Cash Management Improvement Act Agreement

between

The Commonwealth of Puerto Rico

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 Commonwealth of

Puerto Rico (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 Commonwealth of Puerto Rico shall be the The Secretary of the Treasury in all

matters concerning this Agreement.

1.2 The Assistant Commissioner, Revenue Collections Management, Bureau of the Fiscal Service (Fiscal Service), U.S.

Department of the Treasury, shall act as the Secretary's representative in all matters concerning this Agreement.

2.0 AUTHORITY

2.1 The authority for this Agreement is the Cash Management Improvement Act of 1990 (Public Law 101-453), as

amended by the Cash Management Improvement Act of 1992 (Public Law 102-589), codified at 31 U.S.C. 6501 and 31

U.S.C. 6503.

2.2 The regulations codified at 31 CFR Part 205 shall apply to all matters pertaining to this Agreement, and are

incorporated herein by reference. In the event of any inconsistency between this Agreement and 31 CFR Part 205, the

regulations shall govern.

3.0 DURATION, AMENDING, TERMINATING, AND MISCELLANEOUS PROVISIONS

3.1 This Agreement shall take effect on 07/01/2017 and shall remain in effect until 06/30/2018.

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

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

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

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

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

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.

Page 1 of 34
4.0 PROGRAMS COVERED

4.1 The State's threshold and its major Federal assistance programs shall be determined based on the expenses for fiscal

year ending 06/30/2015.

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

this Agreement.

4.1.1 The basis of total expenses for fiscal year, as discussed in Section 4.1, is a consolidated report produced from

Puerto Rico's Integrated Financial Accounting System and it is used to determine the threshold and the major Federal

assistance programs.

4.2 The State's threshold for major Federal assistance programs is $13,668,579.

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

10.555 National School Lunch Program

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

10.558 Child and Adult Care Food Program

10.559 Summer Food Service Program for Children

10.566 Nutrition Assistance for Puerto Rico

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

14.228 Community Development Block Grants/State's Program

14.850 Public and Indian Housing

14.871 Section 8 Housing Choice Vouchers

14.872 Public Housing Capital Fund

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

17.225S Unemployment Insurance -- State Benefit Account

84.010 Title I Grants to Local Educational Agencies

84.027 Special Education -- Grants to States

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to States

84.287 Twenty-First Century Community Learning Centers

84.367 Improving Teacher Quality State Grants

84.377 School Improvement Grants

84.388 School Improvement Grants, Recovery Act

93.558 Temporary Assistance for Needy Families

93.563 Child Support Enforcement

93.569 Community Services Block Grant

93.575 Child Care and Development Block Grant

93.600 Head Start

93.778 Medical Assistance Program

93.779 Centers for Medicare and Medicaid Services (CMS) Research, Demonstrations and Evaluations

93.917 HIV Care Formula Grants

93.959 Block Grants for Prevention and Treatment of Substance Abuse

93.994 Maternal and Child Health Services Block Grant to the States

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:

Page 2 of 34
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:

Administration for the Childhood Care and Integrated Development

Administration of Mental Health and Addiction Services

Child Support Administration

Department of Education

Department of Health

Department of Housing

Department of Labor and Human Resources

Families and Children Administration

Family Socioeconomic Development Administration

Governor`s Office

National Guard

Office of the Commissioner for Municipal Affairs

Public Housing Administration

Puerto Rico Ombudsman Office for the Elderly

Vocational Rehabilitation Administration

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:

There are currently no fiscal agencies listed for Section 5.2.

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

Page 3 of 34
Federal funds is scheduled for deposit on a day when the Federal Government is not open for business, the State shall

request funds for deposit the day prior to the scheduled day.

6.1.4 Estimates and Reconciliation of Estimates:

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

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

the difference between the estimate and the State's actual expenditures.

6.1.5 Supplemental Funding:

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

increase in costs due to unforeseen circumstances.

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

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

Program and associated administrative payments (CFDA 93.778):

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

guidelines and instructions for completing the CMS-37 are provided in Section 2600F of the State Medicaid Manual

(SMM). The CMS/CO must receive the revised Form CMS-37 through the Medicaid Budget Expenditure

System/Children's Budget Expenditure System (MBES/CBES) no later than 10 calendar days before the end of the

quarter for which the supplemental grant award is being requested.

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

Human Services.

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

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

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

a. Timing of the Request

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

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

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

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

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

Page 4 of 34
quarterly grant award restrictions and why these activities could not have been delayed until the next quarter.

c. Form Submittal

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

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

d. Approval Process

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

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

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

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

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

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

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

Administration.

6.2 Description of Funding Techniques

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

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

Actual Clearance, ZBA - ACH

The State shall request funds such that they are deposited by ACH in a State account on the settlement date of payments

issued by the State. The request shall be made in accordance with the appropriate Federal agency cut-off time specified

in Exhibit I. The amount of the request shall be for the amount of funds that clear the State's account on the settlement

date. This funding technique is interest neutral.

Actual Clearance, ZBA - Same Day Payment

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

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

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

neutral.

Average Clearance

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

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

accordance with the appropriate Federal agency cut-off time specified in Exhibit I. The amount of the request shall be for

the exact amount of that disbursement. This funding technique is interest neutral.

Pre-Issuance

The State shall request funds such that they are deposited in a State account not more than three business days prior to

the day the State makes a disbursement. The request shall be made in accordance with the appropriate Federal agency

cut-off time specified in Exhibit I. The amount of the request shall be the amount the State expects to disburse. This

funding technique is not interest neutral.

Page 5 of 34
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.

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 I.

This funding technique is interest neutral.

Indirect Cost Rates - Estimated Base

The State shall request funds once a month, such that they are deposited on the median day 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 determined by applying the indirect cost rate to the appropriate cost base estimated for the current

month. The estimate of direct costs shall be based on the actual direct costs of the prior month. 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 to which the funding technique is applied in section 6.3.2 of this Agreement.

There are no funding techniques listed in Section 6.2.3

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

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

Pre-Issuance - Modified

The Commonwealth receives Federal funds from the US Department of Housing and Urban Development (HUD) on the

first business day of each month. The payment of Federal funds is done automatically by US HUD and a request for

funds is not required of the Commonwealth. The Commonwealth subsequently makes disbursements to approved

recipients. The amount of funds that are received each month is equal to 1/12th of the annual budget, which is approved

by US HUD. 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.

10.555 National School Lunch Program

Recipient: Department of Education

% of Funds Agency Receives: 20.00

Component: Other Direct Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Page 6 of 34
Recipient: Department of Education

% of Funds Agency Receives: 20.00

Component: Indirect Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 20.00

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 40.00

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

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

Recipient: Department of Health

% of Funds Agency Receives: 25.00

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Health

% of Funds Agency Receives: 75.00

Component: Administrative Costs (including Payroll)

Technique: Fixed Administrative Allowances - Bi-Weekly Payroll

Average Day of Clearance: 1 Day

10.558 Child and Adult Care Food Program

Recipient: Department of Education

% of Funds Agency Receives: 100.00

Component: Payment to Services Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

10.559 Summer Food Service Program for Children

Recipient: Department of Education

% of Funds Agency Receives: 14.00

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

Page 7 of 34
% of Funds Agency Receives: 23.00

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 2.00

Component: Other Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 60.00

Component: Direct Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 1.00

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

10.566 Nutrition Assistance for Puerto Rico

Recipient: Family Socioeconomic Development Administration

% of Funds Agency Receives: 4.00

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Family Socioeconomic Development Administration

% of Funds Agency Receives: 90.00

Component: Payment to Beneficiaries

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Family Socioeconomic Development Administration

% of Funds Agency Receives: 2.00

Component: Indirect Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Family Socioeconomic Development Administration

% of Funds Agency Receives: 4.00

Component: Administrative Costs

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 1 Day

Page 8 of 34
12.401 National Guard Military Operations and Maintenance (O&M) Projects

Recipient: National Guard

% of Funds Agency Receives: 14.00

Component: Purchased Services

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: National Guard

% of Funds Agency Receives: 16.00

Component: Professional Services

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: National Guard

% of Funds Agency Receives: 28.00

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: National Guard

% of Funds Agency Receives: 15.00

Component: Other Expenses

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: National Guard

% of Funds Agency Receives: 4.00

Component: Material

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: National Guard

% of Funds Agency Receives: 20.00

Component: Facilities and Services Payment

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: National Guard

% of Funds Agency Receives: 3.00

Component: Equipment

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

14.228 Community Development Block Grants/State's Program

Recipient: Office of the Commissioner for Municipal Affairs

% of Funds Agency Receives: 51.00

Component: Payment to Beneficiaries

Page 9 of 34
Technique: Average Clearance

Average Day of Clearance: 3 Days

Recipient: Office of the Commissioner for Municipal Affairs

% of Funds Agency Receives: 12.00

Component: Administrative Costs

Technique: Average Clearance

Average Day of Clearance: 3 Days

Recipient: Office of the Commissioner for Municipal Affairs

% of Funds Agency Receives: 37.00

Component: Payroll

Technique: Average Clearance

Average Day of Clearance: 2 Days

14.850 Public and Indian Housing

Recipient: Public Housing Administration

% of Funds Agency Receives: 3.00

Component: Administrative Costs

Technique: Average Clearance

Average Day of Clearance: 3 Days

Recipient: Public Housing Administration

% of Funds Agency Receives: 96.00

Component: Payment to Beneficiaries

Technique: Average Clearance

Average Day of Clearance: 3 Days

Recipient: Public Housing Administration

% of Funds Agency Receives: 1.00

Component: Payroll

Technique: Average Clearance

Average Day of Clearance: 2 Days

14.871 Section 8 Housing Choice Vouchers

Recipient: Department of Housing

% of Funds Agency Receives: 4.00

Component: Administrative Cost

Technique: Pre-Issuance - Modified

Average Day of Clearance: N/A

Recipient: Department of Housing

% of Funds Agency Receives: 96.00

Component: Payment to Beneficiaries

Technique: Pre-Issuance - Modified

Average Day of Clearance: N/A

Page 10 of 34
14.872 Public Housing Capital Fund

Recipient: Public Housing Administration

% of Funds Agency Receives: 1.00

Component: Payroll

Technique: Average Clearance

Average Day of Clearance: 2 Days

Recipient: Public Housing Administration

% of Funds Agency Receives: 96.00

Component: Payment to Beneficiaries

Technique: Average Clearance

Average Day of Clearance: 3 Days

Recipient: Public Housing Administration

% of Funds Agency Receives: 3.00

Component: Administrative Costs

Technique: Average Clearance

Average Day of Clearance: 3 Days

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

Recipient: Department of Labor and Human Resources

% of Funds Agency Receives: 75.00

Component: Payment to Beneficiaries-FECA and EUCA

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

Recipient: Department of Labor and Human Resources

% of Funds Agency Receives: 24.00

Component: Administrative Costs (Including Payroll)

Technique: Fixed Administrative Allowances - Bi-Weekly Payroll

Average Day of Clearance: 3 Days

Recipient: Department of Labor and Human Resources

% of Funds Agency Receives: 1.00

Component: Indirect Costs

Technique: Indirect Cost Rates - Estimated Base

Average Day of Clearance: 3 Days

17.225S Unemployment Insurance -- State Benefit Account

Recipient: Department of Labor and Human Resources

% of Funds Agency Receives: 100.00

Component: Payment to Beneficiaries-State Account

Technique: Pre-Issuance

Average Day of Clearance: N/A

84.010 Title I Grants to Local Educational Agencies

Page 11 of 34
Recipient: Department of Education

% of Funds Agency Receives: 1.00

Component: Other Direct Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 1.00

Component: Indirect Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 4.00

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 61.00

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 33.00

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.027 Special Education -- Grants to States

Recipient: Department of Education

% of Funds Agency Receives: 5.00

Component: Other Direct Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 75.00

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 20.00

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Page 12 of 34
Average Day of Clearance: 1 Day

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to States

Recipient: Vocational Rehabilitation Administration

% of Funds Agency Receives: 70.00

Component: Administrative Costs (including payroll)

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Vocational Rehabilitation Administration

% of Funds Agency Receives: 30.00

Component: Payment to Beneficiaries

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.287 Twenty-First Century Community Learning Centers

Recipient: Department of Education

% of Funds Agency Receives: 3.00

Component: Transportation Expenses

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 15.00

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 77.00

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 1.00

Component: Other Expenses

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 1.00

Component: Materials and Supplies

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

Page 13 of 34
% of Funds Agency Receives: 3.00

Component: Equipment

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.367 Improving Teacher Quality State Grants

Recipient: Department of Education

% of Funds Agency Receives: 5.00

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 1.00

Component: Indirect Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 20.00

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 74.00

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.377 School Improvement Grants

Recipient: Department of Education

% of Funds Agency Receives: 1.00

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 98.00

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 1.00

Component: Other Costs

Page 14 of 34
Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.388 School Improvement Grants, Recovery Act

Recipient: Department of Education

% of Funds Agency Receives: 91.00

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 3.00

Component: Other Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 3.00

Component: Equipment

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Education

% of Funds Agency Receives: 3.00

Component: Administrative Cost

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.558 Temporary Assistance for Needy Families

Recipient: Family Socioeconomic Development Administration

% of Funds Agency Receives: 2.00

Component: Indirect Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Family Socioeconomic Development Administration

% of Funds Agency Receives: 4.00

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Family Socioeconomic Development Administration

% of Funds Agency Receives: 90.00

Component: Payment to Beneficiaries

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Page 15 of 34
Recipient: Family Socioeconomic Development Administration

% of Funds Agency Receives: 4.00

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.563 Child Support Enforcement

Recipient: Child Support Administration

% of Funds Agency Receives: 54.00

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Child Support Administration

% of Funds Agency Receives: 7.00

Component: Indirect Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Child Support Administration

% of Funds Agency Receives: 39.00

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.569 Community Services Block Grant

Recipient: Families and Children Administration

% of Funds Agency Receives: 95.00

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Families and Children Administration

% of Funds Agency Receives: 5.00

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.575 Child Care and Development Block Grant

Recipient: Administration for the Childhood Care and Integrated Development

% of Funds Agency Receives: 3.00

Component: Payment to Beneficiaries

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Administration for the Childhood Care and Integrated Development

Page 16 of 34
% of Funds Agency Receives: 23.00

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Administration for the Childhood Care and Integrated Development

% of Funds Agency Receives: 68.00

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Administration for the Childhood Care and Integrated Development

% of Funds Agency Receives: 3.00

Component: Operations

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Administration for the Childhood Care and Integrated Development

% of Funds Agency Receives: 3.00

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.600 Head Start

Recipient: Governor`s Office

% of Funds Agency Receives: 9.00

Component: Other Direct Cost

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Administration for the Childhood Care and Integrated Development

% of Funds Agency Receives: 1.00

Component: Operations

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Administration for the Childhood Care and Integrated Development

% of Funds Agency Receives: 47.00

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Governor`s Office

% of Funds Agency Receives: 6.00

Component: Operations

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Page 17 of 34
Recipient: Governor`s Office

% of Funds Agency Receives: 2.00

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Governor`s Office

% of Funds Agency Receives: 33.00

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Administration for the Childhood Care and Integrated Development

% of Funds Agency Receives: 1.50

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Administration for the Childhood Care and Integrated Development

% of Funds Agency Receives: 0.50

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.778 Medical Assistance Program

Recipient: Department of Health

% of Funds Agency Receives: 90.00

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Health

% of Funds Agency Receives: 5.00

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Health

% of Funds Agency Receives: 5.00

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.779 Centers for Medicare and Medicaid Services (CMS) Research, Demonstrations and Evaluations

Recipient: Puerto Rico Ombudsman Office for the Elderly

% of Funds Agency Receives: 4.00

Page 18 of 34
Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Health

% of Funds Agency Receives: 39.00

Component: Payment to Beneficiaries

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Health

% of Funds Agency Receives: 9.00

Component: Administrative Cost

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Health

% of Funds Agency Receives: 9.00

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Health

% of Funds Agency Receives: 39.00

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.917 HIV Care Formula Grants

Recipient: Department of Health

% of Funds Agency Receives: 83.00

Component: Direct Services

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Health

% of Funds Agency Receives: 1.00

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Health

% of Funds Agency Receives: 1.00

Component: Indirect Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Page 19 of 34
Recipient: Department of Health

% of Funds Agency Receives: 4.00

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Health

% of Funds Agency Receives: 11.00

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.959 Block Grants for Prevention and Treatment of Substance Abuse

Recipient: Administration of Mental Health and Addiction Services

% of Funds Agency Receives: 38.00

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Administration of Mental Health and Addiction Services

% of Funds Agency Receives: 21.00

Component: Operational Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Administration of Mental Health and Addiction Services

% of Funds Agency Receives: 2.00

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Administration of Mental Health and Addiction Services

% of Funds Agency Receives: 39.00

Component: Payment to Service Providers

Technique: Average Clearance

Average Day of Clearance: 1 Day

93.994 Maternal and Child Health Services Block Grant to the States

Recipient: Department of Health

% of Funds Agency Receives: 77.00

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Health

% of Funds Agency Receives: 1.00

Page 20 of 34
Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Health

% of Funds Agency Receives: 17.00

Component: Other Direct Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

Recipient: Department of Health

% of Funds Agency Receives: 5.00

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

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:

Group of Similar Programs - Composite clearance pattern for the administrative

costs and payroll components of the following group of programs:

CFDA Program

14.228 Community Development Block Grant's Program

14.850 Public and Indian Housing

Group of Similar Programs - Composite clearance pattern for the payroll costs of the

following programs:

CFDA Program

10.557 Special Supplemental Nutrition Program for Women, Infants and Children

93.778 Medical Assistance Program (Medicaid)

93.779 Children Health Insurance Program

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

Banco Popular de Puerto Rico

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

1. PRIFAS - The Central Accounting System

2. Information from agencies outside of PRIFAS

Page 21 of 34
3. Banco Popular de Puerto Rico

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:

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 shall recertify its clearance patterns at least every five years.

7.10 The State shall follow the procedures of 31 CFR 205 if it has actual or constructive knowledge, at any time, that a

clearance pattern does not correspond to a program's clearance activity.

8.0 INTEREST CALCULATION METHODOLOGY

8.1 General Terms

8.1.1 The State and the Secretary agree that no interest liabilities will be incurred for transfers of funds made in

accordance with the procedures specified in section 6 of this Agreement where the following funding techniques are

applied:

Page 22 of 34
Actual Clearance, ZBA - ACH

Actual Clearance, ZBA - Same Day Payment

Average Clearance

Fixed Administrative Allowances - Bi-Weekly Payroll

Indirect Cost Rates - Estimated Base

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:

The State shall use the following methodology to calculate State interest liabilities on funds withdrawn from the several

accounts in the UTF under the Unemployment Insurance program.

Based on statements provided by its financial institution, or other appropriate source, the State shall determine the actual

interest earnings and the related banking costs attributable to funds withdrawn from its account in the UTF.

At the end of the 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 %.

The State shall calculate the actual interest earnings and the related banking costs attributable to funds withdrawn from

the State account in the UTF by multiplying the State % by the amount of the actual interest earnings and the related

banking costs of the account as a whole. The State's liability for interest on funds withdrawn from its account in the UTF

Page 23 of 34
shall consist of the actual interest earnings attributable to such funds less the related banking costs attributed to such

funds.

The State shall determine the average daily cash balance of its unemployment compensation benefit payment account for

its fiscal year. The State shall calculate the average daily cash balance of Federal funds by multiplying the Federal % by

the average daily cash balance of the benefit payment account on the whole. The State's liability for interest on funds

withdrawn from the FECA and EUCA (and any other benefit accounts of Federal funds in the UTF from which the State

draws funds) shall be the average daily cash balance of Federal funds multiplied by the annualized rate equal to the

average equivalent yields of 13-week Treasury bills auctioned during the State's fiscal year.

8.4 Refund Liabilities

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

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

threshold below which the State shall not incur or calculate interest liabilities on refunds. A transaction is defined as a

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 shall be applied, the State shall determine the

actual amount of refunds received during the State fiscal year for each program using the information in its standard

Federal financial status reports. For each program, the State shall estimate the number of days that refunds are held prior

to being offset against a subsequent deposit of Federal funds. This shall be calculated as the average number of days

between drawdown deposits, which is determined by dividing the total number of drawdowns into 365, and assuming that

all refunds are received at the midpoint of the average number of days between drawdowns.

With programs to which applicable non-interest neutral funding techniques shall be applied, the State shall also calculate

the time refunds are in a State account by comparing the date the refund is offset against a subsequent deposit of Federal

funds and the date the refund is paid out for program purposes. This period will be measured for each program in

accordance with the State method for calculating interest under pre-issuance funding, and will be applied independently to

the amount of refunds under each program to calculate the interest on refunds.

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.

Page 24 of 34
8.6 State Interest Liabilities

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

until the date those funds are paid out for program purposes.

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

8.6.2.1 Measuring Time Funds Are Held

To determine the total time Federal funds are held, the State shall measure the time between the date Federal funds are

received and credit to a State's account and the date those funds are debited from the State's account.

8.6.2.2 Source of Data

The time period from deposit to debit shall be determined from information captured by Banco Popular de Puerto Rico.

.

8.6.2.3 Standards Applied

To measure the time Federal funds are held in a State account prior to being disbursed, the State shall use statistical

sampling. The sample shall be randomly selected, and shall be of sufficient size to ensure, at a minimum, a 95%

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

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

1 subtract the deposit date from the issuance date

2 multiply the difference of step 1 by the check amount

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

The State shall then sum the dollar-weighted pre-issuance time for each check to arrive at the total dollar-weighted

average pre-issuance time to be used for calculating State interest liabilities.

8.6.2.4 Calculation Procedure

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

Page 25 of 34
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:

Those costs necessary for the development and maintenance of clearance patterns and to perform the actual calculation

of interest liabilities.

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

with 31 CFR 205.

11.0 NON-COMPLIANCE

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

terms of this Agreement.

Page 26 of 34
12.0 AUTHORIZED SIGNATURES

Francisco Parés Alicea, CPA

Secretary of the Treasury

Commonwealth of Puerto Rico

Signature:________________________________________Date Signed:_______________

Date Submitted 12/05/2019

Corvelli A. McDaniel

Assistant Commissioner

Revenue Collections Management

Bureau of the Fiscal Service

U.S. Department of the Treasury

Signature:________________________________________Date Signed:_______________

Page 27 of 34

Francisco Parés (Feb 6, 2020)

Francisco Parés

Feb 6, 2020

Corvelli A. McDaniel (Mar 19, 2020)

Corvelli A. McDaniel

Mar 19, 2020
Exhibit I - Funds Request and Receipt Times Schedule

Commonwealth of Puerto Rico

Federal Agency Payment Type Request Cut-Off Time Receipt Window

Agriculture-FNS ACH 11:59 PM 1 day

Agriculture-FNS Fedwire 5:45 PM 0 day

Agriculture-FS ACH 3:00 PM 1 day

Air National Guard ACH 12:00 PM 15 days

Army National Guard ACH 12:00 PM 15 days

Commerce-NOAA ACH 2:00 PM 1 day

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

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

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

EPA ACH 2:00 PM 2 days

EPA Fedwire 2:00 PM 0 day

Education ACH 3:00 PM 1 day

Education Fedwire 2:00 PM 0 day

Energy ACH 4:00 PM 1 day

Energy Fedwire 3:00 PM 0 day

HHS ACH 5:00 PM 1 day

HHS Fedwire 3:00 PM 0 day

HUD ACH 5:30 PM 2 days

HUD Fedwire 3:00 PM 0 day

Interior-FWS ACH 11:59 PM 1 day

Interior-FWS Fedwire 5:45 PM 0 day

Interior-OSM ACH 3:00 PM 1 day

Interior-OSM Fedwire 1:00 PM 0 day

Justice ACH 11:00 PM 6 days

Justice Fedwire 2:00 PM 2 days

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

Labor-UTF ACH 3:00 PM 1 day

Labor-UTF Fedwire 3:00 PM 0 day

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

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

Social Security Administration ACH 11:59 PM 1 day

Social Security Administration Fedwire 5:45 PM 0 day

Transportation (FAA) ACH 2:00 PM 1 day

Transportation (FHWA) ACH 12:00 PM 3 days

Transportation (FHWA) Fedwire 12:00 PM 0 day

Transportation (FTA) ACH 2:00 PM 1 day

Veterans Administration ACH 12:00 PM 3 days

Page 28 of 34
Exhibit II - Commonwealth of Puerto Rico

LIST OF STATE CLEARANCE TIMES

(Rounded Dollar-Weighted Average Day of Clearance)

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

Pattern

CFDA Program Name Recipient % Component Technique Round

ed

days

10.555 National School Lunch

Program

Department of Education 40.0

0

Payment to Service

Providers

Actual Clearance, ZBA -

ACH

1 Day

10.555 National School Lunch

Program

Department of Education 20.0

0

Other Direct Costs Actual Clearance, ZBA -

ACH

1 Day

10.555 National School Lunch

Program

Department of Education 20.0

0

Indirect Costs Actual Clearance, ZBA -

ACH

1 Day

10.555 National School Lunch

Program

Department of Education 20.0

0

Payroll Actual Clearance, ZBA -

ACH

1 Day

10.557 Special Supplemental

Nutrition Program for

Women, Infants, and

Children

Department of Health 25.0

0

Payment to Service

Providers

Actual Clearance, ZBA -

ACH

1 Day

10.557 Special Supplemental

Nutrition Program for

Women, Infants, and

Children

Department of Health 75.0

0

Administrative Costs

(including Payroll)

Fixed Administrative

Allowances - Bi-Weekly

Payroll

1 Day

10.558 Child and Adult Care

Food Program

Department of Education 100.

00

Payment to Services

Providers

Actual Clearance, ZBA -

ACH

1 Day

10.559 Summer Food Service

Program for Children

Department of Education 1.00 Administrative Costs Actual Clearance, ZBA -

ACH

1 Day

10.559 Summer Food Service

Program for Children

Department of Education 14.0

0

Payroll Actual Clearance, ZBA -

ACH

1 Day

10.559 Summer Food Service

Program for Children

Department of Education 23.0

0

Payment to Service

Providers

Actual Clearance, ZBA -

ACH

1 Day

10.559 Summer Food Service

Program for Children

Department of Education 2.00 Other Costs Actual Clearance, ZBA -

ACH

1 Day

10.559 Summer Food Service

Program for Children

Department of Education 60.0

0

Direct Costs Actual Clearance, ZBA -

ACH

1 Day

10.566 Nutrition Assistance for

Puerto Rico

Family Socioeconomic

Development

Administration

90.0

0

Payment to Beneficiaries Actual Clearance, ZBA -

ACH

1 Day

10.566 Nutrition Assistance for

Puerto Rico

Family Socioeconomic

Development

Administration

4.00 Administrative Costs Actual Clearance, ZBA -

Same Day Payment

1 Day

10.566 Nutrition Assistance for

Puerto Rico

Family Socioeconomic

Development

Administration

2.00 Indirect Costs Actual Clearance, ZBA -

ACH

1 Day

10.566 Nutrition Assistance for

Puerto Rico

Family Socioeconomic

Development

Administration

4.00 Payroll Actual Clearance, ZBA -

ACH

1 Day

12.401 National Guard Military

Operations and

Maintenance (O&M)

Projects

National Guard 20.0

0

Facilities and Services

Payment

Actual Clearance, ZBA -

ACH

1 Day

12.401 National Guard Military

Operations and

Maintenance (O&M)

Projects

National Guard 3.00 Equipment Actual Clearance, ZBA -

ACH

1 Day

Page 29 of 34
CFDA Program Name Recipient % Component Technique Round

ed

days

12.401 National Guard Military

Operations and

Maintenance (O&M)

Projects

National Guard 14.0

0

Purchased Services Actual Clearance, ZBA -

ACH

1 Day

12.401 National Guard Military

Operations and

Maintenance (O&M)

Projects

National Guard 16.0

0

Professional Services Actual Clearance, ZBA -

ACH

1 Day

12.401 National Guard Military

Operations and

Maintenance (O&M)

Projects

National Guard 28.0

0

Payroll Actual Clearance, ZBA -

ACH

1 Day

12.401 National Guard Military

Operations and

Maintenance (O&M)

Projects

National Guard 15.0

0

Other Expenses Actual Clearance, ZBA -

ACH

1 Day

12.401 National Guard Military

Operations and

Maintenance (O&M)

Projects

National Guard 4.00 Material Actual Clearance, ZBA -

ACH

1 Day

14.228 Community Development

Block Grants/State's

Program

Office of the

Commissioner for

Municipal Affairs

12.0

0

Administrative Costs Average Clearance 3 Days

14.228 Community Development

Block Grants/State's

Program

Office of the

Commissioner for

Municipal Affairs

37.0

0

Payroll Average Clearance 2 Days

14.228 Community Development

Block Grants/State's

Program

Office of the

Commissioner for

Municipal Affairs

51.0

0

Payment to Beneficiaries Average Clearance 3 Days

14.850 Public and Indian

Housing

Public Housing

Administration

96.0

0

Payment to Beneficiaries Average Clearance 3 Days

14.850 Public and Indian

Housing

Public Housing

Administration

1.00 Payroll Average Clearance 2 Days

14.850 Public and Indian

Housing

Public Housing

Administration

3.00 Administrative Costs Average Clearance 3 Days

14.871 Section 8 Housing

Choice Vouchers

Department of Housing 96.0

0

Payment to Beneficiaries Pre-Issuance - Modified N/A

14.871 Section 8 Housing

Choice Vouchers

Department of Housing 4.00 Administrative Cost Pre-Issuance - Modified N/A

14.872 Public Housing Capital

Fund

Public Housing

Administration

3.00 Administrative Costs Average Clearance 3 Days

14.872 Public Housing Capital

Fund

Public Housing

Administration

1.00 Payroll Average Clearance 2 Days

14.872 Public Housing Capital

Fund

Public Housing

Administration

96.0

0

Payment to Beneficiaries Average Clearance 3 Days

17.225F Unemployment Insurance

-- Federal Benefit

Account and

Administrative Costs

Department of Labor and

Human Resources

1.00 Indirect Costs Indirect Cost Rates -

Estimated Base

3 Days

17.225F Unemployment Insurance

-- Federal Benefit

Account and

Administrative Costs

Department of Labor and

Human Resources

75.0

0

Payment to BeneficiariesFECA and EUCAActual Clearance, ZBA -

Same Day Payment

0 Days

17.225F Unemployment Insurance

-- Federal Benefit

Account and

Administrative Costs

Department of Labor and

Human Resources

24.0

0

Administrative Costs

(Including Payroll)

Fixed Administrative

Allowances - Bi-Weekly

Payroll

3 Days

17.225S Unemployment Insurance

-- State Benefit Account

Department of Labor and

Human Resources

100.

00

Payment to BeneficiariesState AccountPre-Issuance N/A

84.010 Title I Grants to Local

Educational Agencies

Department of Education 1.00 Other Direct Costs Actual Clearance, ZBA -

ACH

1 Day

84.010 Title I Grants to Local

Educational Agencies

Department of Education 61.0

0

Payroll Actual Clearance, ZBA -

ACH

1 Day

Page 30 of 34
CFDA Program Name Recipient % Component Technique Round

ed

days

84.010 Title I Grants to Local

Educational Agencies

Department of Education 1.00 Indirect Costs Actual Clearance, ZBA -

ACH

1 Day

84.010 Title I Grants to Local

Educational Agencies

Department of Education 4.00 Administrative Costs Actual Clearance, ZBA -

ACH

1 Day

84.010 Title I Grants to Local

Educational Agencies

Department of Education 33.0

0

Payment to Service

Providers

Actual Clearance, ZBA -

ACH

1 Day

84.027 Special Education --

Grants to States

Department of Education 20.0

0

Payment to Service

Providers

Actual Clearance, ZBA -

ACH

1 Day

84.027 Special Education --

Grants to States

Department of Education 5.00 Other Direct Costs Actual Clearance, ZBA -

ACH

1 Day

84.027 Special Education --

Grants to States

Department of Education 75.0

0

Payroll Actual Clearance, ZBA -

ACH

1 Day

84.126 Rehabilitation Services --

Vocational Rehabilitation

Grants to States

Vocational Rehabilitation

Administration

70.0

0

Administrative Costs

(including payroll)

Actual Clearance, ZBA -

ACH

1 Day

84.126 Rehabilitation Services --

Vocational Rehabilitation

Grants to States

Vocational Rehabilitation

Administration

30.0

0

Payment to Beneficiaries Actual Clearance, ZBA -

ACH

1 Day

84.287 Twenty-First Century

Community Learning

Centers

Department of Education 1.00 Materials and Supplies Actual Clearance, ZBA -

ACH

1 Day

84.287 Twenty-First Century

Community Learning

Centers

Department of Education 3.00 Equipment Actual Clearance, ZBA -

ACH

1 Day

84.287 Twenty-First Century

Community Learning

Centers

Department of Education 3.00 Transportation Expenses Actual Clearance, ZBA -

ACH

1 Day

84.287 Twenty-First Century

Community Learning

Centers

Department of Education 15.0

0

Payroll Actual Clearance, ZBA -

ACH

1 Day

84.287 Twenty-First Century

Community Learning

Centers

Department of Education 77.0

0

Payment to Service

Providers

Actual Clearance, ZBA -

ACH

1 Day

84.287 Twenty-First Century

Community Learning

Centers

Department of Education 1.00 Other Expenses Actual Clearance, ZBA -

ACH

1 Day

84.367 Improving Teacher

Quality State Grants

Department of Education 1.00 Indirect Costs Actual Clearance, ZBA -

ACH

1 Day

84.367 Improving Teacher

Quality State Grants

Department of Education 74.0

0

Payroll Actual Clearance, ZBA -

ACH

1 Day

84.367 Improving Teacher

Quality State Grants

Department of Education 20.0

0

Payment to Service

Providers

Actual Clearance, ZBA -

ACH

1 Day

84.367 Improving Teacher

Quality State Grants

Department of Education 5.00 Administrative Costs Actual Clearance, ZBA -

ACH

1 Day

84.377 School Improvement

Grants

Department of Education 1.00 Other Costs Actual Clearance, ZBA -

ACH

1 Day

84.377 School Improvement

Grants

Department of Education 1.00 Payroll Actual Clearance, ZBA -

ACH

1 Day

84.377 School Improvement

Grants

Department of Education 98.0

0

Payment to Service

Providers

Actual Clearance, ZBA -

ACH

1 Day

84.388 School Improvement

Grants, Recovery Act

Department of Education 3.00 Administrative Cost Actual Clearance, ZBA -

ACH

1 Day

84.388 School Improvement

Grants, Recovery Act

Department of Education 91.0

0

Payment to Service

Providers

Actual Clearance, ZBA -

ACH

1 Day

84.388 School Improvement

Grants, Recovery Act

Department of Education 3.00 Other Costs Actual Clearance, ZBA -

ACH

1 Day

84.388 School Improvement

Grants, Recovery Act

Department of Education 3.00 Equipment Actual Clearance, ZBA -

ACH

1 Day

93.558 Temporary Assistance for

Needy Families

Family Socioeconomic

Development

Administration

4.00 Administrative Costs Actual Clearance, ZBA -

ACH

1 Day

Page 31 of 34
CFDA Program Name Recipient % Component Technique Round

ed

days

93.558 Temporary Assistance for

Needy Families

Family Socioeconomic

Development

Administration

2.00 Indirect Costs Actual Clearance, ZBA -

ACH

1 Day

93.558 Temporary Assistance for

Needy Families

Family Socioeconomic

Development

Administration

4.00 Payroll Actual Clearance, ZBA -

ACH

1 Day

93.558 Temporary Assistance for

Needy Families

Family Socioeconomic

Development

Administration

90.0

0

Payment to Beneficiaries Actual Clearance, ZBA -

ACH

1 Day

93.563 Child Support

Enforcement

Child Support

Administration

54.0

0

Payroll Actual Clearance, ZBA -

ACH

1 Day

93.563 Child Support

Enforcement

Child Support

Administration

7.00 Indirect Costs Actual Clearance, ZBA -

ACH

1 Day

93.563 Child Support

Enforcement

Child Support

Administration

39.0

0

Administrative Costs Actual Clearance, ZBA -

ACH

1 Day

93.569 Community Services

Block Grant

Families and Children

Administration

95.0

0

Payment to Service

Providers

Actual Clearance, ZBA -

ACH

1 Day

93.569 Community Services

Block Grant

Families and Children

Administration

5.00 Administrative Costs Actual Clearance, ZBA -

ACH

1 Day

93.575 Child Care and

Development Block Grant

Administration for the

Childhood Care and

Integrated Development

3.00 Operations Actual Clearance, ZBA -

ACH

1 Day

93.575 Child Care and

Development Block Grant

Administration for the

Childhood Care and

Integrated Development

3.00 Administrative Costs Actual Clearance, ZBA -

ACH

1 Day

93.575 Child Care and

Development Block Grant

Administration for the

Childhood Care and

Integrated Development

3.00 Payment to Beneficiaries Actual Clearance, ZBA -

ACH

1 Day

93.575 Child Care and

Development Block Grant

Administration for the

Childhood Care and

Integrated Development

23.0

0

Payroll Actual Clearance, ZBA -

ACH

1 Day

93.575 Child Care and

Development Block Grant

Administration for the

Childhood Care and

Integrated Development

68.0

0

Payment to Service

Providers

Actual Clearance, ZBA -

ACH

1 Day

93.600 Head Start Administration for the

Childhood Care and

Integrated Development

0.50 Administrative Costs Actual Clearance, ZBA -

ACH

1 Day

93.600 Head Start Administration for the

Childhood Care and

Integrated Development

47.0

0

Payment to Service

Providers

Actual Clearance, ZBA -

ACH

1 Day

93.600 Head Start Administration for the

Childhood Care and

Integrated Development

1.00 Operations Actual Clearance, ZBA -

ACH

1 Day

93.600 Head Start Administration for the

Childhood Care and

Integrated Development

1.50 Payroll Actual Clearance, ZBA -

ACH

1 Day

93.600 Head Start Governor`s Office 2.00 Administrative Costs Actual Clearance, ZBA -

ACH

1 Day

93.600 Head Start Governor`s Office 33.0

0

Payroll Actual Clearance, ZBA -

ACH

1 Day

93.600 Head Start Governor`s Office 9.00 Other Direct Cost Actual Clearance, ZBA -

ACH

1 Day

93.600 Head Start Governor`s Office 6.00 Operations Actual Clearance, ZBA -

ACH

1 Day

93.778 Medical Assistance

Program

Department of Health 5.00 Administrative Costs Actual Clearance, ZBA -

ACH

1 Day

93.778 Medical Assistance

Program

Department of Health 5.00 Payroll Actual Clearance, ZBA -

ACH

1 Day

93.778 Medical Assistance

Program

Department of Health 90.0

0

Payment to Service

Providers

Actual Clearance, ZBA -

ACH

1 Day

Page 32 of 34
CFDA Program Name Recipient % Component Technique Round

ed

days

93.779 Centers for Medicare and

Medicaid Services (CMS)

Research,

Demonstrations and

Evaluations

Department of Health 9.00 Payroll Actual Clearance, ZBA -

ACH

1 Day

93.779 Centers for Medicare and

Medicaid Services (CMS)

Research,

Demonstrations and

Evaluations

Department of Health 39.0

0

Payment to Service

Providers

Actual Clearance, ZBA -

ACH

1 Day

93.779 Centers for Medicare and

Medicaid Services (CMS)

Research,

Demonstrations and

Evaluations

Department of Health 39.0

0

Payment to Beneficiaries Actual Clearance, ZBA -

ACH

1 Day

93.779 Centers for Medicare and

Medicaid Services (CMS)

Research,

Demonstrations and

Evaluations

Department of Health 9.00 Administrative Cost Actual Clearance, ZBA -

ACH

1 Day

93.779 Centers for Medicare and

Medicaid Services (CMS)

Research,

Demonstrations and

Evaluations

Puerto Rico Ombudsman

Office for the Elderly

4.00 Payment to Service

Providers

Actual Clearance, ZBA -

ACH

1 Day

93.917 HIV Care Formula Grants Department of Health 11.0

0

Payment to Service

Providers

Actual Clearance, ZBA -

ACH

1 Day

93.917 HIV Care Formula Grants Department of Health 83.0

0

Direct Services Actual Clearance, ZBA -

ACH

1 Day

93.917 HIV Care Formula Grants Department of Health 1.00 Administrative Costs Actual Clearance, ZBA -

ACH

1 Day

93.917 HIV Care Formula Grants Department of Health 1.00 Indirect Costs Actual Clearance, ZBA -

ACH

1 Day

93.917 HIV Care Formula Grants Department of Health 4.00 Payroll Actual Clearance, ZBA -

ACH

1 Day

93.959 Block Grants for

Prevention and

Treatment of Substance

Abuse

Administration of Mental

Health and Addiction

Services

21.0

0

Operational Costs Actual Clearance, ZBA -

ACH

1 Day

93.959 Block Grants for

Prevention and

Treatment of Substance

Abuse

Administration of Mental

Health and Addiction

Services

39.0

0

Payment to Service

Providers

Average Clearance 1 Day

93.959 Block Grants for

Prevention and

Treatment of Substance

Abuse

Administration of Mental

Health and Addiction

Services

2.00 Administrative Costs Actual Clearance, ZBA -

ACH

1 Day

93.959 Block Grants for

Prevention and

Treatment of Substance

Abuse

Administration of Mental

Health and Addiction

Services

38.0

0

Payroll Actual Clearance, ZBA -

ACH

1 Day

93.994 Maternal and Child

Health Services Block

Grant to the States

Department of Health 5.00 Administrative Costs Actual Clearance, ZBA -

ACH

1 Day

93.994 Maternal and Child

Health Services Block

Grant to the States

Department of Health 17.0

0

Other Direct Costs Actual Clearance, ZBA -

ACH

1 Day

93.994 Maternal and Child

Health Services Block

Grant to the States

Department of Health 77.0

0

Payroll Actual Clearance, ZBA -

ACH

1 Day

93.994 Maternal and Child

Health Services Block

Grant to the States

Department of Health 1.00 Payment to Service

Providers

Actual Clearance, ZBA -

ACH

1 Day

Page 33 of 34
________________________________________________________________________________________________________

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: ___________________________________________________________

Printed Name: ____________________________________________________

Certifying Signature: _______________________________________________

Title: ___________________________________________________________

Page 34 of 34

Francisco Parés (Feb 6, 2020)

Francisco Parés

Secretary of Puerto Rico Treasury Feb 6, 2020 Francisco Parés