DocuSign Envelope ID: C5775C9C-BEED-4E58-AE38-86712D7639DD

system or by Payments to
Electronic Funds Providers
Transfer (EFT) &
One-Time Benefit
Payments
Temporary Repartment of 16.33 | Administrative costs | Modified Direct 0 Days
NSCS Families Sonvices ealt including payroll Program Costs -
Admin, Payroll,
Payments to
Providers
93.563 Child Support Department of 100.0 | Administrative costs] Modified Direct 0 Days
Enforcement Social & Health including payroll Program Costs -
ervices
Admin, Payroll,
Payments to
Providers
93.575 Child Care and Department of 5.0 Administrative costs | Modified Direct N/A
evelopment ildren, Youth, 5 sosts
Block Grant and Families Program Costs
Admin, Payroll,
Payments to
Providers
Child Care and Pepartment of 55.82 | Direct program costs, | Modified Direct N/A
Block ¢ ment ond Famil i yout Is admin, and payroll Program Costs -
Admin, Payroll,
Payments to
Providers
Child Care and Department of 39.18 | Direct payments to Modified Direct 0 Days
Bevglopment Social & Health providers for EFT Program Costs
and non-EFT
payments
93.658 Foster Care -- Department of 100.0 | Direct program costs, | Modified Direct N/A
Title IV-E Children, Youth, admin, and payroll Program Costs -
and Families .
Admin, Payroll,
Payments to
Providers
93.767 Children's Health Healthcare 97.06 | Direct payments to Modified Direct 0 Days
Prawn’ Authority providers for EFT Program Costs
and non-EFT
payments
Children's Health Healthcare 2.94 | Admin and Payroll Modified Direct 0 Days
Pawan Authority Program Costs -
Admin, Payroll,
Payments to
Providers
93.778 Medic Repartment of h 3.66 | Administrative costs | Modified Direct 0 Days
Program Services ea including payroll Program Costs -
Admin, Payroll,
Payments to
Providers
Medical Department of 0.28 | Direct payments to Modified Direct 0 Days
Prowain om 4 Famili out s providers for EFT Program Costs
and non-EFT
payments

Page 20 of 21


DocuSign Envelope ID: C5775C9C-BEED-4E58-AE38-86712D7639DD

8.4 Refund Liabilities

8.4.1 The State shall be liable for interest on refunds from the date the refund is credited to a State account until the date the refund
is debited from the State account for program purposes. The State shall apply a $50,000 refund transaction threshold below which
the State shall not incur or calculate interest liabilities on refunds. A transaction is defined as a single deposit.

8.4.2 For each refund, the State shall maintain information identifying:

(1) date a refund is credited to a State account

(2) date of the subsequent deposit of Federal funds against which the refund is offset
(3) amount of the refund

8.4.3 The State shall use the following methodology to calculate interest liabilities on refunds:
With programs to which applicable interest neutral funding techniques are applied, the State interest liability shall be based on the

difference in whole days between the date the refund is deposited in a State account and the date the refund is offset against a
subsequent deposit of Federal funds.

8.5 Exemptions

8.5.1 Where more than one State agency is a recipient of Federal funds under a program, a particular State agency's funding may be
excluded from interest calculation procedures if the State agency receives an amount of funds less than 5

% of the State's threshold for major Federal assistance programs. Notwithstanding this potential exemption, however, in no case
shall less than 90% of a program's total funding be subject to interest calculation procedures.

Proration of calculations: If less than total program funding is subject to interest calculation procedures, the resulting interest
liability calculations shall be prorated to 100% of program funding.

8.6 State Interest Liabilities

8.6.1 The State shall be liable for interest on Federal funds from the date Federal funds are credited to a State account until the
date those funds are paid out for program purposes.

8.6.2 The State shall use the following method to calculate State interest liabilities on Federal funds:
8.6.2.1 Measuring Time Funds Are Held

To determine the total time Federal funds are held, the State shall measure the time between the date Federal funds are received and
credited to a State's account and the date those funds are debited from the State's account.

8.6.2.2 Source of Data

The time period from the date Federal funds are received and credited to the State's account and the date those funds are

debited from the State's account shall be determined from information captured by AFRS (Agency Financial Reporting

System).

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

1= ADB xR, where

Page 14 of 21


DocuSign Envelope ID: C5775C9C-BEED-4E58-AE38-86712D7639DD

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.

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

Direct Funding WSDOT

The State shall request funds only after related cash expenditures have been recorded
in TRAINS. Because the process is an automatic one, we expect reimbursement the
same day wire requests are made. 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 Administrative Costs - Annual

Administrative costs will be drawn on an annual basis for disaster recovery projects
administered by the Washington Military Department. The draw request will be made
in accordance with the cut-off times as shown in Exhibit I. Funds requested will be an
accumulation of the administrative costs since the last draw. This funding technique is
interest neutral.

Modified Direct Program and Admin Costs -
Monthly

The state draws funds after the close of the fiscal month for direct program and
indirect administrative costs. The draw request will be made in accordance with the
cut-off time in Exhibit I. The funds drawn will be the accumulation of costs since the
last draw. This funding technique is interest neutral.

Modified Direct Program Costs

Except for managed care payments, the State shall request funds for direct program
costs to providers and clients. The draw will occur on fixed intervals. Managed care
payments will have a separate draw. The request shall be made in accordance with the
appropriate Federal agency cut-off time specified in Exhibit I. Managed care
payments will be drawn the day before the payment to providers, so funds are received
on date of managed care payments. The amount of the draw will be an accumulation
of program costs since the last draw. This funding technique is interest neutral.

Modified Direct Program Costs - Admin,
Payroll, Payments to Providers

The State shall request funds for all direct administrative costs and/or payroll costs,
and/or payments made to providers and to support providers. The request shall be
made in accordance with the appropriate Federal agency cut-off time specified in
Exhibit I. The amount of the funds requested shall be based on the amount of
expenditures recorded for direct administrative costs and/or payroll costs and/or
payments made to providers or to support providers since the last request for funds.
The State payroll cycle is payday twice a month. Draws made the day before payday
are for deposit on payday. The draw request will be made in accordance with the cut-
off time in Exhibit 1. The amount of the funds requested shall be based on the amount
of expenditures recorded for direct administrative costs and/or payroll costs and/or
payments made to providers or to support providers since the last request for funds.
This funding technique is interest neutral.

Modified Direct Program/Benefit Costs -
(ACH Drawdowns at Fixed Intervals - SPI)

The State shall request funds for all direct program/benefit payments to Providers. The
request shall be made such that the funds are deposited to the State's account on the
last working day 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
funds requested shall be based on the amount of expenditures recorded for the direct

Page 5 of 21



DocuSign Envelope ID: C5775C9C-BEED-4E58-AE38-86712D7639DD

Medical Healthcare 66.12 | Direct payments to Modified Direct 0 Days
Assistance Authority roviders for EFT Program Costs
Program P s

and non-EFT

payments
Medical Department of 27.47 | Direct payment to Modified Direct 0 Days
Prowanee Social & Health providers for EFT Program Costs

and non-EFT

payments
Medical Healthcare 2.47 Administrative costs | Modified Direct 0 Days
panigance Authority including payroll Program Costs -

Admin, Payroll,
Payments to

Providers
97.036 Military 7.0 Admin costs Modified NIA
Department Administrative
Costs - Annual
Disasters)
Disaster Grants - Military 93.0 | Direct program costs | Modified Direct N/A
Public Assistance Department Program and Admin
(Presidentially 2
eclared Costs - Monthly
Disasters)
97.050 Presidential, Employment 100.0 | Lost wages assistance | UI Federal (Fedwire | 0 Days
Declared Disaster Security Same Day Payment
Assistance to Department Oy fay’
Individuals and Modified Actual
Households - Clearance ZBA)

Other Needs

Certification

Thereby 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.

6/1/2023
Date:

. Brian Tinne:
Printed Name: ¥

Docusigned by:

Certifying Signature: ( trinw Timmy

“ADBOTSCST21EASC,

Title: Assistant Director, Accounting

Page 21 of 21


DocuSign Envelope ID: C5775C9C-BEED-4E58-AE38-86712D7639DD

Exhibit II - State of Washington
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 Department of 100.0 | Direct Wire Actual Clearance, 0 Days
lutrition ocial eal
‘Assistance Services Settlement to ZBA - Same Day
Program Electronic Benefit Payment
(EBT) system
contractor or by
Electronic Funds
Transfer (EFT)
10.557 Special cal Department of 66.0 | Direct Modified Direct 0 Days
Nee tion Pro: ram ealth program/benefit Program Costs
for Women, payments for food
Infants, and voucher redemption.
Children Rebates offset the
direct
program/benefit
payments. This is a
zero balance account.
Special j Pepartment of 34.0 Administrative costs | Modified Direct 0 Days
Pea reat ram ealtl including payroll - Program Costs -
for Women, salary, benefits, Admin, Payroll,
Infants, and contractual and Payments to
Children related expenditures | Providers
10.559 Summer Food Superintendent of 100.0 | Payments - Modified Direct 0 Days
Service Program Public Instruction reimbursements to Program/Benefit
for Children ae 108 ~
school districts, Costs - (ACH
private schools, child | Drawdowns at Fixed
& adult care Intervals - SPI)
programs
10.561 State. istrati Department of 100.0 | Direct Wire Actual Clearance, 0 Days
ministrative ocial eal
Matching Grants Services Settlement to ZBA - Same Day
for the Electronic Benefit Payment
Supplemental (EBT) system
lutrition
‘Assistance contractor or by
Program Electronic Funds
Transfer (EFT)
17.225 [nemployment Employment 76.0 | Benefit Payments - | UI Federal (Fedwire | 0 Days
insurance -- ecurity
F Federal Benefit Department Federal Same Day Payment
Account and Modified Actual
Administrative Clearance ZBA)
Costs
[izemployment Employment 24.0 Unemployment UI Admin - 0 Days
insurance -- ecurity i
Federal Benefit Department Insurance . Modified Payment
Account and Administrative Schedule (Fedwire
Administrative Semi-Monthly
Costs

Page 18 of 21


DocuSign Envelope ID: C5775C9C-BEED-4E58-AE38-86712D7639DD

93.767 Children's Health Insurance Program

Recipient: Healthcare Authority

% of Funds Agency Receives: 97.06

Component: Direct payments to providers for EFT and non-EFT
payments

Technique: Modified Direct Program Costs

Average Day of Clearance: 0 Days

93.767 Children's Health Insurance Program

Recipient: Healthcare Authority

% of Funds Agency Receives: 2.94

Component: Admin and Payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance:

Days

93.778 Medical Assistance Program

Recipient: Department of Social & Health Services

% of Funds Agency Receives: 3.66

Component: Administrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Department of Children, Youth, and Families

% of Funds Agency Receives: .28

Component: Direct payments to providers for EFT and non-EFT
payments

Technique: Modified Direct Program Costs

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Healthcare Authority

% of Funds Agency Receives: 66.12

Component: Direct payments to providers for EFT and non-EFT
payments

Technique: Modified Direct Program Costs

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Department of Social & Health Services

% of Funds Agency Receives: 27.47

Component: Direct payment to providers for EFT and non-EFT
payments

Technique: Modified Direct Program Costs

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Healthcare Authority

% of Funds Agency Receives: 2.47

Component: Administrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 0 Days

97.036 Disaster Grants - Public Assistance (Presidentially Declared
Disasters)

Recipient: Military Department

% of Funds Agency Receives: 7

Component: Admin costs

Page 10 of 21


DocuSign Envelope ID: C5775C9C-BEED-4E58-AE38-86712D7639DD

a zero balance account.
Technique: Modified Direct Program Costs
Average Day of Clearance: 0 Days

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

Recipient: Department of Health

% of Funds Agency Receives: 34

Component: Administrative costs including payroll - salary, benefits,
contractual and related expenditures

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 0 Days

10.559 Summer Food Service Program for Children

Recipient: Superintendent of Public Instruction

% of Funds Agency Receives: 100

Component: Payments - reimbursements to school districts, private
schools, child & adult care programs

Technique: Modified Direct Program/Benefit Costs - (ACH
Drawdowns at Fixed Intervals - SPI)

Average Day of Clearance: 0 Days

10.561 State Administrative Matching Grants for the Supplemental
Nutrition Assistance Program

Recipient: Department of Social & Health Services

% of Funds Agency Receives: 100

Component: Direct Wire Settlement to Electronic Benefit (EBT)
system contractor or by Electronic Funds Transfer (EFT)
Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

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

Recipient: Employment Security Department

% of Funds Agency Receives: 76

Component: Benefit Payments - Federal

Technique: UI Federal (Fedwire Same Day Payment Modified Actual
Clearance ZBA)

Average Day of Clearance: 0 Days

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

Recipient: Employment Security Department

% of Funds Agency Receives: 24

Component: Unemployment Insurance Administrative

Technique: UI Admin - Modified Payment Schedule (Fedwire Semi-
Monthly Drawdown on Payday)

Average Day of Clearance: 0 Days

17.225S Unemployment Insurance -- State Benefit Account

Recipient: Employment Security Department

% of Funds Agency Receives: 100

Component: Benefit payments - State

Technique: Modified Pre-Issuance (Post-Issuance) (Fedwire Same Day
Payment)

Average Day of Clearance: 0 Days

20.205 Highway Planning and Construction
Recipient: Bond Retirement Interest
% of Funds Agency Receives: 13.24

Page 7 of 21


DocuSign Envelope ID: C5775C9C-BEED-4E58-AE38-86712D7639DD

program/benefit payments to Providers since the last request for funds. This funding
technique is interest neutral.

Modified Pre-Issuance (Post-Issuance) The State shall request funds daily from the Unemployment Insurance Trust Fund to
(Fedwire Same Day Payment) pay for State unemployment insurance benefits. The State shall request funds such that
they are deposited into the 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. A federal agency shall deposit funds in the
State account the same day as requested. The amount of the request shall be based on
the amount of the actual warrants disbursed except in the case of a holiday following a
day upon which checks are issued. This funding technique is interest neutral.
Pre-Issuance Grant Anticipation Revenue The State of Washington Department of Transportation will request funds for the
Vehicle (GARVEE) Bond Repayment repayment of GARVEE Bonds issued and paid by the Bond Retirement Interest
Agency. Funds will be requested for payments of principal and interest on bonds.
Funds may be requested at least seven business days in advance of the bond payment.
This early drawdown has been approved by the Federal Highway Administration
(FHWA) and Fiscal Service. This funding technique is interest neutral.

UI Admin - Modified Payment Schedule The State shall request funds semi-monthly. It issues Electronic Funds Transfer (EFT)
(Fedwire Semi-Monthly Drawdown on payments and Voucher payments for Administrative and Reed Act costs including
Payday) payroll. The State shall request funds semi-monthly. Warrants for Administrative and

Reed Act Costs including payroll are disbursed from the State's account. The State's
request shall be made in accordance with the appropriate Federal agency cut-off time
specified in Exhibit I. A federal agency shall deposit funds in the State account the
same day as requested, if the request is made in accordance with the appropriate
Federal agency cut-off time specified in Exhibit 1. The amount of the request shall be
the amount of EFT payments and Journal Voucher payments for Administrative and
Reed Act costs including payroll that are issued from the State's account and the
amount of Warrants for Administrative and Reed Act costs including payroll that are
disbursed from the State's account. This funding technique is interest neutral.

UI Federal (Fedwire Same Day Payment The State shall request funds daily, or weekly for COVID-19 related draws, from the
Modified Actual Clearance ZBA) Unemployment Insurance Trust Fund to pay for Federal unemployment insurance
benefits. The State shall request funds the same day it pays out funds (based upon
actual settlement from the bank for both checks and warrants), in accordance with the
appropriate Federal agency cut-off time specified in Exhibit I. A federal agency shall
deposit funds in the State account the same day as requested. The amount of the
request shall be based on the amount of the actual warrants redeemed and checks
cleared on that day in the State's account. 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 Social & Health Services

% of Funds Agency Receives: 100

Component: Direct Wire Settlement to Electronic Benefit (EBT)
system contractor or by Electronic Funds Transfer (EFT)
Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: 0 Days

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

Recipient: Department of Health

% of Funds Agency Receives: 66

Component: Direct program/benefit payments for food voucher
redemption. Rebates offset the direct program/benefit payments. This is

Page 6 of 21


DocuSign Envelope ID: C5775C9C-BEED-4E58-AE38-86712D7639DD

Drawdown on
Payday)
17.225 Unemployment Employment 100.0 | Benefit payments - Modified Pre- 0 Days
S| Re | Sut Issac Post
Issuance) (Fedwire
Same Day Payment)
20.205 Highway Planning Bond Retirement 13.24 | Debt service Pre-Issuance Grant | N/A
and Construction Interest Anticipation
Revenue Vehicle
(GARVEE) Bond
Repayment
Highway Planning Department of 86.76 | Contractor payments, | Direct Funding 1 Day
and Construction Transportation payroll, WSDOT
administrative and
other program costs
84.010 Title I Grants to Superintendent of 5.0 Administrative costs | Modified Direct 1 Day
Local Educational Public Instruction including payroll Program Costs -
gencies .
Admin, Payroll,
Payments to
Providers:
Title I Grants to Superintendent of 95.0 | Direct Modified Direct 1 Day
erations Public Instruction program/benefit Program/Benefit
payments to school Costs - (ACH
districts, non-profits, | Drawdowns at Fixed
service providers, and | Intervals - SPI)
local educational
agencies (LEA)
84.027 Special Education Superintendent of 95.0 Direct Modified Direct N/A
-- Grants to States Public Instruction Program/Benefit Program/Benefit
payments to public or | Costs - (ACH
private schools and Drawdowns at Fixed
service providers Intervals - SPI)
Special Education Superintendent of 5.0 Administrative costs | Modified Direct 0 Days
-- Grants to States Public Instruction including payroll Program Costs -
Admin, Payroll,
Payments to
Providers
84.425 Education Superintendent of 10.0 | SEA Reserve Modified Direct 0 Days
Stabilization Fund Public Instruction Program Costs -
Admin, Payroll,
Payments to
Providers
Education Superintendent of 90.0 | Direct Modified Direct 0 Days
Stabilization Fund Public Instruction program/payments to. | Program/Benefit
school districts, non- | Costs - (ACH
profits, service Drawdowns at Fixed
providers, and local _| Intervals - SPI)
educational agencies
(LEA)
93.558 Temporary Department of 83.67 | Direct Assistance to | Modified Direct 0 Days
Assignee for Social & Health clients via the Program Costs -
Electronic Benefit Admin, Payroll,
Transfer (EBT)

Page 19 of 21


DocuSign Envelope ID: C5775C9C-BEED-4E58-AE38-86712D7639DD

Drawdowns at Fixed Intervals - SPT)
Average Day of Clearance: 0 Days

93.558 Temporary Assistance for Needy Families

Recipient: Department of Social & Health Services

% of Funds Agency Receives: 83.67

Component: Direct Assistance to clients via the Electronic Benefit
Transfer (EBT) system or by Electronic Funds Transfer (EFT) & One-
Time Benefit Payments

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 0 Days

93.558 Temporary Assistance for Needy Families

Recipient: Department of Social & Health Services

% of Funds Agency Receives: 16.33

Component: Administrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 0 Days

93.563 Child Support Enforcement

Recipient: Department of Social & Health Services

% of Funds Agency Receives: 100

Component: Administrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 0 Days

93.575 Child Care and Development Block Grant

Recipient: Department of Children, Youth, and Families

% of Funds Agency Receives: 5

Component: Administrative costs

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: N/A

93.575 Child Care and Development Block Grant

Recipient: Department of Children, Youth, and Families

% of Funds Agency Receives: 55.82

Component: Direct program costs, admin, and payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: N/A

93.575 Child Care and Development Block Grant

Recipient: Department of Social & Health Services

% of Funds Agency Receives: 39.18

Component: Direct payments to providers for EFT and non-EFT
payments

Technique: Modified Direct Program Costs

Average Day of Clearance: 0 Days

93.658 Foster Care -- Title IV-E

Recipient: Department of Children, Youth, and Families

% of Funds Agency Receives: 100

Component: Direct program costs, admin, and payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: N/A

Page 9 of 21


DocuSign Envelope ID: C5775C9C-BEED-4E58-AE38-86712D7639DD

Cash Management Improvement Act Agreement
between
The State of Washington
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 Washington
(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 Washington shall be the Assistant Director, Accounting Division, Office of Financial
Management in all matters concerning this Agreement.

1.2 The Assistant Commissioner, Revenue Collections Management, Bureau of the Fiscal Service (Fiscal Service), U.S.
Department of the Treasury, shall act as the Secretary's representative in all matters concerning this Agreement.

2.0 AUTHORITY

2.1 The authority for this Agreement is the Cash Management Improvement Act of 1990 (Public Law 101-453), as amended by
the Cash Management Improvement Act of 1992 (Public Law 102-589), codified at 31 U.S.C. 6501 and 31
U.S.C. 6503.

2.2 The regulations codified at 31 CFR Part 205 shall apply to all matters pertaining to this Agreement, and are incorporated
herein by reference. In the event of any inconsistency between this Agreement and 31 CFR Part 205, the regulations shall govern.

3.0 DURATION, AMENDING, TERMINATING, AND MISCELLANEOUS PROVISIONS
3.1 This Agreement shall take effect on 07/01/2022 and shall remain in effect until 06/30/2023.

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 | of 21


DocuSign Envelope ID: C5775C9C-BEED-4E58-AE38-86712D7639DD

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:

For most programs, the State distinguishes the payroll clearance from the recipient/benefit payments as a separate cash flow. However,
in Agency 300, composite rate payroll clearance patterns are included in the agency's composite rate. Both the warrant clearance and
the EFT payroll are considered in calculating the composite rate.

The State shall also adjust each clearance pattern to reflect:
None. Not applicable.
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.

7.11.0 Program Specific- The State shall develop program-specific clearance patterns for each of the following
programs: CFDA 20.205, Highway Planning and Construction; CFDA 10.551 Supplemental Nutrition
Assistance Program, CFDA 10.557, Special Supplemental Nutrition Program for Women, Infants, and Children,
CFDA 84.010 Title I Grants to Local Education Agencies, and CFDA 93.778 Medical Assistance Program.

7.12.0 Actual Activity - Non-Payroll. The State shall track 100 percent of the funds disbursed during a time period of
at least three consecutive months. The State shall carry out the clearance pattern until at least 99 percent of the
funds have cleared. This methodology shall be applied for all clearance patterns except payroll.

7121 Actual Activity - Payroll. The State shall track the payroll funds disbursed by warrant during the time period of
at least three consecutive months. The State shall adjust the warrant clearance pattern to reflect the percentage
of payroll direct deposits applicable to each federal program. The composite clearance pattern for payroll
warrants and direct deposit shall be carried out until at least 99 percent of payroll funds have cleared. The
clearance pattern shall be based on 100% of the data, or on a sample size sufficient to ensure, at a minimum, a
95% confidence interval no wider than + or - 0.25 weighted-days about the estimated mean.

7.13.0 Clearance patterns were completed for Payroll (Average Clearance = 0 day), CFDA 20.205 Highway Planning
and Construction (Average Clearance = 1 days), CFDA 10.551 Supplemental Nutrition Assistance Program,
(Average Clearance = 1 days), CFDA 10.557 Special Supplemental Nutrition Program for Women, Infants, and
Children, ( Average Clearance = 0 days), CFDA 84.010 Title I Grants to Local Education Agencies, (Average
Clearance = | days), and CFDA 93.778 Medical Assistance Program (Average Clearance = 0 days) and
submitted with the June 30, 2018, amendment. The clearance patterns were certified as to accuracy by the State
of Washington, in compliance with Fiscal Service CMIA.

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:

Page 12 of 21


DocuSign Envelope ID: C5775C9C-BEED-4E58-AE38-86712D7639DD

Technique: Modified Administrative Costs - Annual
Average Day of Clearance: N/A

97.036 Disaster Grants - Public Assistance (Presidentially Declared
Disasters)

Recipient: Military Department

% of Funds Agency Receives: 93

Component: Direct program costs

Technique: Modified Direct Program and Admin Costs - Monthly
Average Day of Clearance: N/A

97.050 Presidential Declared Disaster Assistance to Individuals and
Households - Other Needs

Recipient: Employment Security Department

% of Funds Agency Receives: 100

Component: Lost wages Ince

Technique: UI Federal (Fedwire Same Day Payment Modified Actual
Clearance ZBA)

Average Day of Clearance: 0 Days

6.3.3 Materiality Exemptions
Agencies exempt from coverage on the basis of materiality:
There are currently no agencies exempt from coverage on the basis of materiality.
7.0 CLEARANCE PATTERNS
7.1 The State shall develop separate clearance patterns for each of the following:
With the exception of programs administered by recipient Agency 350, Superintendent of Public Instruction, where all federal program
payroll charges are based on 100% EFT payroll, the State shall develop a clearance pattern for the payroll and administrative function.
This clearance pattern shall be applied to the payroll and administrative components of all programs.

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

‘The Office of Financial Management, in conjunction with the Office of the State Treasurer (OST) and the applicable agency, shall
develop all of the State's clearance patterns.

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

Type of Clearance Pattern: Payroll and Administrative; Source of Data: Human Resource Management System (HRMS) and OST's
EFT and warrant redemption records. Type of Clearance Pattern: Program specific; Source of Data: Agency warrant registers and
OST's warrant redemption records. For CFDA 20.205, the agency system is TRAINS.

74 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.

Page 11 of 21


DocuSign Envelope ID: C5775C9C-BEED-4E58-AE38-86712D7639DD

Component: Debt service
Technique: Pre-Issuance Grant Anticipation Revenue Vehicle
(GARVEE) Bond Repayment

Average Day of Clearance: N/A

20.205 Highway Planning and Construction

Recipient: Department of Transportation

% of Funds Agency Receives: 86.76

Component: Contractor payments, payroll, administrative and other
program costs

Technique: Direct Funding WSDOT

Average Day of Clearance: 1 Day

84.010 Title I Grants to Local Educational Agencies

Recipient: Superintendent of Public Instruction

% of Funds Agency Receives: 5

Component: Administrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 1 Day

84.010 Title I Grants to Local Educational Agencies

Recipient: Superintendent of Public Instruction

% of Funds Agency Receives: 95

Component: Direct program/benefit payments to school districts, non-
profits, service providers, and local educational agencies (LEA)
Technique: Modified Direct Program/Benefit Costs - (ACH
Drawdowns at Fixed Intervals - SPI)

Average Day of Clearance: 1 Day

84.027 Special Education -- Grants to States

Recipient: Superintendent of Public Instruction

% of Funds Agency Receives: 95

Component: Direct Program/Benefit payments to public or private
schools and service providers

Technique: Modified Direct Program/Benefit Costs - (ACH
Drawdowns at Fixed Intervals - SPI)

Average Day of Clearance: N/A

84.027 Special Education -- Grants to States

Recipient: Superintendent of Public Instruction

% of Funds Agency Receives: 5

Component: Administrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 0 Days

84.425 Education Stabilization Fund

Recipient: Superintendent of Public Instruction

% of Funds Agency Receives: 10

Component: SEA Reserve

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 0 Days

84.425 Education Stabilization Fund

Recipient: Superintendent of Public Instruction

% of Funds Agency Receives: 90

Component: Direct program/payments to school districts, non-profits,
service providers, and local educational agencies (LEA)

Technique: Modified Direct Program/Benefit Costs - (ACH

Page 8 of 21


DocuSign Envelope ID: C5775C9C-BEED-4E58-AE38-86712D7639DD

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

a. Timing of the Request

A State should initiate its request for supplemental funding during a quarter as soon as it becomes aware of the fact that a shortfall
does/will exist. For the TANF and CCDF grants, supplemental funding requests (estimates) may be submitted by a State, for
consideration by ACF, up through and including the 15th day of the third month of the first, second or third quarter of any fiscal year.
Since TANF and CCDF are block grant programs, all unawarded portions of the annual allotment will automatically be issued at the
beginning of the fourth quarter. Therefore, supplemental funding requests will not be available during the fourth quarter for these
programs. For the CSE and FC/AA programs, supplemental funding requests may be submitted by a state, for consideration by ACF,
up through and including the 15th day of the third month of any quarter of a fiscal year.

b. Justification for the Request

The request for a supplemental funding for any of the above-mentioned programs should contain a justification clearly documenting
the need for the additional funding authority during the current quarter. This documentation should be in the form of State accounting
records or similar documents that will show the actual expenditures through the most recent month for which such data are available,
as well as the State's most accurate projection of its anticipated expenditures during the remaining month(s) of the quarter. For either
the TANF or the CCDF program, the State's justification should also include an explanation of the activities requiring the obligation
and/or expenditure of amounts that exceed the normal quarterly grant award restrictions and why these activities could not have been
delayed until the next quarter.

c. Form Submittal
Supplemental funding requests should be made by completing the appropriate ACF quarterly report of expenditures and estimates
applicable to the particular program for which the grant award request is being made.

d. Approval Process

Upon receipt of the state's request for additional funding authority for a quarter, the ACF Regional Office will promptly review the
supporting documentation. If the request is properly justified, so long as ACF has adequate funding availability, the State's request
will be expedited and supplemental funding will be issued within 5 days of ACF receiving the request. The State will be notified by
the Regional Office when the supplemental award has been transmitted to the Payment Management System (PMS) and when it
may initiate drawdowns against the supplemental funding.

Additional guidance on this policy is provided in the U.S. Department of Health & Human Services, Administration for Children
and Families, letter (May 19, 2004) to State Administrators from the Deputy Assistant Secretary for Administration.

6.2. Description of Funding Techniques

6.2.1 The following are terms under which standard funding techniques shall be implemented for all transfers of funds to which the
funding technique is applied in section 6.3.2 of this Agreement.

[ Funding Technique Name [ Description

Page 4 of 21


DocuSign Envelope ID: C5775C9C-BEED-4E58-AE38-86712D7639DD
1 = 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

8.7.0 State interest liabilities may accrue if Federal funds are received by the State prior to the day the State pays out the
funds for Federal assistance program purposes, in those cases where the State has not followed the interest-neutral
funding techniques described in Section 6 of this Agreement. State interest liability accrues from the day Federal
funds are credited to a State account to the day the State pays out the Federal funds for Federal assistance program
purposes. (31 CFR 205.15.(a)) The State does not incur an interest liability to the Federal government if a Federal
statute requires the State to retain or use for Federal assistance program purposes the interest earned on Federal
funds. (31 CFR 205.15.(c)) In programs utilizing mandatory matching of Federal funds with State funds, the State
must not arbitrarily assign its earliest costs to the Federal government. The State incurs interest liabilities if it
draws Federal funds in advance and/or in excess of the required proportion of agreed upon levels of State
contributions in programs utilizing mandatory matching of Federal funds with State funds. (31 CFR 205.15.(d))

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:

Interest calculation costs, Labor Costs and Data Processing costs related to developing warrant clearance patterns, and costs for
calculating interest, including preparation of the CMIA annual report.

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 21


DocuSign Envelope ID: C5775C9C-BEED-4E58-AE38-86712D7639DD

Exhibit I - Funds Request and Receipt Times Schedule

State of Washington
Federal Agency Payment Type | Request Cut-Off Time Receipt Window
Agriculture-FNS ‘ACH 11:59 PM I day
Agriculture-FNS Fedwire 3:45 PM Oday
Agriculture-FS ‘ACH 3:00 PM T 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 Oday
Education ‘ACH 3:00 PM T day
Education Fedwire 2:00 PM Oday
Energy ACH 4:00 PM 1 day
Energy Fedwire 3:00 PM 0 day
HHS ‘ACH 3:00 PM I day
HHS Fedwire 3:00 PM 0 day
HUD ACH 3:30 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 T day
Labor-UTF ACH 3:00 PM I day
Labor-UTF Fedwire 3:00 PM Oday
National Science Foundation (NSF) ACH 8:00 PM I day
National Science Foundation (NSF) Fedwire 3:45 PM 0 day
Social Security Administration ACH 11:59 PM T day
Social Security Administration Fedwire 3:45 PM Oday
Transportation (FAA) ACH 2:00 PM I day
Transportation (FHWA) ACH 12:00 PM 3 days
Transportation (FHWA) Fedwire 12:00 PM Oday
Transportation (FTA) ‘ACH 2:00 PM T day
Veterans Administration ACH 12:00 PM 3 days

Page 17 of 21


DocuSign Envelope ID: C5775C9C-BEED-4E58-AE38-86712D7639DD

Bond Retirement Interest

Department of Children, Youth, and Families
Department of Health

Department of Social & Health Services
Department of Transportation

Employment Security Department
Healthcare Authority

Military Department

Superintendent of Public Instruction

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

FIS (Fidelity National Information Svcs, 10.551 Supplemental Nutrition Assistance

LLC) Program

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

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 IT - 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

Page 3 of 21


DocuSign Envelope ID: C5775C9C-BEED-4E58-AE38-86712D7639DD

4.0 PROGRAMS COVERED

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

of Federal Awards for fiscal year ending 06/30/2021.

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 $75,000,000.

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

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

10.559 Summer Food Service Program for Children

10.561 State Administrative Matching Grants for the Supplemental
Nutrition Assistance Program

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

17.2258 Unemployment Insurance -- State Benefit Account

20.205 Highway Planning and Construction

84.010 Title I Grants to Local Educational Agencies

84.027 Special Education -- Grants to States

84.425 Education Stabilization Fund

93.558 Temporary Assistance for Needy Families

93.563 Child Support Enforcement

93.575 Child Care and Development Block Grant

93.658 Foster Care -- Title TV-E

93.767 Children's Health Insurance Program

93.778 Medical Assistance Program

97.036 Disaster Grants - Public Assistance (Presidentially Declared
Disasters)

97.050 Presidential Declared Disaster Assistance to Individuals and
Households - Other Needs

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:

CFDA Program Name Exclusion Reason
21.019 Coronavirus Relief Fund Federal Statute - Full Exemption
84.063 Federal Pell Grant Program Non-State
84.268 Federal Direct Student Loan Non-State
93.268 Immunization Cooperative Agreements Non-Cash
93.855 Allergy, Immunology and Transplantation | Non-State
Research

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:

Page 2 of 21



DocuSign Envelope ID: C5775C9C-BEED-4E58-AE38-86712D7639DD

Actual Clearance, ZBA - Same Day Payment
Direct Funding WSDOT

Modified Administrative Costs - Annual

Modified Direct Program and Admin Costs - Monthly

Modified Direct Program Costs

Modified Direct Program Costs - Admin, Payroll, Payments to Providers

Modified Direct Program/Benefit Costs - (ACH Drawdowns at Fixed Intervals - SPI)
Modified Pre-Issuance (Post-Issuance) (Fedwire Same Day Payment)

Pre-Issuance Grant Anticipation Revenue Vehicle (GARVEE) Bond Repayment

UI Admin - Modified Payment Schedule (Fedwire Semi-Monthly Drawdown on Payday)
UI Federal (Fedwire Same Day Payment Modified Actual Clearance ZBA)

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
(3) date Federal funds are received and credited to a State account

ance

(4) amount of Federal funds received
(5) date funds were requested

8.2 Federal Interest Liabilities

8.2.1 A Federal interest liability shall accrue from the day the State pays out its own funds for program purposes to the day Federal
funds are credited to a State account. With regard to funds transferred out of the Federal Highway Trust Fund, if a State does not bill
at least weekly for current project costs, the Federal interest liability shall not accrue prior to the day the State submits a request for
funds.

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

For all transactions where the State pays out its own funds for program purposes prior to receiving Federal funds, the State shall track
each payment from the date it is paid out of a State account to the date Federal funds are subsequently credited to a State account to
cover that outlay. The Federal interest liability on each payment shall be based on the difference in whole days between the two events.
With Federal-State matching programs, interest shall be calculated on the Federal percentage of the disbursement.

8.3 The Unemployment Trust Fund

8.3.1 The State shall use the following method to calculate State interest liabilities on funds withdrawn from the several accounts
in the Unemployment Trust Fund:

The State shall use the following methodology to calculate State interest liabilities on funds withdrawn from the State 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 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 account in the UTF by multiplying the
State % by the amount of the related banking costs of the benefit payment account as a whole. The States liability for interest on funds
withdrawn from its account in the UTF shall consist of the actual interest earnings of the benefit payment account on the whole less the
related banking costs attributed to such funds.

Page 13 of 21


DocuSign Envelope ID: C5775C9C-BEED-4E58-AE38-86712D7639DD

12.0 | AUTHORIZED SIGNATURES

Brian Tinney
Assistant Director, Accounting Division Office of Financial Management State of Washington

Docisne by
Brian. Tiary 6/1/2023

Signature: Date Signed:

Date Submitted 6/1/2023

Sandra R. Paylor

Assistant Commissioner

Revenue Collections Management
Bureau of the Fiscal Service

U.S. Department of the Treasury

Docusigned by
6/4/2023
Signature: [ Saud a. Powlor Date Signed:

“RACBTOTOSBOBABE.

Page 16 of 21