8.6.2.4 Calculation Procedure

1=Pxrx {Pl + CT}, where
1 = State's total interest liability
P = Total annual expenditures of Federal funds for program or component cash flow of program

r = Annualized rate equal to the average equivalent yields of 13-week Treasury bills auctioned during a State's fiscal year
divided by 365 days

PI = Dollar-weighted average number of days Federal funds are held by State prior to issuance

CT = Dollar-weighted average number of days Federal funds are held by State between issuance and clearance of
checks, as determined by the appropriate clearance pattern in Exhibit Il

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:

Development and maintenance of clearance patterns.

Staff time to calculate interest liabilities.

Programming costs for clearance patterns and reports for covered programs.
Staff time for review of the annual report.

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

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 14 of 20


Composite Clearance

The State shall request funds such that they are deposited on the dollar-weighted average number of days required for
funds to be paid out for a series of disbursements, in accordance with the clearance pattern specified in Exhibit Il. The
request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit |. The amount of
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 Ii - 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 !l - EC. 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 |. The amount of the request shall be the amount the State expects to disburse. This
funding technique is not interest neutral.

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

There are no funding techniques listed in Section 6.2.2

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

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.

After Cost Allocation

The State agency will make payments for programs purposes with state funds. Federal funds will be requested after
actual costs are allocated to programs and funding sources or based on estimated allocations. The request will be made
in accordance with cut-off times in Exhibit | (Funds Request and Receipt Time Schedule). All estimates will be reconciled
within a 90 day period. The state will voluntarily not file a federal interest liability claim for the difference of federal funds
earned versus funds estimated. This funding technique is interest neutral.

Direct Administrative Costs-Payroll Additive Rate

The State shall request funds for the payroll additive rate such that it is deposited on the dollar-weighted average as
calculated in Exhibit Il. The request shall be made in accordance with the appropriate Federal agency cut-off time
specified in Exhibit |. The payroll additive rate is a portion of payroll that is set aside for Department of Highways
personnel. Itis not used by the State Department of Highways. The rate is used to allocate a cost for leave and benefits
for West Virginia Department of Highways personnel working on a federal project, and is a percentage of direct labor
costs. It is charged to the project and billed to the Federal Government at the prorata established for the project. This

Page 5 of 20


3. Reflects seasonal or other periodic variations i

in the clearance activities;
4. Is auditable; and,

5. Has been certified as accurate by an authorized State Official.

G-22-2019
—__W-aa-a _
Signature Date Signed
Jehn D- Perc ue
SO He

Printed Name

“Treasurer State of West Viegi nia

Printed Title

Page 20 of 20


CFDA | Program Name Recipient % Component Technique Round
ed
days
93.558 |Temporary Assistance for|West Virginia Department |75.0 |Program Modified Pre-Issuance N/A
Needy Families of Health and Human —|0 (DHHR Only)
Resources
93.558 | Temporary Assistance for|West Virginia Department|25.0 |Payroll, Administrative, |Modified Pre-Issuance N/A
Needy Families ofHealthandHuman = |0_| Indirect (DHHR Only)
Resources
93.658 | Foster Care -- Title IV-E |West Virginia Department}25.0 |Payroll, Administration, —|Modified Pre-Issuance NIA
ofHealthandHuman |0_| Indirect (DHHR Only)
Resources
93.658 |Foster Care -- Title |V-E_ |West Virginia Department}75.0 |Program Modified Pre-Issuance NIA
‘of Healthand Human —|0 (DHHR Only)
Resources
93.767 —|Children's Health West Virginia Department|5.00 |Administrative After Cost Allocation N/A
Insurance Program of Health and Human
Resources
93.767 | Children's Health West Virginia Department] 10.0 | Payroll After Cost Allocation N/A
Insurance Program of Health and Human 0
Resources
93.767 |Children's Health West Virginia Department |85.0 |Program After Cost Allocation N/A
Insurance Program of Health and Human 0
Resources
93.778 |Medical Assistance West Virginia Department}75.0 |Program Modified Pre-Issuance N/A
Program of Health and Human i} (DHHR Only)
Resources
93.778 |Medical Assistance West Virginia Department |25.0 |Payroll, Administrative, | Modified Pre-Issuance NIA
Program of Health and Human 0 Indirect (DHHR Only)
Resources

| 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:

b- ae

-QOV7

Printed Name:

Jolnn D. Perdue

Certifying Signature,

Twe:__Treasucee , Stare of West Vica ing

Page 18 of 20


Recipient: West Virginia Department of Health and Human Resources
% of Funds Agency Receives: 85.00

Component: Program

Technique: After Cost Allocation

Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: West Virginia Department of Health and Human Resources
% of Funds Agency Receives: 25.00

Component: Payroll, Administrative, Indirect

Technique: Modified Pre-Issuance (DHHR Only)

Average Day of Clearance: N/A

Recipient: West Virginia Department of Health and Human Resources

% of Funds Agency Receives: 75.00

Component: Program

Technique: Modified Pre-Issuance (DHHR Only)

Average Day of Clearance: N/A

6.3.3 Materiality Exemptions

Agencies exempt from coverage on the basis of materiality:

No exemptions.

7.0 CLEARANCE PATTERNS

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

Program and Payroll

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

WV State Treasurer's Office

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

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

Page 10 of 20


Component: Program
Technique: In Advance of Issuance
Average Day of Clearance: N/A

15.252 Abandoned Mine Land Reclamation (AMLR) Program
Recipient: West Virginia Department of Environmental Protection
% of Funds Agency Receives: 10.00

Component: Indirect

Technique: In Advance of Issuance

Average Day of Clearance: N/A

Recipient: West Virginia Department of Environmental Protection
% of Funds Agency Receives: 15.00

Component: Payroll

Technique: In Advance of Issuance

Average Day of Clearance: N/A

Recipient: West Virginia Department of Environmental Protection
% of Funds Agency Receives: 75.00

Component: Program

Technique: In Advance of Issuance

Average Day of Clearance: N/A

17.225F Unemployment Insurance -- Federal Benefit Account and Administrative Costs
Recipient: West Virginia Bureau of Employment Programs

% of Funds Agency Receives: 50.00

Component: Direct Non-Payroll

Technique: In Advance of Issuance

Average Day of Clearance: N/A

Recipient: West Virginia Bureau of Employment Programs
% of Funds Agency Receives: 25.00

Component: Indirect

Technique: In Advance of Issuance

Average Day of Clearance: N/A

Recipient: West Virginia Bureau of Employment Programs
% of Funds Agency Receives: 25.00

Component: Payroll

Technique: In Advance of Issuance

Average Day of Clearance: N/A

17.225S Unemployment Insurance -- State Benefit Account
Recipient: West Virginia Bureau of Employment Programs
% of Funds Agency Receives: 100.00

Component: Benefits

Page 7 of 20


funding technique is interest neutral.
In Advance of Issuance

The state agency will request funds such that they are deposited in a state account not more than one day before the
transaction is completed in the Statewide accounting system and in accordance with cut-off times in Exhibit | (Funds
Request and Receipt Time Schedule). The State will use a standard of 3 days prior to the day the State makes a
disbursement. However, under exceptional circumstances checks may be disbursed from 3 to 6 days (i.e. holidays).
This funding technique is not interest neutral.

Modified Pre-Ilssuance (DHHR Only)

The state shall request funds based upon estimated expenditures. The federal cash balance is based on the letter of
credit for each grant and balanced in a DHHR specific database. The federal cash balance can change due to
adjustments by the granting agency for approved/disapproved disbursements. The estimated draws are based upon past
experiences and are reconciled 90 days after the quarter ends. The West Virginia State Treasurer's Office will apply a
First-In First-Out method to match draws to expenditures and calculate the interest liability. Settlement draws and retro
draws will be used to replenish the federal cash balance but will not match to expenditures. This technique is agency
specific for the Department of Health and Human Resources due to the complexity of the programs covered and the
State's Accounting System limitations. The request for funds shall be made in accordance with cut-off times in Exhibit |
(Funds Request and Receipt Time Schedule) 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: West Virginia Department of Health and Human Resources
% of Funds Agency Receives: 100.00

Component: Program

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

10.553 School Breakfast Program

Recipient: West Virginia Department of Education
% of Funds Agency Receives: 100.00
Component: Program

Technique: In Advance of Issuance

Average Day of Clearance: N/A

10.555 National School Lunch Program
Recipient: West Virginia Department of Education
% of Funds Agency Receives: 100.00

Page 6 of 20


Cash Management Improvement Act - 2018 Treasury State Agreement
State of West Virginia - Exhibit [1 Estimated Clearance

Effective 07/01/2017 until 06/30/2018
17.2258 Unemployment Insurance -- State Benefit Account

Benefits

[Day | Wee\cieared
avi __| 3.22
— 3.22
avs __| 3.22
Day 4 3.22
Day 5 3.29]
Day 6 3.29
Day 7 3.20
Pave __| 3.22
are 3.22
Day 10 3.29
Day 14 303
(Pavt2 3.22
Day 13 3.22
Day 14 3.22
Day 15 3.22
Day 16 3.22
Day 17 3.22
Day 18 3.29
Day 19 3.22
Day 20 3.20
Day 21 3.22
Day 22 3.22
Day 23 3.24
Day 24 3.24
Day 25 3.24
Day 26 3.24
Day 27 3.24
Day 28 3.24)
Day 29 3.24
Day 30 3.24
Day 31 3.24
Total 100.00

Certification

9 red listed in Exhibit Il Estimated Clearance of this Treasury State Agreement:
hereby certify that the % Cleared listed i ibit || Estimated Cleara f this Treasu gi
! yy certi

with the standards provided in 31 CFR 205.20;

‘ ,
ae deraifunds under the federal assistance programs to which they apply,
, ie

| iy cepreserts tne 10" off

Page 19 of 20


Average Day of Clearance: N/A

Recipient: West Virginia Department of Education
% of Funds Agency Receives: 25.00
Component: Indirect

Technique: Pre-Issuance

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families

Recipient: West Virginia Department of Health and Human Resources
% of Funds Agency Receives: 25.00

Component: Payroll, Administrative, Indirect

Technique: Modified Pre-Issuance (DHHR Only)

Average Day of Clearance: N/A

Recipient: West Virginia Department of Health and Human Resources
% of Funds Agency Receives: 75.00

Component: Program

Technique: Modified Pre-Issuance (DHHR Only)

Average Day of Clearance: N/A

93.658 Foster Care — Title IV-E

Recipient: West Virginia Department of Health and Human Resources
% of Funds Agency Receives: 25.00

Component: Payroll, Administration, Indirect

Technique: Modified Pre-lssuance (DHHR Only)

Average Day of Clearance: N/A

Recipient: West Virginia Department of Health and Human Resources
% of Funds Agency Receives: 75.00

Component: Program

Technique: Modified Pre-Issuance (DHHR Only)

Average Day of Clearance: N/A

93.767 Children's Health Insurance Program

Recipient: West Virginia Department of Health and Human Resources
% of Funds Agency Receives: 5.00

Component: Administrative

Technique: After Cost Allocation

Average Day of Clearance: N/A

Recipient: West Virginia Department of Health and Human Resources
% of Funds Agency Receives: 10.00

Component: Payroll

Technique: After Cost Allocation

Average Day of Clearance: N/A

Page 9 of 20


Cash Management Improvement Act Agreement
between
The State of West Virginia
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 West
Virginia (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 West Virginia shall be the John D. Perdue, State Treasurer in all matters
concerning this Agreement.

1.2 The Assistant Commissioner, Revenue Collections Management, Bureau of the Fiscal Service (Fiscal Service), U.S.
Department of the Treasury, shall act as the Secretary's representative in all matters concerning this Agreement.

2.0 AUTHORITY

2.1 The authority for this Agreement is the Cash Management Improvement Act of 1990 (Public Law 101-453), as
amended by the Cash Management Improvement Act of 1992 (Public Law 102-589), codified at 31 U.S.C. 6501 and 31
U.S.C. 6503.

2.2 The regulations codified at 31 CFR Part 205 shall apply to all matters pertaining to this Agreement, and are
incorporated herein by reference. In the event of any inconsistency between this Agreement and 31 CFR Part 205, the
regulations shall govern.

3.0 DURATION, AMENDING, TERMINATING, AND MISCELLANEOUS PROVISIONS
3.1 This Agreement shall take effect on 07/01/2017 and shall remain in effect until 06/30/2018.

3.2 This Agreement may be amended at any time by written, mutual consent of the State and the Fiscal Service. This
Agreement shall be amended annually to incorporate new programs that qualify as major Federal assistance programs
and remove programs that no longer qualify as major Federal assistance programs. A State must notify the Fiscal Service
in writing within 30 days of the time the State becomes aware of a change that involves additions or deletions of programs
subject to Subpart A, changes in funding techniques, and/or changes in clearance patterns. The notification must include
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 20


(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:

There are no interest earnings on funds withdrawn from the State account, as the State has implemented estimated
clearance, an interest-neutral funding technique, for such transfers. For transfers UTF that do not follow the technique
specified in section 6.2 and result in a positive balance of funds in a State account, the State's liability for interest on funds
withdrawn from its account in the UTF shall consist of the actual interest earnings of the benefit payment account on the
pro-rata share less the related banking costs attributed to such funds.

8.4 Refund Liabilities

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:

Refunds Deposited to Non-Interest Neutral Programs - Part of Liability Captured Under State's Pre-Issuance Calculation:
With programs to which applicable interest neutral funding techniques are applied, the State interest liability shall be
based on two periods: (1) the difference in whole days between the date the refund is deposited to a State account and
the date the refund is offset against a subsequent deposit of Federal funds; (2) the difference in whole days between the
date the refund is offset against a subsequent deposit of Federal funds and the date the refund is paid out for program
purposes.

Interest on refunds during period 1 will be calculated using the information recorded in a separate account. Interest on

Page 12 of 20


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:

No Exceptions

The State shall also adjust each clearance pattern to reflect:

No Adjustments

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

After Cost Allocation

Composite Clearance

Direct Administrative Costs-Payroll Additive Rate
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

Page 11 of 20


Technique: Estimated Clearance
Average Day of Clearance: N/A

20.205 Highway Planning and Construction
Recipient: West Virginia Department of Transportation
% of Funds Agency Receives: 8.00

Component: Payroll

Technique: Composite Clearance

Average Day of Clearance: 12 Days

Recipient: West Virginia Department of Transportation
% of Funds Agency Receives: 90.00

Component: Program

Technique: Composite Clearance

Average Day of Clearance: 12 Days

Recipient: West Virginia Department of Transportation
% of Funds Agency Receives: 2.00
Component: Payroll Additive

Technique: Direct Administrative Costs-Payroll Additive Rate

Average Day of Clearance: 12 Days

84.010 Title | Grants to Local Educational Agencies
Recipient: West Virginia Department of Education
% of Funds Agency Receives: 50.00

Component: Payroll

Technique: In Advance of Issuance

Average Day of Clearance: N/A

Recipient: West Virginia Department of Education
% of Funds Agency Receives: 50.00

Component: Program

Technique: In Advance of Issuance

Average Day of Clearance: N/A

84.027 Special Education -- Grants to States
Recipient: West Virginia Department of Education
% of Funds Agency Receives: 25.00

Component: Payroll

Technique: In Advance of Issuance

Average Day of Clearance: N/A

Recipient: West Virginia Department of Education
% of Funds Agency Receives: 50.00

Component: Program

Technique: In Advance of Issuance

Page 8 of 20




a. Timing of the Request

A State should initiate its request for supplemental funding during a quarter as soon as it becomes aware of the fact that a
shortfall does/will exist. For the TANF and CCDF grants, supplemental funding requests (estimates) may be submitted by
a State, for consideration by ACF, up through and including the 15th day of the third month of the first, second or third
quarter of any fiscal year. Since TANF and CCDF are block grant programs, all unawarded portions of the annual
allotment will automatically be issued at the beginning of the fourth quarter. Therefore, supplemental funding requests will
not be available during the fourth quarter for these programs. For the CSE and FC/AA programs, supplemental funding
requests may be submitted by a state, for consideration by ACF, up through and including the 15th day of the third month
of any quarter of a fiscal year.

b. Justification for the Request

The request for a supplemental funding for any of the above mentioned programs should contain a justification clearly
documenting the need for the additional funding authority during the current quarter. This documentation should be in the
form of State accounting records or similar documents that will show the actual expenditures through the most recent
month for which such data are available, as well as the State's most accurate projection of its anticipated expenditures
during the remaining month(s) of the quarter. For either the TANF or the CCDF program, the State's justification should
also include an explanation of the activities requiring the obligation and/or expenditure of amounts that exceed the normal
quarterly grant award restrictions and why these activities could not have been delayed until the next quarter.

c. Form Submittal
Supplemental funding requests should be made by completing the appropriate ACF quarterly report of expenditures and
estimates applicable to the particular program for which the grant award request is being made.

d. Approval Process

Upon receipt of the state's request for additional funding authority for a quarter, the ACF Regional Office will promptly
review the supporting documentation. If the request is properly justified, so long as ACF has adequate funding
availability, the State's request will be expedited and supplemental funding will be issued within 5 days of ACF receiving
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 |. 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.

Page 4 of 20


12.0 AUTHORIZED SIGNATURES

John D. Perdue 5
West Virginj

i

Date Signed: 6 ~/ Z / ]

Signature:

Corvelli A. McDaniel

Assistant Commissioner

Revenue Collections Management
Bureau of the Fiscal Service

U.S. Department of the Treagu

fo
Signature: C epredl A, mda Date Signed: Yo fig

Page 15 of 20


Exhibit II - State of West Virginia

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
2 days

10.551 |Supplemental Nutrition West Virginia Department| 100. |Program Actual Clearance, ZBA- |1 Day

Assistance Program of Health and Human 00 ACH
Resources

10.553 |School Breakfast West Virginia Department|100. |Program In Advance of Issuance |N/A
Program. of Education 00

10.555 |National School Lunch —_| West Virginia Department} 100. | Program In Advance of Issuance |N/A
Program of Education 00

15.252 |Abandoned Mine Land West Virginia Department|10.0 | Indirect In Advance of Issuance |N/A
Reclamation (AMLR) of Environmental 0
Program Protection

15.252 |Abandoned Mine Land | West Virginia Department|75.0 |Program In Advance of Issuance |N/A
Reclamation (AMLR) of Environmental 0
Program Protection

15.252 |Abandoned Mine Land | West Virginia Department| 15.0 |Payroll In Advance of Issuance |N/A
Reclamation (AMLR) of Environmental 0
Program, Protection

17.225F |Unemployment Insurance |West Virginia Bureau of {50.0 | Direct Non-Payroll In Advance of Issuance |N/A
-- Federal Benefit Employment Programs |0
Account and
Administrative Costs

17.225F |Unemployment Insurance |West Virginia Bureau of |25.0 |Payroll In Advance of Issuance |N/A
-- Federal Benefit Employment Programs |0
Account and
Administrative Costs

17.225F |Unemployment Insurance |West Virginia Bureau of | |25.0 | Indirect In Advance of Issuance |N/A
|-- Federal Benefit Employment Programs 0
Account and
Administrative Costs

17.225S |Unemployment Insurance |West Virginia Bureau of |100. |Benefits Estimated Clearance NIA
-- State Benefit Account_|Employment Programs __|00

20.205 | Highway Planning and West Virginia Department] 8.00 | Payroll Composite Clearance 12 Days
Construction of Transportation

20.205 | Highway Planning and West Virginia Department }90.0 |Program Composite Clearance 12 Days
Construction of Transportation 0

20.205 | Highway Planning and West Virginia Department|2.00 | Payroll Additive Direct Administrative 12 Days
Construction of Transportation Costs-Payroll Additive

Rate

84.010 | Title | Grants to Local West Virginia Department}50.0 |Program In Advance of Issuance |N/A
Educational Agencies of Education 0

84.010 | Title | Grants to Local West Virginia Department|50.0 | Payroll In Advance of Issuance |N/A
Educational Agencies of Education 0

84.027 |Special Education -- West Virginia Department |25.0 | Indirect Pre-Issuance NIA
Grants to States of Education 0

84.027 |Special Education -- West Virginia Department |50.0 |Program In Advance of Issuance |N/A
Grants to States of Education 0

84.027 |Special Education -- West Virginia Department|25.0 |Payroll In Advance of Issuance |N/A
Grants to States of Education 0

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Agreement:

JP Morgan Electronic Financial Services, Inc. 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
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):

Page 3 of 20


4.0 PROGRAMS COVERED

4.1 The State's threshold and its major Federal assistance programs shall be determined based on the State's most
recent Single Audit 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 $37,403,207.
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

15.252 Abandoned Mine Land Reclamation (AMLR) 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

93.558 Temporary Assistance for Needy Families

93.658 Foster Care -- Title IV-E

93.767 Children's Health Insurance Program

93.778 Medical Assistance Program

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:

84.038 Federal Perkins Loan Program — Federal Capital Contributions — Exclusion:Non-State
84.063 Federal Pell Grant Program --- Exclusion:Non-State
84.268 Federal Direct Student Loan —- Exclusion:Non-State

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:

West Virginia Bureau of Employment Programs

West Virginia Department of Education

West Virginia Department of Environmental Protection
West Virginia Department of Health and Human Resources
West Virginia Department of Transportation

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

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refunds during period 2 will be captured under the State method for calculating interest under pre-issuance funding.
Under this method, interest is calculated on totals disbursed, which includes refunds on hand as well as amounts drawn.
The reported interest liability for refunds, therefore, will reflect period 1 only.

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.

8.5.2 The State and the Secretary agree that no interest liabilities should be incurred or calculated for indirect costs.
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

Bank or Agency:
The time period from deposit to payment shall be determined from information captured by the bank and the State's
accounting system.

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 pre-
issuance time for that check

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

Page 13 of 20


Exhibit | - Funds Request and Receipt Times Schedule

State of West Virginia

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 iday
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. O day
Education ACH 3:00 PM 4 day
Education Fedwire 2:00 PM O day
Eneray ACH 4:00 PM 1 day
Energy Fedwire 3:00 PM. 0 day
HHS ACH 6:30 PM 1 day
HHS Fedwire 3:00 PM 0 day
HUD ACH 5:30 PM 2 days
HUD Fedwire 3:00 PM 0 day
Interior-FWS ACH 11:59 PM 1day
Interior-FWS Fedwire 5:45 PM 0 day
Interior-OSM ACH 3:00 PM 1day
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 iday_
Labor-UTF ACH 3:00 PM i day
Labor-UTF Fedwire 3:00 PM. 0 day
National Science Foundation (NSF) ACH 8:00 PM 4 day
National Science Foundation (NSF) Fedwire 5:45 PM 0 day
Social Security Administration ACH 11:59 PM 4 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 O day
Transportation (FTA) ACH 2:00 PM 1 day
Veterans Administration ACH 12:00 PM 3 days

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