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

Average Clearance

Modified Actua! Clearance as it applies to the Department of Aging and Disability Services
Monthly Draws

N/A - TANF Recoveries

Non-Cash

Reimbursement

Weekly Draws - Texas Department of Transportation (Program Cost/Other)

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

Page 20 of 30


% of Funds Agency Receives: 9.00
Component: TANF Recoveries
Technique: N/A - TANF Recoveries
Average Day of Clearance: N/A

Recipient: 302 - Office of the Attorney General
% of Funds Agency Receives: 51.00
Component: Program Costs

Technique: Pre-Issuance

Average Day of Clearance: 0 Days

93.575 Child Care and Development Block Grant
Recipient: 320 - Texas Workforce Commission
% of Funds Agency Receives: 2.00

Component: Payroll Costs

Technique: Monthly Draws.

Average Day of Clearance: N/A

Recipient: 320 - Texas Workforce Commission
% of Funds Agency Receives: 82.00
Component: Program Costs

Technique; Pre-Issuance

Average Day of Clearance: 2 Days

Recipient: 530 - Department of Family and Protective Services
% of Funds Agency Receives: 4.00

Component: Program Costs.

Technique: Pre-Issuance

Average Day of Clearance: 0 Days

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 2.00

Component: Program Costs

Technique: Pre-lssuance

Average Day of Clearance: 0 Days

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 7.00

Component: Payroll Costs

Technique: Pre-lssuance

Average Day of Clearance: 0 Days

Recipient: 530 - Department of Family and Protective Services
% of Funds Agency Receives: 1.00

Component: Payroll Costs

Technique: Pre-lssuance

Average Day of Clearance: 0 Days

Page 14 of 30


12.0 AUTHORIZED SIGNATURES

Mike Reissig
Deputy Comptroller
Texas Comptrolley

Corvelli A. McDaniel

Assistant Commissione!
Revenue Collections Management

Bureau of the Fiscal Service
U.S. Department of the Trea:

Signature:

Page 24 of 30


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.

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.

Actual Clearance, ZBA - Same Day Payment

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

Average Clearance

The State shall request funds such that they are deposited by ACH on the dollar-weighted average day of clearance for
the disbursement, in accordance with the clearance pattern specified in Exhibit Il. The request shall be made in
accordance with the appropriate Federal agency cut-off time specified in Exhibit !. The amount of the request shall be for
the exact amount of that disbursement. This funding technique is interest neutral.

Pre-Issuance

The State shall request funds such that they are deposited in a State account not more than three business days prior to
the day the State makes a disbursement. The request shall be made in accordance with the appropriate Federal agency
cut-off time specified in Exhibit |. The amount of the request shall be the amount the State expects to disburse. This
funding technique is not interest neutral.

Page 5 of 30


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 estimated
clearance, an interest-neutral 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.

8.5 Exemptions

8.5.1 Where more than one State agency is a recipient of Federal funds under a program, a particular State agency's
funding may be excluded from interest calculation procedures if the State agency receives an amount of funds less than 5
% of the State's threshold for major Federal assistance programs. Notwithstanding this potential exemption, however, in
no case shall less than 90% of a program's total funding be subject to interest calculation procedures.

Proration of calculations: If less than total program funding is subject to interest calculation procedures, the resulting
interest liability calculations shall be prorated to 100% of program funding.

8.6 State Interest Liabilities

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

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

Page 21 of 30


CFDA | | _ Component | Technique | Round)
| a |. eee a | | ed
f : : Esa 3 | days
14.228 |Community Development |305 - General Land 81.0 |Program Costs Pre-Issuance 5 Days
Block Grants/State's Office 0
Program
14,228 |Community Development {305 - General Land 1.00 |indirect Costs Reimbursement N/A
Block Grants/State’s Office
Program
14.228 |Community Development |551 - Texas Department |16.0 |Program Costs Pre-Issuance 1 Day
Block Grants/State's of Agriculture 0
Program
14.228 |Community Development |551 - Texas Department |1.00 |Payrall Costs Pre-Issuance 0 Days
Block Grants/State's of Agriculture
Program.
17.225F |Unemployment Insurance |320 - Texas Workforce {1.00 |Indirect Costs Pre-Issuance 3 Days
-- Federal Benefit Commission
Account and
Administrative Costs
17.225F |Unemployment Insurance |320 - Texas Workforce 3.00 |Payrolt Costs Monthly Draws NIA
— Federal Benefit Commission
Account and
Administrative Costs
17.225F |Unemployment Insurance |320 - Texas Workforce |96.0 jPayment to Beneficiaries |Actual Clearance, ZBA- |N/A
|-- Federal Benefit Commission [) ‘Same Day Payment
Account and
Administrative Costs
17.225S |Unemployment Insurance |320 - Texas Workforce 100. |Payment to Beneficiaries |Actual Clearance, ZBA- |N/A
— State Benefit Account_|Commission 00 Same Day Payment
20.205 | Highway Planning and 601 - Texas Department |50.0 |Program Costs Pre-Issuance Funding 2 Days
‘Construction of Transportation 0 ‘Technique as it applies to
ithe Texas Department of
Transportation - First
Week
20.205 | Highway Planning and 601 - Texas Department |2.00 {Payroll Costs Weekly Draws - Texas |N/A
Construction of Transportation Department of
Transportation (Program
‘Cosv/Other)
20.205 |Highway Planning and = {601 - Texas Department |48.0 |Program Costs - Weekly |Weekly Draws- Texas |N/A
Construction of Transportation 0 Depariment of
Transportation (Program
Cost/Other)
84.010 Title | Grants to Local 701 - Texas Education |98.0 |Program Costs Pre-Issuance 3 Days
Educational Agencies Agency i)
84.010 [Title | Grants to Local 701 - Texas Education |1.00 |Administrative Costs Pre-Issuance 3 Days
Educational Agencies |Agency
84.010 Title | Grants to Local 701 - Texas Education 1.00 {Payroll Costs Pre-Issuance 0 Days
Educational Agencies Agency
84.027 |Special Education ~ 701 - Texas Education 96.0 |Program Costs Pre-Issuance 2 Days
Grants to States Agency 0
84.027 |Special Education — 701 - Texas Education |1.00 |Payral! Costs Pre-Issuance 0 Days
Grants to States Agency
84.027 |Special Education -- 701 - Texas Education |3.00 |Administrative Costs Pre-Issuance 2 Days
Grants to States Agency
84.126 |Rehabilitation Services - }320 - Texas Workforce [65.0 |Program Costs Pre-Issuance 1 Day
Vocational Rehabilitation |Commission ty)
Grants to States
84.126 |Rehabilitation Services - |320 - Texas Workforce [35.0 |Payroll Costs Monthly Draws. NIA
Vocational Rehabilitation |Commission 0
Grants to States
84.367 —|Improving Teacher 701 - Texas Education 1.00 |Payroll Costs Pre-Issuance 2 Days
Quality State Grants Agency
84.367 |Improving Teacher 701 - Texas Education |2.00 |Administrative Costs Pre-Issuance 3 Days
Quality State Grants Agency
84.367 | Improving Teacher 701 - Texas Education 97.0 {Program Costs Pre-Issuance 3 Days
Quality State Grants Agency 0

Page 27 of 30


10.2 The State expects to incur the following types of interest calculation costs:
Personnel; computer resources and administrative overhead

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 23 of 30


Component: Administrative Costs
Technique: Pre-lssuance
Average Day of Clearance: 2 Days

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 1.00

Component: Payroll Costs

Technique: Pre-issuance

Average Day of Clearance: 1 Day

Recipient: 530 - Department of Family and Protective Services
% of Funds Agency Receives: 1.00

Component: Program Costs

Technique: Pre-lssuance

Average Day of Clearance: 0 Days

Recipient: 530 - Department of Family and Protective Services
% of Funds Agency Receives: 1.00

Component: Payroll Costs

Technique: Pre-lssuance

Average Day of Clearance: 0 Days

Recipient: 530 - Department of Family and Protective Services
% of Funds Agency Receives: 1.00

Component: Administrative Costs

Technique: Pre-lssuance

Average Day of Clearance: 0 Days

6.3.3 Materiality Exemptions
Agencies exempt from coverage on the basis of materiality:

212 - Office of Court Administration for CFDA 93.563

320 - Texas Workforce Commission for CFDA 84.126, 93.667

332 - Texas Department of Housing and Community Affairs for CFDA 14.228, 93.558

401 - Adjutant General for CFDA 10.553, 10.555

529 - Health and Human Services Commission for CFDA 84.027, 93.268, 93.767

551 - Texas Department of Agriculture for CFDA 10.553

580 - Texas Water Development Board for CFDA 14.228

644 - Texas Juvenile Justice Department for CFDA 10.553, 10.555, 84.027, 84.367, 93.658
696 - Texas Department of Criminal Justice for CFDA 84.027, 84.367

701 - Texas Education Agency for CFDA 93.558

771 - Texas School for the Blind and Visually Impaired for CFDA 10.555, 84.010, 84.027, 84.367, 93.778
772 - Texas Schoo! for the Deaf for CFDA 10.553, 10.555, 84.010, 84.027, 84.367, 93.778
781 - Texas Higher Education Coordinating Board for CFDA 84.367

808 - Texas Historical Commission for CFDA 20.205

Page 18 of 30


Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: N/A

Recipient: 320 - Texas Workforce Commission
% of Funds Agency Receives: 3.00
Component: Payroll Costs

Technique: Monthly Draws

Average Day of Clearance: N/A

Recipient: 320 - Texas Workforce Commission
% of Funds Agency Receives: 1.00
Component: Indirect Costs

Technique: Pre-lssuance

Average Day of Clearance: 3 Days

17.2258 Unemployment Insurance -- State Benefit Account
Recipient: 320 - Texas Workforce Commission

% of Funds Agency Receives: 100.00

Component: Payment to Beneficiaries

Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: N/A

20.205 Highway Planning and Construction

Recipient: 601 - Texas Department of Transportation

‘% of Funds Agency Receives: 50.00

Component: Program Costs

Technique: Pre-lssuance Funding Technique as it applies to the Texas Department of Transportation - First Week
Average Day of Clearance: 2 Days

Recipient: 601 - Texas Department of Transportation

% of Funds Agency Receives: 48.00

Component: Program Costs - Weekly

Technique: Weekly Draws - Texas Department of Transportation (Program Cost/Other)
Average Day of Clearance: N/A

Recipient: 601 - Texas Department of Transportation

% of Funds Agency Receives: 2.00

Component: Payroll Costs

Technique: Weekly Draws - Texas Department of Transportation (Program Cost/Other)
Average Day of Clearance: N/A

84.010 Title | Grants to Local Educational Agencies
Recipient: 701 - Texas Education Agency

% of Funds Agency Receives: 98.00

Component: Program Costs

Technique: Pre-Issuance

Page 10 of 30


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 Signatur

Title:

Page 30 of 30


Each week (excluding the first week of the month), the Texas Department of Transportation shall request payment for
expenditures (submitted by contractors and for all other direct cost) that have been paid for by the State Highway Fund.
The request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit |. 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: 529 - Health and Human Services Commission

% of Funds Agency Receives: 100.00
Component: Program Costs under EBT
Technique: Actual Clearance, ZBA - ACH
Average Day of Clearance: N/A

10.553 School Breakfast Program
Recipient: 701 - Texas Education Agency
% of Funds Agency Receives: 100.00
Component: Program Costs

Technique: Actual Clearance, ZBA - ACH
Average Day of Clearance: 3 Days

10.555 National School Lunch Program
Recipient: 701 - Texas Education Agency
% of Funds Agency Receives: 88.00
Component: Program Costs

Technique: Actual Clearance, ZBA - ACH
Average Day of Clearance: 3 Days

Recipient: 551 - Texas Department of Agriculture
% of Funds Agency Receives: 11.00
Component: Program Costs

Technique: Non-Cash

Average Day of Clearance: N/A

Recipient: 551 - Texas Department of Agriculture
% of Funds Agency Receives: 1.00

Component: Program Costs

Technique: Pre-Issuance

Average Day of Clearance: 0 Days

Page 7 of 30


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.

Modified Actual Clearance as it applies to the Department of Aging and Disability Services

The Department of Aging and Disability Services (DADS) submits a request to the Health and Human Services
Commission (HHSC) monthly for reimbursement of expenditures for CFDA 93.778. HHSC draws down the federal funds
and transfers them to a DADS account. The request shall be made in accordance with the appropriate Federal agency
cut-off time specified in Exhibit |. This funding technique is interest neutral.

Monthly Draws

The State shall draw down once a month, approximately mid-month by applying the indirect cost rate to the appropriate
direct costs of the prior month. This draw shall cover indirect costs incurred during the prior month. The request shall be
made in accordance with the appropriate Federal agency cut-off time specified in Exhibit |. This funding technique is
interest neutral.

N/A - TANF Recoveries

Funds are not requested. Cut-off times in accordance with Exhibit | do not apply as funds are not requested. No amount of
funds are requested. This funding technique is interest neutral.

Non-Cash

No funds are requested as this is a non-cash funding technique. Cut-off time specified in Exhibit | does not apply as this is
a non-cash funding technique. There is no fund request as this is a non-cash funding technique. This funding technique is
interest neutral.

Pre-Issuance Funding Technique as it applies to the Texas Department of Transportation - First Week

Around the first week of each month, the Texas Department of Transportation shall request payment for all accrued
expenditures submitted by highway contractors. The request shall be made in accordance with the appropriate Federal
agency cut-off time specified in Exhibit 1. This funding technique is not interest neutral.

Reimbursement

The State requests funds such that they are deposited in a State account after the State has disbursed funds for Federal
assistance program purposes. This funding technique is interest neutral.

Weekly Draws - Texas Department of Transportation (Program Cost/Other)

Page 6 of 30


7.0 CLEARANCE PATTERNS
7.1 The State shall develop separate clearance pattems for each of the following:

For each program or logical group of programs subject to the provisions of
Subpart A of 31 CFR 205, except for those programs that utilize Electronic Benefit Transfers (EBT). The state will also
develop functional clearance patterns for those programs where applicable.

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

State agencies will calculate clearance patterns for period 1 (from deposit date to issuance date, where issuance means
the actual release of payments). The Comptroller of Public Accounts will calculate clearance patterns for period 2 from
issuance to clearance.

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

An agency's internal accounting system, the Uniform Statewide Accounting System, the Treasury Warrants System, the
Uniform Statewide Payroll/Personnel System and the Standardized Payroll/Personnel Reporting 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
teleased 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:

Not Applicable

Page 19 of 30


% of Funds Agency Receives: 9.00
Component: Programs Costs
Technique: Pre-lssuance

Average Day of Clearance: 3 Days

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 41.00

Component: Payroll Costs

Technique: Pre-Issuance

Average Day of Clearance: 1 Day

14.228 Community Development Block Grants/State's Program
Recipient: 305 - General Land Office

% of Funds Agency Receives: 81.00

Component: Program Costs

Technique: Pre-Issuance

Average Day of Clearance: 5 Days

Recipient: 551 - Texas Department of Agriculture
% of Funds Agency Receives: 16.00
Component: Program Costs

Technique: Pre-lssuance

Average Day of Clearance: 1 Day

Recipient: 305 - General Land Office
% of Funds Agency Receives: 1.00
Component: Payroll Costs
Technique: Pre-lssuance

Average Day of Clearance: 1 Day

Recipient: 551 - Texas Department of Agriculture
% of Funds Agency Receives: 1.00

Component: Payroll Costs

Technique: Pre-Issuance

Average Day of Clearance: 0 Days

Recipient: 305 - General Land Office
% of Funds Agency Receives: 1.00
Component: indirect Costs
Technique: Reimbursement
Average Day of Clearance: N/A

17.225F Unemployment Insurance -- Federal Benefit Account and Administrative Costs
Recipient: 320 - Texas Workforce Commission

% of Funds Agency Receives: 96.00

Component: Payment to Beneficiaries

Page 9 of 30


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

Federal Agency Payment Type | [Receipt Window _|
Agriculture-FNS ACH 1 day
Agricuiture-FNS Fedwire O day
Agriculture-FS ACH Aday
Air National Guard ACH 12:00 PM 15 days
Army National Guard ACH 12:00 PM 15 days
[Commerce-NOAA ACH 2:00 PM iday
Dept of Homeland Security (FEMA) Fedwire 2:00 PM 2 days
Dept of Homeland Security (ODP) ACH 2:00 PM 2 days
Dept of Homeland Security (ODP) Fedwire 2:00 PM 2 days
EPA ACH 2:00 PM. 2 days
EPA Fedwire 2:00 PM. O day
Education ACH i day
Education Fedwire 0 day
Energy ACH. 4:00 PM. iday
Energy Fedwire 3:00 PM. 0 day
HHS ACH 6:30 PM. iday
HHS: Fedwire 13:00 PM. 0 day
HUD ACH 5:30 PM. 2 days
HUD Fedwire 3:00 PM 0 day
Interior-FWS ACH 11:59 PM i day
Interior-FWS Fedwire 5:45 PM 0 day
interior-OSM ACH 3:00 PM. iday
Interior-OSM Fedwire 0 day
Justice ACH 11:00 PM 6 days
Justice Fedwire 2:00 PM. 2 days
Labor-Non-UTF ACH 3:00 PM. iday
Labor-UTF ACH 13:00 PM. iday
Labor-UTF Fedwire 3:00 PM. Q day
National Science Foundation (NSF) ACH 8:00 PM. iday
National Science Foundation (NSF) Fedwire 5:45 PM 0 day
Social Security Administration ACH 11:59 PM iday
Social Security Administration Fedwire 5:45 PM O day
Transportation (FAA) ACH (2:00 PM. iday
‘Transportation (FHWA) [ACH 12:00 PM 3 days
‘Transportation (FHWA) Fedwire 12:00 PM O day
Transportation (FTA) [ACH 2:00 PM. iday
Veterans Administration ACH 12:00 PM 3 days

Page 25 of 30


Cash Management Improvement Act Agreement
between
The State of Texas
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 Texas
(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 Texas shall be the Director of Fiscal Management, Texas Comptroller of
Public Accounts 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 09/01/2017 and shall remain in effect until 08/31/2018.

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

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

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

Page 1 of 30


84.367 Improving Teacher Quality State Grants
Recipient: 701 - Texas Education Agency

% of Funds Agency Receives: 97.00
Component: Program Costs

Technique: Pre-lssuance

Average Day of Clearance: 3 Days

Recipient: 701 - Texas Education Agency
% of Funds Agency Receives: 2.00
Component: Administrative Costs
Technique: Pre-lssuance

Average Day of Clearance: 3 Days

Recipient: 701 - Texas Education Agency
% of Funds Agency Receives: 1.00
Component: Payroll Costs

Technique: Pre-lssuance

Average Day of Clearance: 2 Days

93.558 Temporary Assistance for Needy Families
Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 1.00

Component: Program Costs under EBT

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: N/A

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 2.00

Component: Program Costs

Technique: Average Clearance

Average Day of Clearance: N/A

Recipient: 320 - Texas Workforce Commission
% of Funds Agency Receives: 2.00
Component: Payroll Costs

Technique: Monthly Draws

Average Day of Clearance: N/A

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 1.00

Component: Payroll Costs

Technique: Pre-Issuance

Average Day of Clearance: 7 Days

Recipient: 530 - Department of Family and Protective Services
% of Funds Agency Receives: 41.00
Component: Program Costs

Page 12 of 30


Average Day of Clearance: 3 Days

Recipient: 701 - Texas Education Agency
% of Funds Agency Receives: 1.00
Component: Administrative Costs
Technique: Pre-lssuance

Average Day of Clearance: 3 Days

Recipient: 701 - Texas Education Agency
% of Funds Agency Receives: 1.00
Component: Payroll Costs

Technique: Pre-lssuance

Average Day of Clearance: 0 Days

84.027 Special Education -- Grants to States
Recipient: 701 - Texas Education Agency

% of Funds Agency Receives: 96.00
Component: Program Costs

Technique: Pre-Issuance

Average Day of Clearance: 2 Days

Recipient: 701 - Texas Education Agency
% of Funds Agency Receives: 3.00
Component: Administrative Costs
Technique: Pre-Issuance

Average Day of Clearance: 2 Days

Recipient: 701 - Texas Education Agency
% of Funds Agency Receives: 1.00
Component: Payroll Costs

Technique: Pre-Issuance

Average Day of Clearance: 0 Days

84.126 Rehabilitation Services - Vocational Rehabilitation Grants to States
Recipient: 320 - Texas Workforce Commission

% of Funds Agency Receives: 35.00

Component: Payroll Costs

Technique: Monthly Draws

Average Day of Clearance: N/A

Recipient: 320 - Texas Workforce Commission
% of Funds Agency Receives: 65.00
Component: Program Costs

Technique: Pre-Issuance

Average Day of Clearance: 1 Day

Page 11 of 30


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

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 97.00

Component: Program Costs

Technique: Pre-Issuance

Average Day of Clearance: 4 Days

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 1.00

Component: Indirect Costs

Technique: Pre-lssuance

Average Day of Clearance: 4 Days

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 2.00

Component: Payroll Costs

Technique: Pre-Issuance

Average Day of Clearance: 1 Day

10.558 Child and Adult Care Food Program
Recipient: 551 - Texas Department of Agriculture
% of Funds Agency Receives: 100.00
Component: Program Costs

Technique: Pre-Issuance

Average Day of Clearance: 3 Days

10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program

Recipient: 320 - Texas Workforce Commission
% of Funds Agency Receives: 1.00
Component: Payroll Costs

Technique: Monthly Draws.

Average Day of Clearance: N/A

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 2.00

Component: Program Costs

Technique: Pre-Issuance

Average Day of Clearance: 4 Days

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 47.00

Component: Administrative Costs

Technique: Pre-Issuance

Average Day of Clearance: 4 Days

Recipient: 320 - Texas Workforce Commission

Page 8 of 30


8.6.2.1 Measuring Time Funds Are Held

Deposit to Issuance; Issuance to Clearance:

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

8.6.2.2 Source of Data

Clearance Patterns:
The time period from issuance of funds to the date funds are debited from the State's account shall be determined by the
appropriate clearance pattern specified in Exhibit Il.

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
Pre-Issuance Time + Clearance Time:
t=Pxrx {Pl + CT}, where

| = State's total interest liability

P = Total annual expenditures of Federal funds for program or component cash flow of program

r= Annualized rate equal to the average equivalent yields of 13-week Treasury bills auctioned during a State's fiscal year
divided by 365 days

PI = Dollar-weighted average number of days Federal funds are held by State prior to issuance

CT = Dollar-weighted average number of days Federal funds are held by State between issuance and clearance of
checks, as determined by the appropriate clearance pattern in Exhibit II

9.0 REVERSE FLOW PROGRAMS

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

10.0 INTEREST CALCULATION COSTS.

10.1 As set forth in 31 CFR 205.27, interest calculation costs are defined as those costs necessary for the actual
calculation of interest, including the cost of developing and maintaining clearance patterns in support of the interest
calculations. Interest calculation costs do not include expenses for normal disbursing services, such as processing of
checks or maintaining records for accounting and reconciliation of cash balances, or expenses for upgrading or
modernizing accounting systems. Interest calculation costs in excess of $50,000 in any year are not eligible for
reimbursement, unless the State provides justification with the annual report.

Page 22 of 30


CFEDA| ProgramName |  Resipient Technique [Round
tees | t
| = i | days _|

93.558 |Temporary Assistance for]320 - Texas Workforce | 18.0 {Program Costs Pre-Issuance 2 Days

Needy Families Commission 0
93.558 [Temporary Assistance for]320- Texas Workforce {2.00 |Payroll Costs Monthly Draws NIA
Needy Families Commission
93.558 | Temporary Assistance for|529 - Health and Human |2.00 |Administrative Costs Pre-Issuance 12 Days
Needy Families Services Commission
93.558 |Temporary Assistance for|529 - Health and Human |1.00 |Payroll Costs Pre-Issuance 7 Days
Needy Families Services Commission
93.558 |Temporary Assistance for/529 - Health and Human |1.00 program Costs - Non- Pre-Issuance 42 Days
Needy Families Services Commission EB
93.558 | Temporary Assistance for|529 - Health and Human /2.00 |Program Costs Average Clearance N/A
Needy Families Services Commission
93.558 | Temporary Assistance for|529 - Health and Human {1.00 Program Costs under Actual Clearance, ZBA- |N/A
Needy Families Services Commission EB ACH
93.558 |Temporary Assistance for }530 - Department of 41.0 |Program Costs Pre-Issuance 2 Days
Needy Families Family and Protective 0
Services
93.558 |Temporary Assistance for |530 - Department of 25.0 |Payroll Costs Pre-Issuance 0 Days
Needy Families Family and Protective [)
Services
93.558 | Temporary Assistance for|530 - Department of 7.00 |Administrative Costs Pre-Issuance 2 Days
Needy Families Family and Protective
Services
93.563 | Child Support 302 - Office of the 51.0 |Program Costs Pre-Issuance 0 Days
Enforcement Attorney General 0
93.563 {Child Support 302 - Office of the 36.0 |Payroll Costs Average Clearance NIA
Enforcement Attorney General 0
93.563 [Child Support 302 - Office of the 4.00 |Administrative Costs Average Clearance NIA
Enforcement Attorney General
93.563 | Child Support 302 - Office of the 9.00 | TANF Recoveries N/A-TANF Recoveries |N/A
Enforcement Attorney General
93.575 |Child Care and 320 - Texas Workforce [82.0 |Program Costs Pre-Issuance 2 Days
Development Block Grant|Commission te]
93.575 Child Care and 320 - Texas Workforce {2.00 |Payroll Costs Monthly Draws NIA
Development Block Grant|Commission
93.575 |Child Care and 529 - Health and Human |1.00 |Administrative Costs Pre-lssuance 0 Days
Development Block Grant| Services Commission
93.575 |Child Care and 529 - Health and Human |7.00 |Payroll Costs Pre-lssuance 0 Days
Development Block Grant| Services Commission
93.575 |Child Care and 529 - Health and Human |2.00 |Program Costs Pre-lssuance 0 Days
Development Block Grant| Services Commission
93.575 |Child Care and 530 - Depariment of 1.00 |Administrative Costs Pre-lssuance 0 Days
Development Block Grant| Family and Protective
Services
93.575 | Child Care and 530 - Department of 4.00 |Program Costs Pre-Issuance 0 Days
Development Block Grant] Family and Protective
Services,
93.575 | Child Care and 530 - Department of 1.00 [Payroll Costs Pre-Issuance 0 Days
Development Block Grant] Family and Protective
Services
93.596 |Child Care Mandatory 320 - Texas Workforce | 100. |Program Costs Pre-Issuance 3 Days
and Matching Funds of =|Commission 00
the Child Care and
Development Fund
93.658 | Foster Care -- Title IV-E |529- Health and Human |1.00 |Administrative Costs Pre-Issuance 0 Days
Services Commission
93.658 [Foster Care ~Title IV-E {529 - Health and Human |1.00 [Payroll Costs Pre-Issuance 10 Days
Services Commission
93.658 |Foster Care ~Title IV-E |529- Health and Human |1.00 |Program Costs Pre-Issuance 10 Days

Services Commission

Page 28 of 30


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

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 wilt
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

Page 4 of 30


Recipient: 530 - Department of Family and Protective Services
% of Funds Agency Receives: 1.00

Component: Administrative Costs

Technique: Pre-lssuance

Average Day of Clearance: 0 Days

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 1.00

Component: Administrative Costs

Technique: Pre-lssuance

Average Day of Clearance: 0 Days

93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund
Recipient: 320 - Texas Workforce Commission

% of Funds Agency Receives: 100.00

Component: Program Costs

Technique: Pre-Issuance

Average Day of Clearance: 3 Days

93.658 Foster Care -- Title 1V-E

Recipient: 530 - Department of Family and Protective Services
% of Funds Agency Receives: 70.00

Component: Program Costs

Technique: Pre-Issuance

Average Day of Clearance: 0 Days

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 1.00

Component: Program Costs

Technique: Pre-Issuance

Average Day of Clearance: 0 Days

Recipient: 530 - Department of Family and Protective Services
% of Funds Agency Receives: 24.00

Component: Payroll Costs

Technique: Pre-Issuance

Average Day of Clearance: 0 Days

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 1.00

Component: Payroll Costs

Technique: Pre-lssuance

Average Day of Clearance: 0 Days

Recipient: 530 - Department of Family and Protective Services
% of Funds Agency Receives: 3.00

Page 15 of 30


Recipient: 530 - Department of Family and Protective Services
% of Funds Agency Receives: 14.00

Component: Payroll Costs

Technique: Pre-issuance

Average Day of Clearance: 0 Days

93.767 Children's Health Insurance Program

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 96.00

Component: Program Costs

Technique: Pre-lssuance

Average Day of Clearance: 5 Days

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 2.00

Component: Administrative Costs

Technique: Pre-Issuance

Average Day of Clearance: 5 Days

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 2.00

Component: Payroll Costs

Technique: Pre-Issuance

Average Day of Clearance: 1 Day

93.778 Medical Assistance Program

Recipient: 529 - Health and Human Services Commission

% of Funds Agency Receives: 2.00

Component: Program Costs

Technique: Modified Actual Clearance as it applies to the Department of Aging and Disability Services
Average Day of Clearance: N/A

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 91.00

Component: Program Costs

Technique: Pre-lssuance

Average Day of Clearance: 3 Days

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 1.00

Component: Indirect Costs

Technique: Pre-Issuance

Average Day of Clearance: 2 Days

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 2.00

Page 17 of 30


4.7 Non Higher-Education State Agencies required to be reported in the Texas CAFR issued pursuant to GAAP shall be
considered agencies and instrumentalities of the State and hence subject to the provisions of this Agreement to the extent
they administer federal funds for a program listed in the CFDA. Exceptions may be based upon reliable alternative
information.

4.8 Governmental entities acting as service providers for any agency disbursing Federal funds covered by this Agreement
shail not be considered fiscal agents, as that term is defined in 31 CFR 205.2.

4.9 Private, nonprofit community organizations shall not be considered fiscal agents, as that term is defined in 31 CFR
205.2. Funds paid by the State to nonprofit community organizations will be considered paid out for program purposes.
Service provider shall mean any entity to which the State transfers funds for payment in exchange for a service, and who
does not pay, collect or hold such funds on behalf of the state.

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:

701 - Texas Education Agency

601 - Texas Department of Transportation

551 - Texas Department of Agriculture

530 - Department of Family and Protective Services
529 - Health and Human Services Commission

320 - Texas Workforce Commission

305 - General Land Office

302 - Office of the Attorney General

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:

Affiliated Computer Services 10.551 Supplemental Nutrition Assistance Program
Texas Medicaid Health Partnership 93.778 Medical Assistance Program

6.0 FUNDING TECHNIQUES
6.1 General Terms

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

6.1.2 The State shall schedule the receipt of Federal funds such that the funds are received and credited to a State
account in accordance with the clearance patterns specified in Exhibit II - 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. tn instances where the receipt of Federal funds is scheduled for deposit on a day when the State is not open for

Page 3 of 30


Exhibit Il - State of Texas

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 Relat
i | ed
| days
10.551 |Supplemental Nutrition |529- Health and Human |100. Program Costs under Actual Clearance, ZBA- |N/A
Assistance Program Services Commission 00__| EB’ [ACH
10.553 | School Breakfast 701 - Texas Education 100. [Program Costs Actual Clearance, ZBA- |3 Days
Program Agency 00 ACH
10.555 National School Lunch |551- Texas Department [1.00 |Program Costs Pre-Issuance 0 Days
Program of Agriculture
10.555 |National School Lunch [551 - Texas Department [11.0 |Program Costs ‘Non-Cash N/A
Program of Agriculture 0
10.555 {National School Lunch 701 - Texas Education 88.0 |Program Costs Actual Clearance, ZBA- |3 Days
Program Agency Q ACH
10.557 | Specia! Supplemental 529 - Health and Human {2.00 |Payroll Costs Pre-Issuance 1 Day
Nutrition Program for Services Commission
‘Women, Infants, and
Children,
10.557 |Special Supplemental 529 - Health and Human |1.00 |Indirect Costs Pre-Issuance 4 Days
Nutrition Program for Services Commission
‘Women, Infants, and
Children,
10.557 |Speciai Supplemental 529 - Health and Human |97.0 |Program Costs Pre-Issuance 4 Days
Nutrition Program for Services Commission 0
‘Women, Infants, and
Children
10.558 = |Child and Adult Care 551 - Texas Department |100. |Program Costs Pre-Issuance 3 Days
Food Program of Agriculture. 00
10.561 |State Administrative 320 - Texas Workforce }9.00 |Programs Costs Pre-Issuance ‘3 Days
Matching Grants for the {Commission
Supplemental Nutrition
Assistance Program
10.561 | State Administrative 320 - Texas Workforce |1.00 |Payroll Costs Monthly Draws. NIA
Matching Grants for the |Commission
Supplemental Nutrition
Assistance Program
10.561 |State Administrative 529 - Health and Human [47.0 |Administrative Costs Pre-lssuance 4 Days
Matching Grants for the |Services Commission 0
Supplemental Nutrition
Assistance Program
10.561  |State Administrative 529 - Health and Human /41.0 }Payroll Costs Pre-Issuance 1 Day
Matching Grants for the {Services Commission 0
Supplemental Nutrition
Assistance Program
10.561 | State Administrative $29 - Health and Human |2.00 |Program Costs Pre-Issuance 4 Days
Matching Grants forthe |Services Commission
Supplemental Nutrition
Assistance Program.
14.228 |Community Development |305 - General Land 1.00 |Payroll Costs Pre-Issuance 1 Day
Ee’ Grants/State's Office
rogram

Page 26 of 30



4,0 PROGRAMS COVERED

4.1 The State's threshold and its major Federal assistance programs shall be determined based on the State's Schedule
of Expenditures of Federal Awards included in the most recently issued Single Audit Report for fiscal year ending
08/31/2016.

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

4.2 The State's threshold for major Federal assistance programs is $162,709,208.
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

10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program
14,228 Community Development Block Grants/State's Program

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

20.205 Highway Planning and Construction

84.010 Title | Grants to Local Educational Agencies

84.027 Special Education -- Grants to States

84.126 Rehabilitation Services - Vocational Rehabilitation Grants to States

84.367 Improving Teacher Quality State Grants

93.558 Temporary Assistance for Needy Families

93.563 Child Support Enforcement

93.575 Child Care and Development Block Grant

93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund
93.658 Foster Care -- Title IV-E

93.667 Social Services Block Grant

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:

84.063 Federal Pell Grant Program --- Exclusion:Non-State
84.268 Federal Direct Student Loan — Exclusion:Non-State
93.268 Immunization Grants --- Exclusion:Non-Cash

4,5 Non-cash Federal assistance programs are currently excluded from this Agreement. If any non-cash Federal
assistance program becomes a cash program, then the appropriate subpart shall apply to the program on the first day of
the fiscal year immediately subsequent to the change from non-cash to cash program.

Page 2 of 30


= SRF ES TET = ora r = 7
CFDA| Program Name Re | % Component: | Technique: Round
t | | } |
| | i scecll : days
93.658 |Foster Care -- Title IV-E [530 - Department of 24.0 |Payroll Costs Pre-Issuance 0 Days
Family and Protective [}
Services
93.658 Foster Care - Title IV-E {530 - Department of 70.0 |Program Costs Pre-Issuance 0 Days
Family and Protective 0
Services
93.658 Foster Care -- Title IV-E {530 - Department of 3.00 |Administrative Costs Pre-Issuance 0 Days
Family and Protective
Services
93.667 |Social Services Block 529 - Health and Human |1.00 |Indirect Costs Pre-lssuance 1 Day
Grant Services Commission
93.667 | Social Services Block 529 - Health and Human |1.00 {Administrative Costs Pre-Issuance 3 Days
Grant Services Commission
93.667 Social Services Block 529 - Health and Human |14.0 |Payroll Costs Pre-Issuance 1 Day
Grant Services Commission 0
93.667 | Social Services Block 529 - Health and Human |64.0 |Program Costs Pre-Issuance 3 Days
Grant Services Commission )
93.667 |Social Services Block 530 - Department of 5.00 | Program Costs Pre-issuance 2 Days
Grant Family and Protective
Services
93.667 Social Services Block 530 - Department of 1,00 {Administrative Costs Pre-Issuance 2 Days
Grant Family and Protective
Services.
93.667 | Social Services Block 530 - Department of 14.0 |Payroll Costs Pre-Issuance 0 Days
Grant Family and Protective 0
Services
93.767 | Children's Health 529 - Health and Human |2.00 |Administrative Costs Pre-Issuance 5 Days
Insurance Program. Services Commission
93.767 | Children's Health 529 - Health and Human |2.00 |Payrall Costs Pre-Issuance 1 Day
Insurance Program. Services Commission
93.767 | Children's Health 529 - Health and Human |96.0 |Program Costs Pre-Issuance 5 Days
Insurance Program Services Commission 0
93.778 |Medical Assistance 529 - Health and Human |1.00 |Payroll Costs Pre-Issuance 1 Day
Program Services Commission
93.778 |Medical Assistance 529 - Health and Human |1.00 |Indirect Costs Pre-Issuance 2 Days
Program Services Commission
93.778 Medical Assistance 529 - Health and Human }2.00 |Administrative Costs Pre-Issuance 2 Days
Program, Services Commission
93.778 |Medical Assistance 529 - Health and Human |91.0 |Program Costs Pre-Issuance 3 Days
Program Services Commission 0
93.778 |Medical Assistance 529 - Health and Human |2.00 |Program Costs Modified Actual N/A
Program Services Commission Clearance as it applies to
the Department of Aging
and Disability Services
93.778 |Medical Assistance 530 - Department of 1,00 |Administrative Costs Pre-Issuance 10 Days
Program Family and Protective
Services
93.778 |Medical Assistance 530 - Department of 1.00 |Program Costs Pre-lssuance 0 Days
Program Family and Protective
Services.
93.778 |Medical Assistance 530 - Department of 1.00 {Payroll Costs Pre-Issuance 0 Days
Program Eamily and Protective
ervices

\ 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;

Page 29 of 30


Technique: Pre-Issuance
Average Day of Clearance: 2 Days

Recipient: 320 - Texas Workforce Commission
% of Funds Agency Receives: 18.00
Component: Program Costs

Technique: Pre-issuance

Average Day of Clearance: 2 Days

Recipient: 530 - Department of Family and Protective Services
% of Funds Agency Receives: 7.00

Component: Administrative Costs

Technique: Pre-Issuance

Average Day of Clearance: 2 Days

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 1.00

Component: Program Costs - Non-EBT

Technique: Pre-lssuance

Average Day of Clearance: 12 Days

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 2.00

Component: Administrative Costs

Technique: Pre-lssuance

Average Day of Clearance: 12 Days

Recipient: 530 - Department of Family and Protective Services
% of Funds Agency Receives: 25.00

Component: Payroll Costs

Technique: Pre-Issuance

Average Day of Clearance: 0 Days

93.563 Child Support Enforcement

Recipient: 302 - Office of the Attorney General
% of Funds Agency Receives: 36.00
Component: Payroll Costs

Technique: Average Clearance

Average Day of Clearance: N/A

Recipient: 302 - Office of the Attorney General
% of Funds Agency Receives: 4.00
Component: Administrative Costs

Technique: Average Clearance

Average Day of Clearance: N/A

Recipient: 302 - Office of the Attorney General

Page 13 of 30


Component: Administrative Costs
Technique: Pre-Issuance
Average Day of Clearance: 0 Days

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 1.00

Component: Administrative Costs

Technique: Pre-Issuance

Average Day of Clearance: 0 Days

93.667 Social Services Block Grant

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 64.00

Component: Program Costs

Technique: Pre-Issuance

Average Day of Clearance: 3 Days

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 1.00

Component: Administrative Costs

Technique: Pre-Issuance

Average Day of Clearance: 3 Days

Recipient: 530 - Department of Family and Protective Services

% of Funds Agency Receives: 5.00
Component: Program Costs
Technique: Pre-issuance

Average Day of Clearance: 2 Days

Recipient: 530 - Department of Family and Protective Services

% of Funds Agency Receives: 1.00
Component: Administrative Costs
Technique: Pre-Issuance

Average Day of Clearance: 2 Days

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 14.00

Component: Payroll Costs

Technique: Pre-lssuance

Average Day of Clearance: 1 Day

Recipient: 529 - Health and Human Services Commission
% of Funds Agency Receives: 1.00

Component: Indirect Costs

Technique: Pre-Issuance

Average Day of Clearance: 1 Day

Page 16 of 30