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Cash Management Improvement Act Agreement

between

The State of Maine

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 Maine (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 Maine shall be the Director of Internal Operations in all matters concerning this 

Agreement.

1.2 The Assistant Commissioner, Revenue Collections Management, Bureau of the Fiscal Service (Fiscal Service), U.S. 

Department of the Treasury, shall act as the Secretary's representative in all matters concerning this Agreement.

2.0 AUTHORITY

2.1 The authority for this Agreement is the Cash Management Improvement Act of 1990 (Public Law 101-453), as amended by 

the Cash Management Improvement Act of 1992 (Public Law 102-589), codified at 31 U.S.C. 6501 and 31

U.S.C. 6503.

2.2 The regulations codified at 31 CFR Part 205 shall apply to all matters pertaining to this Agreement, and are incorporated 

herein by reference. In the event of any inconsistency between this Agreement and 31 CFR Part 205, the regulations shall govern.

3.0 DURATION, AMENDING, TERMINATING, AND MISCELLANEOUS PROVISIONS

3.1 This Agreement shall take effect on 07/01/2022 and shall remain in effect until 06/30/2023.

3.2 This Agreement may be amended at any time by written, mutual consent of the State and the Fiscal Service. This Agreement shall 

be amended annually to incorporate new programs that qualify as major Federal assistance programs and remove programs that no

longer qualify as major Federal assistance programs. A State must notify the Fiscal Service in writing within 30 days of the time the 

State becomes aware of a change that involves additions or deletions of programs subject to Subpart A, changes in funding 

techniques, and/or changes in clearance patterns. The notification must include a proposed amendment for review by the Fiscal 

Service.

3.3 Notwithstanding section 3.2, in the event of Federal or State non-compliance with Subpart B of 31 CFR, Part 205, the Fiscal 

Service may amend this Agreement at any time to incorporate additional programs and the entities that administer those programs.

3.4 This Agreement may be terminated by either party with 30 days written notice. If this Agreement is terminated, the Fiscal 

Service will prescribe the funding techniques, clearance patterns, and methods for calculating interest liabilities to be used by the 

State.

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4.0 PROGRAMS COVERED

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

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

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

Agreement.

4.2 The State's threshold for major Federal assistance programs is $33,494,061.

The following programs meet or exceed the threshold and are not excluded in Section 4.4:

CFDA Program Name

10.551 Supplemental Nutrition Assistance Program

10.559 Summer Food Service Program for 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 I Grants to Local Educational Agencies

84.027 Special Education -- Grants to States

93.558 Temporary Assistance for Needy Families

93.575 Child Care and Development Block Grant

93.767 Children's Health Insurance Program

93.778 Medical Assistance Program

97.036 Disaster Grants - Public Assistance (Presidentially Declared 

Disasters)

97.050 Presidential Declared Disaster Assistance to Individuals and 

Households - Other Needs

4.3 The following programs fall below the State's threshold but have been required to be covered by Fiscal Service in 

accordance with the non-compliance provisions of Subpart B of 31 CFR Part 205:

There are currently no programs listed for Section 4.3.

4.4 The following programs exceed the State's threshold but have been excluded from coverage for the reason indicated:

CFDA Program Name Exclusion Reason

21.019 Coronavirus Relief Fund Federal Statute - Full Exemption

21.023 Emergency Rental Assistance Program 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:

Department of Defense, Veterans and Emergency Management

Department of Education

Department of Health and Human Services

Department of Labor

Department of Transportation

5.2 Entities that meet the definition of a Fiscal Agent per 31 CFR Part 205 shall be subject to the terms of this Agreement. The 

following is a list of Fiscal Agents that administer funds under the programs listed in the Section 4.0 of this Agreement:

Fiscal Agent CFDA Program Name

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Conduent Inc. 10.551 Supplemental Nutrition Assistance 

Program

Conduent Inc. 93.558 Temporary Assistance for Needy Families

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 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

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A State should initiate its request for supplemental funding during a quarter as soon as it becomes aware of the fact that a shortfall 

does/will exist. For the TANF and CCDF grants, supplemental funding requests (estimates) may be submitted by a State, for 

consideration by ACF, up through and including the 15th day of the third month of the first, second or third quarter of any fiscal year. 

Since TANF and CCDF are block grant programs, all unawarded portions of the annual allotment will automatically be issued at the 

beginning of the fourth quarter. Therefore, supplemental funding requests will not be available during the fourth quarter for these 

programs. For the CSE and FC/AA programs, supplemental funding requests may be submitted by a state, for consideration by ACF, 

up through and including the 15th day of the third month of any quarter of a fiscal year.

b. Justification for the Request

The request for a supplemental funding for any of the above-mentioned programs should contain a justification clearly documenting 

the need for the additional funding authority during the current quarter. This documentation should be in the form of State accounting 

records or similar documents that will show the actual expenditures through the most recent month for which such data are available, 

as well as the State's most accurate projection of its anticipated expenditures during the remaining month(s) of the quarter. For either 

the TANF or the CCDF program, the State's justification should also include an explanation of the activities requiring the obligation 

and/or expenditure of amounts that exceed the normal quarterly grant award restrictions and why these activities could not have been 

delayed until the next quarter.

c. Form Submittal

Supplemental funding requests should be made by completing the appropriate ACF quarterly report of expenditures and estimates

applicable to the particular program for which the grant award request is being made.

d. Approval Process

Upon receipt of the state's request for additional funding authority for a quarter, the ACF Regional Office will promptly review the 

supporting documentation. If the request is properly justified, so long as ACF has adequate funding availability, the State's request 

will be expedited and supplemental funding will be issued within 5 days of ACF receiving the request. The State will be notified by 

the Regional Office when the supplemental award has been transmitted to the Payment Management System (PMS) and when it 

may initiate drawdowns against the supplemental funding.

Additional guidance on this policy is provided in the U.S. Department of Health & Human Services, Administration for Children

and Families, letter (May 19, 2004) to State Administrators from the Deputy Assistant Secretary for Administration.

6.2 Description of Funding Techniques

6.2.1 The following are terms under which standard funding techniques shall be implemented for all transfers of funds to which the 

funding technique is applied in section 6.3.2 of this Agreement.

Funding Technique Name Description

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.

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 dollarweighted average day of clearance for the disbursement, in accordance with the 

clearance pattern specified in Exhibit II. The request shall be made in accordance with 

the appropriate Federal agency cut-off time specified in Exhibit I. The amount of the 

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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 currently no funding techniques listed in Section 6.2.2.

6.2.3 The following are terms under which miscellaneous funding techniques shall be implemented for all transfers of funds to 

which the funding technique is applied in section 6.3.2 of this Agreement.

There are currently no funding techniques listed in Section 6.2.3.

6.2.4 The following are terms under which State unique funding techniques shall be implemented for all transfers of funds to which 

the funding technique is applied in section 6.3.2 of this Agreement.

Funding Technique Name Description

Actual Drawdown - BiWeekly The State will draw down funds on a biweekly basis based on the actual expenditures 

which occurred in the past biweekly period. The request shall be made in accordance 

with the appropriate Federal agency cut-off time specified in Exhibit I. This funding 

technique is interest neutral.

Actual Drawdown - Weekly The State will draw down funds on a weekly basis based on the actual expenditures 

which occurred in the past weekly period. The request shall be made in accordance 

with the appropriate Federal agency cut-off time specified in Exhibit I. This funding 

technique is interest neutral.

Daily Estimated Draw The State will use historical data to determine an estimate for the daily average debit 

card payments and will draw funds the day the unemployment payment batch file is 

sent to the bank. This is the same day that the debit card amount is debited from the 

bank account. The estimate will be reconciled on a daily basis and any shortfall will 

be added to the next estimated federal draw. Any overage will be subtracted from the 

next estimated federal draw. This funding technique is interest neutral. This funding 

technique is interest neutral.

Daily Estimated Draw ZBA - ACH The State will use historical data to determine an estimate for the daily average debit

card payments and will request and receive funds via Fedwire on

the same day the unemployment payment batch file is sent to the bank. This is the

same day that the debit card amount is debited from the bank account. The estimate

will be reconciled on a daily basis and any shortfall will be added to the next

estimated federal draw. Any overage will be subtracted from the next estimated

federal draw. This funding technique is interest neutral. This funding technique is

interest neutral. This funding technique is interest neutral.

Weekly Drawdown - Actual & Estimate State shall request funds such that they are deposited in a State account on the median 

business day of the week. The request shall be made in accordance with the 

appropriate Federal Agency cut-off time specified in Exhibit I. The amount requested 

shall be comprised of two portions. Portion 1 - will include the actual expenditures 

made during the previous two business days, Portion 2 - will include an estimate of 

the expenditures to be made in the next three business days. Each week, the current 

cash balance will be taken into consideration through revenue and expense analysis. 

Any cash imbalances will be corrected in the current week's drawdown. In the event 

the Payment Management System (PMS) will not allow funds to be returned on the 

draw date, they can be returned in the days following the draw date. 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.

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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

% of Funds Agency Receives: 100

Component: Payment to Beneficiaries

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

10.559 Summer Food Service Program for Children

Recipient: Department of Education

% of Funds Agency Receives: 88

Component: Payments to Local Education Agencies

Technique: Actual Drawdown - Weekly

Average Day of Clearance: 2 Days

10.559 Summer Food Service Program for Children

Recipient: Department of Education

% of Funds Agency Receives: 3

Component: Administrative (Payroll)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: 0 Days

10.559 Summer Food Service Program for Children

Recipient: Department of Education

% of Funds Agency Receives: 9

Component: Administrative (All Other)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Department of Labor

% of Funds Agency Receives: 65

Component: Payments to Beneficiaries - Direct Deposit

Technique: Actual Clearance, ZBA- ACH

Average Day of Clearance: 0 Days

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Department of Labor

% of Funds Agency Receives: 8

Component: Administrative (payroll)

Technique: Actual Drawdown - BiWeekly

Average Day of Clearance: 2 Days

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Department of Labor

% of Funds Agency Receives: 5

Component: Administrative (non-payroll)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: 5 Days

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Department of Labor

% of Funds Agency Receives: 0

Component: Payment to Beneficiaries - Paper Checks

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Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Department of Labor

% of Funds Agency Receives: 22

Component: Payments to Beneficiaries - MAP Cards

Technique: Daily Estimated Draw

Average Day of Clearance: 1 Day

17.225S Unemployment Insurance -- State Benefit Account

Recipient: Department of Labor

% of Funds Agency Receives: 76

Component: Payment to Beneficiaries - Direct Depost

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

17.225S Unemployment Insurance -- State Benefit Account

Recipient: Department of Labor

% of Funds Agency Receives: 1

Component: Payment to Beneficiaries - Paper Checks

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

17.225S Unemployment Insurance -- State Benefit Account

Recipient: Department of Labor

% of Funds Agency Receives: 23

Component: Payments to Beneficiaries - MAP Card

Technique: Daily Estimated Draw

Average Day of Clearance: 1 Day

20.205 Highway Planning and Construction

Recipient: Department of Transportation

% of Funds Agency Receives: 11

Component: Administrative (Payroll)

Technique: Average Clearance

Average Day of Clearance: 0 Days

20.205 Highway Planning and Construction

Recipient: Department of Transportation

% of Funds Agency Receives: 88

Component: Direct Costs

Technique: Average Clearance

Average Day of Clearance: 2 Days

20.205 Highway Planning and Construction

Recipient: Department of Transportation

% of Funds Agency Receives: 1

Component: Administrative (Other)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

84.010 Title I Grants to Local Educational Agencies

Recipient: Department of Education

% of Funds Agency Receives: 1

Component: Administrative (Payroll)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

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84.010 Title I Grants to Local Educational Agencies

Recipient: Department of Education

% of Funds Agency Receives: 98

Component: Payments to Local Educational Agencies

Technique: Daily Estimated Draw

Average Day of Clearance: 2 Days

84.010 Title I Grants to Local Educational Agencies

Recipient: Department of Education

% of Funds Agency Receives: 1

Component: Administrative (Other)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

84.027 Special Education -- Grants to States

Recipient: Department of Education

% of Funds Agency Receives: 8

Component: Administrative (Payroll)

Technique: Average Clearance

Average Day of Clearance: 0 Days

84.027 Special Education -- Grants to States

Recipient: Department of Education

% of Funds Agency Receives: 91

Component: Payments to LEA & Discretionary

Technique: Average Clearance

Average Day of Clearance: 2 Days

84.027 Special Education -- Grants to States

Recipient: Department of Education

% of Funds Agency Receives: 1

Component: Administrative (Other)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 100

Component: All Expenses

Technique: Weekly Drawdown - Actual & Estimate

Average Day of Clearance: N/A

93.575 Child Care and Development Block Grant

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 12

Component: Administrative (All Other)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

93.575 Child Care and Development Block Grant

Recipient: Department of Health and Human Services

% of Funds Agency Receives:9

Component: Cost Allocation Payments

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

93.575 Child Care and Development Block Grant

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 79

Component: Payments to Providers

Technique: Actual Drawdown - Weekly

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Average Day of Clearance: N/A

93.767 Children's Health Insurance Program

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 8

Component: Miscellaneous Provider Payments & Other Misc.

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

93.767 Children's Health Insurance Program

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 3

Component: Administrative (Other)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

93.767 Children's Health Insurance Program

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 1

Component: Administrative (Payroll)

Technique: Average Clearance

Average Day of Clearance: 0 Days

93.767 Children's Health Insurance Program

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 88

Component: Provider Payments - MIHMS Weekly

Technique: Average Clearance

Average Day of Clearance: 0 Days 93.778 Medical Assistance Program

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 1

Component: Miscellaneous Provider Payments & Other Misc.

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 92

Component: Provider Payments - MIHMS Weekly

Technique: Average Clearance

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 1

Component: Administrative (Payroll)

Technique: Average Clearance

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Department of Health and Human Services % of Funds Agency Receives: 6

Component: Administrative (Other)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

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97.036 Disaster Grants - Public Assistance (Presidentially Declared 

Disasters)

Recipient: Department of Defense, Veterans and Emergency 

Management

% of Funds Agency Receives: 100

Component: Grants

Technique: Weekly Drawdown - Actual & Estimate

Average Day of Clearance: N/A

97.050 Presidential Declared Disaster Assistance to Individuals and 

Households - Other Needs

Recipient: Department of Defense, Veterans and Emergency 

Management

% of Funds Agency Receives: 100

Component: Grants

Technique: Weekly Drawdown - Actual & Estimate

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 State of Maine has developed clearance patterns for three centralized accounts:

Primary Disbursement Account #0366

This is the primary disbursement account for the State of Maine excluding state payroll and unemployment benefits. The clearance 

pattern for this account also factors in the clearance pattern of ACH payments issued from the #9798 (ACH Primary Disbursement) 

account.

Payroll Checking Account #0374

This is the State of Maine payroll account for employee payroll payments. The clearance pattern for this account also factors in the 

clearance pattern of direct deposit (ACH) payments issued from the #9790 (ACH Payroll) account.

Unemployment Compensation #9709

This is the benefit payment account used for direct deposit (ACH) payments.

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

U.S. Bank and the Office of the State Treasurer

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

1. Range of check numbers for checks issued during specified 90-calendar-day time period.

2. Total number of payments and total amount of payments during time period.

3. Total of daily checks presented that fall within the predefined check number range.

4. The number of days from the date of issue by the State to the day the dollars were removed from the State's bank account. 

Percentage of daily checks presented (number and amount) compared against the total issuance of the period.

5. Dollar-weighted factor created by applying percentage against number of days before check presentation.

The sum of dollar-weighted factors represents the average amount of time for a check to be presented for payment to the bank after the 

check issuance date.

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

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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:

None.

The State shall also adjust each clearance pattern to reflect:

N/A

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

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 Clearance, ZBA - Same Day Payment

Actual Drawdown - BiWeekly

Actual Drawdown - Weekly

Average Clearance

Daily Estimated Draw

Daily Estimated Draw ZBA - ACH

Weekly Drawdown - Actual & Estimate

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8.1.2 The State shall maintain information on disbursements and receipts of funds to verify the implementation of any funding 

technique and document interest liabilities.

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

(1) amount of the issuance

(2) date of issuance

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

(4) amount of Federal funds received

(5) date funds were requested

8.2 Federal Interest Liabilities

8.2.1 A Federal interest liability shall accrue from the day the State pays out its own funds for program purposes to the day Federal 

funds are credited to a State account. With regard to funds transferred out of the Federal Highway Trust Fund, if a State does not bill 

at least weekly for current project costs, the Federal interest liability shall not accrue prior to the day the State submits a request for 

funds.

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

Actual Activity:

For all transactions where the State pays out its own funds for program purposes prior to receiving Federal funds, the State shall track 

each payment from the date it is paid out of a State account to the date Federal funds are subsequently credited to a State account to 

cover that outlay. The Federal interest liability on each payment shall be based on the difference in whole days between the two events. 

With Federal-State matching programs, interest shall be calculated on the Federal percentage of the disbursement.

8.3 The Unemployment Trust Fund

8.3.1 The State shall use the following method to calculate State interest liabilities on funds withdrawn from the several accounts

in the Unemployment Trust Fund:

Federal and State Funds are Interest Neutral:

There are no interest earnings on funds withdrawn from the State account, as the State has implemented average clearance, an interestneutral funding technique, for such transfers. For UTF transfers 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 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 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 or paid out for program purposes.

8.5 Exemptions

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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 Clearance:

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 deposit to issuance shall be determined from information captured by TAMI (Treasury Automated

Management Information System). TAMI is an electronic cash receipt system that provides bank validation dates for

accounting transactions and can be used to determine when a deposit was made. AdvantageME (State accounting system)

and the GQL Warehouse (Database of archived accounting transactions) can be queried to provide dates of check

issuance/s in relation to the date of deposit

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

I = ADB x R/365 x T , 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

365 = Calendar days

T = Days of State Liability

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

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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:

N/A

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

Laura Hudson

Director of Internal Operations

Signature: Date Signed:

Date Submitted 6/21/2022

Sandra R. Paylor

Assistant Commissioner

Revenue Collections Management

Bureau of the Fiscal Service

U.S. Department of the Treasury

Signature: Date Signed:

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7/5/2022

7/5/2022
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Exhibit I - Funds Request and Receipt Times Schedule

State of Maine

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

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Exhibit II - State of Maine

LIST OF STATE CLEARANCE TIMES

(Rounded Dollar-Weighted Average Day of Clearance)

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

CFDA Program Name Recipient % Component Technique Rounded 

days

10.551 Supplemental 

Nutrition 

Assistance 

Program

Department of 

Health and 

Human Services

100.0 Payment to 

Beneficiaries

Actual Clearance, 

ZBA - Same Day 

Payment

0 Days

10.559 Summer Food 

Service Program 

for Children

Department of 

Education

88.0 Payments to Local 

Education Agencies

Actual Drawdown -

Weekly

2 Days

Summer Food 

Service Program 

for Children

Department of 

Education

3.0 Administrative 

(Payroll)

Actual Drawdown -

Weekly

0 Days

Summer Food 

Service Program 

for Children

Department of 

Education

9.0 Administrative (All 

Other)

Actual Drawdown -

Weekly

N/A

17.225

F

Unemployment 

Insurance --

Federal Benefit 

Account and 

Administrative 

Costs

Department of 

Labor

65.0 Payments to 

Beneficiaries - Direct 

Deposit

Actual Clearance, 

ZBA - ACH

0 Days

Unemployment 

Insurance --

Federal Benefit 

Account and 

Administrative 

Costs

Department of 

Labor

8.0 Administrative 

(payroll)

Actual Drawdown -

BiWeekly

2 Days

Unemployment 

Insurance --

Federal Benefit 

Account and 

Administrative 

Costs

Department of 

Labor

5.0 Administrative (nonpayroll)Actual Drawdown -

Weekly

5 Days

Unemployment 

Insurance --

Federal Benefit 

Account and 

Administrative 

Costs

Department of 

Labor

0.0 Payment to 

Beneficiaries - Paper 

Checks

Actual Drawdown -

Weekly

N/A

Unemployment 

Insurance --

Federal Benefit 

Account and 

Administrative 

Costs

Department of 

Labor

22.0 Payments to 

Beneficiaries - MAP 

Cards

Daily Estimated 

Draw

1 Day

17.225

S

Unemployment 

Insurance -- State 

Benefit Account

Department of 

Labor

76.0 Payment to 

Beneficiaries - Direct 

Depost

Actual Clearance, 

ZBA - Same Day 

Payment

0 Days

Unemployment 

Insurance -- State 

Benefit Account

Department of 

Labor

1.0 Payment to 

Beneficiaries - Paper 

Checks

Actual Drawdown -

Weekly

N/A

Unemployment 

Insurance -- State 

Benefit Account

Department of 

Labor

23.0 Payments to 

Beneficiaries - MAP 

Card

Daily Estimated 

Draw

1 Day

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20.205 Highway Planning 

and Construction

Department of 

Transportation

11.0 Administrative 

(Payroll)

Average Clearance 0 Days

Highway Planning 

and Construction

Department of 

Transportation

88.0 Direct Costs Average Clearance 2 Days

Highway Planning 

and Construction

Department of 

Transportation

1.0 Administrative 

(Other)

Actual Drawdown -

Weekly

N/A

84.010 Title I Grants to 

Local Educational 

Agencies

Department of 

Education

1.0 Administrative 

(Payroll)

Actual Drawdown -

Weekly

N/A

Title I Grants to 

Local Educational 

Agencies

Department of 

Education

98.0 Payments to Local 

Educational Agencies

Daily Estimated 

Draw

2 Days

Title I Grants to 

Local Educational 

Agencies

Department of 

Education

1.0 Administrative 

(Other)

Actual Drawdown -

Weekly

N/A

84.027 Special Education 

-- Grants to States

Department of 

Education

8.0 Administrative 

(Payroll)

Average Clearance 0 Days

Special Education 

-- Grants to States

Department of 

Education

91.0 Payments to LEA & 

Discretionary

Average Clearance 2 Days

Special Education 

-- Grants to States

Department of 

Education

1.0 Administrative 

(Other)

Actual Drawdown -

Weekly

N/A

93.558 Temporary 

Assistance for 

Needy Families

Department of 

Health and 

Human Services

100.0 All Expenses Weekly Drawdown 

- Actual & Estimate

N/A

93.575 Child Care and 

Development 

Block Grant

Department of 

Health and 

Human Services

12.0 Administrative (All 

Other)

Actual Drawdown -

Weekly

N/A

Child Care and 

Development 

Block Grant

Department of 

Health and 

Human Services

9.0 Cost Allocation 

Payments

Actual Drawdown -

Weekly

N/A

Child Care and 

Development 

Block Grant

Department of 

Health and 

Human Services

79.0 Payments to 

Providers

Actual Drawdown -

Weekly

N/A

93.767 Children's Health 

Insurance 

Program

Department of 

Health and 

Human Services

8.0 Miscellaneous 

Provider Payments & 

Other Misc.

Actual Drawdown -

Weekly

N/A

Children's Health 

Insurance 

Program

Department of 

Health and 

Human Services

3.0 Administrative 

(Other)

Actual Drawdown -

Weekly

N/A

Children's Health 

Insurance 

Program

Department of 

Health and 

Human Services

1.0 Administrative 

(Payroll)

Average Clearance 0 Days

Children's Health 

Insurance 

Program

Department of 

Health and 

Human Services

88.0 Provider Payments -

MIHMS Weekly

Average Clearance 0 Days

93.778 Medical 

Assistance 

Program

Department of 

Health and 

Human Services

1.0 Miscellaneous 

Provider Payments & 

Other Misc.

Actual Drawdown -

Weekly

N/A

Medical 

Assistance 

Program

Department of 

Health and 

Human Services

92.0 Provider Payments -

MIHMS Weekly

Average Clearance 0 Days

Medical 

Assistance 

Program

Department of 

Health and 

Human Services

1.0 Administrative 

(Payroll)

Average Clearance 0 Days

Medical 

Assistance 

Program

Department of 

Health and 

Human Services

6.0 Administrative 

(Other)

Actual Drawdown -

Weekly

N/A

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97.036 Disaster Grants -

Public Assistance 

(Presidentially 

Declared 

Disasters)

Department of 

Defense, Veterans 

and Emergency 

Management

100.0 Grants Weekly Drawdown 

- Actual & Estimate

N/A

97.050 Presidential 

Declared Disaster 

Assistance to 

Individuals and 

Households -

Other Needs

Department of 

Defense, Veterans 

and Emergency 

Management

100.0 Grants Weekly Drawdown 

- Actual & Estimate

N/A

Certification

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: 

DocuSign Envelope ID: 9BB5514F-22CA-457C-90A6-F9D59F0A57B7

7/5/2022

Laura Hudson

Director of Internal Operations