12.0 AUTHORIZED SIGNATURES

Rachel K. Miller
Chief Deputy

Signature: Date Signed GOS 20/7
Date Submitted 06/13/2017

Corvelli A. McDaniel

Assistant Commissioner

Revenue Collections Management
Bureau of the Fiscal Service

U.S. Department of the TreaSury

Signature: A . men Date Signed: ele

1

Page 20 of 24


6.3.3 Materiality Exemptions

Agencies exempt from coverage on the basis of materiality:

none

7.0 CLEARANCE PATTERNS.

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

Average Clearance

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

NH State Treasury

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

For the first year that a program is incorporated under this Agreement the State shall use Fiscal Service-provided
clearance patterns if available or the clearance pattern of a program currently in compliance with the Act that most closely
compares with the newly complying program.

For years subsequent to the first year, the State shall use its accounting system data and bank account clearance data to
determine an accurate clearance pattern of each program. (For a summary of the results of clearance pattern
calculations refer to Exhibit II).

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

When developing each clearance pattern, the State shall track at least 99% of the funds disbursed, from issuance to
clearance, for a period of at least three months.

For all clearance patterns developed by statistical sampling, the State shall randomly sample checks to ensure, at a
minimum, a 95% confidence interval for a .25 weighted-day level of precision for the checks in the sample. The State
shall track at least 99% of the funds disbursed, from issuance to clearance, in the sample period.

7.5 The State shall identify for each check or warrant (hereafter, check) in the population: (1) the date the check was
released for payment; (2) the date the check was debited from the State's account, and, (3) the amount of the check.

7.6 The State shall use the following method to calculate the dollar-weighted average day of clearance:

To determine the number of days each check was outstanding (clearance time), the issue date shall be subtracted from
the date the check cleared the State's account.

To determine the percentage of the disbursement paid out each day following issuance, the amount of the checks that
clear the State's account each day shall be summed and then divided by the amount of the total disbursement.

For each day following issuance, the clearance time of the checks paid out that day shall be multiplied by the percentage
of the total disbursement those checks represent. This product is the clearance factor.

The dollar-weighted average day of clearance for the disbursement shall be determined by summing the clearance factor
of each day following the disbursement.

Page 14 of 24


Assistance (Presidentially

Declared Disasters)

CFDA} Program Name Recipient % Component Technique Round
ed
days
93.959 [Block Grants for Department of Health and|95.0 [Direct Program Cost Allocation Plans- [N/A
Prevention and Human Services 0 Quarterly - Other
Treatment of Substance
Abuse
93.959 Block Grants for Department of Health and|/5.00 |Administrative Estimated Draw - NIA
Prevention and Human Services Administrative Cap
Treatment of Substance
|Abuse
97.036 |Disaster Grants - Public [Department of Safety [97.0 |Direct Program Actual Draw - Bi-Monthly |N/A
(Assistance (Presidentially 0
Declared Disasters)
97.036 |Disaster Grants - Public |Department of Safety [3.00 [Administrative Actual Draw - Bi-Monthly |N/A

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

Exhibit 2 of this Treasury-State Agreement:

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

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

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

4. Are auditable.

Date:

C/ se

aos TF

Printed Name / e HEL

Certifying Signatur

Title:

CHIEF DEPUTY STATE TREASURER

(LLgf~K_

Page 24 of 24



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.

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 |. 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.

Capitalization Grants for State Revolving Funds

The State shall request funds to minimize the time between the drawdown of funds from Treasury and their deposit into
the revolving fund. The timing of the drawdown of Federal funds for deposit to the revolving fund is subject to the interest
provisions of 31 CFR Part 205, however there is an interest exemption for the interest the State earns once the funds are
deposited into the revolving fund. The request for funds 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 the funds to be used for immediate
program purposes. The State will not incur an interest liability for interest earned on revolving fund loans. This funding
technique is interest neutral.

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 Draw - Monthly

The State shall request funds monthly after the allocation of funds has been processed by the State's financial system.
Requests shall be made in accordance with the cut-off time(s) in Exhibit |. Amount(s) requested shall be based on actual

Page 5 of 24


Exhibit | - Funds Request and Receipt Times Schedule

State of New Hampshire

Fi >ayment Type. Receipt |
Agriculture-F NS ACH 41:59 PM i day
|Agriculture-FNS Fedwire 5:45 PM. O 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 6:30 PM 1 day
HHS Fedwire 3:00 PM O 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 10 day
Interior-OSM ACH 3:00 PM 1 day
Interior-OSM. Fedwire 1:00 PM 1O_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 iday
Labor-UTF Fedwire 3:00 PM O 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. 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 42:00 PM 0 day
Transportation (FTA) ACH 2:00 PM 1 day
Veterans Administration ACH 12:00 PM 3 days

Page 21 of 24


66.458 |Capitalization Grants for |Department of 96.0 |Direct Program ‘Capitalization Grants for NIA
Clean Water State Environmental Services |0 State Revolving Funds
Revolving Funds

66.458 |Capitalization Grants for |Department of 4.00 |Administrative Costs Cost Allocation Plans- |N/A
Clean Water State Environmental Services Quarterly - Other
Revolving Funds

66.468 |Capitalization Grants for_|Department of 69.0 |Direct Program Capitalization Grants for |N/A
Drinking Water Revolving |Environmental Services |0 State Revolving Funds
Fund

66.468 [Capitalization Grants for |Department of 31.0 |Administrative Costs Cost Allocation Plans- |N/A
Drinking Water Revolving | Environmental Services |0 Quarterly - Other
Fund

84.010 Title | Grants to Local Department of Education |98.0 | Direct Program Average Clearance 1 Day
Educational Agencies 0

84.010 Title | Grants to Local Department of Education |2.00 |Administrative Actual Draw - Monthly = |N/A
Educational Agencies

84.027 |Special Education -- Department of Education |95.0 |Direct Program Average Clearance 1 Day
Grants to States (e)

84.027 |Special Education -- Department of Education |5.00 |Administrative Actual Draw - Monthly N/A
Grants to States

84.126 |Rehabilitation Services -- | Department of Education |39.0 | Direct Program Average Clearance 4 Days
Vocational Rehabilitation 0
Grants to States

84.126 Rehabilitation Services -- |Department of Education |61.0 |Administrative Actual Draw - Monthly = |N/A
Vocational Rehabilitation te)
Grants to States

84.367 _ |Improving Teacher Department of Education |97.0 |Direct Program Average Clearance 1 Day
Quality State Grants lt}

84.367 _ Improving Teacher Department of Education |3.00 |Administrative Actual Draw - Monthly |N/A
Quality State Grants

93.558 | Temporary Assistance for|Department of Health and|85.0 | Direct Program Average Clearance 1 Day
Needy Families Human Services }

93.558 | Temporary Assistance for | Department of Health and/15.0 |Administrative Costs Estimated Draw - N/A
Needy Families Human Services 0 Administrative Cap

93.563  |Child Support Department of Health and}100. |Administrative Estimated Draw - Bi- N/A
Enforcement Human Services 00 Weekly

93.568 |Low-Income Home Governor's Office of 98.0 |Direct Program Actual Draw - Weekly N/A
Energy Assistance Energy and Planning 0

93.568 |Low-Income Home Governor's Office of 2.00 |Administrative Costs [Actual Draw - Monthly [N/A
Energy Assistance Energy and Planning

93.575 |Child Care and Department of Health and}100. | Direct Program Actual Draw - Quarterly |N/A
Development Block Grant|Human Services 00

93.596 |Child Care Mandatory Department of Health and}90.0 | Direct Program Average Clearance 3 Days
and Matching Funds of —|Human Services 0
the Child Care and
Development Fund

93.596  |Child Care Mandatory Department of Health and/10.0 |Administrative Costs Estimated Draw - Bi- NIA
and Matching Funds of | |Human Services 0 Weekly
the Child Care and
Development Fund

93.658 |Foster Care -- Title |V-E |Department of Health and}90.0 |Direct Program Average Clearance 3 Days

Human Services )
93.658 |Foster Care -- Title |V-E |Department of Health and/10.0 |Administrative Costs Estimated Draw - Bi- N/A
Human Services 0 Weekly

93.667 |Social Services Block Department of Health and}100. | Direct Program Cost Allocation Plans- |N/A
Grant Human Services 00 Quarterly - Other

93.778 |Medical Assistance Department of Health and}90.0 | Direct Program Average Clearance 1 Day
Program Human Services 0

93.778 |Medical Assistance Department of Health and}10.0 |Administrative Costs Estimated Draw - Bi- N/A
Program Human Services 0 |Weekly

Page 23 of 24


confidence interval no wider than + 0.3 dollar-weighted days about the estimated mean.

For each check in the sample population, the State shall:

1 subtract the deposit date from the issuance date

2 multiply the difference of step 1 by the check amount

3 divide the product of step 2 by the total amount of funds drawn in the sample to determine the dollar-weighted pre-
issuance time for that check

The State shall then sum the dollar-weighted pre-issuance time for each check to arrive at the total dollar-weighted
average pre-issuance time to be used for calculating State interest liabilities.

8.6.2.4 Calculation Procedure

|= ADB x RXN, where
| = State's total interest liability
ADB = Average Daily Balance of cash in a program's account, measured from deposit to clearance

R = Daily interest rate equal to the average equivalent yields of 13-week Treasury bills auctioned during a State's fiscal
year obtained from:
https:/Awww. fiscal.treasury.gov/fsservices/gov/rvnColl/cmias/rvnColl_cmia_rates.htm

N = Number of business days cash was advance funded (i.e. drawdown requested too early and not in compliance with
established funding technique) or received late to the designated State account.

9.0 REVERSE FLOW PROGRAMS

The State is not required to cover any reverse flow programs under the terms of this Agreement because the program
falls below the State's threshold.

10.0 INTEREST CALCULATION COSTS

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

10.2 The State expects to incur the following types of interest calculation costs:
-Annual calculation of interest liabilities.

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

Page 18 of 24


Recipient: Department of Environmental Services

% of Funds Agency Receives: 4.00

Component: Administrative Costs

Technique: Cost Allocation Plans - Quarterly - Other
Average Day of Clearance: N/A

66.468 Capitalization Grants for Drinking Water Revolving Fund
Recipient: Department of Environmental Services

% of Funds Agency Receives: 69.00

Component: Direct Program

Technique: Capitalization Grants for State Revolving Funds
Average Day of Clearance: N/A

Recipient: Department of Environmental Services

% of Funds Agency Receives: 31.00

Component: Administrative Costs

Technique: Cost Allocation Plans - Quarterly - Other
Average Day of Clearance: N/A

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

% of Funds Agency Receives: 2.00

Component: Administrative

Technique: Actual Draw - Monthly

Average Day of Clearance: N/A

Recipient: Department of Education
% of Funds Agency Receives: 98.00
Component: Direct Program
Technique: Average Clearance
Average Day of Clearance: 1 Day

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

% of Funds Agency Receives: 5.00
Component: Administrative

Technique: Actual Draw - Monthly

Average Day of Clearance: N/A

Recipient: Department of Education
% of Funds Agency Receives: 95.00
Component: Direct Program
Technique: Average Clearance
Average Day of Clearance: 1 Day

Page 10 of 24


The State shall request funds bi-weekly. The request shall be made in accordance with the appropriate Federal agency
cut-off time specified in Exhibit |. The amount of the draw for each bi-weekly period within a quarter shall be an estimate
based upon the most recent prior quarter's cost allocation and/or federal reporting that is available at the beginning ofthe
quarter. The amount drawn will be adjusted quarterly, when cost allocation and/or federal reporting is complete, by
reducing or increasing the quarterly cash balance draw. This funding technique is interest neutral.

Estimated Draw - Bi-Weekly Other

The State shall request funds bi-weekly. The request shall be made in accordance with the appropriate Federal agency
cut-off time specified in Exhibit |. The amount of the draw for each bi-weekly period shall be an estimate based on the
average cost allocations of the prior three month period and immediate cash needs. The bi-weekly draws will be adjusted
to actual once a month once cost allocation is completed. Adjustments will be made by reducing or increasing the
subsequent draw. This funding technique is interest neutral.

6.3 Application of Funding Techniques to Programs

6.3.1 The State shall apply the following funding techniques when requesting Federal funds for the component cash flows
of the programs listed in sections 4.2 and 4.3 of this Agreement.

6.3.2 Programs
Below are programs listed in Section 4.2 and Section 4.3.

10.551 Supplemental Nutrition Assistance Program
Recipient: Department of Health and Human Services
% of Funds Agency Receives: 100.00

Component: Direct Program

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

10.555 National School Lunch Program
Recipient: Department of Education

% of Funds Agency Receives: 100.00
Component: Direct Program
Technique: Average Clearance
Average Day of Clearance: 1 Day

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

% of Funds Agency Receives: 90.00

Component: Direct Program

Technique: Average Clearance

Average Day of Clearance: 2 Days

Recipient: Department of Health and Human Services
% of Funds Agency Receives: 10.00
Component: Administrative Costs

Page 7 of 24


expenditures over the prior month. This funding technique is interest neutral.
Actual Draw - Bi-Monthly

The State shall request funds no more than twice a month based upon the cash needs of the program after the allocation
of funds has been processed by the State's financial system. Requests shall be made in accordance with the cut-off
time(s) in Exhibit |. Amount(s) requested shall be based on actual expenditures over the prior month. This funding
technique is interest neutral.

Actual Draw - Quarterly

The State shall request funds once a quarter after federal reporting has been completed. The amount of the request shall
be based on the actual costs of the prior quarter that have been allocated to the program in accordance with the
Department's approved cost allocation plan. This funding technique is interest neutral.

Actual Draw - Twice Weekly

The State shall request funds up to twice weekly through the use of the Department's Current Bill system which calculates
invoices processed in the prior period. The State shall request funds in accordance with applicable cut-off times in Exhibit
|. The amount requested shall be based on actual costs of the prior period. This funding technique is interest neutral.

Actual Draw - Weekly

The State shall request reimbursement up to twice per week. The State shall request funds in accordance with applicable
cut-off times in Exhibit 1. The amount requested shall be based on actual expenditures over the prior period. This funding
technique is interest neutral.

Cost Allocation Plans - Monthly

The state shall request funds monthly once Cost Allocation is available to fund activity of the prior month. The request
shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit |. The requested amount
shall be based on actual costs distributed in accordance with the approved cost allocation plan. This funding technique is
interest neutral.

Cost Allocation Plans - Quarterly - Other

The state shall request funds no less than quarterly once Cost Allocation is available to fund activity of the prior Quarter.
The request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit |. The
requested amount shall be based on actual costs distributed in accordance with the approved cost allocation plan. This
funding technique is interest neutral.

Estimated Draw - Administrative Cap

The State shall request funds bi-weekly. The request shall be made in accordance with the appropriate Federal agency
cut-off time specified in Exhibit |. The amount of the draw for each bi-weekly period within a quarter shall be an estimate
based upon the federal grant administrative cap. The amount drawn will be adjusted quarterly, when cost allocation
and/or federal reporting is complete, by reducing or increasing the quarterly cash balance draw. This funding technique is
interest neutral.

Estimated Draw - Bi-Weekly

Page 6 of 24


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 19 of 24


Recipient: Department of Employment Security
% of Funds Agency Receives: 100.00
Component: Direct Program

Technique: Average Clearance

Average Day of Clearance: 4 Days

20.205 Highway Planning and Construction
Recipient: Department of Transportation

% of Funds Agency Receives: 10.00
Component: Administrative Costs
Technique: Actual Draw - Twice Weekly
Average Day of Clearance: N/A

Recipient: Department of Transportation
% of Funds Agency Receives: 90.00
Component: Direct Program

Technique: Actual Draw - Twice Weekly
Average Day of Clearance: N/A

20.223 Transportation Infrastructure Finance and Innovation Act Program

Recipient: Department of Transportation
% of Funds Agency Receives: 100.00
Component: Direct Program

Technique: Actual Draw - Monthly
Average Day of Clearance: N/A

64.015 Veterans State Nursing Home Care
Recipient: NH State Veterans Home

% of Funds Agency Receives: 5.00
Component: Administrative

Technique: Actual Draw - Monthly
Average Day of Clearance: N/A

Recipient: NH State Veterans Home
% of Funds Agency Receives: 95.00
Component: Direct Program
Technique: Actual Draw - Monthly
Average Day of Clearance: N/A

66.458 Capitalization Grants for Clean Water State Revolving Funds
Recipient: Department of Environmental Services

% of Funds Agency Receives: 36.00

Component: Direct Program

Technique: Capitalization Grants for State Revolving Funds
Average Day of Clearance: N/A

Page 9 of 24


Cash Management Improvement Act Agreement
between
The State of New Hampshire
and
The Secretary of the Treasury,
United States Department of the Treasury

The Secretary of the Treasury, United States Department of the Treasury (hereafter 'Secretary'), and State of New
Hampshire (hereafter ‘State'), in order to implement Section 5 of the Cash Management Improvement Act of 1990, as
amended (hereafter 'Act'), agree as follows:

1.0 AGENTS OF THE AGREEMENT

1.1 The Authorized Official(s) for the State of New Hampshire shall be the Chief Deputy State Treasurer 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 07/01/2017 and shall remain in effect until 06/30/2018.

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 24


93.568 Low-Income Home Energy Assistance
Recipient: Governor's Office of Energy and Planning
% of Funds Agency Receives: 2.00

Component: Administrative Costs

Technique: Actual Draw - Monthly

Average Day of Clearance: N/A

Recipient: Governor's Office of Energy and Planning
% of Funds Agency Receives: 98.00

Component: Direct Program

Technique: Actual Draw - Weekly

Average Day of Clearance: N/A

93.575 Child Care and Development Block Grant
Recipient: Department of Health and Human Services
% of Funds Agency Receives: 100.00

Component: Direct Program

Technique: Actual Draw - Quarterly

Average Day of Clearance: N/A

93.5986 Child Care Mandatory and Matching Funds of the Child Care and Development Fund
Recipient: Department of Health and Human Services

% of Funds Agency Receives: 90.00

Component: Direct Program

Technique: Average Clearance

Average Day of Clearance: 3 Days

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

Component: Administrative Costs

Technique: Estimated Draw - Bi-Weekly

Average Day of Clearance: N/A

93.658 Foster Care -- Title IV-E

Recipient: Department of Health and Human Services
% of Funds Agency Receives: 90.00

Component: Direct Program

Technique: Average Clearance

Average Day of Clearance: 3 Days

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

Component: Administrative Costs

Technique: Estimated Draw - Bi-Weekly

Average Day of Clearance: N/A

Page 12 of 24


84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to States
Recipient: Department of Education

% of Funds Agency Receives: 61.00

Component: Administrative

Technique: Actual Draw - Monthly

Average Day of Clearance: N/A

Recipient: Department of Education
% of Funds Agency Receives: 39.00
Component: Direct Program
Technique: Average Clearance
Average Day of Clearance: 4 Days

84.367 Improving Teacher Quality State Grants
Recipient: Department of Education

% of Funds Agency Receives: 3.00
Component: Administrative

Technique: Actual Draw - Monthly

Average Day of Clearance: N/A

Recipient: Department of Education
% of Funds Agency Receives: 97.00
Component: Direct Program
Technique: Average Clearance
Average Day of Clearance: 1 Day

93.558 Temporary Assistance for Needy Families
Recipient: Department of Health and Human Services
% of Funds Agency Receives: 85.00

Component: Direct Program

Technique: Average Clearance

Average Day of Clearance: 1 Day

Recipient: Department of Health and Human Services
% of Funds Agency Receives: 15.00

Component: Administrative Costs

Technique: Estimated Draw - Administrative Cap
Average Day of Clearance: N/A

93.563 Child Support Enforcement

Recipient: Department of Health and Human Services
% of Funds Agency Receives: 100.00

Component: Administrative

Technique: Estimated Draw - Bi-Weekly

Average Day of Clearance: N/A

Page 11 of 24


Technique: Cost Allocation Plans - Monthly
Average Day of Clearance: N/A

10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program

Recipient: Department of Health and Human Services
% of Funds Agency Receives: 100.00

Component: Administrative Costs

Technique: Estimated Draw - Bi-Weekly

Average Day of Clearance: N/A

12.400 Military Construction, National Guard
Recipient: Adjutant General

% of Funds Agency Receives: 100.00
Component: Direct Program

Technique: Actual Draw - Bi-Monthly
Average Day of Clearance: N/A

12.401 National Guard Military Operations and Maintenance (O&M) Projects
Recipient: Adjutant General

% of Funds Agency Receives: 99.00

Component: Direct Program

Technique: Actual Draw - Bi-Monthly

Average Day of Clearance: N/A

Recipient: Adjutant General

% of Funds Agency Receives: 1.00
Component: Administrative
Technique: Actual Draw - Quarterly
Average Day of Clearance: N/A

17.225F Unemployment Insurance -- Federal Benefit Account and Administrative Costs
Recipient: Department of Employment Security

% of Funds Agency Receives: 5.00

Component: Direct Program

Technique: Average Clearance

Average Day of Clearance: 4 Days

Recipient: Department of Employment Security
% of Funds Agency Receives: 95.00
Component: Administrative Costs

Technique: Estimated Draw - Bi-Weekly Other
Average Day of Clearance: N/A

17.225S Unemployment Insurance -- State Benefit Account

Page 8 of 24


Exhibit II - State of New Hampshire

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| ProgramName | Recipient % Component | Technique Round
_| days

10.551 |Supplemental Nutrition |Department of Health and|100. |Direct Program Actual Clearance, ZBA- |0 Days
Assistance Program Human Services 00. |ACH

10.555 _| National School Lunch Department of Education |100. |Direct Program Average Clearance 1 Day
Program 00

10.557 |Special Supplemental _ [Department of Health and|90.0 |Direct Program Average Clearance 2 Days
Nutrition Program for Human Services 0
Women, Infants, and
Children

10.557 |Special Supplemental Department of Health and] 10.0 |Administrative Costs Cost Allocation Plans - |N/A
Nutrition Program for —_|Human Services 0 Monthly
Women, Infants, and
Children

10.561 State Administrative Department of Health and/100. |Administrative Costs Estimated Draw - Bi- N/A
Matching Grants for the |Human Services (00 Weekly
Supplemental Nutrition
Assistance Program

12.400 | Military Construction, Adjutant General 100. |Direct Program ‘Actual Draw - Bi-Monthly |N/A
National Guard 00

12.401 |National Guard Military | Adjutant General 1.00 |Administrative Actual Draw - Quarterly |N/A
Operations and
Maintenance (O&M)
Projects

12.401 |National Guard Military [Adjutant General 99.0 [Direct Program Actual Draw - Bi-Monthly |N/A
Operations and 0
Maintenance (O&M)
Projects

17.225F |Unemployment Insurance | Department of 5.00 | Direct Program Average Clearance 4 Days
-- Federal Benefit Employment Security
[Account and
Administrative Costs

17.225F |Unemployment Insurance | Department of 95.0 |Administrative Costs Estimated Draw - Bi- N/A
-- Federal Benefit Employment Security — |0 Weekly Other
[Account and
Administrative Costs

17.225S |Unemployment Insurance | Department of 100. |Direct Program Average Clearance 4 Days
-- State Benefit Account_|Employment Security 00

20.205 Highway Planning and | Department of 90.0 |Direct Program Actual Draw - Twice NIA
Construction Transportation i} |Weekly

20.205 |Highway Planning and Department of 10.0 |Administrative Costs Actual Draw - Twice N/A
Construction Transportation 0 Weekly

20.223 Transportation Department of 100. | Direct Program Actual Draw - Monthly N/A
Infrastructure Finance _| Transportation 00
and Innovation Act
Program

64.015 |Veterans State Nursing |NH State Veterans Home |95.0 |Direct Program Actual Draw - Monthly N/A
Home Care 0}

64.015 |Veterans State Nursing {NH State Veterans Home |5.00 |Administrative Actual Draw - Monthly = |N/A

Home Care

Page 22 of 24



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 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

Page 4 of 24


7.7 The State shail adjust each clearance pattern to reflect the dollar-weighted proportion of funds paid out by EFT/Direct
payroll, with the following exceptions:

NA

The State shall also adjust each clearance pattern to reflect:

NA

7.8 Each of the State's clearance patterns is calculated in business 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 Draw - Monthly

Actual Draw - Bi-Monthly

Actual Draw - Quarterly

Actual Draw - Twice Weekly

Actual Draw - Weekly

Average Clearance

Capitalization Grants for State Revolving Funds
Cost Allocation Plans - Monthly

Cost Allocation Plans - Quarterly - Other
Estimated Draw - Administrative Cap
Estimated Draw - Bi-Weekly

Estimated Draw - Bi-Weekly 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

Page 15 of 24


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:
8.6.2.1 Measuring Time Funds Are Held

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

8.6.2.2 Source of Data

Central Accounting System: New Hampshire First (NHFirst) Lawson statewide financial and accounting system. Treasury
relies on agency reported draw down dates (the date on which an agency drew down federal funds)and compares those
to the expenditure as well as subsequent cash receipt date. Federal programs are loaded in the NHFirst activity
subsystem with clearance pattern and other characteristics such that when an expenditure occurs, the system calculates
what day federal funds should be drawn down to be received in a State bank account on the same day that bank account
is debited for the expenditure. Reporting is based on running queries against the financial system. Treasury also
validates the date the funds are received by approving the cash receipt based on bank statements and/or on-line bank
data.

8.6.2.3 Standards Applied

To measure the time Federal funds are held in a State account prior to being disbursed, the State shall use statistical
sampling. The sample shall be randomly selected, and shall be of sufficient size to ensure, at a minimum, a 95%

Page 17 of 24


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:

Adjutant General

Department of Education

Department of Employment Security
Department of Environmental Services
Department of Health and Human Services
Department of Safety

Department of Transportation

Governor's Office of Energy and Planning
NH State Veterans Home

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:

Citizens Bank 93.558 Temporary Assistance for Needy Families
Marshall and Ilsley Bank 10.551 Supplemental Nutrition 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 I 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.

Page 3 of 24


4.0 PROGRAMS COVERED

4.1 The State's threshold and its major Federal assistance programs shall be determined based on the State's most
recently completed Single Audit for fiscal year ending 06/30/2016.

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 $6,659,949.
The following programs meet or exceed the threshold and are not excluded in Section 4.4:

10.551 Supplemental Nutrition Assistance Program

10.555 National School Lunch Program

10.557 Special Supplemental Nutrition Program for Women, Infants, and Children
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program
12.400 Military Construction, National Guard

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

20.223 Transportation Infrastructure Finance and Innovation Act Program

64.015 Veterans State Nursing Home Care

66.458 Capitalization Grants for Clean Water State Revolving Funds

66.468 Capitalization Grants for Drinking Water Revolving Fund

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

93.568 Low-Income Home Energy Assistance

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

93.778 Medical Assistance Program

93.959 Block Grants for Prevention and Treatment of Substance Abuse

97.036 Disaster Grants - Public Assistance (Presidentially Declared Disasters)

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

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

93.268 Immunization Grants --- Exclusion:Non-Cash

Page 2 of 24


93.667 Social Services Block Grant

Recipient: Department of Health and Human Services
% of Funds Agency Receives: 100.00

Component: Direct Program

Technique: Cost Allocation Plans - Quarterly - Other
Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: Department of Health and Human Services
% of Funds Agency Receives: 90.00

Component: Direct Program

Technique: Average Clearance

Average Day of Clearance: 1 Day

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

Component: Administrative Costs

Technique: Estimated Draw - Bi-Weekly

Average Day of Clearance: N/A

93.959 Block Grants for Prevention and Treatment of Substance Abuse
Recipient: Department of Health and Human Services

% of Funds Agency Receives: 95.00

Component: Direct Program

Technique: Cost Allocation Plans - Quarterly - Other

Average Day of Clearance: N/A

Recipient: Department of Health and Human Services
% of Funds Agency Receives: 5.00

Component: Administrative

Technique: Estimated Draw - Administrative Cap
Average Day of Clearance: N/A

97.036 Disaster Grants - Public Assistance (Presidentially Declared Disasters)
Recipient: Department of Safety

% of Funds Agency Receives: 3.00

Component: Administrative

Technique: Actual Draw - Bi-Monthly

Average Day of Clearance: N/A

Recipient: Department of Safety

% of Funds Agency Receives: 97.00
Component: Direct Program
Technique: Actual Draw - Bi-Monthly
Average Day of Clearance: N/A

Page 13 of 24


8.2 Federal Interest Liabilities

8.2.1 A Federal interest liability shall accrue from the day the State pays out its own funds for program purposes to the
day Federal funds are credited to a State account. With regard to funds transferred out of the Federal Highway Trust
Fund, if a State does not bill at least weekly for current project costs, the Federal interest liability shall not accrue prior to
the day the State submits a request for funds.

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

For all transactions where the State pays out its own funds for program purposes prior to receiving Federal funds, the
State shall track each payment from the date it is paid out of a State account to the date Federal funds are subsequently
credited to a State account to cover that outlay. The Federal interest liability on each payment shall be based on the
difference in whole days between the two events. With Federal-State matching programs, interest shall be calculated on
the Federal percentage of the disbursement.

8.3 The Unemployment Trust Fund

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

The State shall use the following methodology to calculate State interest liabilities on funds withdrawn from the several
accounts in the UTF under the Unemployment Insurance program.

Based on statements provided by its financial institution, or other appropriate source, the State shall determine the actual
interest earnings and the related banking costs attributable to funds withdrawn from its account in the UTF.

At the end of the States fiscal year, the State shall calculate the percentage of its total unemployment compensation
expenditures for (1) funds withdrawn from the State account in the UTF, or the State %, and (2) funds withdrawn from the
Federal Employees Compensation Account (FECA) and the Extended Unemployment Compensation Account (EUCA)
and any other accounts of Federal funds in the UTF, or the Federal %.

The State shall calculate the actual interest earnings and the related banking costs attributable to funds withdrawn from
the State account in the UTF by multiplying the State % by the amount of the actual interest earnings and the related
banking costs of the account as a whole. The States liability for interest on funds withdrawn from its account in the UTF
shall consist of the actual interest earnings attributable to such funds less the related banking costs attributed to such
funds.

The State shall determine the average daily cash balance of its unemployment compensation benefit payment account for
its fiscal year. The State shall calculate the average daily cash balance of Federal funds by multiplying the Federal % by
the average daily cash balance of the benefit payment account on the whole. The States liability for interest on funds
withdrawn from the FECA and EUCA (and any other benefit accounts of Federal funds in the UTF from which the State
draws funds) shall be the average daily cash balance of Federal funds multiplied by the annualized rate equal to the
average equivalent yields of 13-week Treasury bills auctioned during the States fiscal year.

8.4 Refund Liabilities

8.4.1 The State shall be liable for interest on refunds from the date the refund is credited to a State account until the date
the refund is debited from the State account for program purposes. The State shall apply a $50,000 refund transaction
threshold below which the State shall not incur or calculate interest liabilities on refunds. A transaction is defined as a

Page 16 of 24