clearance

Average Day of Clearance: 5 Days

Recipient: Department of Human Services

% of Funds Agency Receives: 10.00

Component: Payroll

Technique: Actual Costs-Modified Clearance

Average Day of Clearance: 0 Days

93.658 Foster Care -- Title IV-E

Recipient: Child and Family Services Agency

% of Funds Agency Receives: 80.00

Component: Benefit Payments

Technique: Modified Average Clearance - Non Personal Services

Average Day of Clearance: 7 Days

Recipient: Child and Family Services Agency

% of Funds Agency Receives: 20.00

Component: Administrative Costs

Technique: Modified Average Clearance - Payroll

Average Day of Clearance: 0 Days

93.767 Children's Health Insurance Program

Recipient: Department of Health Care Finance

% of Funds Agency Receives: 4.00

Component: Provider Payments

Technique: Average Clearance

Page 9 of 19
Average Day of Clearance: 5 Days

Recipient: Department of Health Care Finance

% of Funds Agency Receives: 92.00

Component: Provider Payments

Technique: Average Clearance

Average Day of Clearance: 0 Days

Recipient: Department of Health Care Finance

% of Funds Agency Receives: 2.00

Component: Non-Personal Services

Technique: Modified Average Clearance - Non Personal Services

Average Day of Clearance: 5 Days

Recipient: Department of Health Care Finance

% of Funds Agency Receives: 2.00

Component: Payroll

Technique: Modified Average Clearance - Payroll

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Department of Health Care Finance

% of Funds Agency Receives: 93.00

Component: Provider Payments

Technique: Average Clearance

Average Day of Clearance: 0 Days

Recipient: Department of Health Care Finance

% of Funds Agency Receives: 4.00

Component: Provider Payments

Technique: Average Clearance

Average Day of Clearance: 5 Days

Recipient: Department of Health Care Finance

% of Funds Agency Receives: 2.00

Component: Non-Personal Services

Technique: Modified Average Clearance - Non Personal Services

Average Day of Clearance: 5 Days

Recipient: Department of Health Care Finance

% of Funds Agency Receives: 1.00

Component: Payroll

Technique: Modified Average Clearance - Payroll

Average Day of Clearance: 0 Days

6.3.3 Materiality Exemptions

Page 10 of 19
Agencies exempt from coverage on the basis of materiality:

No exempt agencies.

7.0 CLEARANCE PATTERNS

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

The District developed check clearance patterns for controlled disbursement types (run IDs) in the District's check writing

and cash reconciliation systems. The disbursement types applicable for this Agreement are:

23-Medicaid (Provider Payments)

73-SOAR Checks NPS

81-Payroll Group 1

82-Payroll Group 2

The check clearance patterns are produced without regard to funding type. The District is responsible for the

development and appropriate application of these check clearance patterns for the programs covered by the Agreement.

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

For each disbursement type, the District's Office of Finance and Treasury has analyzed about 50% of the funds disbursed

from issuance via checks to the clearance for a period of at least three months. Almost all payments from the District of

Columbia are done by ACH or instant wires, where clearances are completed in a matter of hours or minutes.

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

The data provided for testing the check clearance patterns are provided through the District's financial management

system, the System of Accounting and Reporting (SOAR) and its Accounts Reconcillation Processing (ARP) component.

The ARP component, controlled by the Office of the Chief Information Officer, contains the clearance pattern information

required by this agreement. All Payroll is paid via direct deposit and therefore results in a zero day clearance time.

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

When developing each clearance pattern, the State shall track at least 99% of the funds disbursed, from issuance to

clearance, for a period of at least three months.

7.5 The State shall identify for each check or warrant (hereafter, check) in the population: (1) the date the check was

released for payment; (2) the date the check was debited from the State's account, and, (3) the amount of the check.

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

To determine the number of days each check was outstanding (clearance time), the issue date shall be subtracted from

the date the check cleared the State's account.

To determine the percentage of the disbursement paid out each day following issuance, the amount of the checks that

clear the State's account each day shall be summed and then divided by the amount of the total disbursement.

For each day following issuance, the clearance time of the checks paid out that day shall be multiplied by the percentage

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

Page 11 of 19
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:

None.

The State shall also adjust each clearance pattern to reflect:

Any systemic problems, such as what occurred with the mail distribution during the Anthrax crisis. Adjustments in the

clearance patterns will be made to smooth out the resulting anomalies.

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 - Same Day Payment

Actual Costs-Modified Clearance

Average Clearance

Bi-Weekly Actual

Direct Costs

Grants Where Payments to Vendors Occur Randomly

Modified Average Clearance - Non Personal Services

Modified Average Clearance - Payroll

OSSE Billable Costs

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

Page 12 of 19
8.2 Federal Interest Liabilities

8.2.1 A Federal interest liability shall accrue from the day the State pays out its own funds for program purposes to the

day Federal funds are credited to a State account. With regard to funds transferred out of the Federal Highway Trust

Fund, if a State does not bill at least weekly for current project costs, the Federal interest liability shall not accrue prior to

the day the State submits a request for funds.

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

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

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

credited to a State account to cover that outlay. The Federal interest liability on each payment shall be based on the

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:

When the Funding Technique is properly used, there should be no interest earnings on funds withdrawn from the State

account, as the State has implemented Actual Clearance Same Day Pay, an interest-neutral funding technique, for such

transfers. For transfers UTF that do not follow the technique specified in section 6.2 and result in a positive balance of

funds in a State account, 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 pro-rata share 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:

With programs to which applicable interest neutral funding techniques are applied, the State interest liability shall be

based on the difference in whole days between the date the refund is deposited in a State account and the date the

refund is offset against a subsequent deposit of Federal funds.

8.5 Exemptions

8.5.1 Where more than one State agency is a recipient of Federal funds under a program, a particular State agency's

funding may be excluded from interest calculation procedures if the State agency receives an amount of funds less than 5

% of the State's threshold for major Federal assistance programs. Notwithstanding this potential exemption, however, in

no case shall less than 90% of a program's total funding be subject to interest calculation procedures.

Page 13 of 19
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

Deposit to Issuance; Issuance to Clearance:

To determine the total time Federal funds are held, the State shall separately measure two time periods: (1) the date

Federal funds are deposited to the date checks are issued; and (2) the date checks are issued to the date funds are

debited from the State's account.

8.6.2.2 Source of Data

The time period from issuance to clearance shall be determined from information captured through the District's System of

Accounting and Reporting (SOAR) and its Account Reconcilliation Processing (ARP) component. See Section 7.3 for

more information

8.6.2.3 Standards Applied

Statistical Sampling (Pre-Issuance):

To measure the time Federal funds are held in a State account prior to being disbursed, the State shall use statistical

sampling. The sample shall be randomly selected, and shall be of sufficient size to ensure, at a minimum, a 95%

confidence interval no wider than ± 0.3 dollar-weighted days about the estimated mean.

For each check in the sample population, the State shall:

1 subtract the deposit date from the issuance date

2 multiply the difference of step 1 by the check amount

3 divide the product of step 2 by the total amount of funds drawn in the sample to determine the dollar-weighted preissuance time for that check

The State shall then sum the dollar-weighted pre-issuance time for each check to arrive at the total dollar-weighted

average pre-issuance time to be used for calculating State interest liabilities.

8.6.2.4 Calculation Procedure

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

Page 14 of 19
9.0 REVERSE FLOW PROGRAMS

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

not participate in the program.

10.0 INTEREST CALCULATION COSTS

10.1 As set forth in 31 CFR 205.27, interest calculation costs are defined as those costs necessary for the actual

calculation of interest, including the cost of developing and maintaining clearance patterns in support of the interest

calculations. Interest calculation costs do not include expenses for normal disbursing services, such as processing of

checks or maintaining records for accounting and reconciliation of cash balances, or expenses for upgrading or

modernizing accounting systems. Interest calculation costs in excess of $50,000 in any year are not eligible for

reimbursement, unless the State provides justification with the annual report.

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

To develop and maintain check 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.

Page 15 of 19
12.0 AUTHORIZED SIGNATURES

Carmen Pigler

Associate Treasurer of Debt and Grants

OCFO/Office of Finance & Treasury

Signature:________________________________________Date Signed:_______________

Date Submitted 09/25/2019

Corvelli A. McDaniel

Assistant Commissioner

Revenue Collections Management

Bureau of the Fiscal Service

U.S. Department of the Treasury

Signature:________________________________________Date Signed:_______________

Page 16 of 19

Eugenia Collis (Oct 1, 2019)

Eugenia Collis

Oct 1, 2019

Corvelli A. McDaniel (Oct 24, 2019)

Corvelli A. McDaniel

Oct 24, 2019
Exhibit I - Funds Request and Receipt Times Schedule

 District of Columbia

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

Page 17 of 19
Exhibit II - District of Columbia

LIST OF STATE CLEARANCE TIMES

(Rounded Dollar-Weighted Average Day of Clearance)

Clearance Times Where the Timing of A Draw Down Is Based on A Clearance

Pattern

CFDA Program Name Recipient % Component Technique Round

ed

days

10.551 Supplemental Nutrition

Assistance Program

Department of Human

Services

100.

00

Benefit Payments Actual Costs-Modified

Clearance

0 Days

10.555 National School Lunch

Program

Office of the State

Superintendent of

Education

100.

00

Program Payments OSSE Billable Costs N/A

10.561 State Administrative

Matching Grants for the

Supplemental Nutrition

Assistance Program

Department of Human

Services

100.

00

Benefit Payments Actual Clearance, ZBA -

Same Day Payment

0 Days

14.218 Community Development

Block Grants/Entitlement

Grants

Department of Housing

and Community

Development

20.0

0

Administrative Costs Bi-Weekly Actual N/A

14.218 Community Development

Block Grants/Entitlement

Grants

Department of Housing

and Community

Development

80.0

0

Program Payments Bi-Weekly Actual N/A

14.239 HOME Investment

Partnerships Program

Department of Housing

and Community

Development

90.0

0

Program Payments Bi-Weekly Actual N/A

14.239 HOME Investment

Partnerships Program

Department of Housing

and Community

Development

10.0

0

Administrative Costs Bi-Weekly Actual N/A

17.225F Unemployment Insurance

-- Federal Benefit

Account and

Administrative Costs

Department of

Employment Services

10.0

0

Non Personal Services Bi-Weekly Actual N/A

17.225F Unemployment Insurance

-- Federal Benefit

Account and

Administrative Costs

Department of

Employment Services

90.0

0

Payroll Bi-Weekly Actual N/A

17.225S Unemployment Insurance

-- State Benefit Account

Department of

Employment Services

100.

00

Benefit Payments Actual Clearance, ZBA -

Same Day Payment

0 Days

20.205 Highway Planning and

Construction

District Department of

Transportation

100.

00

Program Payments Direct Costs N/A

84.010 Title I Grants to Local

Educational Agencies

Office of the State

Superintendent of

Education

1.00 Payroll OSSE Billable Costs N/A

84.010 Title I Grants to Local

Educational Agencies

Office of the State

Superintendent of

Education

98.8

0

Program Payments OSSE Billable Costs N/A

84.010 Title I Grants to Local

Educational Agencies

Office of the State

Superintendent of

Education

0.20 Administrative Costs OSSE Billable Costs N/A

84.370 DC School Choice

Incentive Program

District of Columbia

Public Schools

44.0

0

Program Payments Grants Where Payments

to Vendors Occur

Randomly

N/A

84.370 DC School Choice

Incentive Program

District of Columbia

Public Schools

56.0

0

Program Payments Average Clearance 1 Day

93.558 Temporary Assistance for

Needy Families

Department of Human

Services

88.0

0

Benefit Payments Actual Clearance, ZBA -

Same Day Payment

0 Days

Page 18 of 19
________________________________________________________________________________________________________

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: ___________________________________________________________

CFDA Program Name Recipient % Component Technique Round

ed

days

93.558 Temporary Assistance for

Needy Families

Department of Human

Services

10.0

0

Payroll Actual Costs-Modified

Clearance

0 Days

93.558 Temporary Assistance for

Needy Families

Department of Human

Services

2.00 Administrative Costs Actual Costs-Modified

Clearance

5 Days

93.658 Foster Care -- Title IV-E Child and Family

Services Agency

20.0

0

Administrative Costs Modified Average

Clearance - Payroll

0 Days

93.658 Foster Care -- Title IV-E Child and Family

Services Agency

80.0

0

Benefit Payments Modified Average

Clearance - Non

Personal Services

7 Days

93.767 Children's Health

Insurance Program

Department of Health

Care Finance

92.0

0

Provider Payments Average Clearance 0 Days

93.767 Children's Health

Insurance Program

Department of Health

Care Finance

4.00 Provider Payments Average Clearance 5 Days

93.767 Children's Health

Insurance Program

Department of Health

Care Finance

2.00 Payroll Modified Average

Clearance - Payroll

0 Days

93.767 Children's Health

Insurance Program

Department of Health

Care Finance

2.00 Non-Personal Services Modified Average

Clearance - Non

Personal Services

5 Days

93.778 Medical Assistance

Program

Department of Health

Care Finance

93.0

0

Provider Payments Average Clearance 0 Days

93.778 Medical Assistance

Program

Department of Health

Care Finance

4.00 Provider Payments Average Clearance 5 Days

93.778 Medical Assistance

Program

Department of Health

Care Finance

1.00 Payroll Modified Average

Clearance - Payroll

0 Days

93.778 Medical Assistance

Program

Department of Health

Care Finance

2.00 Non-Personal Services Modified Average

Clearance - Non

Personal Services

5 Days

Page 19 of 19

Eugenia Collis (Oct 1, 2019)

Eugenia Collis

Associate Treasurer Asset Management Oct 1, 2019 Eugenia Collis