CFDA |... Program Name “Recipient % Component Technique Round
: ed
days
- {93.558 | Temporary Assistance for |Department of Human 2.00 |Administrative Costs Actual Costs-Modified 5 Days
Needy Families Services Clearance
93.658 | Foster Care -- Title 1V-E_ |Child and Family 20.0 |Administrative Costs Modified Average 0 Days
Services Agency 0 Clearance - Payroll
93.658 | Foster Care -- Title IV-E  |Child and Family 80.0 |Benefit Payments Modified Average '7 Days
Services Agency 0 Clearance - Non
Personal Services
93.767 |Children's Health Department of Health 16.0 |Provider Payments Average Clearance 5 Days
Insurance Program Care Finance 0
93.767 |Children's Health Department of Health 81.0 |Provider Payments Average Clearance 0 Days
insurance Program Care Finance ie)
93.767 | Children's Health Department of Health 1.00 | Payroll Modified Average 0 Days
Insurance Program Care Finance Clearance - Payroll
93.767 | Children's Health Department of Health 2.00 |Non-Personal Services _|Modified Average 5 Days
Insurance Program Care Finance , Clearance - Non
Personal Services
93.778 |Medical Assistance Department of Health 90.0 {Provider Payments Average Clearance 0 Days
Program, Care Finance is}
93.778 |Medicai Assistance Department of Health 7,00 | Provider Payments Average Clearance 5 Days
Program Care Finance.
93.778 |Medical Assistance Department of Health 1.00 |Payrolt Modified Average 0 Days
Program Care Finance Clearance - Payroll
93.778 |Medical Assistance Department of Health 2.00 {Non-Personal Services | Modified Average 5 Days
Program Care Finance Clearance - Non
Personal Services
93.914 |HIV Emergency Relief Department of Health 95.0 |Benefit Payments Restricted Draw N/A
0
93.914 | HIV Emergency Relief Department of Health 5.00 | Payroll Restricted Draw N/A

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.

Printed Name:

Page 20 of 20



actual interest earnings of the benefit payment account on the pro-rata share less the related banking costs attributed to
such funds.

8.4 Refund Liabilities

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

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

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

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

8.4.3 The State shail 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

Deposit to Issuance; Issuance to Clearance:

To determine the total time Federal funds are held, the State shail separately measure two time periods: (1) the date
Federal funds are deposited to the date checks are issued; and (2) the date checks are issued to the date funds are
debited from the State's account.

8.6.2.2 Source of Data

The time period from issuance to clearance shall be determined from information captured through the District's System of
Accounting and Reporting (SOAR) and its Account Reconcilliation Processing (ARP) component. See Section 7.3 for
more information

Page 14 of 20


6.2 Description of Funding Techniques

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

Actual Clearance, ZBA - Same Day Payment

The State shall request funds the same day it pays out funds, in accordance with the appropriate Federal agency cut-off
time specified in Exhibit I. A Federal agency will deposit funds in a State account the same day as requested. The amount
of the request shall be for the amount of funds that clear the State's account that day. This funding technique is interest
neutral.

Average Clearance

The State shall request funds such that they are deposited by ACH on the dollar-weighted average day of clearance for
the disbursement, in accordance with the clearance pattern specified in Exhibit ll. 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. ,

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

There are no funding techniques listed in Section 6.2.2

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

Grants Where Payments to Vendors Occur Randomly

The State shall request funds such that they are deposited on the Composite Clearance Date for a series of
disbursements, as specified in the appropriate clearance pattern in Exhibit 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 the sum of the
payments.issued in the series of disbursements. This funding technique is interest neutral.

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

Actual Costs-Modified Clearance

The District shall request funds once a month such that funds are deposited on or about the 25th of the month. The
request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit I. The amount of
the request shall be based on the actual expenditures incurred that are available for drawdown and have cleared the
District's account. This funding technique is interest neutral.

Bi-Weekly Actual

The District shall request funds bi-weekly based on the actual expenditures made during the previous two week period.
The request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit |. The
amount of each request shall equal the total expenditures posted during the District's bi-weekly billing cycle. This funding
technique is interest neutral.

Page 5 of 20


Exhibit | - Funds Request and Receipt Times Schedule

District of Columbia

Federal Agency Payment Type |Request Cut-Off Time Receipt Window
Agriculture-FNS ACH 11:59 PM iday
Agriculture-FNS Fedwire 5:45 PM 0 day
Agriculture-FS ACH 3:00 PM_ i day
Air National Guard ACH 12:00 PM 15 days
[Army National Guard ACH 42:00 PM 15 days
Commerce-NOAA ACH 2:00 PM iday
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 iday
Education Fedwire 2:00 PM 0 day
Energy ACH 4:00 PM iday
Energy. Fedwire 3:00 PM 0 day
HHS ACH 6:30 PM iday
HHS. Fedwire 3:00 PM. 0 day
HUD. ACH 5:30 PM 2 days
HUD Fedwire 3:00 PM 0 day
Interior-FWS ACH 11:59 PM. tday
Interior-FWS. Fedwire 5:45 PM 0 day
Interior-OSM. ACH 3:00 PM iday
Interior-OSM Fedwire 1:00 PM_. 0 day
Justice ACH 14:00 PM 6 days
Justice Fedwire 2:00 PM 2 days
Labor-Non-UTF ACH 3:00 PM. i day
Labor-UTF ACH 3:00 PM iday
Labor-UTF Fedwire 3:00 PM 0 day
National Science Foundation (NSF) ACH 8:00 PM iday
National Science Foundation (NSF) Fedwire 5:45 PM 0 day
Social Security Administration ACH 14:59 PM iday
Social Security Administration Fedwire 5:45 PM. Q day
Transportation (FAA) ACH 2:00 PM iday
Transportation (FHWA) ACH 12:00 PM 3 days
Transportation (FHWA) Fedwire 12:00 PM. 0 day
Transportation (FTA) ACH 2:00 PM 4 day
Veterans Administration ACH «_|12:00 PM 3 days

Page 18 of 20


Technique: Modified Average Clearance - Payroll
Average Day of Clearance: 0 Days

93.767 Children's Health Insurance Program
Recipient: Department of Health Care Finance -
% of Funds Agency Receives: 81.00
Component: Provider Payments

Technique: Average Clearance

Average Day of Clearance: 0 Days

Recipient: Department of Health Care Finance
% of Funds Agency Receives: 16.00
Component: Provider Payments

Technique: Average Clearance

Average Day of Clearance: 5 Days

Recipient: Department of Health Care Finance

% of Funds Agency Receives: 2.00

Component: Non-Personal Services
Technique: Modified Average Clearance - Non Personal Services
Average Day of Clearance: 5 Days

Recipient: Department of Health Care Finance
% of Funds Agency Receives: 1.00

Component: Payroll

Technique: Modified Average Clearance - Payroll
Average Day of Clearance: 0 Days

93.778 Medical Assistance Program
Recipient: Department of Health Care Finance
% of Funds Agency Receives: 90.00
Component: Provider Payments

Technique: Average Clearance

Average Day of Clearance: 0 Days

Recipient: Department of Health Care Finance
% of Funds Agency Receives: 7.00
Component: Provider Payments

Technique: Average Clearance

Average Day of Clearance: 5 Days

Recipient: Department of Health Care Finance

% of Funds Agency Receives: 2.00

Component: Non-Personal Services

Technique: Modified Average Clearance - Non Personal Services
‘Average Day of Clearance: 5 Days

Page 10 of 20


6.3 Application of Funding Techniques to Programs

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

of the programs listed in sections 4.2 and 4.3 of this Agreement.
6.3.2 Programs
Below are programs listed in Section 4:2 and Section 4.3.

10:551 Supplemental Nutrition Assistance Program
Recipient: Department of Human Services

% of Funds Agency Receives: 100.00

Component: Benefit Payments

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

10.555 National School Lunch Program

Recipient: Office of the State Superintendent of Education
% of Funds Agency Receives: 100.00

Component: Program Payments

Technique: OSSE Billable Costs

Average Day of Clearance: N/A

14.218 Community Development Block Grants/Entitlement Grants
Recipient: Department of Housing and Community Development
% of Funds Agency Receives: 20.00

Component: Administrative Costs

Technique: Payment Monthly-Non Personal Service

Average Day of Clearance: N/A

Recipient: Department of Housing and Community Development
% of Funds Agency Receives: 80.00

Component: Program Payments

Technique: Payment Monthly-Non Personal Service

Average Day of Clearance: N/A

14.239 HOME Investment Partnerships Program

Recipient: Department of Housing and. Community Development
% of Funds Agency Receives: 20.00

Component: Administrative Costs

Technique; Payment Monthly-Non Personal Service

Average Day of Clearance: N/A

Recipient: Department of Housing and Community Development
% of Funds Agency Receives: 80.00
Component: Program Payments

Page 7 of 20


Direct Costs

The State shall request funds only after related cash expenditures have been recorded in the System of Accounting and
Reporting (SOAR). Because the process is a manual one, we expect reimbursement from FHWA two business days after
wire requests are made. In the event of a treasury offset, which results in an ACH transfer, this may delay receipt of
federal funds by up to an additional two business days. The amount of the request shall be the actual sum of cash
expenditures that have been incurred, recorded, identified, and reconciled as billable from the preceding week. This
funding technique is interest neutral.

Modified Average Clearance - Non Personal Services

The District shall request a biweekly draw for deposit on the dollar-weighted average day of clearance for the
disbursement, in accordance with the clearance pattern in Exhibit Il. Non Personal Service expenditures will be based on
the average expenditure cost of the previous quarter. Any required adjustments will be made with the first draw down of
the following quarter; except where it pertains to the Child and Family Services Agency, the adjustment will be made with
the third drawdown of the following quarter. The request for funds shall be made in accordance with the appropriate
Federal.agency cut-off time specified in Exhibit |. This funding technique is interest neutral.

Modified Average Clearance - Payroll

The District shall request a biweekly draw for deposit on the dollar-weighted average day of clearance for the
disbursement, in accordance with the clearance pattern in Exhibit Il. Payroll will be based on the average payroll cost of
the previous quarter. Any required adjustments will be made with the first draw down of the following quarter; except
where it pertains to the Child and Family Services Agency, the adjustment will be made with the third drawdown of the
following quarter. The request for funds shall be made in accordance with the appropriate Federal agency cut-off time
specified in Exhibit |. This funding technique is interest neutral.

OSSE Billable Costs

The State shall request funds only after related cash expenditures have been recorded in the System of Accounting and
Reporting (SOAR). The request for funds shall be made in accordance with the appropriate Federal agency cut-off time
specified in Exhibit |. 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.

Payment Monthly-Non Personal Service

The District shall request funds once a month such that funds are deposited on or about the 25th of the month. The
request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit |. The amount of
the request. shall be based on the actual expenditures incurred that are available for drawdown and have cleared the
District's account. This funding technique is interest neutral.

Restricted Draw

The District has been placed under restricted draw for this grant by the cognizant Federal agency. The District shall
request reimbursement within 5 days of approval of reported expenditures. The amount of the reimbursement will be the
total amount approved for draw by the Federal agency. 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.

Page 6 of 20


Exhibit Il - District of Columbia

LIST OF STATE CLEARANCE TIMES

(Rounded Dollar-Weighted Average Day of Clearance)
Clearance Times Where the Timing of A Draw Down Is Based on A Clearance

Pattern
CFDA] ..Program Name Recipient % Component Technique . | Round
: aoe eo : cares ed
é days
10.551 {Supplemental Nutrition / Department of Human 100. |Benefit Payments Actual Clearance, ZBA- |0 Days
Assistance Program Services 00. Same Day Payment
10.555 National Schoo! Lunch —_| Office of the State 100. |Program Payments OSSE Billable Costs N/A
Program Superintendent of. 00
Education
14.218 |Community Development Department of Housing — |80.0 | Program Payments Payment Monthly-Non N/A
Block Grants/Entitlement |and Community to) Personal Service
Grants. Development
14.218 |Community Development |Department of Housing {20.0 | Administrative Costs Payment Monthly-Non N/A
Block Grants/Entitlement |and Community 0 Personai Service
Grants Development
14.239 |HOME Investment Department of Housing {20.0 | Administrative Costs Payment Monthly-Non NA
Partnerships Program and Community 0 Personal Service
Development
14.239 |HOME Investment Department of Housing 80.0 |Program Payments Payment Monthly-Non N/A
Partnerships Program and Community oO Personal Service
Development
17.225F |Unemployment Insurance | Department of 80.0 |Payroll Bi-Weekly Actual N/A
-- Federal Benefit Employment Services 0 .
Account and
Administrative Costs
17.225F |Unemployment Insurance |Depariment of 20.0 jNon Personal Services | Bi-Weekly Actual NA
-- Federal Benefit Employment Services ie)
Account and
Administrative Costs
17.225S |Unemployment Insurance | Department of 100. |Benefit Payments Average Clearance 0 Days
-- State Benefit Account _|Employment Services [00
20.205 | Highway Planning and District Department of 100. |Program Payments Direct Costs N/A
Construction Transportation 00.
84.010 Title | Grants to Local Office of the State 1,00 |Payroll OSSE Billabie Costs N/A
Educational Agencies Superintendent of
Education
84.010 | Title | Grants to Local Office of the State 98.8 |Program Payments OSSE Billable Costs NIA
Educational Agencies Superintendent of 0
Education
84.010 | Title | Grants to Local Office of the State 0.20 |Administrative Costs OSSE Billable Costs NiA
Educational Agencies Superintendent of
Education
84.370 |DC School Choice District of Columbia 56.0 | Program Payments Grants Where Payments |1 Day
incentive Program Public Schools 0 to Vendors Occur
Randomly
84.370 {DC School Choice ‘Office of the State 44.0 |Program Payments OSSE Billable Costs. N/A
Incentive Program Superintendent of 0
Education
93.558 | Temporary Assistance for | Department of Human 88.0 |Benefit Payments Actual Clearance, ZBA- |0 Days
Needy Families Services oO Same Day Payment
93.558 |Temporary Assistance for| Department of Human 10.0 {Payroll Actual Costs-Modified 0 Days
Needy Families Services id Clearance

Page 19 of 20



Component: Program Payments
Technique: OSSE Billable Costs
Average Day of Clearance: N/A

84.370 DC School Choice Incentive Program

Recipient: District of Columbia Public Schools

% of Funds Agency Receives: 56.00

Component: Program Payments

Technique: Grants Where Payments to Vendors Occur Randomiy
Average Day of Clearance: 1 Day

Recipient: Office of the State Superintendent of Education
% of Funds Agency Receives: 44.00

Component: Program Payments

Technique: OSSE Billable Costs

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families
Recipient: Department of Human Services

% of Funds Agency Receives: 88.00

Component: Benefit Payments

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

Recipient: Department of Human Services
% of Funds Agency Receives: 10.00
Component: Payroll

Technique: Actual Costs-Modified Clearance
Average Day of Clearance: 0 Days

Recipient: Department of Human Services
% of Funds Agency Receives: 2.00
Component: Administrative Costs
Technique: Actual Costs-Modified Clearance
Average Day of Clearance: 5 Days

93.658 Foster Care -- Title IV-E

Recipient: Child and Family Services Agency

% of Funds Agency Receives: 80.00

Component: Benefit Payments

Technique: Modified Average Clearance - Non Personal Services
Average Day of Clearance: 7 Days

Recipient: Child and Family Services Agency
% of Funds Agency Receives: 20.00
Component: Administrative Costs

Page 9 of 20


Cash Management Improvement Act Agreement
between
The District of Columbia
and
The Secretary of the Treasury,
United States Department of the Treasury

The Secretary of the Treasury, United States Department of the Treasury (hereafter ‘Secretary'), and District of Columbia
(hereafter ‘State’), in order to implement Section 5 of the Cash Management Improvement Act of 1990, as amended
(hereafter ‘Act'), agree as follows:

1.0 AGENTS OF THE AGREEMENT

1.1 The Authorized Official(s) for the District of Columbia shall be the Deputy Chief Financial Officer ‘Treasurer, OCFO in
all matters concerning this Agreement.

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

2.0 AUTHORITY

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

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

3.0 DURATION, AMENDING, TERMINATING, AND MISCELLANEOUS PROVISIONS
3.1 This Agreement shail take effect on 10/01/2017 and shall remain in effect until 09/30/2018,

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
a proposed amendment for review by the Fiscal Service.

3.3 Notwithstanding section 3.2, in the event of Federal or State non-compliance with Subpart B of 31 CFR, Part 205, the
Fiscal Service may amend this Agreement at any time to incorporate additional programs and the entities that administer
those programs.

3.4 This Agreement may be terminated by either party with 30 days written notice. If this Agreement is terminated, the
Fiscal Service will prescribe the funding techniques, clearance patterns, and methods for calculating interest liabilities to
be used by the State.

Page 1 of 20



The data provided for testing the check clearance patterns are provided through the District's financial management
system, the System of Accounting and Reporting (SOAR) and its Accounts Reconcillation Processing (ARP) component.
The ARP component, controlled by the Office of the Chief Information Officer, contains the clearance pattern information
required by this agreement. All Payroll is paid via direct deposit and therefore results in a zero day clearance time.

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

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

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

7.6 The State shall use the following method to calculate the doliar-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:

None.
The State shall also adjust each clearance pattern to reflect:

Any systemic problems, such as what occurred with the mail distribution during the Anthrax crisis. Adjustments in the
clearance patterns will be made to smooth out the resulting anomalies.

7.8 Each of the State's clearance patterns is calculated in business days.

7.9 An authorized State official shall certify that each clearance pattern developed by the State accurately corresponds to
the clearance activity of the programs to which it is applied. This certification shall be provided to the Fiscal Service prior
to the effective date of the Agreement. The State shall recertify its clearance patterns at least every five years.

7.10 The State shall follow the procedures of 31 CFR 208 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

Page 12 of 20


Recipient: Department of Health Care Finance
% of Funds Agency Receives: 1.00

Component: Payroll

Technique: Modified Average Clearance - Payroll
Average Day of Clearance: 0 Days

93.914 HIV Emergency Relief
Recipient: Department of Health

% of Funds Agency Receives: 95.00
Component: Benefit Payments
Technique: Restricted Draw
Average Day of Clearance: N/A

Recipient: Department of Heaith

% of Funds Agency Receives: 5.00

Component: Payroll

Technique: Restricted Draw

Average Day of Clearance: N/A

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:

The District developed check clearance patterns for controlled disbursement types (run IDs) in the District's check writing
and cash reconciliation systems. The disbursement types applicable for this Agreement are:

23-Medicaid (Provider Payments)
73-SOAR Checks NPS
81-Payroll Group 1

82-Payroll Group 2

The check clearance patterns are produced without regard to funding type. The District is responsible for the
development and appropriate application of these check clearance patterns for the programs covered by the Agreement.

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

For each disbursement type, the District's Office of Finance and Treasury has analyzed about 50% of the funds disbursed
from issuance via checks to the clearance for a period of at least three months. Almost all payments from the District of
Columbia are done by ACH or instant wires, where clearances are completed in a matter of hours or minutes.

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

Page 11 of 20


Technique: Payment Monthly-Non Personal Service
Average Day of Clearance: N/A

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

Recipient: Department of Employment Services
% of Funds Agency Receives: 20.00
Component: Non Personal Services
Technique: Bi-Weekly Actual

Average Day of Clearance: N/A

Recipient: Department of Employment Services.
% of Funds Agency Receives: 80.00
Component: Payroll

Technique: Bi-Weekly Actual

Average Day of Clearance: N/A

17.225S Unemployment Insurance -- State Benefit Account
Recipient: Department of Employment Services

% of Funds Agency Receives: 100.00

Component: Benefit Payments

Technique: Average Clearance

Average Day of Clearance: 0 Days

20.205 Highway Planning and Construction
Recipient: District Department of Transportation
% of Funds Agency Receives: 100.00
Component: Program Payments

Technique: Direct Costs

Average Day of Clearance: N/A

84.010 Title | Grants to Local Educational Agencies
Recipient: Office of the State Superintendent of Education
% of Funds Agency Receives: 0.20

Component: Administrative Costs

Technique: OSSE Billable Costs

Average Day of Clearance: N/A

Recipient: Office of the State Superintendent of Education
% of Funds Agency Receives: 1.00

Component: Payroll

Technique: OSSE Billable Costs

Average Day of Clearance: N/A

Recipient: Office of the State Superintendent of Education
% of Funds Agency Receives: 98.80

Page 8 of 20


System/Children's Budget Expenditure System (MBES/CBES) no later than 10 calendar days before the end of the
quarter for which the supplemental grant award is being requested.

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

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

a. Timing of the Request

A State should initiate its request for supplemental funding during a quarter as soon as it becomes aware of the fact that a
shortfall does/will exist. For the TANF and CCDF grants, supplemental funding requests (estimates) may be submitted by
a State, for consideration by ACF, up through and including the 15th day of the third month of the first, second or third
quarter of any fiscal year. Since TANF and CCODF 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 Adminlstrators from the Deputy Assistant Secretary for
Adminisiration.

6.1.6 For State agencies that cannot follow the schedule provided in 6.1.3, and where the receipt of funds is scheduled for
a Saturday, Sunday, or a day when the Federal Government is not open for business, the State shalt request funds for
deposit on the next business day.

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8.6.2.3 Standards Applied

Statistical Sampling (Pre-Issuance):

To measure the time Federal funds are held in a State account prior to being disbursed, the State shall use statistical
sampling. The sample shall be randomly selected, and shall be of sufficient size to ensure, at a minimum, a 95%
confidence interval no wider than + 0.3 dollar-weighted days about the estimated mean.

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

1 subtract the deposit date from the issuance date

2 multiply the difference of step 1 by the check amount

3 divide the product of step 2 by the total amount of funds drawn in the sample to determine the dollar-weighted 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 x R, where
| = 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 206.27, 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
caiculations. Interest calculation costs do not include expenses for normal disbursing services, such as processing of
checks or maintaining records for accounting and reconciliation of cash balances, or expenses for upgrading or
modernizing accounting systems. interest calculation costs in excess of $50,000 in-any year are not eligible for
reimbursement, unless the State provides justification with the annual report.

10.2 The State expects to incur the following types of interest calculation costs:
To develop and maintain check clearance patterns.

10.3 The State shall submit all claims for reimbursement of interest calculation costs with its Annual Report in accordance
with 31 CFR 205.

11.0 NON-COMPLIANCE

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12.0 AUTHORIZED SIGNATURES

Carmen Pigler

Date Signed:

Date Submitted 09/28/2017

Corvelli A. McDaniel

Assistant Commissioner

Revenue Collections Management
Bureau of the Fiscal Service

U.S. Department of the Treasury

Signature: Cire? A. “yl by woxt Date Signed: 10 [le fir

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Department of Health Care Finance

Department of Housing and Community Development
Department of Human Services

District Department of Transportation

District of Columbia Public Schools

Office of the State Superintendent of Education

5.2 Entities that meet the definition of a Fiscal Agent per 31 CFR Part 205 shall be subject to the terms of this Agreement.
The following is a list of Fiscal Agents that administer funds under the programs listed in the Section 4.0 of this
Agreement:

FIS Government Solutions 10.551 Supplemental Nutrition Assistance Program
6.0 FUNDING TECHNIQUES
6.1 General Terms

6.1.1 The State shall request Federal funds in accordance with the appropriate cut-off times shown in Exhibit | 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 Patterns. 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

Page 3 of 20


4.0 PROGRAMS COVERED

4.1 The State's threshold and its major Federal assistance programs shall be determined based on the most recently
published Schedule of Expenditures of Federal Awards (SEFA) data for the A-133 Single Audit Report for fiscal year
ending 09/30/2016.

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 $23,268,525.
The following programs meet or exceed the threshold and are not excluded in Section 4.4:

10.551 Supplemental Nutrition Assistance Program

10.555 National School Lunch Program

14.218 Community Development Block Grants/Entitlement Grants
14.239 HOME Investment Partnerships Program

17.225F Unemployment Insurance -- Federal Benefit Account and Administrative Costs
17.225S Unemployment Insurance -- State Benefit Account
20.205 Highway Planning and Construction

84.010 Title | Grants to Local Educational Agencies

84.370 DC School Choice Incentive Program

93.558 Temporary Assistance for Needy Families

93.658 Foster Care -- Title IV-E

93.767 Children's Health Insurance Program

93.778 Medical Assistance Program

93.914 HIV Emergency Relief

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

There are currently no programs listed for Section 4.3.
4.4 The following programs exceed the State's threshold but have been excluded from coverage for the reason indicated:

84,268 Federal Direct Student Loan --- Exclusion:Federal Statute - Full Exemption

93.525 State Planning and Establishment Grants for the Affordable Care Act (ACA)s Exchanges ---
Exclusion:Discontinued

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

5.0 ENTITIES COVERED

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

Child and Family Services Agency
Department of Employment Services
Department of Health

Page 2 of 20


8.1.1 The State and the Secretary agree that no interest liabilities will be incurred for transfers of funds made in
accordance with the procedures specified in section 6 of this Agreement where the following funding techniques are
applied:

Actual Clearance, ZBA - Same Day Payment

Actual Costs-Modified Clearance

Average Clearance

Bi-Weekly Actual

Direct Costs

Grants Where Payments to Vendors Occur Randomly
Modified Average Clearance - Non Personal Services
Modified Average Clearance - Payroll

OSSE Billable Costs

Payment Monthly-Non Personal Service

Restricted Draw

8.1.2 The State shalt 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 shail not accrue prior to
the day the State submits a request for funds.

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

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

8.3 The Unemployment Trust Fund

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

When the Funding Technique is properly used, there should be no interest earnings on funds withdrawn from the State
account, as the State has implemented Actual Clearance Same Day Pay, an interest-neutral funding technique, for such
transfers. For transfers UTF that do not follow the technique specified in section 6.2 and result in a positive balance of
funds in a State account, the State's liability for interest on funds withdrawn from its account in the UTF shall consist of the

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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. :

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