Payments, Administrative
Costs, Provider
Payments including
Medicaid Expansion (paid
from the State's Federal
Special Revenue Fund)

93.575 |Child Care and Department of Job & 100. |All costs
Development Block Grant|Family Services 00
93.596 | Child Care Mandatory Department of Job & 100. |All Costs Modified Pre-Issuance N/A
and Matching Funds of |Family Services 00
the Child Care and
Development Fund
93.658 [Foster Care -- Title 1V-E_ |Department of Job & 100. |All Costs Modified Pre-Issuance N/A
Family Services 00
93.659 |Adoption Assistance Department of Job & 19.0 |Benefits (paid from the | Estimated Clearance N/A
Family Services. 0 State's General Revenue
Fund)
93.659 | Adoption Assistance Department of Job & 81.0 |Administrative Costs and |Modified Pre-lssuance {N/A
Family Services [) Benefits (paid from the
State's Federal Special
Revenue Fund)
93.667 | Social Services Block Department of Job & 100. |All Costs Modified Pre-Issuance N/A
Grant Family Services, 00
93.767 {Children's Health Department of Medicaid |88.0 |Administrative Costs and |Actual Clearance, ZBA - |0 Days
Insurance Program 0 Provider Payments (paid |ACH
from the State's General
Revenue Fund by EFT)
93.767 | Children's Health Department of Medicaid |9.00 ;State Agency Reimbursable N/A
Insurance Program Reimbursements for
Program and
Administrative Costs
93.767 | Children's Health Department of Medicaid |3.00 |Administrative Costs and |Estimated Clearance N/A
Insurance Program Provider Payments ( paid
from the State's General
Revenue Fund by
|Warrant)
93.778 |Medical Assistance Department of Medicaid |70.0 |Administrative Costs, Actual Clearance, ZBA- |0 Days
Program oO Provider Payments and ‘CH
County Advances (paid
from the State's General
Revenue Fund by EFT)
93.778 |Medical Assistance Department of Medicaid |1.00 |State Agency Reimbursable NIA
Program Reimbursements for
Program and
|Adminsitrative Costs
93.778 |Medical Assistance Department of Medicaid |1.00 |Administrative Costs and |Estimated Clearance N/A
Program Provider Payments ( paid
from the State's General
Revenue Fund by
Warrant)
93.778 |Medical Assistance Department of Medicaid |28.0 jHospital Care Assurance, |Modified Pre-Ilssuance |N/A
Program 0 Supplemental Inpatient

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:

41. 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,

Page 20 of 24



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 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 shail 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

Page 14 of 24



Day 18 1.41
Day 19 0.40:
Day 20 0.27
Day 21 0.48
Day 22 0.32
Day 23 0.00
Day 24 0.10
Day 25 0.44
Day 26 0.20
Day 27 0.14
Day 28 0.10
Day 29 0.07
Day 30 0.00,
Day 31 0.00.
Total 100.00
Certification

1 hereby certify that the % Cleared listed in Exhibit I! Estimated Clearance of this Treasury State Agreement:

1, Has been prepared in accordance with the standards provided in 31 CFR 205.20;
2. Accurately represents the flow of federal funds under the federal assistance programs to which they apply;
3. Reflects seasonal or other periodic variations in the clearance activities;

4. Is auditable; and,
5. Has been certified as accurate by an authorized State Official.

619-7

#

Signature Date Signed

Timothy 5 Ken

Printed Name

Diredar

Printed Title

Page 24 of 24



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 alll 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 |. 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. a

Composite Clearance

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

Estimated Clearance

The State shall request funds such that they are deposited in a State account in accordance with the clearance pattern
specified in Exhibit |! - EC (Estimated Clearance). The request shall be made in accordance with the appropriate Federal
agency cut-off time specified in Exhibit |. The amount of each request will be a percentage of the disbursement, according
to the State's clearance pattern specified in Exhibit II - EC. This funding technique is interest neutral.

6.2.2 The following ‘are terms under which funding techniques for administrative costs shall be implemented for all
transfers of funds to which the funding technique is applied in section 6.3.2 of this Agreement.

There are no funding techniques listed in Section 6.2.2

6.2.3 The following are terms under which miscellaneous funding techniques shall be implemented for ail 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 alll transfers of funds
to which the funding technique is applied in section 6.3.2 of this Agreement. -

Modified Pre-Issuance

Page 5 of 24


4. Are auditable.

me _ E-J4-L'7

Printed Name: Timothy SS: Ke (444)

Certifying Signature}

rite:___Di rector

Page 21 of 24


Day 4 6.46
Day 5 28.97|
Day 6 27.93
Day 7 13.52
Day & 8.44
Day 9 0.00
Day 10 0.83].
Day 11 2.59
Day 12 4.81
Day 13 0.84
Day 14 1.08
Day 15 0.62
Day 16 0.00.
Day 17 0.16
Day 18 41.79
Day 19 0.28
Day 20 0.14
Day 21 0.51
Day 22 0.26
Day 23 0,00
Day 24 0.04,
Day 25 0.40)
Day 26 0.05
Day 27. 0.08
Day 28 0.03
Day 29 0.02
Day 30 0.00
Day 31 0.00
Total 100.00

93.778 Medical Assistance Program
Administrative Costs and Provider Payments ( paid from the State's General Revenue Fund aby Warrant)

Day 1 0.01
Day 2 0.00.
Day 3 0.38
Day 4 9.52
Day 5 27.74
Day6 24.98
Day 7 13.65,
Day 8 771
Day 9 0.00
Day 10 0.88
Day 11 407
Day 12 3.18
Day 13 1,87
Day 14 4.45
Day 15 0.83}
Day 16 0.00
Day 47 0.10

Page 23 of 24


Exhibit | - Funds Request and Receipt Times Schedule

State of Ohio
[Federal Agenc ment Type.
Agriculture-FNS ACH 11:59 PM 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 45 days
Commerce-NOAA ACH 2:00 PM A 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. O day
Education ACH 3:00 PM iday
Education Fedwire 2:00 PM 0 day
Energy ACH 4:00 PM. iday
Energy Fedwire 3:00 PM. 0 day
HHS ACH 6:30 PM 1day
HHS Fedwire 3:00 PM Q day
HUD ACH 5:30 PM 2 days
HUD Fedwire 3:00 PM 0 day
Interior-FWS_ ACH 11:59 PM iday
Interior-FWS Fedwire 5:45 PM 0 day
Interior-OSM ACH 3:00 PM iday
Interior-OSM Fedwire 41:00 PM 0 day
Justice ACH 11:00 PM 6 days
Justice Fedwire 2:00 PM 2 days
Labor-Non-UTF ACH 3:00 PM dday
Labor-UTF ACH 3:00 PM. 1day
Labor-UTF Fedwire 3:00 PM 0 day
National Science Foundation (NSF) ACH 8:00 PM iday
National Science Foundation (NSF) Fedwire 5:45 PM QO day
Social Security Administration ACH 41:59 PM 1 day
Social Security Administration Fedwire 5:45 PM 0 day
Transportation (FAA) ACH 2:00 PM 1day
Transportation (FHWA) ACH 12:00 PM 3 days
Transportation (FHWA) Fedwire 12:00 PM. 0 day
Transportation (FTA) |ACH 2:00 PM 1day
Veterans Administration ACH 12:00 PM 3 days

Page 18 of 24



Technique: Modified Pre-Issuance
Average Day of Clearance: N/A

93.667 Social Services Block Grant

Recipient: Department of Job & Family Services
% of Funds Agency Receives: 100.00
Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

93.767 Children's Health Insurance Program

Recipient: Department of Medicaid

% of Funds Agency Receives: 88.00

Component: Administrative Costs and Provider Payments (paid from the State’s General Revenue Fund by EFT)
Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

Recipient: Department of Medicaid

% of Funds Agency Receives: 3.00

Component: Administrative Costs and Provider Payments ( paid from the State's General Revenue Fund by Warrant)
Technique: Estimated Clearance

Average Day of Clearance: N/A

Recipient: Department of Medicaid

% of Funds Agency Receives: 9.00

Component: State Agency Reimbursements for Program and Administrative Costs
Technique: Reimbursable

Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: Department of Medicaid

% of Funds Agency Receives: 70.00

Component: Administrative Costs, Provider Payments and County Advances (paid from the State's General Revenue
Fund by EFT)

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

Recipient: Department of Medicaid

% of Funds Agency Receives: 1.00

Component: Administrative Costs and Provider Payments ( paid from the State's General Revenue Fund by Warrant)
Technique: Estimated Clearance

Average Day of Clearance: N/A

Recipient: Department of Medicaid

% of Funds Agency Receives: 28.00

Component: Hospital Care Assurance, Supplemental Inpatient Payments, Administrative Costs, Provider Payments
including Medicaid Expansion (paid from the State's Federal Special Revenue Fund)

Page 10 of 24



% of Funds Agency Receives: 100.00
Component: All Costs

Technique: Modified Pre-Issuance
Average Day of Clearance: N/A

410.557 Special Supplemental Nutrition Program for Women, Infants, and Children
Recipient: Department of Health

% of Funds Agency Receives: 100.00

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

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

% of Funds Agency Receives: 100.00
Component: All Costs

Technique: Modified Pre-lssuance
Average Day of Clearance: N/A

10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program
Recipient: Department of Job & Family Services .

% of Funds Agency Receives: 100.00

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

17.225F Unemployment Insurance -- Federal Benefit Account and Administrative Costs
Recipient: Department of Job & Family Services

% of Funds Agency Receives: 1.00

Component: Unemployment Insurance - Federal Benefit Payments

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

Recipient: Department of Job & Family Services
% of Funds Agency Receives: 99.00
Component: Administrative Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

17.225S Unemployment Insurance -- State Benefit Account
Recipient: Department of Job & Family Services

% of Funds Agency Receives: 100.00

Component: Benefits Costs

Technique: Actual Clearance, ZBA - ACH

Page 7 of 24


The State of Ohio's accounting system requires funding to be available prior to initiating a disbursement. In addition,
disbursements take two business days to produce a payment. Given this fact pattern, Ohio state agencies are typically
unable to meet the three business day requirement and a five business day requirement is necessary for agency
compliance with this agreement. The State shall request funds such that they are deposited in a State account not more
than five 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 | The amount of the request shall be the amount the State
expects to disburse, This funding technique is not interest neutral.

Reimbursable

The State shall request funds such that they are deposited on a weekly, monthly, or quarterly basis. The request shall be
made in accordance with the appropriate Federal agency cut-off time specified in Exhibit |. The amount of the request
shall be equal to the amount of the reimbursement requested by each respective state agency for allowable administrative
and program costs. The State of Ohio voluntarily waives its right to claim federal interest liability. This funding technique
is not interest neutral.

6.3 Application of Funding Techniques to Programs

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

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

10.551 Supplemental Nutrition Assistance Program

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 99.15

Component: Payments to Beneficiaries - Merchant Payments - ACH
Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

Recipient: Department of Job & Family Services
% of Funds Agency Receives: 0.85
Component: SSI Cash Out Benefits

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

10.553 School Breakfast Program
Recipient: Department of Education
% of Funds Agency Receives: 100.00
Component: All Costs

Technique: Modified Pre-issuance
Average Day of Clearance: N/A

10.555 National School Lunch Program
Recipient: Department of Education

Page 6 of 24



Exhibit II - State of Ohio

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
10.551 Supplemental Nutrition {Department of Job & 99.1 |Payments to Actual Clearance, ZBA- |0 Days
Assistance Program Family Services 5 Beneficiaries - Merchant |ACH
Payments - ACH
10.551 Supplemental Nutrition {Department of Job & 0.85 |SSI Cash Out Benefits |Modified Pre-Issuance {N/A
Assistance Program Family Services
10.553 | Schoo! Breakfast Department of Education |100. |All Costs Modified Pre-lssuance |N/A
Program 100
10.555 |National School Lunch [Department of Education |100. |All Costs Modified Pre-lssuance |N/A
Program 00
10.557 |Special Supplemental Department of Health 100. |Ail Costs Modified Pre-Ilssuance |N/A
Nutrition Program for 00
‘Women, infants, and
Children.
10.558 —|Child and Adult Care Department of Education |100. |All Costs Modified Pre-issuance N/A
Food Program 00
10.561 |State Administrative Department of Job & 100. |All Costs Modified Pre-Issuance N/A
Matching Grants for the {Family Services 00
Supplemental Nutrition
Assistance Program
17.225F |Unemployment Insurance |Department of Job & 1.00 |Unemployment tnsurance |Actual Clearance, ZBA- |0 Days
-- Federal Benefit Family Services - Federal Benefit ACH
Account and Payments
Administrative Costs
17.225F |Unemployment Insurance |Department of Job & 99.0 |Administrative Costs Modified Pre-issuance NIA
-- Federal Benefit Family Services 0
Account and
Administrative Costs
17.225S |Unemployment Insurance |Department of Job & 100. |Benefits Costs Actual Clearance, ZBA- |0 Days
|. State Benefit Account {Family Services 00 ACH
20.205 jHighway Planning and =| Department of 100. |All Costs Composite Clearance 0 Days
Construction Transportation 00
84.010 | Title | Grants to Local Department of Education | 100. |All Costs Modified Pre-issuance |N/A
Educational Agencies 00
84.027 |Special Education ~ Department of Education |100. |All Costs Modified Pre-Issuance |N/A
Grants to States 00
84.126 |Rehabilitation Services -- | Opportunities for Ohioans |100. {All Costs Modified Pre-lssuance {N/A
Vocational Rehabilitation |with Disabilities Agency |00
Grants to States
93.558 | Temporary Assistance for} Department of Job & 0.06 |Other State Agency Reimbursable N/A
Needy Families Family Services Reimbursements for
Program and
Administrative Costs
93.558 |Temporary Assistance for |Department of Job & 99.9 |All JFS Costs Modified Pre-Issuance N/A
Needy Families Family Services 4
93.563 | Child Support Department of Job & 100. |All Costs Modified Pre-Issuance NIA
Enforcement Family Services 00.
93.568 —|Low-Income Home Department of 100, |All Costs Modified Pre-Issuance |N/A
Energy Assistance Development. 00

Page 19 of 24


Recipient: Department of Job & Family Services
% of Funds Agency Receives: 100.00
Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

93.568 Low-Income Home Energy Assistance
Recipient: Department of Development

% of Funds Agency Receives: 100.00
Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

93.575 Child Care and Development Block Grant
Recipient: Department of Job & Family Services
% of Funds Agency Receives: 100.00
Component: All costs .

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund
Recipient: Department of Job & Family Services

% of Funds Agency Receives: 100.00

Component: All Costs

Technique: Modified Pre-lssuance

Average Day of Clearance: N/A

93.658 Foster Care -- Title IV-E

Recipient: Department of Job & Family Services
% of Funds Agency Receives: 100.00
Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

93.659 Adoption Assistance

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 19.00

Component: Benefits (paid from the State's General Revenue Fund)
Technique: Estimated Clearance

Average Day of Clearance: N/A

Recipient: Department of Job & Family Services
% of Funds Agency Receives: 81.00
Component: Administrative Costs and Benefits (paid from the State's Federal Special Revenue Fund)

Page 9 of 24


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

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

1.0 AGENTS OF THE AGREEMENT

1.1 The Authorized Official(s) for the State of Ohio shall be the Director, Office of Budget and Management 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
3.4 This Agreement shall take effect on 07/01/2017 and shail 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 shail 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 24

|
:



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 tota! 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:

NIA

The State shall also adjust each clearance pattern to reflect:

two additional days due to the State's internal processing time.

7.8 Each of the State's clearance patterns is calculated in calendar days.

7.9 An authorized State official shall certify that each clearance pattern developed by the State accurately corresponds to
the clearance activity of the programs to which it is applied. This certification shall be provided to the Fiscal Service prior
to the effective date of the Agreement. The State shall recertify its clearance patterns at least every five years.

7.10 The State shall follow the procedures of 31 CFR 205 if it has actual or constructive knowledge, at any time, that a
clearance pattern does not correspond to a program's clearance activity.

8.0 INTEREST CALCULATION METHODOLOGY
8.1 General Terms

8.1.1 The State and the Secretary agree that no interest liabilities will be incurred for transfers of funds made in
accordance with the procedures specified in section 6 of this Agreement where the following funding techniques are
applied:

Actual Clearance, ZBA - ACH
Composite Clearance

Page 12 of 24



Technique: Modified Pre-Issuance
Average Day of Clearance: N/A

Recipient: Department of Medicaid

% of Funds Agency Receives: 1.00

Component: State Agency Reimbursements for Program and Adminsitrative Costs
Technique: Reimbursable

Average Day of Clearance: N/A

6.3.3 Materiality Exemptions

Agencies exempt from coverage on the basis of materiality:

none

7.0 CLEARANCE PATTERNS

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

10.551 Supplemental Nutrition Assistance Program

10.553 School Breakfast Program

10.555 National School Lunch Program for Children

10.557 Special Supplemental Nutrition Program for Women, Infants, and Children
10.558 Child and Adult Care Food Program

10.561 State Administrative Matching Grants for Food Stamp Program
17.225 F Unemployment Insurance -- Federal Benefit Payments

20.205 Highway Planning and Construction

84.010 Title | Grants to Local Educational Agencies

84.027 Special Education -- Grants to States

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to States
93.558 Temporary Assistance for Needy Families

93.563 Child Support Enforcement

93.575 Childcare and Development Block Grant

93.568 Low-Income Home Energy Assistance

93.596 Child Care Mandatory and Matching Funds for the Child Care and Development Fund
93.658 Foster Care -- Title IV-E

93.659 Adoption Assistance .

93.667 Social Services Block Grant

93.767 State Children's Health Insurance Program

93.778 Medical Assistance Program

7.2 The following shall develop the State's clearance patterns:
Office of Budget and Management.
7.3 The sources of data the State shall use when developing its clearance patterns are as follows:

the disbursement data from the Ohio Administrative Knowledge System.

Page 11 of 24


Average Day of Clearance: 0 Days

20.205 Highway Planning and Construction
Recipient: Department of Transportation

% of Funds Agency Receives: 100.00
Component: All Costs

Technique: Composite Clearance

Average Day of Clearance: 0 Days

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

% of Funds Agency Receives: 100.00

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

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

% of Funds Agency Receives: 100.00
Component: Ail Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to States
Recipient: Opportunities for Ohioans with Disabilities Agency

% of Funds Agency Receives: 100.00

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

93,558 Temporary Assistance for Needy Families
Recipient: Department of Jab & Family Services
% of Funds Agency Receives: 99.94

Component: All JFS Costs

Technique: Modified Pre-lssuance

Average Day of Clearance: N/A

Recipient: Department of Job & Family Services
% of Funds Agency Receives: 0.06

Component: Other State Agency Reimbursements for Program and Administrative Costs

Technique: Reimbursable
Average Day of Clearance: N/A

93.563 Child Support Enforcement

Page 8 of 24



Cash Management Improvement Act - 2018 Treasury State Agreement
State of Ohio - Exhibit Il Estimated Clearance se ‘

Effective 07/01/2017 until 06/30/2018

93.659 Adoption Assistance
Benefits (paid from the State's General Revenue Fund)

Day 1 0.00)
Day 2 0.00}
Day 3 6.39.
Day 4 15,55)
Day 5 12.65:
Day 6 18.07
Day 7 15.60:
Day 8 6.26)
Day 9 4.30)
Day 10 1.04
Day 11 6.60
Day 12 3.71
Day 13 4.44
Day 14 2.13)
Day 15 4.35,
Day 16 0.46)
Day 17 1.01
Day 18 1.40.
Day 19 0.60)
Day 20 0.42)
Day 24 0.86
Day 22 0.36
Day 23 0.17
Day 24 0.43
Day 25 0.63
Day 26 0.34
Day 27 0.25
Day 28 0.40
Day 29 0.25,
Day 30 0.09
Day 31 0.24
Total 100.00.
93.767 Children's Health Insurance Program
Administrative Costs and Provider Payments ( paid from the State’s General Revenue Fund by Warrant)
Day 2 0.00,
Day 3 0.17

Page 22 of 24



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
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

Page 4 of 24



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

appropriate clearance pattern specified in Exhibit Il. ‘
8.6.2.3 Standards Applied

Census (Average Daily Balance):
The average daily cash balance of Federal Funds in the program's account reflects the actual activity of each draw from
-the date of deposit to the date of issuance or clearance, whichever is pertinent.

8.6.2.4 Calculation Procedure

Average Daily Balance + Clearance Pattern:
b= {ADB x R} + {P xrx T}, where

[= State's total interest liability

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

R = Annualized rate equal to the average equivalent yields of 13-week Treasury bills auctioned during a State's fiscal year
P = Total annual expenditures of Federal funds for program or component cash flow of program

r= R/365 days

T = Dollar-weighted average day of clearance, as determined by the appropriate clearance pattern in Exhibit It
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:
Annual Report Preparation and Clearance Pattern Study.

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

11.0 NON-COMPLIANCE

Page 15 of 24


12.0 AUTHORIZED SIGNATURES

Timothy S. Keen
Director
Office of B

_ Signature: Date Signed: 6 7 Iq 7 l 7

Date Submitted 05/26/2017

Corvelli A. McDaniel

Assistant Commissioner
Revenue Collections Management,
Bureau of the Fiscal Service

U.S. ani of the Treasut
Signature: f A. Mm Date Signed:, f Rey f ?

Page 17 of 24


Accounting Principles.
5.0 ENTITIES COVERED

5.1 State agencies and instrumentalities that meet the definition of a State per 31 CFR Part 205, shall be subject to the
terms of this Agreement. The following is a list of such entities that administer funds under the programs listed in Section

4.0 of this Agreement:

Department of Development

Department of Education

Department of Health

Department of Job & Family Services

Department of Medicaid

Department of Transportation

Opportunities for Ohioans with Disabilities Agency

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:

U.S. Bank 17.225S Unemployment Insurance -- State Benefit Account
US Bank 17.225F Unemployment Insurance -- Federal Benefit Account and Administrative Costs:
Xerox 10.551 Supplemental Nutrition Assistance Program

6.0 FUNDING TECHNIQUES

6.1 General Terms

6.1.1 The State shall request Federal funds in accordance with the appropriate cut-off times shown in Exhibit | to ensure
funds will be received and credited to a State account by the times specified in the funding techniques. Exhibit | is
incorporated by reference herein.

6.1.2 The State shall schedule the receipt of Federal funds such that the funds are received and credited to a State
account in accordance with the clearance patterns specified in Exhibit Il - List of State Clearance Patterns. Exhibit Il 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

Page 3 of 24


4.0 PROGRAMS COVERED

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

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

4.2 The State's threshold for major Federal assistance programs is $83,749,326.
The following programs meet or exceed the threshold and are not excluded in Section 4.4:

10.551 Supplemental Nutrition Assistance Program

10.553 School Breakfast Program

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

10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance 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 | Grants to Local Educational Agencies

84,027 Special Education -- Grants to States

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to States

93.558 Temporary Assistance for Needy Families

93.563 Child Support Enforcement

93.568 Low-Income Home Energy Assistance

93.575 Child Care and Development Block Grant

93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund
93.658 Foster Care -- Title IV-E

93.659 Adaption Assistance

93.667 Social Services Block Grant

93,767 Children's Health Insurance Program

93.778 Medical Assistance Program

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

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

66.458 Capitalization Grants for Clean Water State Revolving Funds --- Exclusion:Non-State
66.468 Capitalization Grants for Drinking Water Revolving Fund --- Exclusion:Non-State
93.268 Immunization Grants --- Exclusion:Non-Cash

4.5 This further clarifies section 4.4. The programs that are excluded from coverage under the agreement because of
their “Non-State" status are administered by an organization that has separate legal standings from the State of Ohio.
The Ohio Water Development Authority, which administers CFDA 66.458 and CFDA 66.468, is legally and fiscally
independent from the State Executive, the State Treasurer or the State Comptroller as defined by the Generally Accepted

Page 2 of 24



Estimated Clearance

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 shail use the following method to calculate Federal interest liabilities:

Average Clearance:

For all transactions where the State pays out its own funds for program purposes prior to receiving Federal funds, the
Federal interest liability shall be based on the difference in whole days between the average date of clearance for a
disbursement, as specified in Exhibit ll, and the date the related Federal funds are credited to a State account. With
Federal-State matching programs, interest shall be calculated on the Federal percentage of the disbursement.

8.3 The Unemployment Trust Fund

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

Federal and State Funds are Not Interest Neutral: :
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 eamings and the related banking costs attributable to funds withdrawn from its account in the UTF.

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

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

funds.

Page 13 of 24


11.1 The provisions of 31 CFR Part 205.29 and 31 CFR Part 205.30 shail apply in cases of non-compliance with the
terms of this Agreement.

Page 16 of 24