Cash Management Improvement Act Agreement

between

The State of New Mexico

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 New Mexico

(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 New Mexico shall be the Charmaine Cook, State Cash Manager 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.

1.3 The purpose of this Agreement is to set forth the terms and conditions agreed to in implementing the requirements of

the Act. The purpose of this Agreement is to achieve greater efficiency, effectiveness, and equity in the transfer of

Federal funds as required by the Act and the Cash Management Improvement Act Amendments of 1992 (Public Law 102-

589). The State of New Mexico, by Laws 1993, Chapter 105, provides for the implementation and enforcement of the Act,

including authorization for payment of warrants which include Federal funds that are receipted based upon established

warrant clearance patterns.

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.

2.3 All functions and duties undertaken pursuant to this Agreement shall be performed in accordance with the Act and the

regulations and procedures thereunder.

3.0 DURATION, AMENDING, TERMINATING, AND MISCELLANEOUS PROVISIONS

3.1 This Agreement shall take effect on 07/01/2020 and shall remain in effect until 06/30/2021.

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.

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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.

4.0 PROGRAMS COVERED

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

audited financial statements from a Certified Public Accountant and the NM Department of Finance & Administration

Report (FY19 Comprehensive Annual Financial Report) for fiscal year ending 06/30/2019.

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 $40,406,838.

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

10.558 Child and Adult Care Food Program

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

17.225S Unemployment Insurance -- State Benefit Account

20.205 Highway Planning and Construction

84.010 Title I Grants to Local Educational Agencies

84.027 Special Education -- Grants to States

93.558 Temporary Assistance for Needy Families

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:

There are currently no programs listed for Section 4.4.

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:

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Children, Youth and Families Department (CYFD) - 690

Department of Health (DOH) - 665

Department of Human Services (HSD) - 630

Department of Workforce Solutions (DWS) - 631

New Mexico Department of Transportation (NMDOT) - 805

Public Education Department (PED) - 924

5.1.1 For purposes of this Agreement, the dependent State agencies and instrumentalities to be included will be defined in

accordance with the Generally Accepted Accounting Principles, AICPA Statement on Auditing Standards No. 55,

definition for the State.

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:

J.P Morgan 10.551 Supplemental Nutrition Assistance Program

J.P Morgan 93.558 Temporary Assistance for Needy Families

Southern National Bank 10.557 Special Supplemental Nutrition Program for Women, Infants, and Children

6.0 FUNDING TECHNIQUES

6.1 General Terms

6.1.1 The State shall request Federal funds in accordance with the appropriate cut-off times shown in Exhibit I to ensure

funds will be received and credited to a State account by the times specified in the funding techniques. Exhibit I is

incorporated by reference herein.

6.1.2 The State shall schedule the receipt of Federal funds such that the funds are received and credited to a State

account in accordance with the clearance patterns specified in Exhibit II - List of State Clearance Patterns. Exhibit II is

incorporated by reference herein.

6.1.3 In instances where the receipt of funds is scheduled for a Saturday, the State shall request funds for deposit on

Friday. In instances where the receipt of funds is scheduled for a Sunday, the State shall request funds for deposit on

Monday. In instances where the receipt of Federal funds is scheduled for deposit on a day when the State is not open for

business, the State shall request funds for deposit the day following the scheduled day; in instances where the receipt of

Federal funds is scheduled for deposit on a day when the Federal Government is not open for business, the State shall

request funds for deposit the day prior to the scheduled day.

6.1.4 Estimates and Reconciliation of Estimates:

Where estimated expenditures are used to determine the amount of the drawdown, the State will indicate in the terms of

the State unique funding technique how the estimated amount is determined and when and how the State will reconcile

the difference between the estimate and the State's actual expenditures.

6.1.5 Supplemental Funding:

Unless otherwise defined by program rules, Supplemental Funding is the award of additional funds to provide for an

increase in costs due to unforeseen circumstances.

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

The State will comply with the following guidelines when requesting supplemental funding for the Medical Assistance

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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.

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

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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.

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 I. 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.

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 Allocation - Administrative & Payroll Costs - Monthly Drawdown

Actual Allocation for Administrative and Payroll Costs: The Department shall request funds once a month, such that they

are deposited on approximately the 27th of the month, to fund activity of the prior 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 costs distributed in accordance with the Department's approved cost allocation plan. This funding

technique is interest neutral.

Actual Allocation-Administration & Payroll Cost Bi-Weekly Drawdown

The Department shall request funds twice a month, such that they are deposited bi-weekly, to fund activities for the prior

two weeks. 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 costs distributed in accordance with the Department's approved

cost allocation plan. This funding technique is interest neutral.

Actual Clearance-Next Day Drawdown

The Department shall request funds, such that they are deposited by ACH in a State account, on the business day

following 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 1. The amount of the request shall be for the amount of funds

that clear the States account on the settlement date. This funding technique is interest neutral.

Estimated Allocation for Administrative and Payroll Costs - Monthly Draw

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The department shall request funds once a month, such that they are deposited on approximately the 25th, to fund the

costs incurred during that month. The amount of the request shall be an estimate based on the actual allocation of costs

to the program for the preceding month. The request shall be made in accordance with the appropriate Federal agency

cut-off time specified in Exhibit I. The administrative costs shall be reconciled quarterly This funding technique is interest

neutral.

Weekly Drawdown

The State shall request funds such that they are deposited in a State account weekly. This 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

determined based on the total previous week's expenditures. This funding technique is interest neutral.

Weekly Drawdown- NMDOT

The State shall request funds such that they are deposited in a State account weekly with exceptions made for state

financial system issues, Federal Highway Administration office closures or federal funding delays, and other extenuating

circumstances that may cause processing delays. The request shall be made in accordance with the appropriate Federal

agency cut-off time specified in Exhibit I. The amount of the request shall be the prescribed prorated amount based on the

total previous weeks federally eligible expenditures. 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 (HSD) - 630

% of Funds Agency Receives: 100.00

Component: Program

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

10.553 School Breakfast Program

Recipient: Public Education Department (PED) - 924

% of Funds Agency Receives: 100.00

Component: Program

Technique: Weekly Drawdown

Average Day of Clearance: N/A

10.555 National School Lunch Program

Recipient: Public Education Department (PED) - 924

% of Funds Agency Receives: 100.00

Component: Program

Technique: Weekly Drawdown

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Average Day of Clearance: N/A

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

Recipient: Department of Health (DOH) - 665

% of Funds Agency Receives: 95.00

Component: Program

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Health (DOH) - 665

% of Funds Agency Receives: 5.00

Component: Administrtive & Payroll Cost

Technique: Estimated Allocation for Administrative and Payroll Costs - Monthly Draw

Average Day of Clearance: N/A

10.558 Child and Adult Care Food Program

Recipient: Children, Youth and Families Department (CYFD) - 690

% of Funds Agency Receives: 100.00

Component: Program

Technique: Actual Clearance-Next Day Drawdown

Average Day of Clearance: 1 Day

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

Recipient: Department of Workforce Solutions (DWS) - 631

% of Funds Agency Receives: 100.00

Component: Administration & Payroll

Technique: Weekly Drawdown

Average Day of Clearance: N/A

17.225S Unemployment Insurance -- State Benefit Account

Recipient: Department of Workforce Solutions (DWS) - 631

% of Funds Agency Receives: 100.00

Component: Program

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

20.205 Highway Planning and Construction

Recipient: New Mexico Department of Transportation (NMDOT) - 805

% of Funds Agency Receives: 5.00

Component: Administrative & Payroll Cost

Technique: Actual Allocation-Administration & Payroll Cost Bi-Weekly Drawdown

Average Day of Clearance: N/A

Recipient: New Mexico Department of Transportation (NMDOT) - 805

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% of Funds Agency Receives: 95.00

Component: Program

Technique: Weekly Drawdown- NMDOT

Average Day of Clearance: N/A

84.010 Title I Grants to Local Educational Agencies

Recipient: Public Education Department (PED) - 924

% of Funds Agency Receives: 5.00

Component: Administration and Payroll Cost

Technique: Actual Allocation - Administrative & Payroll Costs - Monthly Drawdown

Average Day of Clearance: N/A

Recipient: Public Education Department (PED) - 924

% of Funds Agency Receives: 95.00

Component: Program

Technique: Weekly Drawdown

Average Day of Clearance: N/A

84.027 Special Education -- Grants to States

Recipient: Public Education Department (PED) - 924

% of Funds Agency Receives: 5.00

Component: Administrative and Payroll Cost

Technique: Actual Allocation - Administrative & Payroll Costs - Monthly Drawdown

Average Day of Clearance: N/A

Recipient: Public Education Department (PED) - 924

% of Funds Agency Receives: 95.00

Component: Program

Technique: Weekly Drawdown

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families

Recipient: Department of Human Services (HSD) - 630

% of Funds Agency Receives: 95.00

Component: Program

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Human Services (HSD) - 630

% of Funds Agency Receives: 5.00

Component: Administrative & Payroll Cost

Technique: Weekly Drawdown

Average Day of Clearance: N/A

93.767 Children's Health Insurance Program

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Recipient: Department of Human Services (HSD) - 630

% of Funds Agency Receives: 5.00

Component: Administrative & Payroll Cost

Technique: Weekly Drawdown

Average Day of Clearance: N/A

Recipient: Department of Human Services (HSD) - 630

% of Funds Agency Receives: 95.00

Component: Program

Technique: Weekly Drawdown

Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: Department of Human Services (HSD) - 630

% of Funds Agency Receives: 5.00

Component: Administration & Payroll

Technique: Weekly Drawdown

Average Day of Clearance: N/A

Recipient: Department of Human Services (HSD) - 630

% of Funds Agency Receives: 95.00

Component: Program

Technique: Weekly Drawdown

Average Day of Clearance: N/A

6.3.3 Materiality Exemptions

Agencies exempt from coverage on the basis of materiality:

No Agencies Exempt

6.4 The State and its various agencies shall apply the following funding conventions(hereinafter "techniques") to programs

and components of programs based on the list outlined in Section 4.1 of this agreement.

The State will utilize the following funding techniques when requesting Federal funds Zero Balance Accounting, Estimated

Allocation, Actual Allocation, and Weekly Drawdown. The State will not use pre-issuance funding technique for any of its

programs. Where applicable, Electronic Fund transfer, payroll, and non-payroll amounts will be segregated for each

disbursement.

7.0 CLEARANCE PATTERNS

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

The State does not use funding techniques which require clearance patterns.

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

The State does not use funding techniques which require clearance patterns.

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

The State does not use funding techniques which require clearance patterns.

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.

For all clearance patterns developed by statistical sampling, the State shall randomly sample checks to ensure, at a

minimum, a 95% confidence interval for a .25 weighted-day level of precision for the checks in the sample. The State

shall track at least 99% of the funds disbursed, from issuance to clearance, in the sample period.

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:

The State does not use funding techniques which require clearance patterns.

The State shall also adjust each clearance pattern to reflect:

The State does not use funding techniques which require clearance patterns.

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

7.9 An authorized State official shall certify that each clearance pattern developed by the State accurately corresponds to

the clearance activity of the programs to which it is applied. This certification shall be provided to the Fiscal Service prior

to the effective date of the Agreement. The State shall recertify its clearance patterns at least every five years.

7.10 The State shall follow the procedures of 31 CFR 205 if it has actual or constructive knowledge, at any time, that a

clearance pattern does not correspond to a program's clearance activity.

8.0 INTEREST CALCULATION METHODOLOGY

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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 Allocation - Administrative & Payroll Costs - Monthly Drawdown

Actual Allocation-Administration & Payroll Cost Bi-Weekly Drawdown

Actual Clearance-Next Day Drawdown

Actual Clearance, ZBA - ACH

Estimated Allocation for Administrative and Payroll Costs - Monthly Draw

Weekly Drawdown

Weekly Drawdown- NMDOT

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 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

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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 attributable 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 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

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8.6.1 The State shall be liable for interest on Federal funds from the date Federal funds are credited to a State account

until the date those funds are paid out for program purposes.

8.6.2 The State shall use the following method to calculate State interest liabilities on Federal funds:

8.6.2.1 Measuring Time Funds Are Held

To determine the total time Federal funds are held, the State shall measure the time between the date Federal funds are

received and credited to a State's account and the date those funds are debited from the State's account.

8.6.2.2 Source of Data

The state shall utilize data from the individual agency records, our audit records and working papers, as well as the

State's fiscal agent bank records and reports.

8.6.2.3 Standards Applied

Census (Average Daily Balance):

The average daily cash balance of Federal Funds in the program's account reflects the actual activity of each draw from

the date of deposit to the date of issuance or clearance, whichever is pertinent.

8.6.2.4 Calculation Procedure

Average Daily Balance:

I = ADB x R, where

I = State's total interest liability

ADB = Average Daily Balance of cash in a program's account, measured from deposit to clearance

R = Annualized rate equal to the average equivalent yields of 13-week Treasury bills auctioned during a State's fiscal year

9.0 REVERSE FLOW PROGRAMS

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

not participate in the program.

10.0 INTEREST CALCULATION COSTS

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

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

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

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

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

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

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

Personnel costs for compiling and analyzing data related to interest calculations; Personnel costs for preparing and

transmitting the Annual Report to the Fiscal Service.

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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.

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12.0 AUTHORIZED SIGNATURES

Charmaine Cook

New Mexico State Cash Manager

Signature:________________________________________Date Signed:_______________

Date Submitted 06/25/2020

Corvelli A. McDaniel

Assistant Commissioner

Revenue Collections Management

Bureau of the Fiscal Service

U.S. Department of the Treasury

Signature:________________________________________Date Signed:_______________

Page 15 of 18 Jun 30, 2020

Corvelli A. McDaniel (Jul 2, 2020 11:45 EDT)

Corvelli A. McDaniel

Jul 2, 2020
Exhibit I - Funds Request and Receipt Times Schedule

State of New Mexico

Federal Agency Payment Type Request Cut-Off Time Receipt Window

Agriculture-FNS ACH 11:59 PM 1 day

Agriculture-FNS Fedwire 5:45 PM 0 day

Agriculture-FS ACH 3:00 PM 1 day

Air National Guard ACH 12:00 PM 15 days

Army National Guard ACH 12:00 PM 15 days

Commerce-NOAA ACH 2:00 PM 1 day

Dept of Homeland Security (FEMA) Fedwire 2:00 PM 2 days

Dept of Homeland Security (ODP) ACH 2:00 PM 2 days

Dept of Homeland Security (ODP) Fedwire 2:00 PM 2 days

EPA ACH 2:00 PM 2 days

EPA Fedwire 2:00 PM 0 day

Education ACH 3:00 PM 1 day

Education Fedwire 2:00 PM 0 day

Energy ACH 4:00 PM 1 day

Energy Fedwire 3:00 PM 0 day

HHS ACH 5:00 PM 1 day

HHS Fedwire 3:00 PM 0 day

HUD ACH 5:30 PM 2 days

HUD Fedwire 3:00 PM 0 day

Interior-FWS ACH 11:59 PM 1 day

Interior-FWS Fedwire 5:45 PM 0 day

Interior-OSM ACH 3:00 PM 1 day

Interior-OSM Fedwire 1:00 PM 0 day

Justice ACH 11:00 PM 6 days

Justice Fedwire 2:00 PM 2 days

Labor-Non-UTF ACH 3:00 PM 1 day

Labor-UTF ACH 3:00 PM 1 day

Labor-UTF Fedwire 3:00 PM 0 day

National Science Foundation (NSF) ACH 8:00 PM 1 day

National Science Foundation (NSF) Fedwire 5:45 PM 0 day

Social Security Administration ACH 11:59 PM 1 day

Social Security Administration Fedwire 5:45 PM 0 day

Transportation (FAA) ACH 2:00 PM 1 day

Transportation (FHWA) ACH 12:00 PM 3 days

Transportation (FHWA) Fedwire 12:00 PM 0 day

Transportation (FTA) ACH 2:00 PM 1 day

Veterans Administration ACH 12:00 PM 3 days

Page 16 of 18
Exhibit II - State of New Mexico

LIST OF STATE CLEARANCE TIMES

(Rounded Dollar-Weighted Average Day of Clearance)

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

Pattern

CFDA Program Name Recipient % Component Technique Round

ed

days

10.551 Supplemental Nutrition

Assistance Program

Department of Human

Services (HSD) - 630

100.

00

Program Actual Clearance, ZBA -

ACH

1 Day

10.553 School Breakfast

Program

Public Education

Department (PED) - 924

100.

00

Program Weekly Drawdown N/A

10.555 National School Lunch

Program

Public Education

Department (PED) - 924

100.

00

Program Weekly Drawdown N/A

10.557 Special Supplemental

Nutrition Program for

Women, Infants, and

Children

Department of Health

(DOH) - 665

5.00 Administrtive & Payroll

Cost

Estimated Allocation for

Administrative and

Payroll Costs - Monthly

Draw

N/A

10.557 Special Supplemental

Nutrition Program for

Women, Infants, and

Children

Department of Health

(DOH) - 665

95.0

0

Program Actual Clearance, ZBA -

ACH

1 Day

10.558 Child and Adult Care

Food Program

Children, Youth and

Families Department

(CYFD) - 690

100.

00

Program Actual Clearance-Next

Day Drawdown

1 Day

17.225F Unemployment Insurance

-- Federal Benefit

Account and

Administrative Costs

Department of Workforce

Solutions (DWS) - 631

100.

00

Administration & Payroll Weekly Drawdown N/A

17.225S Unemployment Insurance

-- State Benefit Account

Department of Workforce

Solutions (DWS) - 631

100.

00

Program Actual Clearance, ZBA -

ACH

1 Day

20.205 Highway Planning and

Construction

New Mexico Department

of Transportation

(NMDOT) - 805

5.00 Administrative & Payroll

Cost

Actual AllocationAdministration & Payroll

Cost Bi-Weekly

Drawdown

N/A

20.205 Highway Planning and

Construction

New Mexico Department

of Transportation

(NMDOT) - 805

95.0

0

Program Weekly DrawdownNMDOTN/A

84.010 Title I Grants to Local

Educational Agencies

Public Education

Department (PED) - 924

5.00 Administration and

Payroll Cost

Actual Allocation -

Administrative & Payroll

Costs - Monthly

Drawdown

N/A

84.010 Title I Grants to Local

Educational Agencies

Public Education

Department (PED) - 924

95.0

0

Program Weekly Drawdown N/A

84.027 Special Education --

Grants to States

Public Education

Department (PED) - 924

5.00 Administrative and

Payroll Cost

Actual Allocation -

Administrative & Payroll

Costs - Monthly

Drawdown

N/A

84.027 Special Education --

Grants to States

Public Education

Department (PED) - 924

95.0

0

Program Weekly Drawdown N/A

93.558 Temporary Assistance for

Needy Families

Department of Human

Services (HSD) - 630

95.0

0

Program Actual Clearance, ZBA -

ACH

1 Day

93.558 Temporary Assistance for

Needy Families

Department of Human

Services (HSD) - 630

5.00 Administrative & Payroll

Cost

Weekly Drawdown N/A

93.767 Children's Health

Insurance Program

Department of Human

Services (HSD) - 630

95.0

0

Program Weekly Drawdown N/A

Page 17 of 18
________________________________________________________________________________________________________

I hereby certify that an authorized State official has certified at least every five years that the "Rounded Days of Clearance" listed in

Exhibit 2 of this Treasury-State Agreement:

1. Have been prepared in accordance with the standards provided in 31 CFR 205.20;

2. Accurately represent the flow of Federal funds under the Federal assistance programs to which they apply;

3. Reflect seasonal or other periodic variations in the clearance activities; and,

4. Are auditable.

Date: ___________________________________________________________

Printed Name: ____________________________________________________

Certifying Signature: _______________________________________________

Title: ___________________________________________________________

CFDA Program Name Recipient % Component Technique Round

ed

days

93.767 Children's Health

Insurance Program

Department of Human

Services (HSD) - 630

5.00 Administrative & Payroll

Cost

Weekly Drawdown N/A

93.778 Medical Assistance

Program

Department of Human

Services (HSD) - 630

5.00 Administration & Payroll Weekly Drawdown N/A

93.778 Medical Assistance

Program

Department of Human

Services (HSD) - 630

95.0

0

Program Weekly Drawdown N/A

Page 18 of 18 State Cash Manager Jun 30, 2020 Charmaine Cook