Exhibit II - State of Mississippi
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
% days

10.551 |Supplemental Nutrition | Department of Human 100. |Payments to Actual Clearance, ZBA- |0 Days
Assistance Program Services 00__|Beneficiaries (EBT) Same Day Payment

10.553 | School Breakfast Department of Education |100. |Basic Program Costs Actual Clearance, ZBA- |0 Days
Program 00 Same Day Payment

10.555 | National School Lunch Department of Education 25.0 Payroll Costs (Warrants) |Average Clearance 2 Days
Program

10.555 |National School Lunch _| Department of Education |50.0 |Basic Program Costs Actual Clearance, ZBA- |0 Days
Program i} Same Day Payment

10.555 | National School Lunch Department of Education |25.0 |Payroll Costs (Direct Actual Clearance, ZBA- |0 Days
Program i} Deposit) Same Day Payment

10.557 | Special Supplemental Department of Health 30.0 |Supplemental Food Average Clearance 1 Day
Nutrition Program for 0 Costs
Women, Infants, and
Children

j%0 557 | Special Supplemental Department of Health 20.0 |Basic Program Costs Average Clearance 1 Day
Nutrition Program for te)

| Women, Infants, and |
Children |

| 10.557 | Special Supplemental Department of Health |20.0 Supplemental Food JActual Clearance, ZBA- |0 Days
Nutrition Program for ie) Costs (EFT) Payrolls | Same Day Payment
Women, Infants, and
Children |

10.557 | Special Supplemental Department of Health 20.0 |Basic program Costs Actual Clearance, ZBA- |0 Days
| Nutrition Program for 0 (EFT) Payrolls Same Day Payment
Women, Infants, and
Children

10.557 | Special Supplemental Department of Health 10.0 |Administration Funds Monthly Draws. 1 Day
Nutrition Program for 0
Women, Infants, and
Children

12.401 _|National Guard Military __| Mississippi Military 100. | Operations and Reimbursable Funding |2 Days
Operations and Department 00 =| Maintenance
Maintenance (O&M)
Projects

14.228 |Community Development | Mississippi Development |20.0 | Payroll (Warrants) Average Clearance 3 Days
Block Grants/State's Authority i)
Program

14.228 |Community Development | Mississippi Development |20.0 | Basic Program Costs Average Clearance 3 Days
Block Grants/State's Authority 0 (Warrants)
[Program

14.228 |Community Development | Mississippi Development |10.0 |CDBG Katrina Average Clearance 3 Days
Block Grants/State's Authority 0 Homeowners Payments
Program

14.228 |Community Development | Mississippi Development |10.0 |Administrative Costs Average Clearance 3 Days
Block Grants/State's Authority 10 (Warrants and EFT)
Program

14.228 |Community Development | Mississippi Development |20.0 |Basic Program Costs Average Clearance 3 Days

| Block Grants/State's Authority 0 (Warrants and EFT)

if Program

Page 20 of 22



applied:

Actual Clearance, ZBA - Same Day Payment
Average Clearance

Daily Draws

Monthly Draws

Payment Schedule - Weekly

Reimbursable Funding

8.1.2 The State shall maintain information on disbursements and receipts of funds to verify the implementation of any
funding technique and document interest liabilities.

For each disbursement, the State shall be able to identify:

(1) amount of the issuance

(2) date of issuance

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

(4) amount of Federal funds received

(5) date funds were requested

8.2 Federal Interest Liabilities

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

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

Actual Activity:

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

8.3 The Unemployment Trust Fund

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

The State shall use the following methodology to calculate State interest liabilities on funds withdrawn from the several
accounts in the UTF under the Unemployment Insurance program.

Based on statements provided by its financial institution, or other appropriate source, the State shall determine the actual
interest earnings and the related banking costs attributable to funds withdrawn from its account in the UTF.

At the end of the State's fiscal year, the State shall calculate the percentage of its total unemployment compensation
expenditures for (1) funds withdrawn from the State account in the UTF, or the State %, and (2) funds withdrawn from the
Federal Employees Compensation Account (FECA) and the Extended Unemployment Compensation Account (EUCA)
and any other accounts of Federal funds in the UTF, or the Federal %.

Page 14 of 22


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 |. 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 Il. The request shall be made in
accordance with the appropriate Federal agency cut-off time specified in Exhibit |. The amount of the request shall be for
the exact amount of that disbursement. This funding technique is interest neutral.

Payment Schedule - Weekly

The State shall request funds such that they are deposited in a State account on the median business day of the week.
The request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit I. The
amount of the request shail be a prorated share of the lesser of (1) the annual grant divided by 52, or (2) the total amount
of Federal funds expected to be paid out for program purposes during the year divided by 52. 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.

There are no funding techniques listed in Section 6.2.3

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

Daily Draws

The State shall request daily to fund current non-payroll administrative costs. The amount of the request shall be an
estimate of that day's non-payroll administrative expenditures, as derived from an approved cost allocation plan. The
State shall adjust the estimated draws to the actual expenditures each quarter. The Request shall be made in accordance
with the appropriate Federal agency cut-off time specified in Exhibit |. This funding technique is interest neutral.

Monthly Draws

The State shall request funds on the pay day of each month or as soon thereafter as reconciliation has been made to fund
costs incurred during the prior month. The amount of the request shall be determined by applying the indirect cost rate to
the direct cost base of the prior month. The request shall be made in accordance with the appropriate Federal agency cut-
off time specified in Exhibit |. This funding technique is interest neutral.

Reimbursable Funding

Page 5 of 22


CFDA| Program Name Recipient % Component Technique Round
ash ‘ ed
2 pe SA days
14.228 |Community Development | Mississippi Development | 10.0 |CDBG Katrina MDEQ Actual Clearance, ZBA- |0 Days
Block Grants/State's Authority 0 Payments (Government |Same Day Payment
Program Transfers)
14.228 |Community Development | Mississippi Development |10.0 |Payroll (Direct Deposit) Actual Clearance, ZBA- |0 Days
Block Grants/State's Authority 0 Same Day Payment
Program. |
17.225F |Unemployment Insurance | Mississippi Department of| 1.00 | Benefits Costs Average Clearance 2 Days
-- Federal Benefit Employment Security
Account and
Administrative Costs |
17.225F |Unemployment Insurance | Mississippi Department of|60.0 | Benefits Costs Actual Clearance, ZBA- |0 Days |
|— Federal Benefit Employment Security 0 Same Day Payment |
|Account and |
Administrative Costs
17.225F |Unemployment Insurance | Mississippi Department of|39.0 | Administrative Costs Payment Schedule - 3 Days
— Federal Benefit Employment Security  |0 —_|(nonpayroll) ‘Weekly
Account and
Administrative Costs
17.225S | Unemployment Insurance | Mississippi Department of| 100. | Benefit Costs Actual Clearance, ZBA- |0 Days
— State Benefit Account _| Employment Security 00 Same Day Payment |
20.205 |Highway Planning and _| Department of 100. |Program Costs Actual Clearance, ZBA- |0 Days
Construction Transportation 00 Same Day Payment
84.010 |Title!Grants to Local | Department of Education |20.0 | Payroll (Warrants) Average Clearance 2 Days
Educational Agencies 0
84.010 | Title | Grants to Local Department of Education |40.0 |Payments to Actual Clearance, ZBA- |0 Days
Educational Agencies i¢} Beneficiaries Same Day Payment
84.010 Title! Grants to Local | Department of Education |20.0 |Payroll (Direct Deposit) |Actual Clearance, ZBA- |0 Days
Educational Agencies | i‘) Same Day Payment
84.010 | Title | Grants to Local Department of Education |20.0 | Indirect Costs Monthly Draws 1 Day
Educational Agencies 0
84.027 |Special Education — Department of Education | 10.0 | Payroll (Warrants) Average Clearance 2 Days
Grants to States 0
84.027 | Special Education -- Department of Education |50.0 |Payments to LEAs and [Actual Clearance, ZBA- |0 Days
Grants to States 0 other recipients Same Day Payment
84.027 |Special Education — Department of Education |10.0 |Payroll (Direct Deposit) [Actual Clearance, ZBA- |0 Days
Grants to States 0 Same Day Payment
84.027 | Special Education -- Department of Education | 10.0 |Indirect Costs Monthly Draws \4 Day
Grants to States (e)
84.027 |Special Education — Department of Education |10.0 | Discretionary (Not paid to |Payment Schedule - 1 Day
Grants to States te) LEAs) Weekly
84.027 | Special Education — Department of Education | 10.0 | Direct Administrative Payment Schedule - 1 Day
Grants to States | 0 Weekly
93.575 (Child Care and | Department of Human 1.00 | Payroll (Warrants) Average Clearance 3 Days
Development Block Grant| Services
93.575 |Child Care and Department of Human = [54.0 | Payments to Average Clearance 3 Days
Development Block Grant | Services i) Beneficiaries (Warrants)
93.575 | Child Care and Department of Human —_—/39.0 | Program Costs Average Clearance 4 Days
Development Block Grant! Services 0
93.575 |Child Care and Department of Human 3.00 | Payroll (Direct Deposits) Actual Clearance, ZBA- |0 Days
Development Block Grant| Services | Same Day Payment
93.575 |Child Care and Department of Human 3.00 |Administrative Costs Daily Draws 0 Days
Development Block Grant | Services |
93.767 | Children's Health Division of Medicaid 100. |Payments to Providers Actual Clearance, ZBA- |0 Days
Insurance Program 00 Same Day Payment
93.778 | Medical Assistance Division of Medicaid 74.6 |Payments to Providers Actual Clearance, ZBA- |0 Days
Program 3 Same Day Payment
93.778 | Medical Assistance | Division of Medicaid 25.3 |Administrative Costs Monthly Draws 1 Day
Program bd
97.036 Disaster Grants - Public |Mississippi Emergency 95.0 | Program Costs ( Average Clearance 2 Days
Assistance (Presidentially|Management Agency |0 — |Warrants and EFT's)
Declared Disasters)

Page 21 of 22


12.0 AUTHORIZED SIGNATURES

Laura D. Jackson
State Fiscal Officer

Executive Dir. jon
Signature: Date Signed:
Date Submitte

Corvelli A. McDaniel

Assistant Commissioner

Revenue Collections Management
Bureau of the Fiscal Service

U.S. Department of the Treasury

Signature: Coscetl in nox Date Signed: asl

Page 18 of 22


84.027 Special Education -- Grants to States

Recipient: Department of Education

% of Funds Agency Receives: 50.00

Component: Payments to LEAs and other recipients
Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: 0 Days

Recipient: Department of Education

% of Funds Agency Receives: 10.00

Component: Payroll (Direct Deposit)

Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: 0 Days

Recipient: Department of Education
% of Funds Agency Receives: 10.00
Component: Payroll (Warrants)
Technique: Average Clearance
Average Day of Clearance: 2 Days

Recipient: Department of Education
% of Funds Agency Receives: 10.00
Component: Indirect Costs
Technique: Monthly Draws

Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 10.00
Component: Direct Administrative
Technique: Payment Schedule - Weekly
Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 10.00
Component: Discretionary (Not paid to LEAs)
Technique: Payment Schedule - Weekly
Average Day of Clearance: 1 Day

93.575 Child Care and Development Block Grant
Recipient: Department of Human Services

% of Funds Agency Receives: 3.00

Component: Payroll (Direct Deposits)

Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: 0 Days

Recipient: Department of Human Services
% of Funds Agency Receives: 54.00
Component: Payments to Beneficiaries (Warrants)

Page 10 of 22


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

% of Funds Agency Receives: 20.00

Component: Basic program Costs (EFT) Payrolls

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

Recipient: Department of Health

% of Funds Agency Receives: 20.00

Component: Supplemental Food Costs (EFT) Payrolls
Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: 0 Days

Recipient: Department of Health

% of Funds Agency Receives: 20.00
Component: Basic Program Costs
Technique: Average Clearance
Average Day of Clearance: 1 Day

Recipient: Department of Health

% of Funds Agency Receives: 30.00
Component: Supplemental Food Costs
Technique: Average Clearance
Average Day of Clearance: 1 Day

Recipient: Department of Health

% of Funds Agency Receives: 10.00
Component: Administration Funds
Technique: Monthly Draws

Average Day of Clearance: 1 Day

12.401 National Guard Military Operations and Maintenance (O&M) Projects
Recipient: Mississippi Military Department

% of Funds Agency Receives: 100.00

Component: Operations and Maintenance

Technique: Reimbursable Funding

Average Day of Clearance: 2 Days

14.228 Community Development Block Grants/State's Program
Recipient: Mississippi Development Authority

% of Funds Agency Receives: 10.00

Component: CDBG Katrina MDEQ Payments (Government Transfers)
Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

Recipient: Mississippi Development Authority

Page 7 of 22


The State shall request funds from the Department of Defense/National Guard Bureau (DOD/NGB) on the date of State
EFT/warrant payments. The request shall be made in accordance with the appropriate Federal agency cut-off time
specified in Exhibit |. The amount of the request shall be for the amount of the EFT/warrant disbursement. 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: Payments to Beneficiaries (EBT)
Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: 0 Days

10.553 School Breakfast Program

Recipient: Department of Education

% of Funds Agency Receives: 100.00

Component: Basic Program Costs

Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: 0 Days

10.555 National School Lunch Program

Recipient: Department of Education

% of Funds Agency Receives: 50.00

Component: Basic Program Costs

Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: 0 Days

Recipient: Department of Education

% of Funds Agency Receives: 25.00

Component: Payroll Costs (Direct Deposit)

Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: 0 Days

Recipient: Department of Education
% of Funds Agency Receives: 25.00
Component: Payroll Costs (Warrants)
Technique: Average Clearance
Average Day of Clearance: 2 Days

Page 6 of 22


Exhibit | - Funds Request and Receipt Times Schedule

State of Mississippi

Federal Agency Payment Type |Request Cut-Off Time __|Receipt Window _
Agriculture-FNS ACH 11:59 PM 1 day
Agriculture-FNS. Fedwire 5:45 PM 0 day
Agriculture-FS ACH 3:00 PM 1 day
Air National Guard ACH 12:00 PM 15 days
Army National Guard ACH 12:00 PM 15 days
Commerce-NOAA ACH 2:00 PM 1 day
Dept of Homeland Security (FEMA) Fedwire 2:00 PM 2 days
Dept of Homeland Security (ODP) ACH 2:00 PM 2 days
Dept of Homeland Security (ODP) Fedwire 2:00 PM 2 days
EPA ACH 2:00 PM 2 days
EPA Fedwire 2:00 PM 0 day
Education ACH 3:00 PM 1 day
Education Fedwire 2:00 PM 0 day
Energy ACH 4:00 PM 1 day
|Energy Fedwire 3:00 PM 0 day
HHS ACH 6:30 PM 1 day
HHS Fedwire 3:00 PM O 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 4 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. 3days
Transportation (FHWA) Fedwire 12:00 PM. O day
Transportation (FTA) ACH 2:00 PM 1 day
Veterans Administration ACH 12:00 PM 3 days

Page 19 of 22


Recipient: Mississippi Department of Employment Security
% of Funds Agency Receives: 39.00

Component: Administrative Costs (nonpayroll)

Technique: Payment Schedule - Weekly

Average Day of Clearance: 3 Days

17.225S Unemployment Insurance — State Benefit Account
Recipient: Mississippi Department of Employment Security
% of Funds Agency Receives: 100.00

Component: Benefit Costs

Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: 0 Days

20.205 Highway Planning and Construction

Recipient: Department of Transportation

% of Funds Agency Receives: 100.00

Component: Program Costs

Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: 0 Days

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

% of Funds Agency Receives: 40.00

Component: Payments to Beneficiaries

Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: 0 Days

Recipient: Department of Education

% of Funds Agency Receives: 20.00

Component: Payroll (Direct Deposit)

Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: 0 Days

Recipient: Department of Education
% of Funds Agency Receives: 20.00
Component: Payroll (Warrants)
Technique: Average Clearance
Average Day of Clearance: 2 Days

Recipient: Department of Education
% of Funds Agency Receives: 20.00
Component: Indirect Costs
Technique: Monthly Draws

Average Day of Clearance: 1 Day

Page 9 of 22


Cash Management Improvement Act Agreement
between
The State of Mississippi
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 Mississippi
(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 Mississippi shall be the State Fiscal Officer in all matters concerning this
Agreement.

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

2.0 AUTHORITY

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

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

3.0 DURATION, AMENDING, TERMINATING, AND MISCELLANEOUS PROVISIONS
3.1 This Agreement shall take effect on 07/01/2017 and shall remain in effect until 06/30/2018.

3.2 This Agreement may be amended at any time by written, mutual consent of the State and the Fiscal Service. This
Agreement shall be amended annually to incorporate new programs that qualify as major Federal assistance programs
and remove programs that no longer qualify as major Federal assistance programs. A State must notify the Fiscal Service
in writing within 30 days of the time the State becomes aware of a change that involves additions or deletions of programs
subject to Subpart A, changes in funding techniques, and/or changes in clearance patterns. The notification must include
@ 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 22


Average Day of Clearance: 2 Days

Recipient: Mississippi Emergency Management Agency
% of Funds Agency Receives: 4.00

Component: Management Costs

Technique: Average Clearance

Average Day of Clearance: 2 Days

Recipient: Mississippi Emergency Management Agency

% of Funds Agency Receives: 95.00

Component: Program Costs ( Warrants and EFT's)
Technique: Average Clearance

Average Day of Clearance: 2 Days

6.3.3 Materiality Exemptions

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:
each program listed in Section 6.3 except for: 10.555, 84.027, and 93.778.
7.2 The following shall develop the State's clearance patterns:

the individual State Agencies and confirmed by Belinda Russell; individuals:

Department of Education - Lucreta Tribune

Division of Medicaid - Phillip Allen

Department of Human Services - Richard Ferrell
Mississippi Development Authority - Tameika Shelwood

Department of Health - Lois Smith

Mississippi Department of Employment Security - Guy Martin

Department of Transportation - Allison Brown

Mississippi Emergency Management Agency - Chuck Rhoads

Mississippi Military Department - BG Robert F. Thomas

Page 12 of 22


Technique: Average Clearance
Average Day of Clearance: 3 Days

Recipient: Department of Human Services
% of Funds Agency Receives: 1.00
Component: Payroll (Warrants)
Technique: Average Clearance

Average Day of Clearance: 3 Days

Recipient: Department of Human Services
% of Funds Agency Receives: 39.00
Component: Program Costs

Technique: Average Clearance

Average Day of Clearance: 4 Days

Recipient: Department of Human Services
% of Funds Agency Receives: 3.00
Component: Administrative Costs
Technique: Daily Draws

Average Day of Clearance: 0 Days

93.767 Children's Health Insurance Program

Recipient: Division of Medicaid

% of Funds Agency Receives: 100.00

Component: Payments to Providers

Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Division of Medicaid

% of Funds Agency Receives: 74.63

Component: Payments to Providers

Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: 0 Days

Recipient: Division of Medicaid

% of Funds Agency Receives: 25.37
Component: Administrative Costs
Technique: Monthly Draws

Average Day of Clearance: 1 Day

97.036 Disaster Grants - Public Assistance (Presidentially Declared Disasters)
Recipient: Mississippi Emergency Management Agency

% of Funds Agency Receives: 1.00

Component: Administrative Costs (Travel, Per Diem, Overtime)

Technique: Average Clearance

Page 11 of 22


% of Funds Agency Receives: 10.00

Component: Payroll (Direct Deposit)

Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: 0 Days

Recipient: Mississippi Development Authority

% of Funds Agency Receives: 10.00

Component: Administrative Costs (Warrants and EFT)
Technique: Average Clearance

Average Day of Clearance: 3 Days

Recipient: Mississippi Development Authority

% of Funds Agency Receives: 20.00

Component: Basic Program Costs (Warrants and EFT)
Technique: Average Clearance

Average Day of Clearance: 3 Days

Recipient: Mississippi Development Authority
% of Funds Agency Receives: 20.00
Component: Basic Program Costs (Warrants)
Technique: Average Clearance

Average Day of Clearance: 3 Days

Recipient: Mississippi Development Authority

% of Funds Agency Receives: 10.00

Component: CDBG Katrina Homeowners Payments
Technique: Average Clearance

Average Day of Clearance: 3 Days

Recipient: Mississippi Development Authority
% of Funds Agency Receives: 20.00
Component: Payroll (Warrants)

Technique: Average Clearance

Average Day of Clearance: 3 Days

17.225F Unemployment Insurance -- Federal Benefit Account and Administrative Costs
Recipient: Mississippi Department of Employment Security

% of Funds Agency Receives: 60.00

Component: Benefits Costs

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

Recipient: Mississippi Department of Employment Security
% of Funds Agency Receives: 1.00

Component: Benefits Costs

Technique: Average Clearance

Average Day of Clearance: 2 Days

Page 8 of 22


[ ae z
| CFDA | Program Name Recipient % Component Technique Round
ed
days
|97.036 | Disaster Grants - Public |MississippiEmergency | 1.00 |Administrative Costs Average Clearance 2 Days |
Assistance (Presidentially |Management Agency (Travel, Per Diem,
Declared Disasters) Overtime) _ = _
|97.036 |Disaster Grants - Public |MississippiEmergency |4.00 |Management Costs Average Clearance 2 Days
Assistance (Presidentially | Management Agency |

Declared Disasters)

| 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:

6-28-17

Printed Name:

Be hi nola

WwW Russel/

Certifying Signature:

Tite_Gssistant Bond GD recto

Page 22 of 22


quarter for which the supplemental grant award is being requested.

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

The State will comply with the following guidelines when requesting supplemental funding for TANF (CFDA 93.558),
CCDF (CFDA 93.575), CSE (93.563), and the FC/AA (CFDA 93.658 and CFDA 93.659) programs administered by the
U.S. Department of Human Services, Administration for Children and Families (HHS/ACF):

a. Timing of the Request

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

b. Justification for the Request

The request for a supplemental funding for any of the above mentioned programs should contain a justification clearly
documenting the need for the additional funding authority during the current quarter. This documentation should be in the
form of State accounting records or similar documents that will show the actual expenditures through the most recent
month for which such data are available, as well as the State's most accurate projection of its anticipated expenditures
during the remaining month(s) of the quarter. For either the TANF or the CCDF program, the State's justification should
also include an explanation of the activities requiring the obligation 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 ail transfers of funds to
which the funding technique is applied in section 6.3.2 of this Agreement.

Page 4 of 22


The State shall calculate the actual interest earnings and the related banking costs attributable to funds withdrawn from
the State account in the UTF by multiplying the State % by the amount of the actual interest eamings and the related
banking costs of the account as a whole. The State's liability for interest on funds withdrawn from its account in the UTF
shall consist of the actual interest earnings attributable to such funds less the related banking costs attributed to such
funds.

The State shall determine the average daily cash balance of its unemployment compensation benefit payment account for
its fiscal year. The State shall calculate the average daily cash balance of Federal funds by multiplying the Federal % by
the average daily cash balance of the benefit payment account on the whole. The State's liability for interest on funds
withdrawn from the FECA and EUCA (and any other benefit accounts of Federal funds in the UTF from which the State
draws funds) shall be the average daily cash balance of Federal funds multiplied by the annualized rate equal to the
average equivalent yields of 13-week Treasury bills auctioned during the State's fiscal year.

8.4 Refund Liabilities

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

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

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

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

8.4.3 The State shall use the following methodology to calculate interest liabilities on refunds:

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:

Page 15 of 22


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

-1) Time and expenses incurred to develop clearance patterns
-2) Costs directly related to calculation of interest

-3) Costs associated with preparation of the 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 17 of 22


Mississippi Development Authority
Mississippi Emergency Management Agency
Mississippi Military Department

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:

Consultee ACS (Affiliated Computer Service) State 10.551 Supplemental Nutrition Assistance Program
Consultee ACS (Affiliated Computer Service) State 93.767 Children's Health Insurance Program
Consultee ACS State Headquarters 93.778 Medical Assistance Program

6.0 FUNDING TECHNIQUES
6.1 General Terms

6.1.1 The State shall request Federal funds in accordance with the appropriate cut-off times shown in Exhibit | to ensure
funds will be received and credited to a State account by the times specified in the funding techniques. Exhibit | is
incorporated by reference herein.

6.1.2 The State shall schedule the receipt of Federal funds such that the funds are received and credited to a State
account in accordance with the clearance patterns specified in Exhibit Il - List of State Clearance Pattems. Exhibit Il is
incorporated by reference herein.

6.1.3 In instances where the receipt of funds is scheduled for a Saturday, the State shall request funds for deposit on
Friday. In instances where the receipt of funds is scheduled for a Sunday, the State shall request funds for deposit on
Monday. In instances where the receipt of Federal funds is scheduled for deposit on a day when the State is not open for
business, the State shall request funds for deposit the day following the scheduled day; in instances where the receipt of
Federal funds is scheduled for deposit on a day when the Federal Government is not open for business, the State shall
request funds for deposit the day prior to the scheduled day.

6.1.4 Estimates and Reconciliation of Estimates:

Where estimated expenditures are used to determine the amount of the drawdown, the State will indicate in the terms of
the State unique funding technique how the estimated amount is determined and when and how the State will reconcile
the difference between the estimate and the State's actual expenditures.

6.1.5 Supplemental Funding:
Unless otherwise defined by program rules, Supplemental Funding is the award of additional funds to provide for an
increase in costs due to unforeseen circumstances.

The State will comply with all Federal program agency policies and procedures for requesting supplemental grant funding.

The State will comply with the following guidelines when requesting supplemental funding for the Medical Assistance
Program and associated administrative payments (CFDA 93.778):

The State must submit a revised Medicaid Program Budget Report (CMS-37) to request supplemental funding. The CMS
guidelines and instructions for completing the CMS-37 are provided in Section 2600F of the State Medicaid Manual
(SMM). The CMS/CO must receive the revised Form CMS-37 through the Medicaid Budget Expenditure
System/Children’s Budget Expenditure System (MBES/CBES) no later than 10 calendar days before the end of the

Page 3 of 22


4.0 PROGRAMS COVERED

4.1 The State's threshold and its major Federal assistance programs shall be determined based on the State's most
recent Single Audit Report of 2016 for fiscal year ending 06/30/2016.

All major Federal assistance programs shall be covered by this Agreement, unless otherwise specified in section 4.4 of
this Agreement.

4.2 The State's threshold for major Federal assistance programs is $45,534,091.
The following programs meet or exceed the threshold and are not excluded in Section 4.4:

10.551 Supplemental Nutrition Assistance Program

10.553 School Breakfast Program

10.555 National School Lunch Program

10.557 Special Supplemental Nutrition Program for Women, Infants, and Children
12.401 National Guard Military Operations and. Maintenance (O&M) Projects
14.228 Community Development Block Grants/State's 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 | Grants to Local Educational Agencies

84.027 Special Education — Grants to States

93.575 Child Care and Development Block Grant

93.767 Children's Health Insurance Program

93.778 Medical Assistance Program

97.036 Disaster Grants - Public Assistance (Presidentially Declared Disasters)

4.3 The following programs fall below the State's threshold but have been required to be covered by Fiscal Service in
accordance with the non-compliance provisions of Subpart B of 31 CFR Part 205:

There are currently no programs listed for Section 4.3.

4.4 The following programs exceed the State's threshold but have been excluded from coverage for the reason indicated:
10.550 Food Distribution --- Exclusion:Non-Cash

5.0 ENTITIES COVERED

5.1 State agencies and instrumentalities that meet the definition of a State per 31 CFR Part 205, shall be subject to the
terms of this Agreement. The following is a list of such entities that administer funds under the programs listed in Section
4.0 of this Agreement:

Department of Education

Department of Health

Department of Human Services

Department of Transportation

Division of Medicaid

Mississippi Department of Employment Security

Page 2 of 22


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

data calculated and maintained by Mississippi Accountability System for Government Information and Collaboration
(MAGIC)

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

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

7.5 The State shall identify for each check or warrant (hereafter, check) in the population: (1) the date the check was.
released for payment; (2) the date the check was debited from the State's account, and, (3) the amount of the check.

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

To determine the number of days each check was outstanding (clearance time), the issue date shall be subtracted from
the date the check cleared the State's account.

To determine the percentage of the disbursement paid out each day following issuance, the amount of the checks that
clear the State's account each day shall be summed and then divided by the amount of the total disbursement.

For each day following issuance, the clearance time of the checks paid out that day shall be multiplied by the percentage
of the total disbursement those checks represent. This product is the clearance factor.

The dollar-weighted average day of clearance for the disbursement shall be determined by summing the clearance factor
of each day following the disbursement.

7.7 The State shall adjust each clearance pattern to reflect the dollar-weighted proportion of funds paid out by EFT/Direct
payroll, with the following exceptions:

Not applicable

The State shall also adjust each clearance pattern to reflect:

Actual activity

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

Page 13 of 22


8.6.2.1 Measuring Time Funds Are Held

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

8.6.2.2 Source of Data

The Mississippi Accountability System for Government Information and Collabortion (MAGIC)

- with any pertinent added information from the State Agencies and Belinda Williams-Russell.
8.6.2.3 Standards Applied

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 pre-
issuance 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

|= ADB xR, where
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
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.

Page 16 of 22