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 20 of 27


Component: Direct payments to providers for EFT and non-EFT payments
Technique: Modified Direct Program Costs
Average Day of Clearance: 0 Days

Recipient: 107—-Healthcare Authority--HCA

% of Funds Agency Receives: 2.50

Component: Administrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)
Average Day of Clearance: 0 Days

Recipient: 300---Department of Social & Health Services---DSHS

% of Funds Agency Receives: 2.50

Component: Administrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)
Average Day of Clearance: 0 Days

Recipient: 300---Department of Social & Health Services--DSHS.

% of Funds Agency Receives: 28.63

Component: Direct payment to providers for EFT and non-EFT payments

Technique: Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)
Average Day of Clearance: 0 Days

93.959 Block Grants for Prevention and Treatment of Substance Abuse

Recipient: 300---Department of Social & Health Services--DSHS

% of Funds Agency Receives: 100.00

Component: Direct program benefit costs and adminstrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)
Average Day of Clearance: 0 Days

96.001 Social Security -- Disability Insurance

Recipient: 300--Department of Social & Health Services--DSHS

% of Funds Agency Receives: 100.00

Component: Direct program and benefit costs and administrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)
Average Day of Clearance: 0 Days

6.3.3 Materiality Exemptions

Agencies exempt from coverage on the basis of materiality:
Agency 340 Student Achievement Council - 84.367

7.0 CLEARANCE PATTERNS

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

With the exception of programs administered by receipent Agency 350, Superintendent of Public Instruction, where all
federal program payroll charges are based on 100% EFT payroll, the State shall develop a clearance pattern for the

Page 14 of 27


State Administrative

Payroll and administrative

10.561 300---Department of 100. Modified Direct Program 0 Days
Matching Grants for the |Social & Health Services-j00 | costs Costs - Admin, Payroll,
Supplemental Nutrition |--DSHS Payments to Providers
Assistance Program (ACH Drawdown on

Payroll Cycle)

17.225F |Unemployment Insurance S40--Employment 76.0 |Benefit Payments - UI Federal (Fedwire 0 Days
-- Federal Benefit Security lepartment-—- |0 Federal Same Day Payment
Account and Modified Actual
Administrative Costs Clearance ZBA)

17.225F |Unemployment Insurance |540---Employment 24.0 |Administrative and Reed |UI Admin - Modified ‘0 Days
-- Federal Benefit Security Department--- 0. [Act costs including Payment Schedule
Account and ESD payroll - Warrants, EFT Fedwire Semi-Month!
Administrative Costs payments and voucher rawdown on Payday}

payments

17.2258 |Unemployment Insurance |540---Employment 100. |Benefit payments - State |Modified Pre-Issuance |0 Days

|-- State Benefit Account |Security Department [00 (Post-Issuance) (Fedwire
ESD Same Day Payment)

20.205 | Highway Planning and 010---Bond Retirement |6.00 |Principal and interest Pre-Issuance Grant 0 Days

Construction Interest—-BRI |GARVEE bonds Anticipation Revenue
Vehicle (GARVEE) Bond
Repayment

20.205 |Highway Planning and == |405---Department of 94.0 |Contractor payments, Direct Funding WSDOT /0 Days
‘Construction Transportation---DOT 0 payroll, administrative

and other program costs

20.223 | Transportation 405---Department of 100. {Contractor payments, Direct Funding WSDOT |N/A
Infrastructure Finance 'Transportation---DOT 00 = ‘| payroll, administrative Monthly
and Innovation Act and other program costs
Program

20.319 | High-Speed Rail '405---Department of 100. |TIFIA loan disbursements |TIFIA Funding WSDOT |N/A
Corridors and Intercity Transportation---DOT 00
Passenger Rail Service
Capital Assistance
Grants

66.458 | Capitalization Grants for |461---Department of 4.00 jAdministrative costs Modified Direct Program |0 Days
Clean Water State Ecology---ECY including payroll Costs - Admin, Payroll,

Revolving Funds Payments to Providers
(ACH Drawdown on
ayroll Cycle)

66.458 |Capitalization Grants for |461---Department of 96.0 |Construction loans and | Capitalization Grants for |0 Days
Clean Water State Ecology---ECY 0 grants State Revolving Funds
Revolving Funds

84.010 | Title | Grants to Local 350---Superintendent of |5.00 |Administrative costs Modified Direct Program |0 Days
Educational Agencies Public Instruction---SPI including payroll ‘Costs - Admin, Payroll,

Payments to Providers
(ACH Drawdown on
Payroll Cycle)
84.010 Title | Grants to Local '350---Superintendent of {95.0 {Direct payments/benefit {Modified Direct NIA
Educational Agencies Public Instruction—-SPI_ | payment to local Program/Benefit Costs -
educational agencies Direct program/benefit
payments to Providers
(A H Drawdown at Fixed
Intervals - SPI)
84.027 |Special Education — 350---Superintendent of |5.00 |Administrative costs Modified Direct Program |0 Days
Grants to States Public instruction—-SPI including payroll Costs - Admin, Payroll,
Payments to Providers
(ACH Drawdown on
ayroll Cycle)

84.027 |Special Education -- 350---Superintendent of |95.0 |Payment to public or Modified Direct NIA

Grants to States Public Instruction--SP!  |0 private schools Program/Benefit Costs -
. Direct program/benefit

payments to Providers
(ACH Drawdown at Fixed
Intervals - SPI)

Page 24 of 27


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.

Actual Clearance, ZBA - Same Day Payment

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

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.

Capitalization Grants for State Revolving Funds

Page 5 of 27



12.0 AUTHORIZED SIGNATURES

Brian Tinney

Assistant Director, Accounting Division
Office of Financial Management

State of Washington

Signature: Date Signed: &/ 30 Lf ]

Date Submitted 06/16/2017

Corvelli A. McDaniel

Assistant Commissioner

Revenue Collections Management
Bureau of the Fiscal Service
U.S. Department of the Tredsury

Signature: 4 A, Myr Date Signed: Y/auft ?

Page 21 of 27



Certifying Signature:

Title: Nes stent Devecter, oF Necoredhat Divison

Page 27 of 27



Exhibit Il - State of Washington

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
que
10.551 |Supplemental Nutrition | 300---Department of 100. |Direct wire settlement to {Actual Clearance, ZBA- |0 Days
Assistance Program Social & Health Services-|00 _|the Electronic Benefit Same Day Payment
-DSHS Transfer (EBT) system
‘contractor or by
Electronic Funds Transfer’
10.553 | School Breakfast 350---Superintendent of |100. |Direct program/benefit Modified Direct. N/A
Program Public Instruction--SP] |00 |payments - Program/Benefit Costs -
reimbursements to school] Direct program/benefit
districts, private schools, |payments to Providers
child & adult care (AGH Drawdown at Fixed
programs. Intervals - SP1)
10.555 | National School Lunch 350---Superintendent of |100. |Direct program/benefit Modified Direct NIA
Program Public Instruction--SPI]_ {00 | payments - Program/Benefit Costs -
reimbursements to school] Direct program/benefit
districts, private schools, |payments to Providers
child & adult care (ACH Drawdown at Fixed
programs intervals - SPi)
10.557 |Special Supplemental 303---Department of 34.0 |Administrative costs Modified Direct Program |0 Days
Nutrition Program for Health---DOH 0 including payroll Costs - Admin, Payroll,
Women, Infants, and Payments to Providers
Children (ACH Drawdown on
Payroll Cycle)
10.557 |Special Supplemental 303---Department of 66.0 |Direct program/benefit Actual Clearance, ZBA- |0 Days
Nutrition Program for Health---DOH i} payments for food ACH
Women, Infants, and voucher redemption
Children through United
Community Bank, which
acts as the state's fiscal
agent in the program.
The state's drawdowns
are based on the actual
expenditures, which are
the previous day's
activity. Rebates offset
‘the direct program/benefit
pa ments. This is a zero
alance account.
10.558 | Child and Adult Care 350---Superintendent of {1.00 {Administrative costs Modified Direct Program |0 Days
Food Program Public Instruction--SPI including payroll Costs - Admin, Payroll,
Payments to Providers
(ACH Drawdown on
ayroll Cycle),
10.558 |Child and Adult Care 350---Superintendent of {99.0 | Direct program/benefit Modified Direct. NIA
Food Program Public Instruction---SPI_ |0. payments to child care Program/Benefit Costs ~
centers & adult day care |Direct program/benefit
homes payments to Providers
(ACH Drawdown at Fixed
Intervals - SPI)

Page 23 of 27



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 whole 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:

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

8.5 Exemptions

8.5.1 Where more than one State agency is a recipient of Federal funds under a program, a particular State agency's
funding may be excluded from interest calculation procedures if the State agency receives an amount of funds less than 5
% of the State's threshold for major Federal assistance programs. Notwithstanding this potential exemption, however, in
no case shall less than 90% of a program's total funding be subject to interest calculation procedures.

Proration of calculations: If less than total program funding is subject to interest calculation procedures, the resulting
interest liability calculations shall be prorated to 100% of program funding.

8.6 State Interest Liabilities

8.6.1 The State shall be liable for interest on Federal funds from the date Federal funds are credited to a State account
until the date those funds are paid out for program purposes.

8.6.2 The State shall use the following method to calculate State interest liabilities on Federal funds:
8.6.2.1 Measuring Time Funds Are Held

To determine the total time Federal funds are held, the State shall measure the time between the date Federal funds are
received and credited to a State's account and the date those funds are debited from the State's account.

8.6.2.2 Source of Data

Central Accounting System:

The time period from the date Federal funds are-received and credited to the State's account and the date those funds are
debited from the State's account shall be determined from information captured by AFRS (Agency Financial Reporting
System).

Page 18 of 27


% of Funds Agency Receives: 100.00

Component: Benefit payments - State

Technique: Modified Pre-Issuance (Post-Issuance) (Fedwire Same Day Payment)
Average Day of Clearance: 0 Days

20.205 Highway Planning and Construction

Recipient: 405---Department of Transportation---DOT

% of Funds Agency Receives: 94.00

Component: Contractor payments, payroll, administrative and other program costs
Technique: Direct Funding WSDOT

Average Day of Clearance: 0 Days

Recipient: 010---Bond Retirement Interest---BRI

% of Funds Agency Receives: 6.00

Component: Principal and interest GARVEE bonds

Technique: Pre-lssuance Grant Anticipation Revenue Vehicle (GARVEE) Bond Repayment
Average Day of Clearance: 0 Days

20.223 Transportation Infrastructure Finance and Innovation Act Program
Recipient: 405---Department of Transportation---DOT

% of Funds Agency Receives: 100.00

Component: Contractor payments, payroll, administrative and other program costs
Technique: Direct Funding WSDOT Monthly

Average Day of Clearance: N/A

20.319 High-Speed Rail Corridors and Intercity Passenger Rail Service Capital Assistance Grants
Recipient: 405---Department of Transportation---DOT

% of Funds Agency Receives: 100.00

Component: TIFIA loan disbursements

Technique: TIFIA Funding WSDOT

Average Day of Clearance: N/A

66.458 Capitalization Grants for Clean Water State Revolving Funds
Recipient: 461---Department of Ecology---ECY

% of Funds Agency Receives: 96.00

Component: Construction loans and grants

Technique: Capitalization Grants for State Revolving Funds
Average Day of Clearance: 0 Days

Recipient: 461-—-Department of Ecology---ECY

% of Funds Agency Receives: 4.00

Component: Administrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)
Average Day of Clearance: 0 Days ,

Page 10 of 27


request for funds. This funding technique is interest neutral.
Modified Pre-issuance (Post-Issuance) (Fedwire Same Day Payment)

The State shall request funds daily from the Unemployment Insurance Trust Fund to pay for State unemployment
insurance benefits. The State shall request funds such that they are deposited into the state account after the state
issues checks, but before the checks clear. The request shall be made in accordance with the appropriate Federal
agency cut-off time specified in Exhibit I. A federal agency shall deposit funds in the State account the same day as
requested. The amount of the request shall be based on the amount of the actual warrants disbursed, except in the case
of a holiday following a day upon which checks are issued; in this circumstance, an estimate will be used and an
adjustment made to the next draw. The State shall request funds daily from the Unemployment Insurance Trust Fund to
pay for State unemployment insurance benefits. The amount of the request shall be based on the amount of the actual
warrants disbursed, except in the case of a holiday following a day upon which checks are issued; in this circumstance, an
estimate will be used and an adjustment made to the next draw. This funding technique is interest neutral.

Pre-Issuance Grant Anticipation Revenue Vehicle (GARVEE) Bond Repayment

The State of Washington Department of Transportation will request funds for the repayment of GARVEE Bonds issued
and paid by the Bond Retirement Interest Agency. Funds will be requested for payments of principal and interest on «
bonds. Funds may be requested at least seven business days in advance of the bond payment. This early drawdown has
been approved by the Federal Highway Administration (FHWA) and Fiscal Service. This funding technique is interest
neutral.

TIFIA Funding WSDOT

The agency has a TIFIA Loan disbursement schedule for which the disbursement amount and schedule is approved by
the USDOT TIFIA Office. Eligible project costs are referenced in the TIFIA Loan agreement. All requests by the agency,
made through a requisition and certification, for the disbursement of the TIFIA Loan proceeds must be made by electronic
mail or overnight delivery service to the TIFIA Lender. The requests must be received by the TIFIA lender at or before
5:00 PM EST on the first Business Day of a calendar month in order to obtain disbursement by the fifteenth day of such
calendar month or, if such day is not a business day, the succeeding business day. This funding technique is interest
neutral.

Ul Admin - Modified Payment Schedule (Fedwire Semi-Monthly Drawdown on Payday)

The State shail request funds semi-monthly. It issues Electronic Funds Transfer (EFT) payments and Voucher payments
for Administrative and Reed Act costs including payroll. The State shall request funds semi-monthly. Warrants for
Administrative and Reed Act Costs including payroll are disbursed from the State's account. The State's request shall be
made in accordance with the appropriate Federal agency cut-off time specified in Exhibit |. A federal agency shall deposit
funds in the State account the same day as requested, if the request is made in accordance with the appropriate Federal
agency cut-off time specified in Exhibit 1. The amount of the request shall be the amount of EFT payments and Journal
Voucher payments for Administrative and Reed Act costs including payroll that are issued from the State's account and
the amount of Warrants for Administrative and Reed Act costs including payroll that are disbursed from State's account.
This funding technique is interest neutral.

UI Federal (Fedwire Same Day Payment Modified Actual Clearance ZBA)

The State shall request funds daily from the Unemployment Insurance Trust Fund to pay for Federal unemployment
insurance benefits. The State shall request funds the same day it pays out funds (based upon actual settlement from the
bank for both checks and warrants), in accordance with the appropriate Federal agency cut-off time specified in Exhibit |.

Page 7 of 27



The State shall request funds to minimize the time between the drawdown of funds from Treasury and their deposit into
the revolving fund. The timing of the drawdown of Federal funds for deposit to the revolving fund is subject to the interest
provisions of 31 CFR Part 205, however there is an interest exemption for the interest the State earns once the funds are
deposited into the revolving fund. The request for funds 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 the funds to be used for immediate
program purposes. The State wil] not incur an interest liability for interest earned on revolving fund loans. This funding
technique is interest neutral.

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.

Direct Funding WSDOT

The State shall request funds only after related cash expenditures have been recorded in TRAINS. Because the process
is an automatic one, we expect reimbursement the same day wire requests are made. The amount of the request shall be
the actual sum of cash expenditures that have been incurred, recorded, identified, and reconciled as billable from the
preceding week. This funding technique is interest neutral.

Direct Funding WSDOT Monthly

Eligible expenditures are accumulated throughout the month in a billing file. Invoices are generated once a month,
following the fiscal month close. The invoices and supporting doucments are submitted through Delphi E-Invoicing as
required by the FRA. This funding technique is interest neutral.

Modified Direct Program Costs

Except for managed care payments, the State shall request funds for direct program costs to providers and clients. The
draw will occur on fixed intervals. Managed care payments will have a seperate draw. The request shall be made in
accordance with the appropriate Federal agency cut-off time specified in Exhibit |. Managed care payments will be drawn
the day before the payment to providers, so funds are received on date of managed care payments. The amount of the
draw will be an accumulation of program costs since the last draw. This funding technique is interest neutral.

Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)

The State shall request funds for all direct administrative costs and/or payroll costs, and/or payments made to providers
and to support providers. The request shall be made in accordance with the appropriate Federal agency cut-off time
specified in Exhibit |. The amount of the funds requested shall be based on the amount of expenditures recorded for direct
administrative costs and/or payroll costs and/or payments made to providers or to support providers since the last request
for funds. The State payroll cycle is payday twice a month. Draws made day before payday are for deposit on payday.
The draw request will be made in accordance with cut-off time in Exhibit 1. The amount of the funds requested shall be
based on the amount of expenditures recorded for direct administrative costs and/or payroll costs and/or payments made
to providers or to support providers since the last request for funds. This funding technique is interest neutral.

Modified Direct Program/Benefit Costs - Direct program/benefit payments to Providers (ACH Drawdown at Fixed Intervals
- SPI)

The State shall request funds for all direct program/benefit payments to Providers. The request shall be made such that
the funds are deposited to the State's account on the last working day of the month. The request shall be made in
accordance with the appropriate Federal agency cut-off time specified in Exhibit |. The amount of the funds requested
shall be based on the amount of expenditures recorded for the direct program/benefit payments to Providers since the last

Page 6 of 27


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

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

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

8.6.7 State interest liabilities may accrue if Federal funds are received by the State prior to the day the State pays out the
funds for Federal assistance program purposes, in those cases where the State has not followed the interest-neutral
funding techniques described in Section 6 of this Agreement. State interest liability accrues from the day Federal funds
are credited to a State account to the day the State pays out the Federal funds for Federal assistance program purposes.
(31 CFR 205.15.(a)) The State does not incur an interest liability to the Federal government if a Federal statute requires
the State fo retain or use for Federal assistance program purposes the interest earned on Federal funds. (31 CFR
205.15.(c)) In programs utilizing mandatory matching of Federal funds with State funds, the State must not arbitrarily
assign its earliest costs to the Federal government. The State incurs interest liabilities if it draws Federal funds in
advance and/or in excess of the required proportion of agreed upon levels of State contributions in programs utilizing
mandatory matching of Federal funds with State funds. (31 CFR 205.15.(d))

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:

Interest calculation costs, Labor Costs and Data Processing costs related to developing warrant clearance patterns, and
costs for caiculating interest, including preparation of the CMIA annual report.

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

Page 19 of 27



Technique: Actual Clearance, ZBA - ACH
Average Day of Clearance: 0 Days

Recipient: 303---Department of Health---DOH

% of Funds Agency Receives: 34.00

Component: Administrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)
Average Day of Clearance: 0 Days

10.558 Child and Adult Care Food Program

Recipient: 350---Superintendent of Public Instruction---SPI

% of Funds Agency Receives: 1.00

Component: Administrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)
Average Day of Clearance: 0 Days

Recipient: 350---Superintendent of Public instruction---SP1

% of Funds Agency Receives: 99.00

Component: Direct program/benefit payments to child care centers & adult day care homes

Technique: Modified Direct Program/Benefit Costs - Direct program/benefit payments to Providers (ACH Drawdown at
Fixed Intervals - SPI)

Average Day of Clearance: N/A

10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program

Recipient: 300---Department of Social & Health Services---DSHS

% of Funds Agency Receives: 100.00

Component: Payroll and administrative costs

Technique: Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)
Average Day of Clearance: 0 Days

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

Recipient: 540---Employment Security Department--ESD

% of Funds Agency Receives: 24.00

Component: Administrative and Reed Act costs including payroll - Warrants, EFT payments and voucher payments
Technique: UI Admin - Modified Payment Schedule (Fedwire Semi-Monthly Drawdown on Payday)

Average Day of Clearance: 0 Days

Recipient: 540---Employment Security Department--ESD

% of Funds Agency Receives: 76.00

Component: Benefit Payments - Federal

Technique: Ul Federal (Fedwire Same Day Payment Modified Actual Clearance ZBA)
Average Day of Clearance: 0 Days

17.225S Unemployment Insurance -- State Benefit Account
Recipient: 540---Employment Security Department---ESD

Page 9 of 27



oe : :

s ees eis eee 2 Oe
Rehabilitation Services —- |300---Department of 83.8 |Direct program/benefit Modified Direct Program |N/A
Vocational Rehabilitation |Social & Health Services- /9 payments to Costs - Admin, Payroll,

Grants to States — subrecipients and service | Payments to Providers
providers, and (ACH Drawdown on
administrative costs Payroll Cycle)
including payroll
84.126 |Rehabilitation Services -- }315---Department of 16.1 |Payments made to clients|Modified Direct Program |0 Days
Vocational Rehabilitation |Services for the Blind--- |1 and to support clients, Costs - Admin, Payroll,
Grants to States DSB payroll, and Payments to Providers
administrative costs (ACH Drawdown on
Payroll Cycle)
84.367 —|Improving Teacher 350---Superintendent of [5.00 |Administrative costs Modified Direct Program |0 Days
Quality State Grants Public Instruction---SPI including payroil Costs - Admin, Payroll,
Payments to Providers
(ACH Drawdown on
ayroll Cycle)
84.367 |Improving Teacher 350---Superintendent of {95.0 |Direct payments / benefit |Modified Direct NIA
Quality State Grants Public Instruction--SP1 [0 payments to local Program/Benefit Costs -
educational agencies Direct program/benefit
payments to Providers
(ACH Drawdown at Fixed
intervals - SPI)
93.558 _|Temporary Assistance for |300---Department of 40.0 | Direct Assistance to Actual Clearance, ZBA- |0 Days
Needy Families ‘Social & Health Services- |O clients via the Electronic /Same Day Payment
~ iS Benefit Transfer (EBT)
system or by Electronic
Funds Transfer (EFT)
93.558 | Temporary Assistance for |300---Department of 60.0 {One time benefit Modified Direct Program |0 Days
Needy Families Social & Health Services- |0 payments and Costs - Admin, Payroll,
~- iS administrative costs Payments to Providers
including payrol! (ACH Drawdown on
Payroll Cycle)
93.563 {Child Support 300---Department of 100. |Administrative costs Modified Direct Program j0 Days
Enforcement Social & Health Services-|00 __|including payroll Costs - Admin, Payroll,
DSHS, Payments to Providers
(ACH Drawdown on
Payroll Cycle)
93.568 |Low-Income Home 103---Department of 100, ;Program and Modified Direct Program |0 Days
Energy Assistance Commerce--COM 00 administrative costs Costs - Admin, Payroll,
Payments to Providers
(ACH Drawdown on
Payroll Cycle)
93.575 {Child Care and 357—Department of 100. |Program and Modified Direct Program |0 Days
Development Block Grant|Early Learning---DEL 00 jadministrative costs Costs - Admin, Payroll,
Payments to Providers
{ACH Drawdown on
Payroll Cycle)
93.596 |Child Care Mandatory |357---Department of 100. {Program and Modified Direct Program {0 Days
and Matching Funds of | Early Learning---DEL (00 —- | administrative costs Costs -~ Admin, Payroll,
the Child Care and Payments to Providers
Development Fund (ACH Drawdown on
Payroll Cycte)
93.658 | Foster Care -- Title IV-E_ |300---Department of 100, {Direct benefit payments |Modified Direct Program |0 Days
Social & Health Services-|00 |and administrative and | Costs - Admin, Payroll,
--DSHS. payroll costs Payments to Providers
(ACH Drawdown on
Payroll Cycle)
93.659 | Adoption Assistance 300---Department of 100. |Direct benefit payments [Modified Direct Program |0 Days
Social & Health Services-|00 _|and administrative and | Costs - Admin, Payroll,
--DSHS payroll costs Payments to Providers
(ACH Drawdown on
aytoll Cycle)
93.667 | Social Services Block 300---Department of 100. |Direct benefit and Modified Direct Program {0 Days
Grant Social & Health Services-|00 {program costs and Costs - Admin, Payroll,
~-DSHS administrative and payroll |Payments to Providers
: costs (ACH Drawdown on
Payroll Cycle)

Page 25 of 27



Cash Management Improvement Act Agreement
between
The State of Washington
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 Washington
(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 Washington shall be the Assistant Director, Accounting Division, Office of
Financial 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 at31 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 terminated.

3.1.1 This amendment is submitted due to a change in the federal programs that equal or exceed the state's CMIA
threshold. The state's threshold is $30 million and is based on the state's 2016 Single Audit Report issued on March 30,
2017. This amendment is effective July 1, 2017, until terminated, as required by 31 CFR 205.7(c).

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.

Page 1 of 27



Component: Administrative costs including payroll
Technique: Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)
Average Day of Clearance: 0 Days

Recipient: 350—Superintendent of Public Instruction--SPI

% of Funds Agency Receives: 95.00

Component: Direct payments / benefit payments to local educational agencies

Technique: Modified Direct Program/Benefit Costs - Direct program/benefit payments to Providers (ACH Drawdown at
Fixed Intervals - SPI)

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families

Recipient: 300---Department of Social & Health Services---DSHS

% of Funds Agency Receives: 40.00

Component: Direct Assistance to clients via the Electronic Benefit Transfer (EBT) system or by Electronic Funds Transfer
(EFT)

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

Recipient: 300---Department of Social & Health Services-~--DSHS

% of Funds Agency Receives: 60.00

Component: One time benefit payments and administrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)
Average Day of Clearance: 0 Days

93.563 Child Support Enforcement

Recipient: 300---Department of Social & Health Services--DSHS

% of Funds Agency Receives: 100.00

Component: Administrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)
Average Day of Clearance: 0 Days

93.568 Low-Income Home Energy Assistance

Recipient: 103---Department of Commerce---COM

% of Funds Agency Receives: 100.00

Component: Program and administrative costs

Technique: Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)
Average Day of Clearance: 0 Days.

93.575 Child Care and Development Block Grant

Recipient: 357---Department of Early Learning---DEL

% of Funds Agency Receives: 100.00

Component: Program and administrative costs

Technique: Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)
Average Day of Clearance: 0 Days

Page 12 of 27.


84.010 Title | Grants to Local Educational Agencies

Recipient: 350---Superintendent of Public Instruction---SPI

% of Funds Agency Receives: 5.00

Component: Administrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)
Average Day of Clearance: 0 Days

Recipient: 350---Superintendent of Public Instruction--SPI

% of Funds Agency Receives: 95.00

Component: Direct payments/benefit payment to local educational agencies

Technique: Modified Direct Program/Benefit Costs - Direct program/benefit payments to Providers (ACH Drawdown at
Fixed Intervals - SPI)

Average Day of Clearance: N/A

84.027 Special Education -- Grants to States

Recipient: 350---Superintendent of Public Instruction---SP1

% of Funds Agency Receives: 5.00

Component: Administrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)
Average Day of Clearance: 0 Days

Recipient: 350---Superintendent of Public Instruction---SPI

% of Funds Agency Receives: 95.00

Component: Payment to public or private schools

Technique: Modified Direct Program/Benefit Costs - Direct program/benefit payments to Providers (ACH Drawdown at
Fixed Intervals - SPI)

Average Day of Clearance: N/A

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to States

Recipient: 315---Department of Services for the Blind--DSB

% of Funds Agency Receives: 16.11

Component: Payments made to clients and to support clients, payroll, and administrative costs

Technique: Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)
Average Day of Clearance: 0 Days

Recipient: 300---Department of Social & Health Services---DSHS

‘% of Funds Agency Receives: 83.89

Component: Direct program/benefit payments to subrecipients and service providers, and administrative costs including
payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)
Average Day of Clearance: N/A

84.367 Improving Teacher Quality State Grants
Recipient: 350---Superintendent of Public instruction---SPI
% of Funds Agency Receives: 5.00

Page 11 of 27



A federal agency shall deposit funds in the State account the same day as requested. The amount of the request shall be
based on the amount of the actual warrants redeemed and checks cleared on that day in the State's account. The
amount of the request may be adjusted based upon the balance in the account from the previous day. This funding
technique is interest neutral.

6.3 Application of Funding Techniques to Programs

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

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

10,551 Supplemental Nutrition Assistance Program

Recipient: 300---Department of Social & Health Services---DSHS

% of Funds Agency Receives: 100.00

Component: Direct wire settlement to the Electronic Benefit Transfer (EBT) system contractor or by Electronic Funds
Transfer (EFT)

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

10.553 School Breakfast Program

Recipient: 350---Superintendent of Public Instruction---SPI

% of Funds Agency Receives: 100.00

Component: Direct program/benefit payments - reimbursements to school districts, private schools, child & adult care
programs

Technique: Modified Direct Program/Benefit Costs - Direct program/benefit payments to Providers (ACH Drawdown at _
Fixed Intervals - SPI) .

Average Day of Clearance: N/A

10.555 National School Lunch Program

Recipient: 350---Superintendent of Public Instruction---SPI

% of Funds Agency Receives: 100.00

Component: Direct program/benefit payments - reimbursements to school districts, private schools, child & adult care
programs

Technique: Modified Direct Program/Benefit Costs - Direct program/benefit payments to Providers (ACH Drawdown at
Fixed Intervals - SPI)

Average Day of Clearance: N/A

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

Recipient: 303---Department of Health---DOH

% of Funds Agency Receives: 66.00

Component: Direct program/benefit payments for food voucher redemption through United Community Bank, which acts
as the state's fiscal agent in the program. The state's drawdowns are based on the actual expenditures, which are the
previous day's activity. Rebates offset the direct program/benefit payments. This is a zero balance account.

Page 8 of 27


Exhibit | - Funds Request and Receipt Times Schedule
State of Washington

ACH

41:59 PM

Agriculture-FNS 1 day
Agriculture-FNS Fedwire 5:45 PM 0 day
Agriculture-FS ACH 3:00 PM iday
Air National Guard ACH 42:00 PM 15 days
Army National Guard ACH 42:00 PM 15 days
Commerce-NOAA. [ACH 2:00 PM 1day
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 iday
Education Fedwire 2:00 PM 0 day
Energy ACH 4:00 PM. 1 day
Energy Fedwire 3:00 PM 0 day
HHS ACH 6:30 PM iday
HHS. Fedwire 3:00 PM 0 day
HUD. ACH 5:30 PM 2 days
HUD Fedwire. 3:00 PM. 0 day
interior-FWS ACH 41:59 PM 4 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 41:00 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. 4 day
Labor-UTF Fedwire 3:00 PM 0 day
National Science Foundation (NSF) ACH 8:00 PM dday
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 iday
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 22 of 27




6.1.3 In instances where the receipt of funds is scheduled for a Saturday, the State shall request funds for deposit on
Friday. In instances where the receipt of funds is scheduled for a Sunday, the State shall request funds for deposit on
Monday. In instances where the receipt of Federal funds is scheduled for deposit on a day when the State is not open for
business, the State shall request funds for deposit the day following the scheduled day; in instances where the receipt of
Federal funds is scheduled for deposit on a day when the Federal Government is not open for business, the State shall
request funds for deposit the day prior to the scheduled day.

6.1.4 Estimates and Reconciliation of Estimates:

Where estimated expenditures are used to determine the amount of the drawdown, the State will indicate in the terms of
the State unique funding technique how the estimated amount is determined and when and how the State will reconcile
the difference between the estimate and the State's actual expenditures.

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

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

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

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

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

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

a. Timing of the Request

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

Page 4 of 27


payroll and administrative function. This clearance pattern shall be applied to the payroll and administrative components
of all programs.

7.1.2 Program Specific- The State shall develop program-specific clearance patterns for each of the following programs:
CFDA 20.205, Highway Planning and Construction; 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; 93.778, Medical Assistance.

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

The Office of Financial Management, in conjunction with the Office of the State Treasurer (OST) and the applicable
agency, shall develop all of the State's clearance patterns.

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

Type of Clearance Pattern: Payroll and Administrative; Source of Data: Human Resource Management System (HRMS)
and OST's EFT and warrant redemption records. Type of Clearance Pattern: Program specific; Source of Data: Agency
warrant registers and OST's warrant redemption records. For CFDA 20.205, the agency system is TRAINS.

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.

7.4.1 Actual Activity - Non Payroll. The State shall track 100 percent of the funds disbursed during a time period of at
least three consecutive months. The State shail carry out the clearance patern until at least 99 percent of the funds have
cleared. This methodology shall be applied for all clearance patterns except payroll.

7.4.2 Actual Activity - Payroll. The State shall track the payroll funds disbursed by warrant during the time period of at
least three consecutive months. The State shall adjust the warrant clearance pattern to reflect the percentage of payroll’
direct deposits applicable to each federal program. The composite clearance pattern for payroll warrants and direct
deposit shall be carried out until at least 99 percent of payroll funds have cleared. The clearance pattern shall be based
on 100% of the data, or on a sample size sufficient to ensure, at a minimum, a 95% confidence interval no wider than + or
- 0.25 weighted-days about the estimated mean.

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

Page 15 of 27



Ul Admin - Modified Payment Schedule (Fedwire Semi-Monthly Drawdown on Payday)
UI Federal (Fedwire Same Day Payment Modified Actual Clearance ZBA)

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 State
account in the UTF under the Unemployment Insurance program.

Based on statements provided by its financial institution (or other appropriate sources), the State shall determine the
actual interest 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 actual interest earnings of the benefit payment account on the whole constitute the actual interest earnings
attributable to funds withdrawn from the State account in the UTF, since the State shail apply an appropriate interest
neutral funding technique, to funds withdrawn from the FECA and EUCA and any other benefit accounts of Federal funds
in the UTF from which the State draws.

The State shall calculate the related banking costs attributable to funds withdrawn from the State account in the UTF by
multiplying the State % by the amount of the related banking costs of the benefit payment account as a whole. The States

Page 17 of 27



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:

47.050 Geosciences --- Exclusion:Non-State

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

93.268 Immunization Grants --- Exclusion:Non-Cash

93.837 Heart and Vascular Diseases Research --- Exciusion:Non-State

93.847 Discovery and Applied Research for Technological Innovations to Improve Human Health --- Exclusion:Non-State
93.855 Allergy, Immunology and Transplantation Research --- Exclusion:Non-State

93.859 Biomedical Research and Research Training --- 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:

010---Bond Retirement Interest---BRI
103---Department of Commerce---COM
107---Healthcare Authority--HCA
300---Department of Social & Health Services---DSHS
303---Department of Health---DOH
315---Department of Services for the Blind---DSB
350---Superintendent of Public Instruction---SPI
357---Department of Early Learning---DEL
405---Department of Transportation---DOT
461---Department of Ecology---ECY
540---Employment Security Department---ESD

§.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:

FIS (Fidelity National Information Svcs, LLC) 10.551 Supplemental Nutrition Assistance Program
United Community Bank 10.557 Special Supplemental Nutrition Program for Women, Infants, and Children

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 ll - List of State Clearance Patterns. Exhibit Il is
incorporated by reference herein.

Page 3 of 27



Children's Health Direct payment to Modified Direct Program
Insurance Program |Authority---HCA providers for EFT and Costs - Admin, Payroll,
NON EFT payments and |Payments to Providers
admin and payroll costs |(ACH Drawdown on
Payroll Cycle)

93.767 |Children's Health 300---Department of 4.29 |Direct benefit payments _| Modified Direct Program |0 Days
Insurance Program Social & Health Services- for EFT and non-EFT and | Costs - Admin, Payroll,

|--DSHS administrative costs Payments to Providers
including payroll (ACH Drawdown on
Payroll Cycle)
93.778 {Medical Assistance 107---Healthcare 2.50 |Administrative costs Modified Direct Program |0 Days
Program |Authority—-HCA. including payroll Costs - Admin, Payroll,
Payments to Providers
(ACH Drawdown on
ayroll Cycle)

93.778 |Medical Assistance 107---Heaithcare 66.3 |Direct payments to Modified Direct Program |0 Days
Program |Authority---HCA 7 providers for EFT and Costs

non-EFT payments

93.778 {Medical Assistance 300---Department of 2.50 |Administrative costs Modified Direct Program |0 Days
Program Social & Health Services- including payroli Costs ~ Admin, Payroll,

--DSHS Payments to Providers
(ACH Drawdown on
ayroll Cycle)

93.778 |Medical Assistance 300---Department of 28.6 {Direct payment to Modified Direct Program |0 Days
Program Social & Health Services- |3 providers for EFT and Costs - Admin, Payroll,

- non-EFT payments Payments to Providers
(ACH Drawdown on
ayroll Cycle)

93.959 |Block Grants for 300---Department of 100. {Direct program benefit Modified Direct Program |0 Days
Prevention and Social & Health Services-|00 {costs and adminstrative | Costs - Admin, Payroll,
Treatment of Substance |--DSHS costs including payroll Payments to Providers
Abuse . (ACH Drawdown on

Payroll Cycle)

96.001 | Social Security -- 300-—Department of 100. [Direct program and Modified Direct Program |0 Days
Disability Insurance Social & Health Services-|00 {benefit costs and Costs - Admin, Payroll,

|--DSHS administrative costs Payments to Providers
including payroll (ACH Drawdown on
ayroll Cycle)

| 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:

6L32/17]
Cedar

—

( maces!

Page 26 of 27


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.

4,0 PROGRAMS COVERED

4.1 The State's threshold and its major Federal assistance programs shall be determined based on Schedule of
Expenditures of Federal Awards 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 $30,000,000.
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

20.223 Transportation infrastructure Finance and Innovation Act Program

20.319 High-Speed Rail Corridors and Intercity Passenger Rail Service Capital Assistance Grants
66.458 Capitalization Grants for Clean Water State Revolving Funds

84.010 Title | Grants to Local Educational Agencies

84,027 Special Education -- Grants to States

84,126 Rehabilitation Services -- Vocational Rehabilitation Grants to States

84.367 Improving Teacher Quality State Grants

93.558 Temporary Assistance for Needy Families

93.563 Child Support Enforcement

93.568 Low-Income Home Energy Assistance

93.575 Child Care and Development Block Grant

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

93.659 Adoption Assistance

93.667 Social Services Block Grant

93.767 Children's Health Insurance Program

93.778 Medical Assistance Program

93.959 Block Grants for Prevention and Treatment of Substance Abuse

96.001 Social Security -- Disability Insurance

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

Page 2 of 27


93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund

Recipient: 357---Department of Early Learning---DEL

% of Funds Agency Receives: 100.00

Component: Program and administrative costs

Technique: Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)
Average Day of Clearance: 0 Days

93.658 Foster Care -- Title IV-E

Recipient: 300---Department of Social & Health Services---DSHS

% of Funds Agency Receives: 100.00

Component: Direct benefit payments and administrative and payroll costs

Technique: Modified Direct Program Costs - Admin, Payroll, Payments fo Providers (ACH Drawdown on Payroll Cycle)
Average Day of Clearance: 0 Days .

93.659 Adoption Assistance

Recipient: 300---Department of Social & Health Services---DSHS

% of Funds Agency Receives: 100.00

Component: Direct benefit payments and administrative and payroll costs

Technique: Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)
Average Day of Clearance: 0 Days

93.667 Social Services Block Grant

Recipient: 300---Department of Social & Health Services---DSHS

% of Funds Agency Receives: 100.00

Component: Direct benefit and program costs and administrative and payroll costs

Technique: Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)
Average Day of Clearance: 0 Days

93.767 Children's Health Insurance Program

Recipient: 300---Department of Social & Health Services---DSHS

% of Funds Agency Receives: 4.29

Component: Direct benefit payments for EFT and non-EFT and administrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)
Average Day of Clearance: 0 Days

Recipient: 107—-Healthcare Authority--HCA

% of Funds Agency Receives: 95.71

Component: Direct payment to providers for EFT and NON EFT payments and admin and payroll costs

Technique: Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)
Average Day of Clearance: 0 Days

93.778 Medical Assistance Program
Recipient: 107---Healthcare Authority---HCA
% of Funds Agency Receives: 66.37

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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:

For most programs, the State distinguishes the payroll clearance from the receipient/benefit payments as a separate cash
flow. However, in Agency 300, composite rate payroll clearance patterns are included in the agency's composite rate.
Both the warrant clearance and the EFT payroll are considered in calculating the composite rate.

The State shall also adjust each clearance pattern to reflect:
None. Not applicable.
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.

7.9.1 Clearance patterns required by section 7.9.1 were completed for Payroll (Average Clearance = 0 day), CFDA 20.205
Highway Planning and Construction (Average Clearance = 2 days), CFDA 93.568 Low Income Home Energy Assistance (
Average Clearance = 0 days), CFDA 93.575 Child Care and Dev Block Grant (Average Clearance = 0 days), CFDA
93.596 Child Care Mandatory & Matching Funds (Average Clearance = 0 days), and CFDA 93.778 Medical Assistance
Program direct payments to providers (Average Clearance = 0 days) and submitted with the June 30, 2013, amendment.
The clearance patterns were certified as to accuracy by the State of Washington, in compliance with Fiscal Service CMIA.

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

Actual Clearance, ZBA - Same Day Payment

Capitalization Grants for State Revolving Funds

Direct Funding WSDOT

Direct Funding WSDOT Monthly

Modified Direct Program Costs

Modified Direct Program Costs - Admin, Payroll, Payments to Providers (ACH Drawdown on Payroll Cycle)
Modified Direct Program/Benefit Costs - Direct program/benefit payments to Providers (ACH Drawdown at Fixed Intervals
- SPI)

Modified Pre-Issuance (Post-Issuance) (Fedwire Same Day Payment)

Pre-Issuance Grant Anticipation Revenue Vehicle (GARVEE) Bond Repayment

TIFIA Funding WSDOT

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