The actual interest earnings of the benefit payment account on the whole constitute the actual interest earnings
attributable to funds withdrawn from the State account in the UTF, since the State shall apply an appropriate interest
neutral funding technique, to funds withdrawn from the FECA and EUCA and any other benefit accounts of Federal funds
in the UTF from which the State draws.

The State shall calculate the related banking costs attributable to funds withdrawn from the State account in the UTF by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State's liabilify for interest on funds withdrawn from its account in the UTF shall consist of the actual interest earnings of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

8.4 Refund Liabilities

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

8.4.2 For each refund, the State shall maintain information identifying:

(1) date a refund is credited to a State account

(2) date of the subsequent deposit of Federal funds against which the refund is offset
(3) amount of the refund

8.4.3 The State shall use the following methodology to calculate interest liabilities on refunds:

With programs to which applicable interest neutral funding techniques are applied, the State interest liability shall be
based on the difference in whole days between the date the refund is deposited in a State account and the date the
refund is offset against a subsequent deposit of Federal funds.

8.4.4 For CFDA 93.778, the State shall not incur an interest liability on refunds if drawn in the following manner.

The State shall reduce each weekly draw by an amount equal to the sum of all refunds in the previous four (4) quarters
divided by 52 weeks. The total draw reduction for the quarter is the calculated amount, as previously stated, times the
number of weeks in the current quarter. The State shall adjust the estimated refunds for the quarter to the actual refunds
and make an adjustment to the next scheduled draw.

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.

Page 20 of 28



Average Day of Clearance: N/A

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

Component: Administrative including Payroll

Technique: Modified Payment Schedule - Bi-Weekly

Average Day of Clearance: 0 Days

93.575 Child Care and Development Block Grant
Recipient: Department of Education

% of Funds Agency Receives: 95.00
Component: Benefits

Technique: Composite Clearance

Average Day of Clearance: 2 Days

Recipient: Department of Education

% of Funds Agency Receives: 5.00

Component: Other Expenditures including Administration and Payroll
Technique: Modified Direct Administrative Costs - Weekly

Average Day of Clearance: 0 Days

93,596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund
Recipient: Department of Education

% of Funds Agency Receives: 95.00

Component: Benefits

Technique: Composite Clearance

Average Day of Clearance: 2 Days

Recipient: Department of Education

% of Funds Agency Receives: 5.00

Component: Other expenditures including administration and payroll
Technique: Modified Direct Administrative Costs - Weekly

Average Day of Clearance: 0 Days

93.658 Foster Care -- Title IV-E

Recipient: Department of Health and Human Services - Human Services
% of Funds Agency Receives: 50.00

Component: Benefits

Technique: Composite Clearance

Average Day of Clearance: 1 Day

Recipient: Department of Health and Human Services - Human Services
% of Funds Agency Receives: 50.00

Component: Administrative including Payroll

Technique: Fixed Administrative Allowances - Bi-Weekly Payroll
Average Day of Clearance: 0 Days

Page 14 of 28



Exhibit | - Funds Request and Receipt Times Schedule

State of Michigan
detal. Payn pt

Agriculture-FNS. ACH 14:59 PM 4 day
Agricuiture-FNS. Fedwire 5:45 PM 0 day
Agriculture-FS ACH 3:00 PM iday
Air National Guard ACH 12:00 PM. 15 days
Army National Guard ACH 12:00 PM. 415 days
Commerce-NOAA ACH 2:00 PM 4 day
Dept of Homeland Security (FEMA) Fedwire 2:00 PM 2 days
Dept of Hometand 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 4 day
Education Eedwire. 2:00 PM. iO day
Energy ACH 4:00 PM iday
Energy Fedwire 3:00 PM 0 day
HHS ACH 6:30 PM iday
HHS Fedwire 3:00 PM Q_day
HUD ACH 5:30 PM |2-days
HUD Fedwire 3:00 PM 0 day
Interlor-FWS ACH. 14:59 PM 4 day
Interior-FWS: Fedwire 5:45 PM 0 day
Interior-OSM. ACH 3:00 PM 4 day
Interior-OSM Fedwire 4:00 PM. 0 day
Justice ACH 11:00 PM 6 days
Justice Fedwire 2:00 PM 2 days
Labor-Non-UTF ACH 3:00 PM. 4day
Labor-UTF ACH, 3:00 PM iday
Labor-UTF. Fedwire 3:00 PM O day
National Science Foundation (NSF) ACH PM iday
National Science Foundation (NSF) Fedwire 5:45 PM Q day
Social Security Administration ACH 11:59 PM i day
Social Security Administration Fedwire 5:45 PM 0 day
Transportation (FAA) ACH 2:00 PM 4day
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 24 of 28



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.

6.1.6 This section modifies Section 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. The
State does pay warrants on days when the State is not open for business and the Federal Government is open.
Therefore, the receipt of funds shall be scheduled on State holidays that do not coincide with Federal holidays. 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.

6.2 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 ina 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 1. The amount of the request shall be for the amount of funds that clear the State's account on the settlement
date. This funding technique is interest neutral.

Actual Clearance, ZBA - Same Day Payment

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

Average Clearance

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

Composite Clearance

The State shall request funds such that they are deposited on the dollar-weighted average number of days required for
funds to be paid out for a series of disbursements, in accordance with the clearance pattern specified in Exhibit Il. The
request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit |. The amount of

Page 5 of 28



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

Clearance Patterns:
The time period from issuance of funds to the date funds are debited from the State's account shall be determined by the

appropriate clearance pattern specified in Exhibit tL.
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 fs pertinent.

8.6.2.4 Calculation Procedure

Average Daily Balance:
|= ADB x R, where

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

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

9.0 REVERSE FLOW PROGRAMS

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

40.0 INTEREST CALCULATION COSTS

40.1 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 pattems 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.

40.2 The State expects to incur the following types of interest caiculation costs:

1. Compiling and determining actual clearance patterns.

2. Compiling and analyzing information prepared for each grant program related to the interest calculation.
3. Performing the actual interest calculation of interest.

4. Preparing and transmitting the Annual Report to the Bureau of the Fiscal Service.

Page 21 of 28



2 eves S508 Eee :
Temporary Assistance for|Department of Health and Client Benefits - EBT Actual Clearance, ZBA -
Needy Families Human Services - Human|0 Same Day Payment
Services
93.563 [Child Support Department of Health and]100. |Administrative including | Fixed Administrative 0 Days
Enforcement Human Services - Human}00_— [Payroll Allowances - Bi-Weekly
Services Payroll
93.568 |Low-Income Home Department of Health and|4.00 {LIHEAP Weatherization, |Modified Payment N/A
Energy Assistance Human Services - Human Deliverable Fuels, and Schedule - Weekly
Services DTE Energy Payment
93.568 | Low-Income Home Department of Health and]86.0 |Benefits Modified Payment N/A
Energy Assistance Human Services - Human|0 Schedule - Weekly
Services
93.568 |Low-Income Home Department of Health and|10.0 |Administrative including Modified Payment 0 Days
Energy Assistance Human Services - Human} 0 Payroll Schedule - Bi-Weekly
Services
93.575 |Child Care and Department of Education |95.0 |Benefits Composite Clearance 2 Days
Development Block Grant Lt}
93.575 |Child Care and Department of Education |5.00 |Other Expenditures Modified Direct 0 Days
Development Block Grant including Administration | Administrative Costs -
and Payroll Weekly
93.596 |Child Care Mandatory Department of Education |95.0 |Benefits Composite Clearance 2 Days
land Matching Funds of 0
ithe Child Care and
Development Fund
93.596 |Child Care Mandatory Department of Education |5.00 | Other expenditures Modified Direct 0 Days
and Matching Funds of including administration | Administrative Costs -
ithe Child Care and and payroll Weekly
Development Fund
93.658 | Foster Care -- Title 1V-E _|Department of Health and}50.0 | Benefits Composite Clearance 4 Day
Human Services - Human}0
Services
93.658 {Foster Care -- Title IV-E |Department of Health and|50.0 |Administrative including | Fixed Administrative 0 Days
Human Services - Human|0 Payroll Allowances - Bi-Weekly
Services Payroll
93.659 | Adoption Assistance Department of Health and|93.0 | Direct Client Benefits Composite Clearance 2 Days
Human Services - Human|0
Services
93.659 |Adoption Assistance Department of Health and|7.00 | Administrative including | Fixed Administrative 0 Days
Human Services - Human Payroll Allowances - Bi-Weekly
Services Payroll
93.667 |Social Services Block Department of Health and|100. /Adminstration including —|Modified Grants for 10 Days
Grant Human Services - Human|00_—_ | Payroll Administrative Costs
Services
93.767 | Children's Health Department of Health and/96.0 |Benefits Average Clearance 0 Days
Insurance Program Human Services - 0
Community Health
93.767 | Children's Health Department of Health and|3.00 |Miscellaneous Benefits |Actual Costs - Estimated /1 Day
Insurance Program Human Services - Allocation - Bi-Weekly
Community Health
93.767 | Children’s Health Department of Health and} 1.00 |Other Non-MMIS Actual Clearance, ZBA- |0 Days
Insurance Program Human Services - Payments Same Day Payment
Community Health.
93.778 |Medical Assistance Department of Heaith and/95.0 |Benefits CHAMPS Average Clearance ‘0 Days
Program Human Services - 0 Payment
Community Health
93.778 |Medical Assistance Department of Health and|1.00 |Miscellaneous Benefits | Actual Costs - Estimated |1 Day
Program ‘Human Services - Allocation - Bi-Weekly
Community Health
93.778 |Medical Assistance Department of Health and}1.00 |Other Non-CHAMPS Actual Clearance, ZBA- |0 Days
Program Human Services ~ Large Benefit Payments {Same Day Payment
[Community Health
93.778 |Medical Assistance Department of Health and|3.00 |Administrative including | Fixed Administrative 0 Days
Program Human Services - Payroll Allowances - Bi-Weekly
|Community Health Payroll

Page 27 of 28



42.0 AUTHORIZED SIGNATURES

Mary G. Martin
Director, Bureau of State and Authority Finance

Date Signed: fe -3-/'7

——

Date Submitted 09/19/2017

Corvelli A. McDaniel

Assistant Commissioner

Revenue Collections Management
Bureau of the Fiscal Service

US. Peper it of the Tree
Signature: Ta Th A Ary

Date Signed: (oh3/9

Page 23 of 28



from the date the disbursement cleared the State account.

To determine the percentage of the total disbursements paid out for a period of 3 months(See Section 7.4.1), divide each
disbursement by the amount of the totaf disbursements during the 3 month test period.

The clearance time of each individual disbursement in the 3 month test period shall be multiplied by the percentage of the
total disbursements for the 3 month test period. This product is the weighted clearance factor.

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

7.7 The State shall adjust each clearance pattem 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:

None.

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 shail recertify its clearance patterns at least every five years.

7.A0 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 Costs - Bi-Weekly Request

Actual Costs - Estimated Allocation - Bi-Weekly
Actual Costs - Estimated Allocation - Dally

Average Clearance

Composite Clearance

Direct Administrative Costs - Drawdowns on a Payroll Cycle
Fixed Administrative Allowances - Bi-Weekly Payroll
HUD Payment Schedule

Modified Direct Administrative Costs - Weekly
Modified Grants for Administrative Costs

Page 18 of 28



% of Funds Agency Receives: 95.00
Component: Tenant Housing Assistant Payments
Technique: HUD Payment Schedule

Average Day of Clearance: N/A

44.871 Section 8 Housing Choice Vouchers

Recipient: Michigan State Housing Development Authority
% of Funds Agency Receives: 10.00

Component: Administration

Technique: HUD Payment Schedule

Average Day of Clearance: N/A

Recipient: Michigan State Housing Development Authority
% of Funds Agency Receives: 90.00

Component: Tenant Housing Assistant Payments
Technique: HUD Payment Schedule

Average Day of Clearance: N/A

17.225F Unemployment insurance -- Federal Benefit Account and Administrative Costs
Recipient: Department of Talent and Economic Development

% of Funds Agency Receives: 54.00

Component: Benefits (ACH) - Federal EUCA, TRA and EB

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

Recipient: Department of Talent and Economic Development

% of Funds Agency Receives: 1.00

Component: Benefits (Manual Checks) - Federal EUCA, TRA and EB
Technique: Actual Costs - Estimated Allocation - Daily

Average Day of Clearance: 5 Days

Recipient: Department of Talent and Economic Development

% of Funds Agency Receives: 45.00

Component: Administrative and Payroll

Technique: Direct Administrative Costs - Drawdowns on a Payroll Cycle
Average Day of Clearance: 0 Days

47.2258 Unemployment Insurance -- State Benefit Account
Recipient: Department of Talent and Economic Development
% of Funds Agency Receives: 99.00

Component: Benefits (ACH) - State UTF

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

Recipient: Department of Talent and Economic Development
% of Funds Agency Receives: 1.00

Page 10 of 28



reports. This funding technique is interest neutral.
Actual Costs - Estimated Allocation - Daily

The State shall request funds on a daily basis based on the average amount of clearance for Ul payments. The state shall
adjust the estimated drawdowns to the actual disbursements on a monthly basis. This funding technique is interest
neutral.

HUD Payment Schedule

HUD (Housing and Urban Development) pays a calculated amount on the 1st business day of each month. The budget is
approved at the beginning of each calendar year. The amount of the monthly allocation is documented in the annual
budget approved by HUD. This funding technique is Interest neutral.

Modified Direct Administrative Costs - Weekly

The State shall request funds weekly for administrative costs such that they are requested on Wednesday for receipt on
Thursday. The request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit |.
The amount of funds requested shall be based on the amount of expenditures recorded for administrative costs since the
last request for funds. This funding technique is interest neutral.

Modified Grants for Administrative Costs

The State shall request a prorated share of its annual award to be deposited on the average date of clearance for payroll
during each pay period, as specified in the appropriate Clearance pattern in Exhibit Il. The request shall be made in
accordance with the appropriate Federal agency cut-off time specified in Exhibit |. The prorate shall be determined. by
dividing the annual award by the number of paydays in the year. This funding technique is interest neutral.

Modified Payment Schedule - Weekly

The State shall request funds no later than the second business day of the week for receipt no later than the third
business day of the week. The amount of the request shall be based on the amount of the actual funds expended in the
prior week. The request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit
|, The U.S. Treasury and the State shall agree that use of this methodology shall be interest neutral for both parties.

This funding technique is interest neutral.

Modified Payment Schedule - Bi-Weekly

The State shall request funds such that they are deposited in a State account on the dollar-weighted average date of
clearance for payroll payments, as specified in the appropriate clearance pattern in Exhibit ll, 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 a
prorated share of the total amount of Federal funds expected to be paid out for program purposes during the year divided
by 26. The State shall adjust the estimated drawdown to actual costs at the end of each quarter in conjunction with the
quarterly Federal reports. This funding technique is interest neutral.

Prior Month's Actual

The State shall request funds such that they are deposited in a State account in accordance with the clearance pattern in
Exhibit Il, The request shall be made in accordance with the appropriate Federal agency cut-off time specified In Exhibit |.
The amount of the request shall be for the amount of expenditures incurred in the prior month. A departmental report will

be run as soon as possible subsequent to the close of each month to determine these costs and a request for funds will

Page 7 of 28



the request shall be the sum of the payments issued in the series of disbursements. This funding technique is interest
neutral.

Payment Schedule - Monthly

The State shall request funds such that they are deposited in a State account on the median business day of the month.
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 a prorated share of the lesser of (1) the annual grant divided by 12, or (2) the total amount
of Federal funds expected to be paid out for program purposes during the year divided by 12. 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.

Direct Administrative Costs - Drawdowns on a Payroll Cycle

The State shall request funds for all direct administrative costs such that they are deposited on the dollar-weighted
average date of clearance of payroll. The request shall be made in accordance with the appropriate Federal agency cut-
off time specified in Exhibit |. The amount of funds requested shall be based on the amount of liabilities recorded for direct
administrative costs since the last request for funds. This funding technique is interest neutral.

Fixed Administrative Allowances - Bi-Weekly Payroll

The State shall request funds such that one-sixth (or one-seventh) of the quarterly administrative allowance Is deposited
on the dollar-weighted average date of clearance for payroll payments, as specified in the appropriate clearance pattern in
Exhibit II. The request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit !.
This funding technique is interest neutral.

6.2.3 The following are terms under which miscellaneous funding techniques shall be implemented for all transfers of
funds fo 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 Costs - Bi-Weekly Request

The State shall request funds at bi-weekly intervals, such that funds are deposited on the day of clearance for payroll
payments. The request shall be made in accordance with the appropriate Federal agency cut-off time as specified in
Exhibit |. The amount of the request for each bi-weekly period shall be derived from actual costs of the prior two week
period including any material one-time payments. The State shall request administrative costs at the end of each quarter
in conjunction with the quarterly Federal reports. This funding technique is interest neutral.

Actual Costs - Estimated Allocation - Bi-Weekly

The State shall request funds at bi-weekly intervals, such that funds are deposited on the dollar-weighted average day of
clearance for payroll payments, as specified in Exhibit II. The request shall be made in accordance with the appropriate
Federal agency cut-off time as specified in Exhibit |. The amount of the request for each bi-weekly period shall be an
estimated allocation derived from actual costs of the prior quarter, excluding any material one-time payments. The State
shall adjust the estimated drawdown to the actual costs at the end of the quarter in conjunction with the quarterly Federal

Page 6 of 28



Modified Payment Schedule - Weekly
Madified Payment Schedule - Bl-Weekly
Payment Schedule - Monthly

8.1.2 The State shall maintain information on disbursements and receipts of funds to verify the implementation of any
funding technique and document interest liabilities:

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

(1) amount of the issuance

(2) date of issuance

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

(4) amount of Federal funds received

(5) date funds were requested

8.2 Federal Interest Liabilities

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

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

Actual Activity:

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

8.2.3 When the procedures specified in Section 6 of this Agreement are properly applied, any quarterly and year-end
accounting corrections or adjustments will be interest neutral. The State shall reduce or increase the next scheduled draw
by the amount of the adjustment.

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 Funds Interest Neutral, State Funds not:
The State shall use the following methodology to calculate State interest liabilities on funds withdrawn from the State
account in the UTF under the Unemployment Insurance program.

Based on statements provided by its financial institution (or other appropriate sources), the State shall determine the
actual interest eamings and the related banking costs attributable to funds withdrawn from its account in the UTF. At the
end of the State's fiscal year, the State shall calculate the percentage of its total unemployment compensation
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 %.

Page 19 of 28



Component: Payroll
Technique: Direct Administrative Costs - Drawdowns on a Payroll Cycle
Average Day of Clearance: N/A

10.558 Child and Adult Care Food Program
Recipient: Department of Education

% of Funds Agency Receives: 100.00
Component: Benefits

Technique: Modified Payment Schedule - Weekly
Average Day of Clearance: N/A

40.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program
Recipient: Department of Health and Human Services - Human Services

% of Funds Agency Receives: 70.00

Component: Food Stamp Administration including Employment and Training

Technique: Fixed Administrative Allowances - Bi-Weekly Payroll

Average Day of Clearance: 0 Days

Recipient: Department of Health and Human Services - Human Services
% of Funds Agency Receives: 30.00

Component: Nutrition Ed/Farmers Market/SAE

Technique: Modified Direct Administrative Costs - Weekly

Average Day of Clearance: N/A

42.401 National Guard Military Operations and Maintenance (O&M) Projects
Recipient: Department of Military and Veterans Affairs

% of Funds Agency Receives: 57.00

Component: CSSM (Non-Payroll)

Technique: Prior Month's Actual

Average Day of Clearance: N/A

Recipient: Department of Military and Veterans Affairs
% of Funds Agency Receives: 43.00

Component: Payroll

Technique: Prior Month's Actual

Average Day of Clearance: N/A

44.182 Lower Income Housing Assistance Program — Section 8 New Construction/Substantial Rehabilitation
Recipient: Michigan State Housing Development Authority

% of Funds Agency Receives: 5.00

Component: Administration

Technique: HUD Payment Schedule

Average Day of Clearance: N/A

Recipient: Michigan State Housing Development Authority

Page 9 of 28



Exhibit Il - State of Michigan

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
ie fe a

40.551 |Supplemental Nutrition [Department of Health and|100. |Benefits - EBT Actual Clearance, ZBA~ {0 Days

Assistance Program Human Services - Human}|00 Same Day Payment
Services

10.553 | School Breakfast Department of Education |100. |Benefits Modified Payment NIA
Program 00 Schedule - Weekly

10.555 | National School Lunch Department of Education |100. |Benefits Modified Payment NIA
Program 00 Schedule - Weekly

10.557 |Special Supplemental Department of Health and]23.0 | Administrative Direct Administrative NIA
Nutrition Program for Human Services - oO Costs - Drawdowns on a
Women, Infants, and Community Health Payroll Cycle
Children

10.557 | Special Supplemental Department of Health and]2,00 {Payroll Direct Administrative NIA
Nutrition Program for Human Services - Costs - Drawdowns on a
‘Women, Infants, and ‘Community Health Payrali Cycle
Children

10.557 |Special Supplemental Department of Health and}75.0 |Benefits - EBT Actual Clearance, ZBA- |0 Days
Nutrition Program for Human Services - 0. Same Day Payment
Women, Infants, and ‘Community Health
Children

40.558 |Child and Adult Care Department of Education |100. |Benefits Modified Payment NIA
Food Program 00 Schedule - Weekly

10.561 [State Administrative Department of Health and|30.0 |Nutrition Ed/Farmers | Modified Direct NIA
Matching Grants for the {Human Services - Human|0 Market/SAE Administrative Costs -
Supplemental Nutrition | Services Weekly
Assistance Program

10.561 | State Administrative Department of Health and|70.0 |Food Stamp Fixed Administrative 0 Days
Matching Grants for the /Human Services - Human|0 Administration including _ | Allowances - Bi-Weekly
Supplemental Nutrition | Services Employment and Training | Payroll
Assistance Program

12.401 |National Guard Miltary | Department of Military 57.0 |CSSM (Non-Payroll) Prior Month's Actual NIA
Operations and and Veterans Affairs 0
Maintenance (O&M)
Projects.

12.401 {National Guard Military | Department of Military 43.0 |Payroll Prior Month's Actual NIA
Operations and and Veterans Affairs 0
Maintenance (O&M)
Projects

44.182 |Lower Income Housing | Michigan State Housing {95.0 |Tenant Housing Assistant/ HUD Payment Schedule |N/A
Assistance Program -- Development Authority {0 Payments
Section 8 New
Construction/Substantial
Rehabilitation

14.182 |Lower Income Housing [Michigan State Housing |5.00 |Administration HUD Payment Schedule |N/A
[Assistance Program -- Development Authority
Section 8 New
Construction/Substantial
Rehabilitation

14.871 |Section 8 Housing Michigan State Housing |90.0 | Tenant Housing Assistant}HUD Payment Schedule |N/A
Choice Vouchers. Development Authority [0 Payments

Page 25 of 28



Cash Management Improvement Act Agreement
between
The State of Michigan
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 Michigan
(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 Michigan shall be the Director for the Bureau of State and Authority Finance
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 shail 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 shail take effect on 10/01/2017 and shall remain in effect until 09/30/2018.

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 28



Technique: Modified Payment Schedule - Weekly
Average Day of Clearance: N/A

84.027 Special Education -- Grants to States

Recipient: Department of Education

% of Funds Agency Receives: 11.00

Component: Payroll and Admin

Technique: Modified Direct Administrative Costs - Weekly
Average Day of Clearance: 0 Days

Recipient: Department of Education

% of Funds Agency Receives: 89.00

Component: Benefits

Technique: Modified Payment Schedule - Weekly
Average Day of Clearance: N/A

84.126 Rehabilitation Services - Vocational Rehabilitation Grants to States

Recipient: Department of Licensing and Regulatory Affairs

% of Funds Agency Receives: 15.00

Component: Payroll, Benefits, Travel, CSS&M and Client Services
Technique: Actual Costs - Bi-Weekly Request

Average Day of Clearance: N/A

Recipient: Department of Health and Human Services - Human Services
% of Funds Agency Receives: 85.00

Component: Payroll, Benefits, Travel, CSS&M and Client Services
Technique: Modified Payment Schedule - Bi-Weekly

Average Day of Clearance: N/A

84.367 Improving Teacher Quality State Grants
Recipient: Department of Education

% of Funds Agency Receives: 2.00

Component: Payroll and Admin

Technique: Modified Direct Administrative Costs - Weekly
Average Day of Clearance: 0 Days

Recipient: Department of Education

% of Funds Agency Receives: 98.00

Component: Benefits

Technique: Modified Payment Schedule - Weekly
Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families
Recipient: Department of Health and Human Services - Human Services
% of Funds Agency Receives: 40.00

Page 12 of 28



Component: Benefits (Manual Checks) - State UTF
Technique: Actual Costs - Estimated Allocation - Daily
Average Day of Clearance: 5 Days

20.106 Airport Improvement Program
Recipient: Department of Transportation
% of Funds Agency Receives: 1.00
Component: Payroll

Technique: Average Clearance
Average Day of Clearance: 0 Days

Recipient: Department of Transportation
% of Funds Agency Receives: 99.00
Component: Vendor Payments
Technique: Average Clearance
Average Day of Clearance: 0 Days

20.205 Highway Planning and Construction
Recipient: Department of Transportation

% of Funds Agency Receives: 83.00
Component: Contruction Payments
Technique: Average Clearance

Average Day of Clearance: 0 Days

Recipient: Department of Transportation
% of Funds Agency Receives: 6.00
Component: Payroll

Technique: Average Clearance
Average Day of Clearance: 0 Days

Recipient: Department of Transportation

% of Funds Agency Receives: 11.00

Component: Vendor Payments

Technique: Modified Payment Schedule - Weekly
Average Day of Clearance: 0 Days

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

% of Funds Agency Receives: 2.00

Component: Payroll and Admin

Technique: Modified Direct Administrative Costs - Weekly
Average Day of Clearance: 0 Days

Recipient: Department of Education
% of Funds Agency Receives: 98.00
Component: Benefits

Page 11 of 28



occur as soon as possible thereafter. This funding technique is not 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 - Human Services
% of Funds Agency Receives: 100.00

Component: Benefits - EBT

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

10.553 School Breakfast Program

Recipient: Department of Education

% of Funds Agency Receives: 100.00
Component: Benefits

Technique: Modified Payment Schedule - Weekly
Average Day of Clearance: N/A

10.555 National School Lunch Program
Recipient: Department of Education

% of Funds Agency Receives: 100.00
Component: Benefits

Technique: Modified Payment Schedule - Weekly
Average Day of Clearance: N/A

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

% of Funds Agency Receives: 75.00

Component: Benefits - EBT

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

Recipient: Department of Health and Human Services - Community Health
% of Funds Agency Receives: 23.00

Component: Administrative

Technique: Direct Administrative Costs - Drawdowns on a Payroll Cycle
Average Day of Clearance: N/A

Recipient: Department of Health and Human Services - Community Health
% of Funds Agency Receives: 2.00

Page 8 of 28



40.3 The State shall submit all claims for reimbursement of interest calculation costs with its Annual Report in accordance
with 31 CFR 205.

41.0 NON-COMPLIANCE

14.1 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 22 of 28



Block Grants for

Benefits

Disability Insurance

Human Services - Human|00
‘Services

Payments includin
Administrative and”
Payroll

Department of Health and|99.0 Payment Schedule - 4 Day
Prevention and Human Services - 0 Monthly
Treatment of Substance |Community Health
Abuse
93.959 | Block Grants for Department of Health and|/1.00 |Administrative and Payment Schedule - 0 Days
Prevention and Human Services - Payroll Monthly
Treatment of Substance j/Community Health
Abuse
96.001 | Social Security -- Department of Health and]100. |Contract Vendor Modified Payment NIA

‘Schedule - Weekly

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

Exhibit 2 of this Treasury-State Agreement:

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

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

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

4, Are auditable.

Date:

O-/0-/T

Printed Name:

Masry &, Vaart A

Certifying Signature:

tite:__Direetr, Bureau of Stee “Author ty France.

Page 28 of 28



6.1.5 Supplemental Funding:
Unless otherwise defined by program rules, Supplemental Funding is the award of additional funds to provide for an
increase in costs due to unforeseen circumstances.

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

The State will comply with the following guidelines when requesting supplemental funding for the Medical Assistance
Program and associated administrative payments (CFDA 93.778):

The State must submit a revised Medicaid Program Budget Report (CMS-37) to request supplemental funding. The CMS
guidelines and instructions for completing the CMS-37 are provided in Section 2600F of the State Medicaid Manual
(SMM). The CMS/CO must receive the revised Form CMS-37 through the Medicaid Budget Expenditure
System/Children's Budget Expenditure System (MBES/CBES) no later than 10 calendar days before the end of the
quarter for which the supplemental grant award is being requested.

Additional guidance on this policy is available from the respective CMS Regional Office, U.S. Department of Health &
Human Services.

The State will comply with the following guidelines when requesting supplemental funding for TANF (CFDA 93.558),
CCDF (CFDA 93.575), CSE (93.563), and the FC/AA (CFDA 93.658 and CFDA 93.659) programs administered by the
U.S. Department of Human Services, Administration for Children and Families (HHS/ACF):

a. Timing of the Request

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

Page 4 of 28



93.659 Adoption Assistance

Recipient: Department of Health and Human Services - Human Services
% of Funds Agency Receives: 93.00

Component: Direct Client Benefits

Technique: Composite Clearance

Average Day of Clearance: 2 Days

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

Component: Administrative including Payroll

Technique: Fixed Administrative Allowances - Bi-Weekly Payroll
Average Day of Clearance: 0 Days

93.667 Social Services Block Grant

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

Component: Adminstration including Payroll

Technique: Modified Grants for Administrative Costs

Average Day of Clearance: 0 Days

93.767 Children's Health Insurance Program

Recipient: Department of Heaith and Human Services - Community Health
% of Funds Agency Receives: 1.00

Component: Other Non-MMIS Payments

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

Recipient: Department of Health and Human Services - Community Health
% of Funds Agency Receives: 3.00

Component: Miscellaneous Benefits

Technique: Actual Costs - Estimated Allocation - Bi-Weekly

Average Day of Clearance: 1 Day

Recipient: Department of Health and Human Services - Community Health
% of Funds Agency Receives: 96.00

Component: Benefits

Technique: Average Clearance

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Department of Health and Human Services - Community Health
% of Funds Agency Receives: 1.00

Component: Other Non-CHAMPS Large Benefit Payments

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

Page 15 of 28



Payroll. The State may develop a separate clearance pattern for an individual program, or develop a composite clearance
pattern for a logical group of programs, or develop a clearance pattern on another basis acceptable to the Bureau of the
Fiscal Service.

7.1.1 The clearance for payroll is 0 days.

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

State Treasury

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

State Treasurer Disbursements (hereafter, warrants and EFTs)as recorded in the MAIN accounting system.
7.4 The State shall use the following methodology when developing its clearance patterns:

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

7.4.1 This section modifies Section 7.4.
When developing each clearance pattern, the State shall track 100% of the funds disbursed both by paper warrant or
Electronic Funds Transfer, from issuance to clearance, for a period of at least three (3) 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.

7.5.1 This section modifies Section 7.5.

The State shall identify for each disbursement, paper warrant or Electronic Funds Transfer (hereafter, disbursement) in
the population: (1) the date the disbursement was issued; (2) the date the disbursement was debited from the State's
account, and, (3) the amount of the disbursement.

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

7.6.1 This section modifies and further clarifies Section 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 disbursement was outstanding (clearance time), the issue date shall be subtracted

Page 17 of 28



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

84.032 Federal Family Education Loans --- Exclusion:Non-State
93.268 Immunization Grants -- Exclusion:Non-Cash

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 fist of such entities that administer funds under the programs listed in Section
4.0 of this Agreement:

Department of Education

Department of Health and Human Services - Community Health
Department of Health and Human Services - Human Services
Department of Licensing and Regulatory Affairs

Department of Military and Veterans Affairs

Department of Talent and Economic Development

Department of Transportation

Michigan State Housing Development Authority

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:

Xerox Corporation 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 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.

Page 3 of 28



=

14.871 |Section 8 Housing Michigan State Housing 10.0 |Administration HUD Payment Schedule |N/A
Choice Vouchers Development Authority _|0
47.225F |Unemployment Insurance | Department of Talent and |1.00 |Benefits (Manual Checks) | Actual Costs - Estimated |5 Days
-- Federal Benefit Economic Development - Federal EUCA, TRA Allocation - Daily
Account and and EB
Administrative Costs
17.225F |Unemployment Insurance |Department of Talent and |45.0 |Administrative and Direct Administrative 0 Days
-- Federal Benefit Economic Development |0 Payroll Costs - Drawdowns on a
Account and Payroll Cycle
Administrative Costs
17.225F |Unemployment Insurance | Department of Talent and|54.0 |Benefits (ACH) - Federal |Actual Clearance, ZBA- |0 Days
-- Federal Benefit Economic Development {0 EUCA, TRA and EB ACH
Account and
Administrative Costs
17.2258 |Unemployment Insurance |Department of Talent and 1.00 |Benefits (Manual Checks)|Actual Costs - Estimated |5 Days
-- State Benefit Account_|Economic Development - State UTF Allocation - Daily
17.2258 |Unemployment Insurance |Department of Talent and |99.0 |Benefits (ACH) - State Actual Clearance, ZBA- {0 Days
-- State Benefit Account_|Economic Development_|0 UTE ACH
20.106 | Airport Improvement Department of 4.00 |Payroll Average Clearance 0 Days
Program. Transportation
20.106 | Airport Improvement Department of 99.0 |Vendor Payments Average Clearance 0 Days
Program Transportation 0
20.205 | Highway Planning and Department of 6.00 |Payroll Average Clearance 0 Days
Construction Transportation
20.205 |Highway Planning and = |Department of 83.0 |Contruction Payments [Average Clearance 0 Days
Construction Transportation oO
20.205 | Highway Planning and Department of 11.0 [Vendor Payments Modified Payment 0 Days
Construction Transportation 0 Schedule - Weekly
84.010 | Title | Grants to Local Department of Education |98.0 |Benefits Modified Payment N/A
Educational Agencies 0 ‘Schedule - Weekly
84.010 |Title ! Grants to Local Department of Education {2.00 {Payroll and Admin Modified Direct 10 Days
Educational Agencies | Administrative Costs -
Weekly
84.027 |Special Education -- Department of Education |89.0 |Benefits Modified Payment NIA
Grants to States. 0 ‘Schedule - Weekly
84,027 |Special Education -- Department of Education |41.0 |Payroll and Admin Modified Direct 0 Days
Grants to States 0 Administrative Costs -
Weekly
84.126 {Rehabilitation Services - |Department of Health and/85.0 |Payroll, Benefits, Travel, {Modified Payment N/A
Vocational Rehabllitation {Human Services - Humanj0 CSS&M and Client Schedule - Bi-Weekly
Grants to States Services Services
84.126 Rehabilitation Services -- [Department of Licensing /15.0 |Payroll, Benefits, Travel, |Actual Costs - Bi-Weekly |N/A
Vocational Rehabilitation |and Regulatory Affairs 0 CSS&M and Client Request
Grants to States Services
84.367 [Improving Teacher Department of Education |98.0 |Benefits Modified Payment NIA
Quality State Grants 0 Schedule - Weekly
84.367 — |Improving Teacher Department of Education |2.00 {Payroll and Admin Modified Direct 0 Days
Quality State Grants Administrative Costs -
Weekly
93.558 romporary Assistance for | Department of Health and|1.00 |Benefits on Behalf of Average Clearance 3 Days
Needy Families Human Services - Human Clients - Non-EBT
Services
93,558 | Temporary Assistance for |Department of Health and|6.00 |Adoption Composite Clearance 2 Days
Needy Families Human Services - Human
Services
93,558 | Temporary Assistance for |Department of Health and} 19.0 | Client Benefits - Energy |Composite Clearance 3 Days
Needy Families Human Services - Human}0
Services
93,558 | Temporary Assistance for |Department of Health and]34.0 /Other Expenditures Modified Payment 0 Days

Needy Families

Human Services - Human

Services

including Administration

and Payroll

Schedule - Bi-Weekly

Page 26 of 28



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
recent Single Audit or the most recent Schedule of Expenditures of Federal Awards (SEFA) for fiscal year ending
09/30/2016.

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 $52,000,000.
The following programs meet or exceed the threshold and are not excluded in Section 4.4:

40.551 Supplemental Nutrition Assistance Program

10.553 School Breakfast Program

410.555 National School Lunch Program

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

10.558 Child and Adult Care Food Program

40.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program
42.401 National Guard Military Operations and Maintenance (O&M) Projects

44.182 Lower Income Housing Assistance Program -- Section 8 New Construction/Substantial Rehabilitation
14.871 Section 8 Housing Choice Vouchers

47.225F Unemployment Insurance -- Federal Benefit Account and Administrative Costs
17.225S Unemployment Insurance -- State Benefit Account

20.106 Airport Improvement Program

20.205 Highway Planning and Construction

84.010 Title | Grants to Local Educational Agencies

84.027 Special Education -- Grants to States

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to States

84.367 improving Teacher Quality State Grants

93.558 Temporary Assistance for Needy Families

93.563 Child Support Enforcement

93.568 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

93.659 Adoption Assistance

93.667 Social Services Block Grant

93.767 Children's Health Insurance Program

93.778 Medical Assistance Program

93.959 Block Grants for Prevention and Treatment of Substance Abuse

96.001 Social Security -- Disability Insurance

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.

Page 2 of 28



Component: Client Benefits - EBT
Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: 0 Days

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

Component: Benefits on Behalf of Clients - Non-EBT

Technique: Average Clearance

Average Day of Clearance: 3 Days

Recipient: Department of Health and Human Services - Human Services
% of Funds Agency Receives: 6.00

Component: Adoption

Technique: Composite Clearance

Average Day of Clearance: 2 Days

Recipient: Department of Health and Human Services - Human Services
% of Funds Agency Receives: 19.00

Component: Client Benefits - Energy

Technique: Composite Clearance

Average Day of Clearance: 3 Days

Recipient: Department of Health and Human Services - Human Services
% of Funds Agency Receives: 34.00

Component: Other Expenditures including Administration and Payroll
Technique: Modified Payment Schedule - Bi-Weekly

Average Day of Clearance: 0 Days

93.563 Child Support Enforcement

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

Component: Administrative including Payroll

Technique: Fixed Administrative Allowances - Bi-Weekly Payroll
Average Day of Clearance: 0 Days

93.568 Low-Income Home Energy Assistance

Recipient: Department of Health and Human Services - Human Services
% of Funds Agency Receives: 86.00

Component: Benefits

Technique: Modified Payment Schedule - Weekly

Average Day of Clearance: N/A

Recipient: Department of Health and Human Services - Human Services
% of Funds Agency Receives: 4.00

Component: LIHEAP Weatherization, Deliverable Fuels, and DTE Energy Payment

Technique: Modified Payment Schedule - Weekly

Page 13 of 28



Recipient: Department of Health and Human Services - Community Health
% of Funds Agency Receives: 1.00

Component: Miscellaneous Benefits

Technique: Actual Costs - Estimated Allocation - Bi-Weekly

Average Day of Clearance: 1 Day

Recipient: Department of Health and Human Services - Community Health
% of Funds Agency Receives: 95.00

Component: Benefits CHAMPS Payment

Technique: Average Clearance

Average Day of Clearance: 0 Days

Recipient: Department of Health and Human Services - Community Health
% of Funds Agency Receives: 3.00

Component: Administrative including Payroll

Technique: Fixed Administrative Allowances - Bi-Weekly Payroll

Average Day of Clearance: 0 Days

93.959 Block Grants for Prevention and Treatment of Substance Abuse
Recipient: Department of Health and Human Services - Community Health
% of Funds Agency Receives: 1.00

Component: Administrative and Payroll

Technique: Payment Schedule - Monthly

Average Day of Clearance: 0 Days

Recipient: Department of Health and Human Services - Community Health
% of Funds Agency Receives: 99.00

Component: Benefits

Technique: Payment Schedule - Monthly

Average Day of Clearance: 1 Day

96.001 Social! Security -- Disability Insurance

Recipient: Department of Health and Human Services - Human Services

% of Funds Agency Receives: 100.00

Component: Contract Vendor Payments including Administrative and Payroll
Technique: Modified Payment Schedule - Weekly

Average Day of Clearance: N/A

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:

Page 16 of 28