l
Date: 5 [p Bl [ 7
Printed Name: Dean “Rololo: ns

Certifying Signature: i =

Title: LM BNA deren Prodiset : Zs

Page 20 of 20


interest liability calculations shall be prorated to 100% of program funding.
8.6 State Interest Liabilities

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

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

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

8.6.2.2 Source of Data

The time period from receipt and disbursement of funds shall be determined from information captured by electronic
transactions supplied by bank.

8.6.2.3 Standards Applied

The average daily 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

| = 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 program
falls below the State's threshold.

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:

a, Development and maintenance of clearance patterns.
b. Interest Calculations. ~

Page 14 of 20


Actual Clearance, ZBA - ACH

The State shall request funds such that they are deposited by ACH in a State account on the settlement date of payments
issued by the State. 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 funds that clear the State's account on the settlement
date, 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 I]. 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.

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.

~- Actual Drawdown - Weekly

"The State shall request funds on a weekly basis based on the actual expenditures which occurred in the past weekly
period. The State voluntarily waives Federal interest liabilities resulting from this State prior-expenditure funding
technique. The request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit
|. The amount requested shall be for the actual expenditures incurred and reconcilement is not required. This funding
technique is interest neutral.

Actual Drawdown - Weekly (Foster Care Program)

The State shall request funds on a weekly basis based on the actual expenditures which occurred in the past weekly
period. The amount requested shall be for the actual expenditures incurred. Approximately 30-45 days after the end of the
quarter, the ACF-Title IV-E-1, Foster Care and Adoption Assistance Financial Report (OMB No. 0970-0205) is prepared.
States report current expenditures for the previous quarter, and estimated costs for the next quarter. States may also
report adjustments to prior quarter costs for the prior two years. This funding technique is interest neutral.

= Actual Drawdown-Daily

On each business day, 100% of that day's issued debit card file is drawn, Funds are drawn into the benefit's account,
based on 100% of the benefit payment debit card issued, two (2) days after the draw. 100% of those same funds clear the
benefits bank account. This funding technique is interest neutral.

Modified ZBA Same Day Payment

Page 5 of 20


Exhibit lI - State of Nevada
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
| Ss Ee S posse: Soles is :
10.551 |Supplemental Nutrition | Department of Health and|100, |Program |Actual Clearance, ZBA -
Assistance Program Human Services, Welfare |00 ACH
Division
10.555. |National Schoo! Lunch | Department of Agriculture |100: |Program [Average Clearance 2 Days
Program. 00
10.557 |Special Supplemental Department of Health and|66.0 |Food Program [Average Clearance 3 Days
Nutrition Program for Human Services, Health |0
‘Women, Infants, and Division
Children.
10.557 |Special Supplemental Department of Health and]31.0 |Administrative Average Clearance 3 Days
Nutrition Program for Human Services, Health |0
Women, Infants, and Division
Children
10.557 | Special Supplemental Department of Health and]3.00 | Payroll Average Clearance 4 Day
Nutrition Program for Human Services, Health
‘Women, Infants, and Division
Children
17.225F {Unemployment Insurance | Department of 100: |Administrative Actual Drawdown - 3 Days
| Federal Benefit Employment, Training 00 Weekly
|Account and and Rehabiliation
Administrative Costs
17.2258 |Unemployment Insurance| Department of 100. |Benefit Payments Actual Drawdown-Daily {3 Days
|-- State Benefit Account |Employment, Training 00
and Rehabiliation
20.205 | Highway Planning and Department of 100, jEntire award Average Clearance 4 Days
Construction ‘Transportation 00
84.010 | Title | Grants to Local Department of Education |1.00 |Administrative ‘Average Clearance 3 Days
Educational Agencies
84.010 | Title | Grants to Local Department of Education {99.0 |Program Actual Clearance, ZBA- |0 Days
Educational Agencies 10 ACH.
84.027. |Special Education -- Department of Education {1.00 |Administrative Average Clearance 3 Days
Grants to States
84.027 |Special Education Department of Education |99.0 |Program Actual Clearance, ZBA- |0 Days
Grants to States (e) ACH
93.525 | State Planning and Silver State Health 98.0 |Program Actual Drawdown - 4 Days
Establishment Grants for |Insurance 0 Weekly
the Affordable Care Act
(ACA)s Exchanges.
93.525 | State Planning and Silver State Health 2.00 |Administrative Actual Drawdown - 4 Days
Establishment Grants for |Insurance Weekly
the Affordable Care Act
(ACA)s Exchanges
93.558 | Temporary Assistance for|Department of Health and|25,.0 |Payroll Uniform Draws 3 Days
Needy Families Human Services, Welfare |O
Division
93.558 {Temporary Assistance for] Department of Health and| 10.0 |Administrative Actual Drawdown - 3 Days
Needy Families Burman Services, Welfare |O Weekly
ivision

Page 18 of 20


Average Day of Clearance: 0 Days

Recipient: Department of Health and Human Services, Health Care Financing & Policy Division
% of Funds Agency Receives: 4.00

Component: Administrative

Technique: Actual Drawdown - Weekly

Average Day of Clearance: 3 Days

93.778 Medical Assistance Program

Recipient: Department of Health and Human Services, Health Care Financing & Policy Division
% of Funds Agency Receives: 3.00

Component: Disproportionate Share Hospital Payment Program

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

Recipient: Department of Health and Human Services, Health Care Financing & Policy Division
% of Funds Agency Receives: 89.00

Component: Medical Assistance Payments

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

Recipient: Department of Health and Human Services, Health Care Financing & Policy Division
% of Funds Agency Receives: 3.00

Component: Medicare Buy-in, Part A and B insurance

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

Recipient: Department of Health and Human Services, Health Care Financing & Policy Division
% of Funds Agency Receives: 5.00

Component: Administrative

Technique: Actual Drawdown - Weekly

Average Day of Clearance: 3 Days

‘ 6.3.3 Materiality Exemptions
Agencies exempt from coverage on the basis of materiality:
NIA
7,0 CLEARANCE PATTERNS
7.1 The State shall develop separate clearance patterns for each of the following:

a. Accounts payable checks issued to State (non-NDOT) vendors for goods and services;

b. Benefits checks issued on the "Welfare" check writing system;

c. Payroll checks issued through Central Payroll, including NDOT. The payroll clearance pattern is based on net payroll
check amounts;

d, Accounts payable checks issued to Nevada Department of Transportation (NDOT) vendors;

e. If more than 50% of non-payroll disbursements under a Federal program, or specific component of a Federal program,

Page 10 of 20


Average Day of Clearance: 3 Days

Recipient: Department of Health and Human Services, Health Division

% of Funds Agency Receives: 66.00
Component: Food Program
Technique: Average Clearance
Average Day of Clearance: 3 Days

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

Recipient: Department of Employment, Training and Rehabiliation
% of Funds Agency Receives: 100.00

Component: Administrative

Technique: Actual Drawdown - Weekly

Average Day of Clearance: 3 Days

17.225S Unemployment Insurance -- State Benefit Account
“ Recipient: Department of Employment, Training and Rehabiliation
% of Funds Agency Receives: 100.00
Component: Benefit Payments
Technique: Actual Drawdown-Daily
Average Day of Clearance: 3 Days

20.205 Highway Planning and Construction
Recipient: Department of Transportation

% of Funds Agency Receives: 100.00
Component: Entire award

Technique: Average Clearance

Average Day of Clearance: 4 Days

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

% of Funds Agency Receives: 99.00

Component: Program

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

Recipient: Department of Education
% of Funds Agency Receives: 1.00
Component: Administrative

” Technique: Average Clearance

- Average Day of Clearance: 3 Days

84.027 Special Education — Grants to States
Recipient: Department of Education

Page 7 of 20



The State shall request funds based on claims presented at the State's “zero bank account" each day. The request shall
be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit |. The amount drawn will be
based upon the dollar amount of actual program-eligible retailer claims. This funding technique is interest neutral.

Uniform Draws

This method of transferring Federal funds to the State is based on a prorated share of a program's estimated annual or
quarterly award to be received at specified intervals. The request for funds shall be made in accordance with the
appropriate Federal agency cut-off time specified in Exhibit |. Approximately 30-45 days after the end of the quarter, a
reconciliation of draws to actual expenditures will be prepared. The first draw after the reconciliation will be adjusted for
variances. Separate drawdown schedules may be established for clearly identified components of a Federal program.

This funding technique is not interest neutral.

6.3 Application of Funding Techniques to Programs

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

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

10.551 Supplemental Nutrition Assistance Program
Recipient: Department of Health and Human Services, Welfare Division
% of Funds Agency Receives: 100.00
Component: Program
* Technique: Actual Clearance, ZBA - ACH
_ Average Day of Clearance: 0 Days

10.555 National School Lunch Program
Recipient: Department of Agriculture

% of Funds Agency Receives: 100.00
Component: Program

Technique: Average Clearance
Average Day of Clearance: 2 Days

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

% of Funds Agency Receives: 3.00

Component: Payroll

Technique: Average Clearance

Average Day of Clearance: 1 Day

Recipient: Department of Health and Human Services, Health Division
% of Funds Agency Receives: 31.00

Component: Administrative

Technique: Average Clearance

Page 6 of 20


93.558 |Temporary Assistance for| Department of Health and|62.0 {Program - EBT Payments |Actual Drawdown ~ 3 Days
Needy Families Human Services, Welfare |O * Weekly
Division
93.558 | Temporary Assistance for |Department of Health and]3.00 | Program - Warrants Actual Drawdown - 3 Days
Needy Families Human Services, Welfare Issued Weekly
Division
93,563. {Child Support Department of Health and|23.0 | Payroll Uniform Draws 4 Days
Enforcement Human Services, Welfare |O
Division
93.563 | Child Support Department of Health and|74.0 |Program [Actual Drawdown - 4 Days
Enforcement Human Services, Welfare | Weekly
Division
93.563 | Child Support Department of Health and/3.00 |Administrative Actual Drawdown - 4 Days
Enforcement Human Services, Welfare Weekly
Division
93.658 |Foster Care -- Title 1V-E _ |Department of Health and} 10.0 {Administrative (Payroll) jActual Drawdown - 3 Days
Human Services, Child & |0 Weekly (Foster Care
Family Services Division Program)
93.658 Foster Care -- Title V-E |Department of Health and|10.0 |Administrative (Non- Actual Drawdown - 3 Days
Human Services, Child & |0 Payroll) Weekly (Foster Care
Family Services Division Program,
93.658 |Foster Care -- Title 1V-E |Department of Health and|80.0 |Program Modified ZBA Same Day |0 Days
Human Services, Child & |0 Payment
Family Services Division
93.767  |Children's Health Department of Health and/4.00 |Administrative Actual Drawdown - 3 Days
Insurance Program Human Services, Health Weekly
‘Care Financing & Policy
Division
93.767 |Children's Health Department of Health and|96.0 |Medical Assistance Actual Clearance, ZBA- |0 Days
Insurance Program Human Services, Health |0 | {Payments |ACH
‘Care Financing & Policy
Division
93.778 |Medical Assistance Department of Health and|5.00 |Administrative Actual Drawdown - 3 Days
Program Human Services, Health Weekly
Care Financing & Policy
Division
93.778 |Medical Assistance Department of Health and|89.0 |Medical Assistance Actual Clearance, ZBA- |0 Days
Program Human Services, Health |0 Payments ACH
‘Care Financing & Policy
Division
93.778 |Medical Assistance Department of Health and|3.00 | Disproportionate Share {Actual Clearance, ZBA- |0 Days
Program Human Services, Health Hospital Payment ACH
Care Financing & Policy Program
Division
93.778 |Medical Assistance Department of Health and|3.00 |Medicare Buy-in, PartA Actual Clearance, ZBA- |0 Days
Program Human Services, Health and B insurance |ACH
‘Care Financing & Policy .
Division

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.

Page 19 of 20



Technique: Uniform Draws
Average Day of Clearance: 3 Days

93.563 Child Support Enforcement

Recipient: Department of Health and Human Services, Welfare Division
% of Funds Agency Receives: 3.00 .
Component: Administrative

Technique: Actual Drawdown - Weekly

Average Day of Clearance: 4 Days

> Recipient: Department of Health and Human Services, Welfare Division
% of Funds Agency Receives: 74.00
Component: Program
Technique: Actual Drawdown - Weekly
Average Day of Clearance: 4 Days

Recipient: Department of Health and Human Services, Welfare Division
% of Funds Agency Receives: 23.00

Component: Payroll

Technique: Uniform Draws

Average Day of Clearance: 4 Days

93.658 Foster Care -- Title IV-E

Recipient: Department of Health and Human Services, Child & Family Services Division
: % of Funds Agency Receives: 10.00

Component: Administrative (Non-Payroll)

Technique: Actual Drawdown - Weekly (Foster Care Program)
: Average Day of Clearance: 3 Days

Recipient: Department of Health and Human Services, Child & Family Services Division
% of Funds Agency Receives: 10.00

Component: Administrative (Payroll)

Technique: Actual Drawdown - Weekly (Foster Care Program)

Average Day of Clearance: 3 Days

Recipient: Department of Health and Human Services, Child & Family Services Division
% of Funds Agency Receives: 80.00

Component: Program

Technique: Modified ZBA Same Day Payment

Average Day of Clearance: 0 Days

: 93.767 Children's Health Insurance Program

: Recipient: Department of Health and Human Services, Health Care Financing & Policy Division
% of Funds Agency Receives: 96.00
Component: Medical Assistance Payments
Technique: Actual Clearance, ZBA - ACH

Page 9 of 20


Cash Management Improvement Act Agreement
between
The State of Nevada
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 Nevada
(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

4.1 The Authorized Official(s) for the State of Nevada shall be the Nevada State Controller 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 07/01/2016 and shall remain in effect until 06/30/2017.

, 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



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

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 - ACH

Actual Drawdown - Weekly

Actual Drawdown - Weekly (Foster Care Program)
Actual Drawdown-Daily

Average Clearance

Modified ZBA Same Day Payment

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:

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

Federal and State Funds are Not Interest Neutral:
The State shail use the following methodology to calculate State interest liabilities on funds withdrawn from the several
accounts in the UTF under the Unemployment Insurance program.

Page 12 of 20



are made to vendors via ACH/direct deposit a separate dollar weighted average clearance pattern will be developed. All
non-payroll transactions of the program, or program component, will be included in the development of the pattern.

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

The State Controller's Office

7.3 The sources of data the State shall use when developing its clearance patterns are as follows:
The check activity data maintained within the State's accounting system.

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:

N/A
The State shall also adjust each clearance pattern to reflect:

From fiscal year 2016 transactions, the total amount of disbursements clearing the bank in the same number of days
during the year is divided by the sum of all disbursements clearing. This ratio is multiplied by the number of days to clear,
resulting in a clearance factor. The weighted average number of days to clear the State's bank account is the sum of all
daily clearance factors.

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.

Page 11 of 20


% of Funds Agency Receives: $9.00
Component: Program

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

Recipient: Department of Education
% of Funds Agency Receives: 1.00
Component: Administrative
Technique: Average Clearance
Average Day of Clearance: 3 Days

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

Recipient: Silver State Health insurance
% of Funds Agency Receives: 2.00
Component: Administrative

Technique: Actual Drawdown - Weekly
Average Day of Clearance: 4 Days

Recipient: Silver State Health Insurance
% of Funds Agency Receives: 98.00
Component: Program

Technique: Actual Drawdown - Weekly
Average Day of Clearance: 4 Days

93.558 Temporary Assistance for Needy Families

Recipient: Department of Health and Human Services, Welfare Division
% of Funds Agency Receives: 10.00

Component: Administrative

Technique: Actual Drawdown - Weekly

Average Day of Clearance: 3 Days

. Recipient: Department of Health and Human Services, Welfare Division
% of Funds Agency Receives: 62.00
Component: Program - EBT Payments

“Technique: Actual Drawdown - Weekly
Average Day of Clearance: 3 Days

Recipient: Department of Health and Human Services, Welfare Division
% of Funds Agency Receives: 3.00

Component: Program - Warrants Issued

Technique: Actual Drawdown - Weekly

Average Day of Clearance: 3 Days

Recipient: Department of Health and Human Services, Welfare Division
% of Funds Agency Receives: 25.00
Component: Payroll

Page 8 of 20


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 all transfers of funds to
which the funding technique is applied in section 6.3.2 of this Agreement.

Page 4 of 20


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 20


Exhibit | - Funds Request and Receipt Times Schedule
State of Nevada

[Federal Ageney

Request Gu

14:59 PM

4 day

Agriculture-FNS. ACH

|Agriculture-FNS. Fedwire 5:45 PM 10 day
Agriculture-FS ACH 3:00 PM. tday
Air National Guard ACH 12:00 PM 15 days
Army National Guard ACH 12:00 PM 15 days
Commerce-NOAA. ACH 2:00 PM 4 day
Dept of Homeland Security (FEMA) Fedwire 2:00 PM 10 day
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 ‘tiday
Education Fedwire 2:00 PM. 0 day
Energy ACH. 4:00 PM. ‘tday
Energy Fedwire 3:00 PM 0 day
HHS ACH 6:30 PM 4 day
HHS Fedwire 3:00 PM 10 day
HUD. ACH 5:30 PM 2 days
HUD. Fedwire 3:00 PM 0 day
Interior-FWS ACH 14:59 PM tday
Interior-FWS. Fedwire 5:45 PM 0 day
Interior-OSM ACH 3:00 PM 4 day
Interior-OSM Fedwire 4:00 PM 0 day
Justice ACH 41:00 PM 6 days
Justice Fedwire 2:00 PM. 2 days
Labor-Non-UTF. ACH 3:00 PM dday
Labor-UTF. ACH 3:00 PM 4 day
Labor-UTF. Fedwire 3:00 PM 0 day
National Science Foundation (NSF) ACH 8:00 PM 4day
National Science Foundation (NSF) Fedwire 5:45 PM 0 day
Social Security Administration ACH 41:59 PM 4 day
Social Security Administration Fedwire 5:45 PM O day
Transportation (FAA) ACH 2:00 PM 4 day
Transportation (FHWA) ACH 12:00 PM 3 days
Transportation (FHWA) Fedwire 42:00 PM 0 day
Transportation (FTA) ACH 2:00 PM 1 day
Veterans Administration ACH 42:00 PM 3 days

Page 17 of 20


Department of Transportation
Silver State Health Insurance

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:

Fidelity Information Services, LLC 10.551 Supplemental Nutrition Assistance Program
Fidelity Information Services, LLC 93.558 Temporary Assistance for Needy Families
Hewlett Packard Enterprise Services 93.778 Medical Assistance Program

6.0 FUNDING TECHNIQUES
6.1 General Terms

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

Page 3 of 20


4.0 PROGRAMS COVERED

4.1 The State's threshold and its major Federal assistance programs shail be determined based on The State’s most
recent Single Audit for fiscal year ending 06/30/2015.

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 $28,622,085.
The following programs meet or exceed the threshold and are not excluded in Section 4.4:

10.551 Supplemental Nutrition Assistance Program

10.555 National School Lunch Program

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

93.525 State Planning and Establishment Grants for the Affordable Care Act (ACA)s Exchanges
93.558 Temporary Assistance for Needy Families

93.563 Child Support Enforcement

93.658 Foster Care -- Title IV-E

93.767 Children's Health insurance Program

93.778 Medical Assistance Program

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

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

4 5.0 ENTITIES COVERED

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

Department of Agriculture

Department of Education

Department of Employment, Training and Rehabiliation

Department of Health and Human Services, Child & Family Services Division

Department of Health and Human Services, Health Care Financing & Policy Division
: Department of Health and Human Services, Health Division

Department of Health and Human Services, Welfare Division

Page 2 of 20



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 States 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 State shall calculate the actual interest earnings and the related banking costs attriputable to funds withdrawn from
the State account in the UTF by multiplying the State % by the amount of the actual interest earnings and the related
banking costs of the 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 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 States 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) shalt 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 States 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
_ tefund 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

Page 13 of 20



12.0 AUTHORIZED SIGNATURES.

Ron Knecht
Nevada State Controller

= Signature:

Date Signed: 2 [25 | f 7

Date Submitted 03/27/2017

Corvelli A. McDaniel

Assistant Commissioner
Revenue Collections Management
Bureau of the Fiscal Service
US. Peveat of the Treasury

A 1 dpa Date Signed: ufoufi2

: Signature:

Page 16 of 20