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Cash Management Improvement Act Agreement

between

The District of Columbia

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 District of Columbia

(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 District of Columbia shall be the Deputy Chief Financial Officer /Treasurer, OCFO 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 10/01/2021 and shall remain in effect until 09/30/2022.

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

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

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

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

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

Service.

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

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

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

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

State.

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4.0 PROGRAMS COVERED

4.1 The State's threshold and its major Federal assistance programs shall be determined based on the FY 2020 Schedule of 

Expenditures of Federal Awards (SEFA) for the A-133 Single Audit Report, which is the most recently provided data. Due to 

COVID-19, the official FY 2021 Single Audit will not be published before October 1, 2021. for fiscal year ending 09/30/2021.

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

Agreement.

4.2 The State's threshold for major Federal assistance programs is $36,595,005.

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

CFDA Program Name

10.551 Supplemental Nutrition Assistance Program

14.218 Community Development Block Grants/Entitlement Grants

14.239 HOME Investment Partnerships Program

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

17.225S Unemployment Insurance -- State Benefit Account

20.205 Highway Planning and Construction

84.010 Title I Grants to Local Educational Agencies

93.558 Temporary Assistance for Needy Families

93.658 Foster Care -- Title IV-E

93.767 Children's Health Insurance Program

93.778 Medical Assistance Program

93.914 HIV Emergency Relief

97.036 Disaster Grants - Public Assistance (Presidentially Declared 

Disasters)

97.067 Homeland Security Grant Program

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

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

There are currently no programs listed for Section 4.3.

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

There are currently no programs listed for Section 4.4.

5.0 ENTITIES COVERED

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

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

4.0 of this Agreement:

Child and Family Services Agency

DC Department of Health

Department of Employment Services

Department of Health Care Finance

Department of Housing and Community Development

Department of Human Services

District Department of Transportation

Office of the State Superintendent of Education

Public Safety and Justice Cluster

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:

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Fiscal Agent CFDA Program Name

FIS Government Solutions 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 I to ensure funds will 

be received and credited to a State account by the times specified in the funding techniques. Exhibit I is incorporated by reference 

herein.

6.1.2 The State shall schedule the receipt of Federal funds such that the funds are received and credited to a State account in 

accordance with the clearance patterns specified in Exhibit II - List of State Clearance Patterns. Exhibit II is incorporated by 

reference herein.

6.1.3 In instances where the receipt of funds is scheduled for a Saturday, the State shall request funds for deposit on Friday. In 

instances where the receipt of funds is scheduled for a Sunday, the State shall request funds for deposit on Monday. In instances 

where the receipt of Federal funds is scheduled for deposit on a day when the State is not open for business, the State shall request 

funds for deposit the day following the scheduled day; in instances where the receipt of Federal funds is scheduled for deposit on a 

day when the Federal Government is not open for business, the State shall request funds for deposit the day prior to the scheduled 

day.

6.1.4 Estimates and Reconciliation of Estimates:

Where estimated expenditures are used to determine the amount of the drawdown, the State will indicate in the terms of the State 

unique funding technique how the estimated amount is determined and when and how the State will reconcile the difference 

between the estimate and the State's actual expenditures.

6.1.5 Supplemental Funding:

Unless otherwise defined by program rules, Supplemental Funding is the award of additional funds to provide for an increase in 

costs due to unforeseen circumstances.

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

The State will comply with the following guidelines when requesting supplemental funding for the Medical Assistance Program 

and associated administrative payments (CFDA 93.778):

The State must submit a revised Medicaid Program Budget Report (CMS-37) to request supplemental funding. The CMS guidelines 

and instructions for completing the CMS-37 are provided in Section 2600F of the State Medicaid Manual (SMM). The CMS/CO must 

receive the revised Form CMS-37 through the Medicaid Budget Expenditure System/Children's Budget Expenditure System 

(MBES/CBES) no later than 10 calendar days before the end of the quarter for which the supplemental grant award is being 

requested.

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

Services.

The State will comply with the following guidelines when requesting supplemental funding for TANF (CFDA 93.558), CCDF 

(CFDA 93.575), CSE (93.563), and the FC/AA (CFDA 93.658 and CFDA 93.659) programs administered by the

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

a. Timing of the Request

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

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

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

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

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

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

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

b. Justification for the Request

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

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

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

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

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

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

delayed until the next quarter.

c. Form Submittal

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

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

d. Approval Process

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

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

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

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

may initiate drawdowns against the supplemental funding.

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

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

6.2 Description of Funding Techniques

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

funding technique is applied in section 6.3.2 of this Agreement.

Funding Technique Name Description

Actual Clearance, ZBA - ACH The State shall request funds such that they are deposited by ACH in a State account 

on the settlement date of payments issued by the State. The request shall be made in 

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

The amount of the request shall be for the amount of funds that clear the State's 

account on the settlement date. This funding technique is interest neutral.

Actual Clearance, ZBA - Same Day Payment The State shall request funds the same day it pays out funds, in accordance with the 

appropriate Federal agency cut-off time specified in Exhibit I. A Federal agency will 

deposit funds in a State account the same day as requested. The amount of the request 

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

technique is interest neutral.

Average Clearance The State shall request funds such that they are deposited by ACH on the dollarweighted average day of clearance for the disbursement, in accordance with the 

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

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

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request shall be for the exact amount of that disbursement. This funding technique is 

interest neutral.

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

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

There are currently no funding techniques listed in Section 6.2.2.

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

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

There are currently no funding techniques listed in Section 6.2.3.

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

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

Funding Technique Name Description

Actual Costs-Modified Clearance The District shall request funds once a month such that funds are deposited on or 

about the 25th of the month. 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 based on the actual expenditures incurred that are available for 

drawdown and have cleared the District's account. This funding technique is interest 

neutral.

Bi-Weekly Actual The District shall request funds bi-weekly based on the actual expenditures made 

during the previous two week period. The request shall be made in accordance with 

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

request shall equal the total expenditures posted during the District's bi-weekly billing 

cycle. This funding technique is interest neutral.

Direct Costs The State shall request funds only after related cash expenditures have been recorded 

in the System of Accounting and Reporting (SOAR). Because the process is a manual 

one, we expect reimbursement from FHWA two business days after wire requests are 

made. In the event of a treasury offset, which results in an ACH transfer, this may 

delay receipt of federal funds by up to an additional two business days. The amount of 

the request shall be the actual sum of cash expenditures that have been incurred, 

recorded, identified, and reconciled as billable from the preceding week. This funding 

technique is interest neutral.

Modified Average Clearance - NonPersonnel ServicesThe District shall request a bi-weekly draw for deposit on the dollar-weighted average 

day of clearance for the disbursement, in accordance with the clearance pattern in 

Exhibit II. Any required adjustments will be made with the first draw down of the 

following quarter. Child and Family Services Agency will request quarterly draw for 

deposit based on CB-496 Financial claiming reports submitted to the Department of 

Health and Human Services, Administration for Children and Families. The request 

for funds shall be made in accordance with the appropriate Federal agency cut-off 

time specified in Exhibit I. Non Personal Service expenditures will be based on the 

average expenditure cost of the previous quarter. This funding technique is interest 

neutral.

Modified Average Clearance - Payroll The District shall request a bi-weekly draw for deposit on the dollar-weighted average 

day of clearance for the disbursement, in accordance with the clearance pattern in 

Exhibit II. Payroll will be based on the average payroll cost of the previous quarter. 

Any required adjustments will be made with the first draw down of the following 

quarter. Child and Family Services Agency will request quarterly draw for deposit 

based on quarterly CB-496 Financial claiming reports submitted to the Department of 

Health and Human Services, Administration for Children and Families. The request 

for funds shall be made in accordance with the appropriate Federal agency cut-off 

time specified in Exhibit I. The amount of the funds request is determined by the 

agency. This funding technique is interest neutral.

OSSE Billable Costs The State shall request funds only after related cash expenditures have been recorded 

in the System of Accounting and Reporting (SOAR). The request for funds shall be 

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made in accordance with the appropriate Federal agency cut-off time specified in 

Exhibit I. The amount of the request shall be the actual sum of cash expenditures that 

have been incurred, recorded, identified, and reconciled as billable from the preceding 

week. 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 Human Services

% of Funds Agency Receives: 100

Component: Benefit Payments

Technique: Actual Costs-Modified Clearance

Average Day of Clearance: 0 Days

14.218 Community Development Block Grants/Entitlement Grants

Recipient: Department of Housing and Community Development

% of Funds Agency Receives: 80

Component: Program Payments

Technique: Bi-Weekly Actual

Average Day of Clearance: N/A

14.218 Community Development Block Grants/Entitlement Grants

Recipient: Department of Housing and Community Development

% of Funds Agency Receives: 20

Component: Administrative Costs

Technique: Bi-Weekly Actual

Average Day of Clearance: N/A

14.239 HOME Investment Partnerships Program

Recipient: Department of Housing and Community Development

% of Funds Agency Receives: 10

Component: Administrative Costs

Technique: Bi-Weekly Actual

Average Day of Clearance: N/A

14.239 HOME Investment Partnerships Program

Recipient: Department of Housing and Community Development

% of Funds Agency Receives: 90

Component: Program Payments

Technique: Bi-Weekly Actual

Average Day of Clearance: N/A

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Department of Employment Services

% of Funds Agency Receives: 10

Component: Non-Personal Services

Technique: Bi-Weekly Actual

Average Day of Clearance: N/A

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Department of Employment Services

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% of Funds Agency Receives: 90

Component: Payroll

Technique: Bi-Weekly Actual

Average Day of Clearance: N/A

17.225S Unemployment Insurance -- State Benefit Account

Recipient: Department of Employment Services

% of Funds Agency Receives: 100

Component: Benefit Payments

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

20.205 Highway Planning and Construction

Recipient: District Department of Transportation

% of Funds Agency Receives: 100

Component: Program Payments

Technique: Direct Costs

Average Day of Clearance: N/A

84.010 Title I Grants to Local Educational Agencies

Recipient: Office of the State Superintendent of Education

% of Funds Agency Receives: 98.8

Component: Program Payments

Technique: OSSE Billable Costs

Average Day of Clearance: N/A

84.010 Title I Grants to Local Educational Agencies

Recipient: Office of the State Superintendent of Education

% of Funds Agency Receives: 1

Component: Payroll

Technique: OSSE Billable Costs

Average Day of Clearance: N/A

84.010 Title I Grants to Local Educational Agencies

Recipient: Office of the State Superintendent of Education

% of Funds Agency Receives: .2

Component: Administrative Costs

Technique: OSSE Billable Costs

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families

Recipient: Department of Human Services

% of Funds Agency Receives: 88

Component: Benefit Payments

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

93.558 Temporary Assistance for Needy Families

Recipient: Department of Human Services

% of Funds Agency Receives: 10

Component: Payroll

Technique: Actual Costs-Modified Clearance

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families

Recipient: Department of Human Services

% of Funds Agency Receives: 2

Component: Administrative Costs

Technique: Actual Costs-Modified Clearance

Average Day of Clearance: N/A

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93.658 Foster Care -- Title IV-E

Recipient: Child and Family Services Agency

% of Funds Agency Receives: 20

Component: Administrative Costs

Technique: Modified Average Clearance - Payroll

Average Day of Clearance: N/A

93.658 Foster Care -- Title IV-E

Recipient: Child and Family Services Agency

% of Funds Agency Receives: 80

Component: Benefit Payments

Technique: Modified Average Clearance - Non-Personnel Services

Average Day of Clearance: N/A

93.767 Children's Health Insurance Program

Recipient: Department of Health Care Finance

% of Funds Agency Receives: 4

Component: Provider Payments

Technique: Average Clearance

Average Day of Clearance: 5 Days

93.767 Children's Health Insurance Program

Recipient: Department of Health Care Finance

% of Funds Agency Receives: 1

Component: Payroll

Technique: Modified Average Clearance - Payroll

Average Day of Clearance: 5 Days

93.767 Children's Health Insurance Program

Recipient: Department of Health Care Finance

% of Funds Agency Receives: 93

Component: Provider Payments

Technique: Average Clearance

Average Day of Clearance: 5 Days

93.767 Children's Health Insurance Program

Recipient: Department of Health Care Finance

% of Funds Agency Receives: 2

Component: Non-Personal Services

Technique: Modified Average Clearance - Non-Personnel Services

Average Day of Clearance: 5 Days

93.778 Medical Assistance Program

Recipient: Department of Health Care Finance

% of Funds Agency Receives: 4

Component: Provider Payments

Technique: Average Clearance

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Department of Health Care Finance

% of Funds Agency Receives: 93

Component: Provider Payments

Technique: Average Clearance

Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: Department of Health Care Finance

% of Funds Agency Receives: 1

Component: Payroll

Technique: Modified Average Clearance - Payroll

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Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: Department of Health Care Finance

% of Funds Agency Receives: 2

Component: Non-Personal Services

Technique: Modified Average Clearance - Non-Personnel Services

Average Day of Clearance: N/A

93.914 HIV Emergency Relief

Recipient: DC Department of Health

% of Funds Agency Receives: 100

Component: Program Payments

Technique: Bi-Weekly Actual

Average Day of Clearance: N/A

97.036 Disaster Grants - Public Assistance (Presidentially Declared 

Disasters)

Recipient: Public Safety and Justice Cluster

% of Funds Agency Receives: 100

Component: Program Payments

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

97.067 Homeland Security Grant Program

Recipient: Public Safety and Justice Cluster

% of Funds Agency Receives: 95

Component: Program Payments

Technique: Actual Costs-Modified Clearance

Average Day of Clearance: 7 Days

97.067 Homeland Security Grant Program

Recipient: Public Safety and Justice Cluster

% of Funds Agency Receives: 5

Component: Administrative Costs

Technique: Actual Costs-Modified Clearance

Average Day of Clearance: 7 Days

6.3.3 Materiality Exemptions

Agencies exempt from coverage on the basis of materiality:

No exempt agencies.

6.4.0 For State agencies that cannot follow the schedule provided in 6.1.3, and where the receipt of funds is scheduled for a 

Saturday, Sunday, or a day when the Federal Government is not open for business, the State shall request funds for 

deposit on the next business day.

7.0 CLEARANCE PATTERNS

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

The District developed check clearance patterns for controlled disbursement types (run IDs) in the District's check writing and cash 

reconciliation systems. The disbursement types applicable for this Agreement are:

23-Medicaid (Provider Payments)

73-SOAR Checks NPS

81-Payroll Group 1

82-Payroll Group 2

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The check clearance patterns are produced without regard to funding type. The District is responsible for the development and 

appropriate application of these check clearance patterns for the programs covered by the Agreement.

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

For each disbursement type, the District's Office of Finance and Treasury has analyzed about 50% of the funds disbursed from issuance 

via checks to the clearance for a period of at least three months. Almost all payments from the District of Columbia are done by ACH or 

instant wires, where clearances are completed in a matter of hours or minutes.

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

The data provided for testing the check clearance patterns are provided through the District's financial management system, the System 

of Accounting and Reporting (SOAR) and its Accounts Reconciliation Processing (ARP) component. The ARP component, controlled

by the Office of the Chief Information Officer, contains the clearance pattern information required by this agreement. Payroll is 

generally paid via direct deposit and therefore results in a zero day clearance time.

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

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

period of at least three months.

7.5 The State shall identify for each check or warrant (hereafter, check) in the population: (1) the date the check was released 

for payment; (2) the date the check was debited from the State's account, and, (3) the amount of the check.

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

To determine the number of days each check was outstanding (clearance time), the issue date shall be subtracted from the date the 

check cleared the State's account.

To determine the percentage of the disbursement paid out each day following issuance, the amount of the checks that clear the 

State's account each day shall be summed and then divided by the amount of the total disbursement.

For each day following issuance, the clearance time of the checks paid out that day shall be multiplied by the percentage of the total 

disbursement those checks represent. This product is the clearance factor.

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

following the disbursement.

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

with the following exceptions:

None.

The State shall also adjust each clearance pattern to reflect:

Any systemic problems, such as delivery issues due to the pandemic, will result in adjustments. Adjustments in the clearance patterns 

will be made to smooth out the resulting anomalies.

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.

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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-Modified Clearance

Average Clearance

Bi-Weekly Actual

Direct Costs

Modified Average Clearance - Non-Personnel Services

Modified Average Clearance - Payroll

OSSE Billable Costs

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:

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:

When the Funding Technique is properly used, there should be no interest earnings on funds withdrawn from the State account, as the 

State has implemented Actual Clearance – Same Day Pay, an interest-neutral funding technique, for such transfers. For transfers UTF 

that do not follow the technique specified in section 6.2 and result in a positive balance of funds in a State account, the State's liability 

for interest on funds withdrawn from its account in the UTF shall consist of the actual interest earnings of the benefit payment account 

on the pro-rata share less the related banking costs attributed to such funds.

8.4 Refund Liabilities

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8.4.1 The State shall be liable for interest on refunds from the date the refund is credited to a State account until the date the refund 

is debited from the State account for program purposes. The State shall apply a $50,000 refund transaction threshold below which 

the State shall not incur or calculate interest liabilities on refunds. A transaction is defined as a single deposit.

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

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

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

(3) amount of the refund

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

With programs to which applicable interest neutral funding techniques are applied, the State interest liability shall be based on the 

difference in whole days between the date the refund is deposited in a State account and the date the refund is offset against a 

subsequent deposit of Federal funds.

8.5 Exemptions

8.5.1 Where more than one State agency is a recipient of Federal funds under a program, a particular State agency's funding may be 

excluded from interest calculation procedures if the State agency receives an amount of funds less than 5

% of the State's threshold for major Federal assistance programs. Notwithstanding this potential exemption, however, in no case 

shall less than 90% of a program's total funding be subject to interest calculation procedures.

Proration of calculations: If less than total program funding is subject to interest calculation procedures, the resulting interest 

liability calculations shall be prorated to 100% of program funding.

8.6 State Interest Liabilities

8.6.1 The State shall be liable for interest on Federal funds from the date Federal funds are credited to a State account until the

date those funds are paid out for program purposes.

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

8.6.2.1 Measuring Time Funds Are Held

Deposit to Issuance; Issuance to Clearance:

To determine the total time Federal funds are held, the State shall separately measure two time periods: (1) the date Federal funds are 

deposited to the date checks are issued; and (2) the date checks are issued to the date funds are debited from the State's account.

8.6.2.2 Source of Data

The time period from issuance to clearance shall be determined from information captured through the District's System of 

Accounting and Reporting (SOAR) and its Account Reconcilliation Processing (ARP) component. See Section 7.3 for 

more information

8.6.2.3 Standards Applied

Statistical Sampling (Pre-Issuance):

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% confidence interval no wider than ą 

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

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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

I = ADB x R, where

I = State's total interest liability

ADB = Average Daily Balance of cash in a program's account, measured from deposit to clearance

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

9.0 REVERSE FLOW PROGRAMS

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

participate in the program.

10.0 INTEREST CALCULATION COSTS

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

interest, including the cost of developing and maintaining clearance patterns in support of the interest calculations. Interest 

calculation costs do not include expenses for normal disbursing services, such as processing of checks or maintaining records for 

accounting and reconciliation of cash balances, or expenses for upgrading or modernizing accounting systems. Interest 

calculation costs in excess of $50,000 in any year are not eligible for reimbursement, unless the State provides justification with 

the annual report.

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

The state does not incur any additional costs for developing clearance patterns, as this is part of the Grants Manager's assigned duties.

10.3 The State shall submit all claims for reimbursement of interest calculation costs with its Annual Report in accordance with 31 

CFR 205.

11.0 NON-COMPLIANCE

11.1 The provisions of 31 CFR Part 205.29 and 31 CFR Part 205.30 shall apply in cases of non-compliance with the terms of 

this Agreement.

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12.0 AUTHORIZED SIGNATURES

Carmen Pigler

Deputy Chief Financial Officer/Treasurer

Signature: Date Signed:

Angela Toles

Grants Management Specialist OCFO/Office of Finance & Treasury

Signature: Date Signed:

Date Submitted 12/14/2021

Sandra R. Paylor

Acting Assistant Commissioner

Revenue Collections Management

Bureau of the Fiscal Service

U.S. Department of the Treasury

Signature: Date Signed:

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12/27/2021

12/27/2021

12/28/2021
Page 15 of 19

Exhibit I - Funds Request and Receipt Times Schedule

District of Columbia

Federal Agency Payment Type Request Cut-Off Time Receipt Window

Agriculture-FNS ACH 11:59 PM 1 day

Agriculture-FNS Fedwire 5:45 PM 0 day

Agriculture-FS ACH 3:00 PM 1 day

Air National Guard ACH 12:00 PM 15 days

Army National Guard ACH 12:00 PM 15 days

Commerce-NOAA ACH 2:00 PM 1 day

Dept of Homeland Security (FEMA) Fedwire 2:00 PM 2 days

Dept of Homeland Security (ODP) ACH 2:00 PM 2 days

Dept of Homeland Security (ODP) Fedwire 2:00 PM 2 days

EPA ACH 2:00 PM 2 days

EPA Fedwire 2:00 PM 0 day

Education ACH 3:00 PM 1 day

Education Fedwire 2:00 PM 0 day

Energy ACH 4:00 PM 1 day

Energy Fedwire 3:00 PM 0 day

HHS ACH 5:00 PM 1 day

HHS Fedwire 3:00 PM 0 day

HUD ACH 5:30 PM 2 days

HUD Fedwire 3:00 PM 0 day

Interior-FWS ACH 11:59 PM 1 day

Interior-FWS Fedwire 5:45 PM 0 day

Interior-OSM ACH 3:00 PM 1 day

Interior-OSM Fedwire 1:00 PM 0 day

Justice ACH 11:00 PM 6 days

Justice Fedwire 2:00 PM 2 days

Labor-Non-UTF ACH 3:00 PM 1 day

Labor-UTF ACH 3:00 PM 1 day

Labor-UTF Fedwire 3:00 PM 0 day

National Science Foundation (NSF) ACH 8:00 PM 1 day

National Science Foundation (NSF) Fedwire 5:45 PM 0 day

Social Security Administration ACH 11:59 PM 1 day

Social Security Administration Fedwire 5:45 PM 0 day

Transportation (FAA) ACH 2:00 PM 1 day

Transportation (FHWA) ACH 12:00 PM 3 days

Transportation (FHWA) Fedwire 12:00 PM 0 day

Transportation (FTA) ACH 2:00 PM 1 day

Veterans Administration ACH 12:00 PM 3 days

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Exhibit II - District of Columbia

LIST OF STATE CLEARANCE TIMES

(Rounded Dollar-Weighted Average Day of Clearance)

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

CFDA Program Name Recipient % Component Technique Rounded 

days

10.551 Supplemental 

Nutrition 

Assistance 

Program

Department of 

Human Services

100.0 Benefit Payments Actual CostsModified Clearance0 Days

14.218 Community 

Development 

Block 

Grants/Entitlemen

t Grants

Department of 

Housing and 

Community 

Development

80.0 Program Payments Bi-Weekly Actual N/A

Community 

Development 

Block 

Grants/Entitlemen

t Grants

Department of 

Housing and 

Community 

Development

20.0 Administrative Costs Bi-Weekly Actual N/A

14.239 HOME 

Investment 

Partnerships 

Program

Department of 

Housing and 

Community 

Development

10.0 Administrative Costs Bi-Weekly Actual N/A

HOME 

Investment 

Partnerships 

Program

Department of 

Housing and 

Community 

Development

90.0 Program Payments Bi-Weekly Actual N/A

17.225

F

Unemployment 

Insurance --

Federal Benefit 

Account and 

Administrative 

Costs

Department of 

Employment 

Services

10.0 Non-Personal 

Services

Bi-Weekly Actual N/A

Unemployment 

Insurance --

Federal Benefit 

Account and 

Administrative 

Costs

Department of 

Employment 

Services

90.0 Payroll Bi-Weekly Actual N/A

17.225

S

Unemployment 

Insurance -- State 

Benefit Account

Department of 

Employment 

Services

100.0 Benefit Payments Actual Clearance, 

ZBA - Same Day 

Payment

0 Days

20.205 Highway Planning 

and Construction

District 

Department of 

Transportation

100.0 Program Payments Direct Costs N/A

84.010 Title I Grants to 

Local Educational 

Agencies

Office of the State 

Superintendent of 

Education

98.8 Program Payments OSSE Billable Costs N/A

Title I Grants to 

Local Educational 

Agencies

Office of the State 

Superintendent of 

Education

1.0 Payroll OSSE Billable Costs N/A

Title I Grants to 

Local Educational 

Agencies

Office of the State 

Superintendent of 

Education

0.2 Administrative Costs OSSE Billable Costs N/A

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93.558 Temporary 

Assistance for 

Needy Families

Department of 

Human Services

88.0 Benefit Payments Actual Clearance, 

ZBA - Same Day 

Payment

0 Days

Temporary 

Assistance for 

Needy Families

Department of 

Human Services

10.0 Payroll Actual CostsModified ClearanceN/A

Temporary 

Assistance for 

Needy Families

Department of 

Human Services

2.0 Administrative Costs Actual CostsModified ClearanceN/A

93.658 Foster Care --

Title IV-E

Child and Family 

Services Agency

20.0 Administrative Costs Modified Average 

Clearance - Payroll

N/A

Foster Care --

Title IV-E

Child and Family 

Services Agency

80.0 Benefit Payments Modified Average 

Clearance - NonPersonnel Services

N/A

93.767 Children's Health 

Insurance 

Program

Department of 

Health Care 

Finance

4.0 Provider Payments Average Clearance 5 Days

Children's Health 

Insurance 

Program

Department of 

Health Care 

Finance

1.0 Payroll Modified Average 

Clearance - Payroll

5 Days

Children's Health 

Insurance 

Program

Department of 

Health Care 

Finance

93.0 Provider Payments Average Clearance 5 Days

Children's Health 

Insurance 

Program

Department of 

Health Care 

Finance

2.0 Non-Personal 

Services

Modified Average 

Clearance - NonPersonnel Services

5 Days

93.778 Medical 

Assistance 

Program

Department of 

Health Care 

Finance

4.0 Provider Payments Average Clearance 0 Days

Medical 

Assistance 

Program

Department of 

Health Care 

Finance

93.0 Provider Payments Average Clearance N/A

Medical 

Assistance 

Program

Department of 

Health Care 

Finance

1.0 Payroll Modified Average 

Clearance - Payroll

N/A

Medical 

Assistance 

Program

Department of 

Health Care 

Finance

2.0 Non-Personal 

Services

Modified Average 

Clearance - NonPersonnel Services

N/A

93.914 HIV Emergency 

Relief

DC Department 

of Health

100.0 Program Payments Bi-Weekly Actual N/A

97.036 Disaster Grants -

Public Assistance 

(Presidentially 

Declared 

Disasters)

Public Safety and 

Justice Cluster

100.0 Program Payments Actual Clearance, 

ZBA - ACH

0 Days

97.067 Homeland 

Security Grant 

Program

Public Safety and 

Justice Cluster

95.0 Program Payments Actual CostsModified Clearance7 Days

Homeland 

Security Grant 

Program

Public Safety and 

Justice Cluster

5.0 Administrative Costs Actual CostsModified Clearance7 Days

Certification

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

in Exhibit 2 of this Treasury-State Agreement:

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

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

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

4. Are auditable.

Date: 

Printed Name: 

Certifying Signature: 

Title: 

DocuSign Envelope ID: E09554BA-E929-4066-A9F7-C377EBF2807F

Deputy CFO - Treasurer, District of Columbia

Carmen Pigler

12/27/2021
Page 19 of 19

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