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 07/01/2020 and shall remain in effect until 06/30/2021.

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

Agreement shall be amended annually to incorporate new programs that qualify as major Federal assistance programs

and remove programs that no longer qualify as major Federal assistance programs. A State must notify the Fiscal Service

in writing within 30 days of the time the State becomes aware of a change that involves additions or deletions of programs

subject to Subpart A, changes in funding techniques, and/or changes in clearance patterns. The notification must include

a proposed amendment for review by the Fiscal Service.

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 06/30/2019.

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

this Agreement.

4.2 The State's threshold for major Federal assistance programs is $19,194,895.

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

10.551 Supplemental Nutrition Assistance Program

10.555 National School Lunch Program

12.401 National Guard Military Operations and Maintenance (O&M) Projects

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

93.563 Child Support Enforcement

93.575 Child Care and Development Block Grant

93.658 Foster Care -- Title IV-E

93.659 Adoption Assistance

93.767 Children's Health Insurance Program

93.778 Medical Assistance Program

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

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

There are currently no programs listed for Section 4.3.

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

There are currently no programs listed for Section 4.4.

5.0 ENTITIES COVERED

5.1 State agencies and instrumentalities that meet the definition of a State per 31 CFR Part 205, shall be subject to the

terms of this Agreement. The following is a list of such entities that administer funds under the programs listed in Section

4.0 of this Agreement:

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

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Agreement:

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

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U.S. Department of Human Services, Administration for Children and Families (HHS/ACF):

a. Timing of the Request

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

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

a State, for consideration by ACF, up through and including the 15th day of the third month of the first, second or third

quarter of any fiscal year. Since TANF and CCDF are block grant programs, all unawarded portions of the annual

allotment will automatically be issued at the beginning of the fourth quarter. Therefore, supplemental funding requests will

not be available during the fourth quarter for these programs. For the CSE and FC/AA programs, supplemental funding

requests may be submitted by a state, for consideration by ACF, up through and including the 15th day of the third month

of any quarter of a fiscal year.

b. Justification for the Request

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

documenting the need for the additional funding authority during the current quarter. This documentation should be in the

form of State accounting records or similar documents that will show the actual expenditures through the most recent

month for which such data are available, as well as the State's most accurate projection of its anticipated expenditures

during the remaining month(s) of the quarter. For either the TANF or the CCDF program, the State's justification should

also include an explanation of the activities requiring the obligation and/or expenditure of amounts that exceed the normal

quarterly grant award restrictions and why these activities could not have been delayed until the next quarter.

c. Form Submittal

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

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

d. Approval Process

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

review the supporting documentation. If the request is properly justified, so long as ACF has adequate funding

availability, the State's request will be expedited and supplemental funding will be issued within 5 days of ACF receiving

the request. The State will be notified by the Regional Office when the supplemental award has been transmitted to the

Payment Management System (PMS) and when it may initiate drawdowns against the supplemental funding.

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

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

Administration.

6.2 Description of Funding Techniques

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

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

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.

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Actual Clearance, ZBA - Same Day Payment

The State shall request funds the same day it pays out funds, in accordance with the appropriate Federal agency cut-off

time specified in Exhibit I. A Federal agency will deposit funds in a State account the same day as requested. The amount

of the request shall be for the amount of funds that clear the State's account that day. This funding technique is interest

neutral.

Average Clearance

The State shall request funds such that they are deposited by ACH on the dollar-weighted average day of clearance for

the disbursement, in accordance with the clearance pattern specified in Exhibit II. 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 exact amount of that disbursement. This funding technique is interest neutral.

6.2.2 The following are terms under which funding techniques for administrative costs shall be implemented for all

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

There are no funding techniques listed in Section 6.2.2

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

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

There are no funding techniques listed in Section 6.2.3

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

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

Actual Drawdown - 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.

Reimbursable Funding on Actual Expenditures (Air National Guard) O & M

The Maine Department of Defense, Veterans and Emergency Management (DVEM) and the Federal National Guard

Bureau (NGB) have entered into a Master Cooperative Agreement (MCA) to establish the terms and conditions applicable

to the contribution of NGB funds for Air and Army National Guard expenditures. The MCA establishes that funding

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requests will be made on a reimbursement basis utilizing the Standard Form (SF)270. Bi-weekly, unless the expenditures

are zero during a particular timeframe. The Department of Defense (DOD) requirement for the preparation of the (SF)270,

a certified statement itemized and consolidated on one (SF)270 for each program, along with the actual expenditure

documentation, which makes this agreement unique to the Cash Management Improvement Act Agreement. If both the

State and Federal Government fulfill and adhere to the specific elements and timing of this funding technique, the State

voluntarily waives Federal interest liabilities resulting from the State prior expenditure funding technique. This funding

technique is not interest neutral.

Reimbursable Funding on Actual Expenditures (Army National Guard) All Other

The Maine Department of Defense, Veterans and Emergency Management (DVEM) and the Federal National Guard

Bureau (NGB) have entered into a Master Cooperative Agreement (MCA) to establish the terms and conditions applicable

to the contribution of NGB funds for Air and Army National Guard expenditures. The MCA establishes that funding

requests will be made on a reimbursement basis utilizing the Standard Form (SF)270. Weekly, unless the expenditures

are zero during a particular timeframe. The Department of Defense (DOD) requirement for the preparation of the (SF)270,

a certified statement itemized and consolidated on one (SF)270 for each program, along with the actual expenditure

documentation, which makes this agreement unique to the Cash Management Improvement Act Agreement. If both the

State and Federal Government fulfill and adhere to the specific elements and timing of this funding technique, the State

voluntarily waives Federal interest liabilities resulting from the State prior expenditure funding technique. This funding

technique is not interest neutral.

Reimbursable Funding on Actual Expenditures (Army National Guard) Payroll

The Maine Department of Defense, Veterans and Emergency Management (DVEM) and the Federal National Guard

Bureau (NGB) have entered into a Master Cooperative Agreement (MCA) to establish the terms and conditions applicable

to the contribution of NGB funds for Air and Army National Guard expenditures. The MCA establishes that funding

requests will be made on a reimbursement basis utilizing the Standard Form (SF)270. Bi-weekly, unless the expenditures

are zero during a particular timeframe. The Department of Defense (DOD) requirement for the preparation of the (SF)270,

a certified statement itemized and consolidated on one (SF)270 for each program, along with the actual expenditure

documentation, which makes this agreement unique to the Cash Management Improvement Act Agreement. If both the

State and Federal Government fulfill and adhere to the specific elements and timing of this funding technique, the State

voluntarily waives Federal interest liabilities resulting from the State prior expenditure funding technique. This funding

technique is not 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: 100.00

Component: Payment to Beneficiaries

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

10.555 National School Lunch Program

Recipient: Department of Education

% of Funds Agency Receives: 100.00

Component: Payments to Local Educational Agencies

Technique: Average Clearance

Average Day of Clearance: 2 Days

12.401 National Guard Military Operations and Maintenance (O&M) Projects

Recipient: Department of Defense, Veterans and Emergency Management

% of Funds Agency Receives: 35.00

Component: All Expenses

Technique: Reimbursable Funding on Actual Expenditures (Air National Guard) O & M

Average Day of Clearance: N/A

Recipient: Department of Defense, Veterans and Emergency Management

% of Funds Agency Receives: 49.00

Component: All Other

Technique: Reimbursable Funding on Actual Expenditures (Army National Guard) All Other

Average Day of Clearance: N/A

Recipient: Department of Defense, Veterans and Emergency Management

% of Funds Agency Receives: 16.00

Component: Payroll

Technique: Reimbursable Funding on Actual Expenditures (Army National Guard) Payroll

Average Day of Clearance: N/A

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

Recipient: Department of Labor

% of Funds Agency Receives: 75.00

Component: Payments to Beneficiaries - Direct Deposit

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

Recipient: Department of Labor

% of Funds Agency Receives: 2.00

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Component: Administrative (payroll)

Technique: Actual Drawdown - BiWeekly

Average Day of Clearance: 2 Days

Recipient: Department of Labor

% of Funds Agency Receives: 1.00

Component: Administrative (non-payroll)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: 5 Days

Recipient: Department of Labor

% of Funds Agency Receives: 0.00

Component: Payment to Beneficiaries - Paper Checks

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

Recipient: Department of Labor

% of Funds Agency Receives: 22.00

Component: Payments to Beneficiaries - Debit 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: 77.00

Component: Payment to Beneficiaries - Direct Depost

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

Recipient: Department of Labor

% of Funds Agency Receives: 1.00

Component: Payment to Beneficiaries - Paper Checks

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

Recipient: Department of Labor

% of Funds Agency Receives: 22.00

Component: Payments to Beneficiaries - Debit 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: 1.00

Component: Administrative (Other)

Technique: Actual Drawdown - Weekly

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Average Day of Clearance: N/A

Recipient: Department of Transportation

% of Funds Agency Receives: 88.00

Component: Direct Costs

Technique: Average Clearance

Average Day of Clearance: 2 Days

Recipient: Department of Transportation

% of Funds Agency Receives: 11.00

Component: Administrative (Payroll)

Technique: Average Clearance

Average Day of Clearance: 0 Days

84.010 Title I Grants to Local Educational Agencies

Recipient: Department of Education

% of Funds Agency Receives: 1.00

Component: Administrative (Other)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

Recipient: Department of Education

% of Funds Agency Receives: 1.00

Component: Administrative (Payroll)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

Recipient: Department of Education

% of Funds Agency Receives: 98.00

Component: Payments to Local Educational Agencies

Technique: Average Clearance

Average Day of Clearance: 2 Days

84.027 Special Education -- Grants to States

Recipient: Department of Education

% of Funds Agency Receives: 1.00

Component: Administrative (Other)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

Recipient: Department of Education

% of Funds Agency Receives: 91.00

Component: Payments to LEA & Discretionary

Technique: Average Clearance

Average Day of Clearance: 2 Days

Recipient: Department of Education

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% of Funds Agency Receives: 8.00

Component: Administrative (Payroll)

Technique: Average Clearance

Average Day of Clearance: 0 Days

93.558 Temporary Assistance for Needy Families

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 100.00

Component: All Expenses

Technique: Weekly Drawdown - Actual & Estimate

Average Day of Clearance: N/A

93.563 Child Support Enforcement

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 49.00

Component: Administrative (All Other)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 51.00

Component: Payroll

Technique: Average Clearance

Average Day of Clearance: 0 Days

93.575 Child Care and Development Block Grant

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 79.00

Component: Payments to Providers

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 9.00

Component: Cost Allocation Payments

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 12.00

Component: Administrative (All Other)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

93.658 Foster Care -- Title IV-E

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Recipient: Department of Health and Human Services

% of Funds Agency Receives: 9.00

Component: Administrative (Other)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 65.00

Component: Cost Allocation Payments

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 26.00

Component: Payments to Providers

Technique: Average Clearance

Average Day of Clearance: 2 Days

93.659 Adoption Assistance

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 9.00

Component: Administrative (All Other)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 65.00

Component: Cost Allocation Payments

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 26.00

Component: Payments to Providers

Technique: Average Clearance

Average Day of Clearance: 2 Days

93.767 Children's Health Insurance Program

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 8.00

Component: Miscellaneous Provider Payments & Other Misc.

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 3.00

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Component: Administrative (Other)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 1.00

Component: Administrative (Payroll)

Technique: Average Clearance

Average Day of Clearance: 0 Days

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 88.00

Component: Provider Payments - MIHMS Weekly

Technique: Average Clearance

Average Day of Clearance: 2 Days

93.778 Medical Assistance Program

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 6.00

Component: Administrative (Other)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 1.00

Component: Miscellaneous Provider Payments & Other Misc.

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 92.00

Component: Provider Payments - MIHMS Weekly

Technique: Average Clearance

Average Day of Clearance: 2 Days

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 1.00

Component: Administrative (Payroll)

Technique: Average Clearance

Average Day of Clearance: 0 Days

6.3.3 Materiality Exemptions

Agencies exempt from coverage on the basis of materiality:

No exempt agencies.

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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:

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.

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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

Weekly Drawdown - Actual & Estimate

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

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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 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 or paid out for program purposes.

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.

Page 15 of 22
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

Central Accounting System:

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.

Page 16 of 22
10.0 INTEREST CALCULATION COSTS

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

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

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

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

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

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

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

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.

Page 17 of 22
12.0 AUTHORIZED SIGNATURES

Laura Hudson

Director of Internal Operations

Signature:________________________________________Date Signed:_______________

Date Submitted 06/30/2020

Corvelli A. McDaniel

Assistant Commissioner

Revenue Collections Management

Bureau of the Fiscal Service

U.S. Department of the Treasury

Signature:________________________________________Date Signed:_______________

Page 18 of 22

Laura Hudson (Jun 30, 2020 15:53 EDT)

Laura Hudson

Jun 30, 2020

Corvelli A. McDaniel (Jul 2, 2020 11:48 EDT)

Corvelli A. McDaniel

Jul 2, 2020
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

Page 19 of 22
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 Round

ed

days

10.551 Supplemental Nutrition

Assistance Program

Department of Health and

Human Services

100.

00

Payment to Beneficiaries Actual Clearance, ZBA -

Same Day Payment

0 Days

10.555 National School Lunch

Program

Department of Education 100.

00

Payments to Local

Educational Agencies

Average Clearance 2 Days

12.401 National Guard Military

Operations and

Maintenance (O&M)

Projects

Department of Defense,

Veterans and Emergency

Management

35.0

0

All Expenses Reimbursable Funding on

Actual Expenditures (Air

National Guard) O & M

N/A

12.401 National Guard Military

Operations and

Maintenance (O&M)

Projects

Department of Defense,

Veterans and Emergency

Management

49.0

0

All Other Reimbursable Funding on

Actual Expenditures

(Army National Guard) All

Other

N/A

12.401 National Guard Military

Operations and

Maintenance (O&M)

Projects

Department of Defense,

Veterans and Emergency

Management

16.0

0

Payroll Reimbursable Funding on

Actual Expenditures

(Army National Guard)

Payroll

N/A

17.225F Unemployment Insurance

-- Federal Benefit

Account and

Administrative Costs

Department of Labor 0.00 Payment to Beneficiaries

- Paper Checks

Actual Drawdown -

Weekly

N/A

17.225F Unemployment Insurance

-- Federal Benefit

Account and

Administrative Costs

Department of Labor 22.0

0

Payments to

Beneficiaries - Debit

Cards

Daily Estimated Draw 1 Day

17.225F Unemployment Insurance

-- Federal Benefit

Account and

Administrative Costs

Department of Labor 2.00 Administrative (payroll) Actual Drawdown -

BiWeekly

2 Days

17.225F Unemployment Insurance

-- Federal Benefit

Account and

Administrative Costs

Department of Labor 75.0

0

Payments to

Beneficiaries - Direct

Deposit

Actual Clearance, ZBA -

ACH

0 Days

17.225F Unemployment Insurance

-- Federal Benefit

Account and

Administrative Costs

Department of Labor 1.00 Administrative (nonpayroll)Actual Drawdown -

Weekly

5 Days

17.225S Unemployment Insurance

-- State Benefit Account

Department of Labor 1.00 Payment to Beneficiaries

- Paper Checks

Actual Drawdown -

Weekly

N/A

17.225S Unemployment Insurance

-- State Benefit Account

Department of Labor 22.0

0

Payments to

Beneficiaries - Debit Card

Daily Estimated Draw 1 Day

17.225S Unemployment Insurance

-- State Benefit Account

Department of Labor 77.0

0

Payment to Beneficiaries

- Direct Depost

Actual Clearance, ZBA -

Same Day Payment

0 Days

20.205 Highway Planning and

Construction

Department of

Transportation

1.00 Administrative (Other) Actual Drawdown -

Weekly

N/A

20.205 Highway Planning and

Construction

Department of

Transportation

88.0

0

Direct Costs Average Clearance 2 Days

20.205 Highway Planning and

Construction

Department of

Transportation

11.0

0

Administrative (Payroll) Average Clearance 0 Days

Page 20 of 22
________________________________________________________________________________________________________

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:

CFDA Program Name Recipient % Component Technique Round

ed

days

84.010 Title I Grants to Local

Educational Agencies

Department of Education 1.00 Administrative (Payroll) Actual Drawdown -

Weekly

N/A

84.010 Title I Grants to Local

Educational Agencies

Department of Education 98.0

0

Payments to Local

Educational Agencies

Average Clearance 2 Days

84.010 Title I Grants to Local

Educational Agencies

Department of Education 1.00 Administrative (Other) Actual Drawdown -

Weekly

N/A

84.027 Special Education --

Grants to States

Department of Education 1.00 Administrative (Other) Actual Drawdown -

Weekly

N/A

84.027 Special Education --

Grants to States

Department of Education 8.00 Administrative (Payroll) Average Clearance 0 Days

84.027 Special Education --

Grants to States

Department of Education 91.0

0

Payments to LEA &

Discretionary

Average Clearance 2 Days

93.558 Temporary Assistance for

Needy Families

Department of Health and

Human Services

100.

00

All Expenses Weekly Drawdown -

Actual & Estimate

N/A

93.563 Child Support

Enforcement

Department of Health and

Human Services

49.0

0

Administrative (All Other) Actual Drawdown -

Weekly

N/A

93.563 Child Support

Enforcement

Department of Health and

Human Services

51.0

0

Payroll Average Clearance 0 Days

93.575 Child Care and

Development Block Grant

Department of Health and

Human Services

12.0

0

Administrative (All Other) Actual Drawdown -

Weekly

N/A

93.575 Child Care and

Development Block Grant

Department of Health and

Human Services

79.0

0

Payments to Providers Actual Drawdown -

Weekly

N/A

93.575 Child Care and

Development Block Grant

Department of Health and

Human Services

9.00 Cost Allocation Payments Actual Drawdown -

Weekly

N/A

93.658 Foster Care -- Title IV-E Department of Health and

Human Services

65.0

0

Cost Allocation Payments Actual Drawdown -

Weekly

N/A

93.658 Foster Care -- Title IV-E Department of Health and

Human Services

26.0

0

Payments to Providers Average Clearance 2 Days

93.658 Foster Care -- Title IV-E Department of Health and

Human Services

9.00 Administrative (Other) Actual Drawdown -

Weekly

N/A

93.659 Adoption Assistance Department of Health and

Human Services

65.0

0

Cost Allocation Payments Actual Drawdown -

Weekly

N/A

93.659 Adoption Assistance Department of Health and

Human Services

26.0

0

Payments to Providers Average Clearance 2 Days

93.659 Adoption Assistance Department of Health and

Human Services

9.00 Administrative (All Other) Actual Drawdown -

Weekly

N/A

93.767 Children's Health

Insurance Program

Department of Health and

Human Services

3.00 Administrative (Other) Actual Drawdown -

Weekly

N/A

93.767 Children's Health

Insurance Program

Department of Health and

Human Services

88.0

0

Provider Payments -

MIHMS Weekly

Average Clearance 2 Days

93.767 Children's Health

Insurance Program

Department of Health and

Human Services

1.00 Administrative (Payroll) Average Clearance 0 Days

93.767 Children's Health

Insurance Program

Department of Health and

Human Services

8.00 Miscellaneous Provider

Payments & Other Misc.

Actual Drawdown -

Weekly

N/A

93.778 Medical Assistance

Program

Department of Health and

Human Services

6.00 Administrative (Other) Actual Drawdown -

Weekly

N/A

93.778 Medical Assistance

Program

Department of Health and

Human Services

92.0

0

Provider Payments -

MIHMS Weekly

Average Clearance 2 Days

93.778 Medical Assistance

Program

Department of Health and

Human Services

1.00 Administrative (Payroll) Average Clearance 0 Days

93.778 Medical Assistance

Program

Department of Health and

Human Services

1.00 Miscellaneous Provider

Payments & Other Misc.

Actual Drawdown -

Weekly

N/A

Page 21 of 22
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: ___________________________________________________________

Page 22 of 22

Laura Hudson (Jun 30, 2020 15:53 EDT)

Laura Hudson

Director of Internal Operations Jun 30, 2020 Laura Hudson