Cash Management Improvement Act Agreement

between

The Commonwealth of Pennsylvania

and

The Secretary of the Treasury,

United States Department of the Treasury

The Secretary of the Treasury, United States Department of the Treasury (hereafter 'Secretary'), and Commonwealth of

Pennsylvania (hereafter 'State'), in order to implement Section 5 of the Cash Management Improvement Act of 1990, as

amended (hereafter 'Act'), agree as follows:

1.0 AGENTS OF THE AGREEMENT

1.1 The Authorized Official(s) for the Commonwealth of Pennsylvania shall be the Director of the Bureau of Accounting

and Financial Management, Office of Comptroller Operations, Office of the Budget, 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 07/01/2019 and shall remain in effect until 06/30/2020.

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 30
4.0 PROGRAMS COVERED

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

Single Audit for fiscal year ending 06/30/2018.

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 $89,938,712.

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

10.551 Supplemental Nutrition Assistance Program

10.553 School Breakfast Program

10.555 National School Lunch Program

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

10.558 Child and Adult Care Food Program

10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program

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

17.225S Unemployment Insurance -- State Benefit Account

20.205 Highway Planning and Construction

84.010 Title I Grants to Local Educational Agencies

84.027 Special Education -- Grants to States

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to States

93.558 Temporary Assistance for Needy Families

93.563 Child Support Enforcement

93.568 Low-Income Home Energy Assistance

93.575 Child Care and Development Block Grant

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

93.658 Foster Care -- Title IV-E

93.659 Adoption Assistance

93.667 Social Services Block Grant

93.767 Children's Health Insurance Program

93.778 Medical Assistance Program

96.001 Social Security -- Disability Insurance

96.006 Supplemental Security Income

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:

93.268 Immunization Grants --- Exclusion:Non-Cash

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

Page 2 of 30
4.0 of this Agreement:

Department of Education

Department of Health

Department of Human Services

Department of Labor and Industry

Department of Transportation

Individual State SSI Recipients

5.2 Entities that meet the definition of a Fiscal Agent per 31 CFR Part 205 shall be subject to the terms of this Agreement.

The following is a list of Fiscal Agents that administer funds under the programs listed in the Section 4.0 of this

Agreement:

Citibank 10.551 Supplemental Nutrition Assistance Program

Wells Fargo 10.553 School Breakfast Program

Wells Fargo 10.555 National School Lunch Program

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

Wells Fargo 10.558 Child and Adult Care Food Program

Wells Fargo 10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program

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

Wells Fargo 17.225S Unemployment Insurance -- State Benefit Account

Wells Fargo 20.205 Highway Planning and Construction

Wells Fargo 84.010 Title I Grants to Local Educational Agencies

Wells Fargo 84.027 Special Education -- Grants to States

Wells Fargo 84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to States

Wells Fargo 93.558 Temporary Assistance for Needy Families

Wells Fargo 93.563 Child Support Enforcement

Wells Fargo 93.568 Low-Income Home Energy Assistance

Wells Fargo 93.575 Child Care and Development Block Grant

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

Wells Fargo 93.658 Foster Care -- Title IV-E

Wells Fargo 93.659 Adoption Assistance

Wells Fargo 93.667 Social Services Block Grant

Wells Fargo 93.767 Children's Health Insurance Program

Wells Fargo 93.778 Medical Assistance Program

Wells Fargo 96.001 Social Security -- Disability Insurance

Wells Fargo 96.006 Supplemental Security Income

6.0 FUNDING TECHNIQUES

6.1 General Terms

6.1.1 The State shall request Federal funds in accordance with the appropriate cut-off times shown in Exhibit I to ensure

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

incorporated by reference herein.

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

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

incorporated by reference herein.

Page 3 of 30
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 30
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.

6.1.6 With several programs subject to the Act, the primary State agency administering a program will subgrant portions of

the program to secondary State agencies. As costs in support of the program are incurred, the secondary agency

charges the primary agency, which in turn draws down Federal funds.

In all such cases, the secondary agency shall charge the primary agency no earlier than the day transactions post to the

accounts of the secondary agency. The procedures governing the request for funds from the primary agency, and the

payment of such requests, shall be in accordance with the agreement between the primary and secondary agencies.

Secondary agency transactions may include actual expenditures and/or estimates of current program activity. The

primary agency shall apply the indicated funding technique.

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.

There are no funding techniques listed in Section 6.2.1

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

Page 5 of 30
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.

Daily Trust Fund Draw (CFDA No. 17.225)

The State shall draw down funds on a daily basis. The request shall be made in accordance with the appropriate Federal

agency cut-off time specified in Exhibit I. The amount of each day's State UC draw will be based on actual expenditures

that appear on the Daily Disbursement Report (DDR). This amount may be adjusted for any unusual circumstances that

may arise. The draw amount for the Federal accounts (FECA, UCX, etc.) will be based on actual expenditures that

appear on the DDR. This draw amount will then be adjusted to reflect any corresponding residual balances in the grant

order group status report in SAP. This funding technique is interest neutral.

Modified Composite Clearance (CFDA No. 20.205 Highway Planning and Construction)

The State shall establish an average day of clearance date for all expenditures. The average day clearance for this TSA

is 23 days. To this date, the State shall deduct two days, representing the adoption of mid-week (Wednesday) average

date for all postings during the week. The result will be the composite clearance date for drawing down Federal funds.

This funding technique is interest neutral.

Modified Monthly Draws (CFDA No. 10.557 Indirect Costs)

The State shall draw down funds for indirect costs once a month for the prior month. The request shall be made in

accordance with the appropriate Federal agency cut-off time specified in Exhibit I. The amount of the drawdown will be

based on the application of the indirect cost rate to the appropriate direct costs of the prior month. This funding

technique is interest neutral.

Modified Monthly Draws (CFDA No. 17.225 Indirect Costs - Internal Cost Plan)

The Commonwealth shall request funds for the indirect costs of each month, no earlier than the end of that month. The

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

funds requested will be based on the actual costs in the financial statements for that month, distributed in accordance with

the Department's approved cost plan. This funding technique is interest neutral.

Modified Monthly Draws (CFDA Nos. 10.561, 93.558, 93.563, 93.658, 93.659, 93.778 Indirect Costs (Cost Allocation

Plan))

The State shall draw down funds for indirect costs (Cost Allocation Plan) once a month for the prior month. The request

shall be made in accordance with the appropriate Federal Agency cut-off time specified in Exhibit 1. The amount of the

drawdown will be based on the application of the cost allocation plan to the prior month's actual costs, except for certain

programs wherein the first month's request shall be based on an estimate of costs for the preceding 12 months and shall

be reconciled monthly. This funding technique is interest neutral.

Modified Post-Issuance Funding (CFDA No. 17.225 Direct Administrative Costs)

The State shall request funds weekly based on the negative balance of Direct Administrative Federal funds. The request

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

drawdown shall be the amount of direct expenditures identified to a program from the most recent daily reports. The draw

may be adjusted for available State or Federal cash on hand. This funding technique is not interest neutral.

Modified Reverse Flow (CFDA No. 96.006)

Page 6 of 30
The State pays in funds to the Federal government that are used in conjunction with Federal funds for payments to

individual SSI beneficiaries. This funding technique is not interest neutral.

Modified Weekly Draws (CFDA No. 17.225 Payroll)

The State shall request funds weekly for deposit on the day of payday, alternatively on the State's biweekly payday and

on the supplementary departmental payday. The request shall be made in accordance with the appropriate Federal

agency cut-off time specified in Exhibit I. The amount requested will be based on the amount of direct expenditures

identified to the program from the most recent report. The requested amount may be adjusted for available cash on hand.

This account will be reconciled monthly. This funding technique is interest neutral.

Modified ZBA - Supplemental Nutrition Assistance Program

Through its contractor, the State will request funds via the Automated Clearing House as a same day cash drawdown for

Electronic Benefit Transfers directly to the account of the third party administrator. The request shall be made in

accordance with the appropriate Federal agency cut-off time specified in Exhibit I. The drawdown of funds shall be the

same day as retailers are paid for transactions made at the electronic point of sale machines. Funds will always be drawn

on the same day that settlement funds are paid out. This funding technique is interest neutral.

Monthly Draws (CFDA No. 93.667 Indirect Costs)

The State shall request funds at the beginning of each month to fund the activity of the prior month. The request shall be

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

a given month's activity shall be an estimate based on the actual allocation of costs for the preceding 12 months and shall

be reconciled monthly. This funding technique is interest neutral.

Payroll

The State shall request funds for deposit on the day of payday based on the State's biweekly paydays and on the

supplementary departmental paydays. The request shall be made in accordance with the appropriate Federal agency cutoff time specified in Exhibit I. The amount of the request shall be for the amount of the disbursement. This funding

technique is interest neutral.

Reimbursement

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

account on or after the date the funds have been disbursed from the State's funds, in most instances. The request shall

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

shall be for the amount of the disbursement. 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

Page 7 of 30
Recipient: Department of Human Services

% of Funds Agency Receives: 100.00

Component: Payments to Beneficiaries

Technique: Modified ZBA - Supplemental Nutrition Assistance Program

Average Day of Clearance: N/A

10.553 School Breakfast Program

Recipient: Department of Education

% of Funds Agency Receives: 0.00

Component: Payroll

Technique: Payroll

Average Day of Clearance: N/A

Recipient: Department of Education

% of Funds Agency Receives: 100.00

Component: Payments to Educational Agencies/Vendor Payments/Operating Costs/Indirect Costs

Technique: Reimbursement

Average Day of Clearance: N/A

10.555 National School Lunch Program

Recipient: Department of Education

% of Funds Agency Receives: 0.00

Component: Payroll

Technique: Payroll

Average Day of Clearance: N/A

Recipient: Department of Education

% of Funds Agency Receives: 100.00

Component: Payments to Educational Agencies/Vendor Payments/Operating Costs/Indirect Costs

Technique: Reimbursement

Average Day of Clearance: N/A

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

Recipient: Department of Health

% of Funds Agency Receives: 1.00

Component: Indirect Costs

Technique: Modified Monthly Draws (CFDA No. 10.557 Indirect Costs)

Average Day of Clearance: N/A

Recipient: Department of Health

% of Funds Agency Receives: 3.00

Component: Payroll

Technique: Payroll

Average Day of Clearance: N/A

Recipient: Department of Health

Page 8 of 30
% of Funds Agency Receives: 96.00

Component: Payments to Beneficiaries/Payments to Local Agencies/Vendor Payments/Operating Costs

Technique: Reimbursement

Average Day of Clearance: N/A

10.558 Child and Adult Care Food Program

Recipient: Department of Education

% of Funds Agency Receives: 0.00

Component: Payroll

Technique: Payroll

Average Day of Clearance: N/A

Recipient: Department of Education

% of Funds Agency Receives: 100.00

Component: Payments to Local Agencies/Vendor Payments/Operating Costs/Indirect Costs

Technique: Reimbursement

Average Day of Clearance: N/A

10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program

Recipient: Department of Human Services

% of Funds Agency Receives: 88.00

Component: Indirect Costs (Cost Allocation Plan)

Technique: Modified Monthly Draws (CFDA Nos. 10.561, 93.558, 93.563, 93.658, 93.659, 93.778 Indirect Costs (Cost

Allocation Plan))

Average Day of Clearance: N/A

Recipient: Department of Human Services

% of Funds Agency Receives: 0.00

Component: Payroll

Technique: Payroll

Average Day of Clearance: N/A

Recipient: Department of Human Services

% of Funds Agency Receives: 12.00

Component: Payments to Local Agencies/Vendor Payments/Operating Costs

Technique: Reimbursement

Average Day of Clearance: N/A

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

Recipient: Department of Labor and Industry

% of Funds Agency Receives: 95.00

Component: Benefit Payments (FECA, UCX, etc.)

Technique: Daily Trust Fund Draw (CFDA No. 17.225)

Average Day of Clearance: N/A

Recipient: Department of Labor and Industry

Page 9 of 30
% of Funds Agency Receives: 0.00

Component: Administration - Indirect Costs - Internal Cost Plan

Technique: Modified Monthly Draws (CFDA No. 17.225 Indirect Costs - Internal Cost Plan)

Average Day of Clearance: N/A

Recipient: Department of Labor and Industry

% of Funds Agency Receives: 0.00

Component: Administration - Direct Administrative Costs

Technique: Modified Post-Issuance Funding (CFDA No. 17.225 Direct Administrative Costs)

Average Day of Clearance: N/A

Recipient: Department of Labor and Industry

% of Funds Agency Receives: 5.00

Component: Administration - Payroll

Technique: Modified Weekly Draws (CFDA No. 17.225 Payroll)

Average Day of Clearance: N/A

17.225S Unemployment Insurance -- State Benefit Account

Recipient: Department of Labor and Industry

% of Funds Agency Receives: 100.00

Component: Benefit Payments (Commonwealth Account)

Technique: Daily Trust Fund Draw (CFDA No. 17.225)

Average Day of Clearance: N/A

20.205 Highway Planning and Construction

Recipient: Department of Transportation

% of Funds Agency Receives: 100.00

Component: Payroll/Construction/Non-Personnel Services Costs

Technique: Modified Composite Clearance (CFDA No. 20.205 Highway Planning and Construction)

Average Day of Clearance: N/A

84.010 Title I Grants to Local Educational Agencies

Recipient: Department of Education

% of Funds Agency Receives: 0.00

Component: Payroll

Technique: Payroll

Average Day of Clearance: N/A

Recipient: Department of Education

% of Funds Agency Receives: 100.00

Component: Payments to Local Agencies/Vendor Payments/Operating Costs/Indirect Costs

Technique: Reimbursement

Average Day of Clearance: N/A

84.027 Special Education -- Grants to States

Page 10 of 30
Recipient: Department of Education

% of Funds Agency Receives: 2.00

Component: Payroll

Technique: Payroll

Average Day of Clearance: N/A

Recipient: Department of Education

% of Funds Agency Receives: 98.00

Component: Payments to Local Agencies/Vendor Payments/Operating Costs/Indirect Costs

Technique: Reimbursement

Average Day of Clearance: N/A

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to States

Recipient: Department of Labor and Industry

% of Funds Agency Receives: 43.00

Component: Payroll

Technique: Payroll

Average Day of Clearance: N/A

Recipient: Department of Labor and Industry

% of Funds Agency Receives: 57.00

Component: Vendor Payments/Operating Costs/Indirect Costs

Technique: Reimbursement

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families

Recipient: Department of Human Services

% of Funds Agency Receives: 8.00

Component: Indirect Costs (Cost Allocation Plan)

Technique: Modified Monthly Draws (CFDA Nos. 10.561, 93.558, 93.563, 93.658, 93.659, 93.778 Indirect Costs (Cost

Allocation Plan))

Average Day of Clearance: N/A

Recipient: Department of Human Services

% of Funds Agency Receives: 0.00

Component: Payroll

Technique: Payroll

Average Day of Clearance: N/A

Recipient: Department of Human Services

% of Funds Agency Receives: 92.00

Component: Payments to Local Agencies/Payments to Beneficiaries/Vendor Payments/Operating Costs

Technique: Reimbursement

Average Day of Clearance: N/A

93.563 Child Support Enforcement

Page 11 of 30
Recipient: Department of Human Services

% of Funds Agency Receives: 11.00

Component: Indirect Costs (Cost Allocation Plan)

Technique: Modified Monthly Draws (CFDA Nos. 10.561, 93.558, 93.563, 93.658, 93.659, 93.778 Indirect Costs (Cost

Allocation Plan))

Average Day of Clearance: N/A

Recipient: Department of Human Services

% of Funds Agency Receives: 0.00

Component: Payroll

Technique: Payroll

Average Day of Clearance: N/A

Recipient: Department of Human Services

% of Funds Agency Receives: 89.00

Component: Payments to Local Agencies/Vendor Payments/Operating Costs

Technique: Reimbursement

Average Day of Clearance: N/A

93.568 Low-Income Home Energy Assistance

Recipient: Department of Human Services

% of Funds Agency Receives: 6.00

Component: Payroll

Technique: Payroll

Average Day of Clearance: N/A

Recipient: Department of Human Services

% of Funds Agency Receives: 94.00

Component: Payments to Local Agencies/Payments to Beneficiaries/Vendor Payments/Operating Costs/Indirect Costs

Technique: Reimbursement

Average Day of Clearance: N/A

93.575 Child Care and Development Block Grant

Recipient: Department of Human Services

% of Funds Agency Receives: 4.00

Component: Payroll

Technique: Payroll

Average Day of Clearance: N/A

Recipient: Department of Human Services

% of Funds Agency Receives: 96.00

Component: Payments to Local Agencies/Vendor Payments/Operating Costs

Technique: Reimbursement

Average Day of Clearance: N/A

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

Page 12 of 30
Recipient: Department of Human Services

% of Funds Agency Receives: 0.00

Component: Payroll

Technique: Payroll

Average Day of Clearance: N/A

Recipient: Department of Human Services

% of Funds Agency Receives: 100.00

Component: Payments to Local Agencies/Vendor Payments/Indirect Costs

Technique: Reimbursement

Average Day of Clearance: N/A

93.658 Foster Care -- Title IV-E

Recipient: Department of Human Services

% of Funds Agency Receives: 1.00

Component: Indirect Costs (Cost Allocation Plan)

Technique: Modified Monthly Draws (CFDA Nos. 10.561, 93.558, 93.563, 93.658, 93.659, 93.778 Indirect Costs (Cost

Allocation Plan))

Average Day of Clearance: N/A

Recipient: Department of Human Services

% of Funds Agency Receives: 0.00

Component: Payroll

Technique: Payroll

Average Day of Clearance: N/A

Recipient: Department of Human Services

% of Funds Agency Receives: 99.00

Component: Payments to Local Agencies/Vendor Payments/Operating Costs

Technique: Reimbursement

Average Day of Clearance: N/A

93.659 Adoption Assistance

Recipient: Department of Human Services

% of Funds Agency Receives: 5.00

Component: Indirect Costs (Cost Allocation Plan)

Technique: Modified Monthly Draws (CFDA Nos. 10.561, 93.558, 93.563, 93.658, 93.659, 93.778 Indirect Costs (Cost

Allocation Plan))

Average Day of Clearance: N/A

Recipient: Department of Human Services

% of Funds Agency Receives: 0.00

Component: Payroll

Technique: Payroll

Average Day of Clearance: N/A

Page 13 of 30
Recipient: Department of Human Services

% of Funds Agency Receives: 95.00

Component: Payments to Local Agencies/Vendor Payments/Operating Costs

Technique: Reimbursement

Average Day of Clearance: N/A

93.667 Social Services Block Grant

Recipient: Department of Human Services

% of Funds Agency Receives: 17.00

Component: Indirect Costs (Cost Allocation Plan)

Technique: Monthly Draws (CFDA No. 93.667 Indirect Costs)

Average Day of Clearance: N/A

Recipient: Department of Human Services

% of Funds Agency Receives: 0.00

Component: Payroll

Technique: Payroll

Average Day of Clearance: N/A

Recipient: Department of Human Services

% of Funds Agency Receives: 83.00

Component: Payments to Local Agencies/Vendor Payments

Technique: Reimbursement

Average Day of Clearance: N/A

93.767 Children's Health Insurance Program

Recipient: Department of Human Services

% of Funds Agency Receives: 0.00

Component: Payroll

Technique: Payroll

Average Day of Clearance: N/A

Recipient: Department of Human Services

% of Funds Agency Receives: 100.00

Component: Payments to Local Agencies/ Payments to Beneficiaries/Vendor Payments/Operating Costs

Technique: Reimbursement

Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: Department of Human Services

% of Funds Agency Receives: 2.00

Component: Indirect Costs (Costs Allocation Plan)

Technique: Modified Monthly Draws (CFDA Nos. 10.561, 93.558, 93.563, 93.658, 93.659, 93.778 Indirect Costs (Cost

Allocation Plan))

Average Day of Clearance: N/A

Page 14 of 30
Recipient: Department of Human Services

% of Funds Agency Receives: 0.00

Component: Payroll

Technique: Payroll

Average Day of Clearance: N/A

Recipient: Department of Human Services

% of Funds Agency Receives: 98.00

Component: Payments to Local Agencies/ Payments to Service Providers/Vendor Payments/Operating Costs

Technique: Reimbursement

Average Day of Clearance: N/A

96.001 Social Security -- Disability Insurance

Recipient: Department of Labor and Industry

% of Funds Agency Receives: 59.00

Component: Payroll

Technique: Payroll

Average Day of Clearance: N/A

Recipient: Department of Labor and Industry

% of Funds Agency Receives: 41.00

Component: Operating Costs/Vendor Payments/Payments to Beneficiaries/Indirect Costs

Technique: Reimbursement

Average Day of Clearance: N/A

96.006 Supplemental Security Income

Recipient: Individual State SSI Recipients

% of Funds Agency Receives: 100.00

Component: State Supplementary Payment

Technique: Modified Reverse Flow (CFDA No. 96.006)

Average Day of Clearance: N/A

6.3.3 Materiality Exemptions

Agencies exempt from coverage on the basis of materiality:

None.

6.3.4 The percentage of funds an agency receives included in 6.3.2 are estimates and may fluctuate throughout the term

of this Agreement. A zero represents less than 1 percent of the percentage of funds an agency receives.

6.3.5 The funding technique for 96.006, Supplemental Security Income, is Reverse Flow Program. This techique is

discussed in section 9 of this agreement.

7.0 CLEARANCE PATTERNS

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

Page 15 of 30
The State shall develop clearance patterns for each program that uses a delay of draw by measuring the dollar-weighted

number of days between the day expenditures are sent to Treasury for payment and the day the related checks clear.

Each program is examined to determine the appropriation(s) supporting it (Federal financial assistance to the State is 

reappropriated by the legislature).

The relevant appropriation(s), an integral element of the voucher transmittals (VTs) used by Commonwealth agencies to

request payment, control(s) the selection of VTs for the check clearance research. 

All checks associated with the selected VTs during a fiscal year are examined.

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

The data is assembled by the State Treasurer and forwarded to the Office of the Budget, Comptroller Operations, which

creates and runs the computer program that measures clearance activity and computes the clearance patterns.

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

(1) electronic files provided by the State's financial institutions indicating the dates checks cleared, and (2) electronic files

provided by the State Treasurer indicating unique identifying numbers and the related check issuance dates.

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

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

clearance, for a period of at least three months.

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

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

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

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

the date the check cleared the State's account.

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

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

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

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

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

of each day following the disbursement.

7.6.1 The term "issue date" or "issuance" used in section 7.6 shall refer to the date at which the expenditure was sent to

the State Treasurer for payment.

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:

Page 16 of 30
In those instances where an expenditure is paid via EFT/Direct payroll, the check clearance pattern is determined by

using the date the expenditure is sent to the State Treasurer for payment to the date the funds clear the bank.

The State shall also adjust each clearance pattern to reflect:

The clearance date of each check is compared to the related date the expenditure was sent to the State Treasurer for

payment to determine the actual number of days between these two events.

The clearance time of each voucher transmittal is individually calculated and a dollar-weighted average day of clearance

is calculated. This clearance time is then applied to all voucher transmittals that are part of the clearance pattern.

The clearance time of each check in the study is dollar-weighted to produce the dollar-weighted average day of clearance

after expenditure posting.

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:

Daily Trust Fund Draw (CFDA No. 17.225)

Modified Composite Clearance (CFDA No. 20.205 Highway Planning and Construction)

Modified Monthly Draws (CFDA No. 10.557 Indirect Costs)

Modified Monthly Draws (CFDA No. 17.225 Indirect Costs - Internal Cost Plan)

Modified Monthly Draws (CFDA Nos. 10.561, 93.558, 93.563, 93.658, 93.659, 93.778 Indirect Costs (Cost Allocation

Plan))

Modified Weekly Draws (CFDA No. 17.225 Payroll)

Modified ZBA - Supplemental Nutrition Assistance Program

Monthly Draws (CFDA No. 93.667 Indirect Costs)

Payroll

Reimbursement

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 17 of 30
(5) date funds were requested

8.1.3 The term "date of issuance" in section 8.1.2 shall refer to the expenditure posting date.

8.1.4 The State shall maintain records of clearings and drawdowns to verify the implementation of the Daily Trust Fund

Draw and the Working Capital Advance funding techniques. The State shall document, for each day, the amount of funds

that clear State accounts and the amount of Federal funds deposited to State accounts.

8.1.5 Where the State administers a Federal program through restricted receipt accounts, which require Federal funds to

be on hand prior to generating program payments, the State will calculate the amount of interest due the Federal

Government for the period beginning on the date Federal funds are deposited to a State bank account and ending on the

date funds are paid out for program purposes, except for Highway Planning and Construction (CFDA No. 20.205), where

interest will be calculated as follows:

For program payments made via ACH the State will calculate the amount of interest due the Federal Government for the

period beginning on the date Federal funds are deposited to a State bank account and ending on the date funds are paid

out for program purposes.

For program payments made via the State Treasury check the State will calculate the amount of interest due the Federal

Government for the period beginning on the date Federal funds are deposited to a State bank account and ending on the

date funds are paid out for program purposes using the average clearance technique.

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:

In the event the funds are not received by the state in accordance with Exhibit I timelines, the state shall be entitled to

calculate a federal interest liability from the date the federal agency should have submitted the funds according to Exhibit I

timelines until the date the funds are actually received by the state.

8.2.3 Except for Unemployment Insurance (CFDA No. 17.225), where a Federal agency funds multiple grants under a

single payment system, the State shall net positive and negative grant drawdown amounts and request funds for the net

positive balance. If within a Letter of Credit having a net positive balance a drawdown cannot be made against a grant

because of an insufficient grant balance, the State shall calculate interest due from the Federal Government on that grant.

Where the result of netting is a negative amount, a draw will not be made. The State shall calculate interest due to the

Federal Government for positive balances in the cash book for the Administrative Fund and on positive bank balances in

the Benefit Payment Fund for the Federal share portion. Both interest calculations shall be included on the Annual

Report, when applicable.

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:

Page 18 of 30
Federal and State Funds are Not Interest Neutral:

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

accounts in the UTF under the Unemployment Insurance program.

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

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

At the end of the State's fiscal year, the State shall calculate the percentage of its total unemployment compensation

expenditures for (1) funds withdrawn from the State account in the UTF, or the State %, and (2) funds withdrawn from the

Federal Employees Compensation Account (FECA) and the Extended Unemployment Compensation Account (EUCA)

and any other accounts of Federal funds in the UTF, or the Federal %.

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

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

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

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

funds.

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

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

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

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

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

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

8.3.2 The State shall use the following method to calculate State interest liabilities for the administrative costs of the

Unemployment Insurance (UI) program (CFDA No. 17.225).

The State shall calculate interest for the predisbursement period based on the following:

(1)	The State shall review the State cash ledger book balances to determine if overall fund ledger balances (except the

State fund ledger) are positive, thereby noting that Federal funds are on hand at the time of check issuance. If a positive

amount exists, a State liability exists. The principal amount of the State liability will be the positive balance for all fund

ledgers (except the State funds ledger) times the percentage relationship that the expenses of the applicable program are

to all fund ledgers expenses for that year. The interest rate factor will be in accordance with the Act. The time factor will

be for each day that a positive balance exists.

The State shall calculate interest for the postdisbursement period based on the following data:

(2)	Average daily float. The average value of a day of float time (checks issued to checks cleared), which is the average

daily expenses calculated from the total annual amount of administrative costs of the applicable program.

(3)	Check clearance time. The average number of float days (checks issued through checks cleared). 

(4)	Number of days State funds support float. The average number of days that State funds are available to support

average daily float after the checks are issued. This is calculated by the following steps:

Page 19 of 30
(4A)	The average daily amount of State cash maintained in the State cash ledger will be multiplied by the percentage

relationship that the expenses of the applicable program are to all fund ledgers expenses for that year. The result will be

the average daily amount of State cash that is utilized to support average daily float.

(4B)	To determine the number of days that State funds support the float, the result of the calculation in paragraph (4A)

above will be divided by the average daily float value in paragraph (2) until the full amount of paragraph (4A) is used.

Example: Total amount of State funding utilized to support float is $300. Average daily float value is $50. The number of

days State cash can support the float is six (6).

(5)	Average days between draws. The average number of days between drawdowns for the applicable program. The

number of days between draws will be calculated by taking the total number of draws during the year and dividing them

into 365 days.

(6)	A State interest liability for the postdisbursement period exists when:

(6A)	State funds used to support the float time from paragraph (4) above are not available to support the entire average

float time from paragraph (3). The State shall determine this by subtracting the number of days in paragraph (3) from the

number of days in paragraph (4). If the amount is a negative number of days, then a State liability exists. The principal

amount for the State liability will be the average value of a day of float times the number of days State funds did not

support the float. The interest rate factor will be in accordance with the Act. The time factor for this calculation is 365

days.

(6B)	The average number of days between draws from paragraph (5) is less than the average number of float days from

paragraph (3). The State shall determine this by subtracting the number of float days in paragraph (3) from the average

number of days between draws in paragraph (5). If the amount is a negative number of days, then a State liability exists.

The principal amount for the State liability will be the average value of a day of float times the number of days that funds

were drawn before the end of the float. The interest rate factor will be in accordance with the Act. The time factor for this

calculation is the number of days equivalent to the number of draws the State made during the year.

The total sum of the State liabilities will be the combined values of paragraph (1) and paragraph (6).

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 using the Reimbursement funding technique, 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, except for Highway Planning and Construction (CFDA No. 20.205), where interest

Page 20 of 30
will be calculated using the Composite Clearance technique.

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

The time period from the date an expenditure is posted in the State's central accounting system to the date the

disbursement is debited to the State's bank account shall be determined from information provided by the State Treasurer.

8.6.2.3 Standards Applied

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

I = P x r x {PI + CT}, where

I = 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.

Page 21 of 30
9.0 REVERSE FLOW PROGRAMS

9.1 The Federal government makes payments on behalf of the State for the Supplemental Security Income (SSI)

program.

9.2 Definitions

State Supplementary Payment (SSP): Monthly payment made by the State to the Social Security Administration (SSA), as

a voluntary supplement to monthly SSI payments made by the SSA to the State's SSI beneficiaries.

SSI/SSP: The monthly SSI payment made by the SSA to beneficiaries, which combines both Federal SSI program funds

and SSP funds.

SSI/SSP Transfer Date: The dollar-weighted average day of clearance of the regularly issued monthly SSI/SSP checks

issued by the SSA, adjusted to reflect three payment variations.

Due Date: The day on which States are required to deposit funds to the SSA.

Deposit Date: The day on which State funds are deposited to the SSA.

9.3 Funding Technique

The State and the Federal government will apply the following funding technique to the SSI program:

Component: State Supplementary Payment

Technique: SSI Funding Technique

Description: In accordance with Public Law 106-170, the State shall deposit funds to the SSA no later than the business

day preceding the date on which the SSA Commissioner pays monthly benefits, or with respect to monthly benefits paid

for the month that is the last month of the State's fiscal year, the fifth business day following such date.

9.4 Clearance Pattern

The SSI/SSP Transfer Date is determined by adjusting the dollar weighted average day of clearance for regularly issued

monthly SSI/SSP checks, as determined by the Federal Reserve Bank's Survey of Float on US Government Checks, with

the three payment variations below, to reflect the proportion of SSI/SSP payments made to beneficiaries as follows:

By check on days later in a month: To calculate this adjustment, SSA will determine the nationwide percentage of total

SSI/SSP payments made to beneficiaries by check on days later in a month, using full data from the most recent Federal

fiscal year. The average day of clearance for regularly issued monthly SSI/SSP checks shall be dollar-weighted for

SSI/SSP payments made to beneficiaries by check on days later in the month, which are assumed to be issued on the

11th business day of the month.

By direct deposit on the regularly designated day of the month for delivery of SSI/SSP payments: To calculate this

adjustment, SSA will determine the nationwide percentage of total SSI/SSP payments made to beneficiaries by direct

deposit on the regularly designated day of the month for delivery of SSI/SSP payments, using full data from the most

recent Federal fiscal year. The average day of clearance for regularly issued monthly SSI/SSP checks shall be dollarPage 22 of 

30
weighted with the average day of clearance for SSI/SSP payments made to beneficiaries by direct deposit on the regularly

designated day of the month for delivery of SSI/SSP payments to beneficiaries.

By direct deposit on days later in a month: To calculate this adjustment, SSA will determine the nationwide percentage of

total SSI/SSP payments made to beneficiaries by direct deposit on days later in a month, using full data from the most

recent Federal fiscal year. The average day of clearance for regularly issued monthly SSI/SSP checks shall be dollarweighted with the average day of clearance for SSI/SSP payments made to beneficiaries by direct deposit on days later in

a month, which are assumed to be issued on the 11th business day of the month.

9.5 Interest Calculations

The Federal Government shall use the following methods to calculate and document Federal and State interest liabilities

for SSI.

To calculate the interest liability, SSA shall record the Deposit Date of each monthly SSP payment and compare it to the

SSI/SSP Transfer Date for each month. The liability for interest will be based on the following:

Payments received before the Due Date: The interest liability provisions of the CMIA do not apply to payments paid by a

State before the Due Date, pursuant to Public Law 106-170. All payments received prior to the Due Date will be deemed

as received on the Due Date, for the purposes of calculating interest.

Payments received on the Due Date: A Federal interest liability should be computed from (1) the Due Date to (2) the day

SSA pays out the State funds for program purposes (SSI/SSP Transfer Date).

Payments received after the Due Date but on or before the SSI/SSP Transfer Date: Interest liability provisions of the

CMIA do not apply.

Payments received after the SSI/SSP Transfer Date: A State interest liability will accrue from (1) the SSI/SSP Transfer

Date until (2) the day State funds are credited to the SSA.

SSA shall calculate Federal and State interest liabilities on the variance between (1) the amount of the monthly State

payment, which is an estimate, and (2) the actual monthly outlays for program purposes made by the SSA on behalf of

the State. The monthly State payment includes the cumulative balance brought forward from the previous month. For

each month of the State's fiscal year, SSA will compare the amount of the State payment to the amount of the actual

outlays made on behalf of the State. To the extent the State payment (including the estimated cumulative balance) is

greater than actual outlays, a Federal interest liability will accrue. To the extent the State payment (including estimated

cumulative balance) is less than actual outlays, a State interest liability will be calculated. In either case, the interest

liability will be calculated based on the difference in whole days from (1) the day the monthly State payment was

deposited to a Federal account to (2) the day a subsequent monthly State payment is deposited to a Federal account.

Any overpayment that results in a cumulative balance does not constitute an early deposit as defined in Public Law 106-

170, Section 410, Schedule for SSI Supplementation Agreements.

9.6 Refunds

Pursuant to 31 CFR 205.25 (c)(3), the State or the Federal government will not incur interest liabilities on refunds under

the Supplemental Security Income Program as States are credited with the refunds in advance, before SSA collects the

Page 23 of 30
funds.

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:

(1) System analysts' time to prepare detail specifications for programming and testing programs.

(2) Programmer's time to write required programs.

(3) Computer time to analyze bank clearance tapes, process check clearance data, and process interest programs.

(4) User analysts' time to identify payment data criteria for developing check clearance patterns, review check clearance

data to establish check clearance patterns and drawdown delay periods, and analyze interest calculation reports.

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

with 31 CFR 205.

11.0 NON-COMPLIANCE

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

terms of this Agreement.

Page 24 of 30
12.0 AUTHORIZED SIGNATURES

Michael J. Burns

Director

Bureau of Accounting and Financial Management

Office of Comptroller Operations

Office of the Budget

Commonwealth of Pennsylvania

Signature:________________________________________Date Signed:_______________

Date Submitted 04/19/2019

Corvelli A. McDaniel

Assistant Commissioner

Revenue Collections Management

Bureau of the Fiscal Service

U.S. Department of the Treasury

Signature:________________________________________Date Signed:_______________

Page 25 of 30

Michael J. Burns (Jun 6, 2019)

Michael J. Burns

Jun 6, 2019

Corvelli A. McDaniel (Jun 14, 2019)

Corvelli A. McDaniel

Jun 14, 2019
Exhibit I - Funds Request and Receipt Times Schedule

Commonwealth of Pennsylvania

Federal Agency Payment Type Request Cut-Off Time Receipt Window

Agriculture-FNS ACH 11:59 PM 1 day

Agriculture-FNS Fedwire 5:45 PM 0 day

Agriculture-FS ACH 3:00 PM 1 day

Air National Guard ACH 12:00 PM 15 days

Army National Guard ACH 12:00 PM 15 days

Commerce-NOAA ACH 2:00 PM 1 day

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

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

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

EPA ACH 2:00 PM 2 days

EPA Fedwire 2:00 PM 0 day

Education ACH 3:00 PM 1 day

Education Fedwire 2:00 PM 0 day

Energy ACH 4:00 PM 1 day

Energy Fedwire 3:00 PM 0 day

HHS ACH 5:00 PM 1 day

HHS Fedwire 3:00 PM 0 day

HUD ACH 5:30 PM 2 days

HUD Fedwire 3:00 PM 0 day

Interior-FWS ACH 11:59 PM 1 day

Interior-FWS Fedwire 5:45 PM 0 day

Interior-OSM ACH 3:00 PM 1 day

Interior-OSM Fedwire 1:00 PM 0 day

Justice ACH 11:00 PM 6 days

Justice Fedwire 2:00 PM 2 days

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

Labor-UTF ACH 3:00 PM 1 day

Labor-UTF Fedwire 3:00 PM 0 day

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

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

Social Security Administration ACH 11:59 PM 1 day

Social Security Administration Fedwire 5:45 PM 0 day

Transportation (FAA) ACH 2:00 PM 1 day

Transportation (FHWA) ACH 12:00 PM 3 days

Transportation (FHWA) Fedwire 12:00 PM 0 day

Transportation (FTA) ACH 2:00 PM 1 day

Veterans Administration ACH 12:00 PM 3 days

Page 26 of 30
Exhibit II - Commonwealth of Pennsylvania

LIST OF STATE CLEARANCE TIMES

(Rounded Dollar-Weighted Average Day of Clearance)

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

Pattern

CFDA Program Name Recipient % Component Technique Round

ed

days

10.551 Supplemental Nutrition

Assistance Program

Department of Human

Services

100.

00

Payments to

Beneficiaries

Modified ZBA -

Supplemental Nutrition

Assistance Program

N/A

10.553 School Breakfast

Program

Department of Education 100.

00

Payments to Educational

Agencies/Vendor

Payments/Operating

Costs/Indirect Costs

Reimbursement N/A

10.553 School Breakfast

Program

Department of Education 0.00 Payroll Payroll N/A

10.555 National School Lunch

Program

Department of Education 100.

00

Payments to Educational

Agencies/Vendor

Payments/Operating

Costs/Indirect Costs

Reimbursement N/A

10.555 National School Lunch

Program

Department of Education 0.00 Payroll Payroll N/A

10.557 Special Supplemental

Nutrition Program for

Women, Infants, and

Children

Department of Health 1.00 Indirect Costs Modified Monthly Draws

(CFDA No. 10.557

Indirect Costs)

N/A

10.557 Special Supplemental

Nutrition Program for

Women, Infants, and

Children

Department of Health 96.0

0

Payments to

Beneficiaries/Payments

to Local Agencies/Vendor

Payments/Operating

Costs

Reimbursement N/A

10.557 Special Supplemental

Nutrition Program for

Women, Infants, and

Children

Department of Health 3.00 Payroll Payroll N/A

10.558 Child and Adult Care

Food Program

Department of Education 100.

00

Payments to Local

Agencies/Vendor

Payments/Operating

Costs/Indirect Costs

Reimbursement N/A

10.558 Child and Adult Care

Food Program

Department of Education 0.00 Payroll Payroll N/A

10.561 State Administrative

Matching Grants for the

Supplemental Nutrition

Assistance Program

Department of Human

Services

88.0

0

Indirect Costs (Cost

Allocation Plan)

Modified Monthly Draws

(CFDA Nos. 10.561,

93.558, 93.563, 93.658,

93.659, 93.778 Indirect

Costs (Cost Allocation

Plan))

N/A

10.561 State Administrative

Matching Grants for the

Supplemental Nutrition

Assistance Program

Department of Human

Services

12.0

0

Payments to Local

Agencies/Vendor

Payments/Operating

Costs

Reimbursement N/A

10.561 State Administrative

Matching Grants for the

Supplemental Nutrition

Assistance Program

Department of Human

Services

0.00 Payroll Payroll N/A

Page 27 of 30
CFDA Program Name Recipient % Component Technique Round

ed

days

17.225F Unemployment Insurance

-- Federal Benefit

Account and

Administrative Costs

Department of Labor and

Industry

0.00 Administration - Direct

Administrative Costs

Modified Post-Issuance

Funding (CFDA No.

17.225 Direct

Administrative Costs)

N/A

17.225F Unemployment Insurance

-- Federal Benefit

Account and

Administrative Costs

Department of Labor and

Industry

5.00 Administration - Payroll Modified Weekly Draws

(CFDA No. 17.225

Payroll)

N/A

17.225F Unemployment Insurance

-- Federal Benefit

Account and

Administrative Costs

Department of Labor and

Industry

0.00 Administration - Indirect

Costs - Internal Cost Plan

Modified Monthly Draws

(CFDA No. 17.225

Indirect Costs - Internal

Cost Plan)

N/A

17.225F Unemployment Insurance

-- Federal Benefit

Account and

Administrative Costs

Department of Labor and

Industry

95.0

0

Benefit Payments (FECA,

UCX, etc.)

Daily Trust Fund Draw

(CFDA No. 17.225)

N/A

17.225S Unemployment Insurance

-- State Benefit Account

Department of Labor and

Industry

100.

00

Benefit Payments

(Commonwealth

Account)

Daily Trust Fund Draw

(CFDA No. 17.225)

N/A

20.205 Highway Planning and

Construction

Department of

Transportation

100.

00

Payroll/Construction/NonPersonnel Services CostsModified Composite

Clearance (CFDA No.

20.205 Highway Planning

and Construction)

N/A

84.010 Title I Grants to Local

Educational Agencies

Department of Education 100.

00

Payments to Local

Agencies/Vendor

Payments/Operating

Costs/Indirect Costs

Reimbursement N/A

84.010 Title I Grants to Local

Educational Agencies

Department of Education 0.00 Payroll Payroll N/A

84.027 Special Education --

Grants to States

Department of Education 98.0

0

Payments to Local

Agencies/Vendor

Payments/Operating

Costs/Indirect Costs

Reimbursement N/A

84.027 Special Education --

Grants to States

Department of Education 2.00 Payroll Payroll N/A

84.126 Rehabilitation Services --

Vocational Rehabilitation

Grants to States

Department of Labor and

Industry

57.0

0

Vendor

Payments/Operating

Costs/Indirect Costs

Reimbursement N/A

84.126 Rehabilitation Services --

Vocational Rehabilitation

Grants to States

Department of Labor and

Industry

43.0

0

Payroll Payroll N/A

93.558 Temporary Assistance for

Needy Families

Department of Human

Services

8.00 Indirect Costs (Cost

Allocation Plan)

Modified Monthly Draws

(CFDA Nos. 10.561,

93.558, 93.563, 93.658,

93.659, 93.778 Indirect

Costs (Cost Allocation

Plan))

N/A

93.558 Temporary Assistance for

Needy Families

Department of Human

Services

92.0

0

Payments to Local

Agencies/Payments to

Beneficiaries/Vendor

Payments/Operating

Costs

Reimbursement N/A

93.558 Temporary Assistance for

Needy Families

Department of Human

Services

0.00 Payroll Payroll N/A

93.563 Child Support

Enforcement

Department of Human

Services

11.0

0

Indirect Costs (Cost

Allocation Plan)

Modified Monthly Draws

(CFDA Nos. 10.561,

93.558, 93.563, 93.658,

93.659, 93.778 Indirect

Costs (Cost Allocation

Plan))

N/A

93.563 Child Support

Enforcement

Department of Human

Services

89.0

0

Payments to Local

Agencies/Vendor

Payments/Operating

Costs

Reimbursement N/A

Page 28 of 30
CFDA Program Name Recipient % Component Technique Round

ed

days

93.563 Child Support

Enforcement

Department of Human

Services

0.00 Payroll Payroll N/A

93.568 Low-Income Home

Energy Assistance

Department of Human

Services

94.0

0

Payments to Local

Agencies/Payments to

Beneficiaries/Vendor

Payments/Operating

Costs/Indirect Costs

Reimbursement N/A

93.568 Low-Income Home

Energy Assistance

Department of Human

Services

6.00 Payroll Payroll N/A

93.575 Child Care and

Development Block Grant

Department of Human

Services

96.0

0

Payments to Local

Agencies/Vendor

Payments/Operating

Costs

Reimbursement N/A

93.575 Child Care and

Development Block Grant

Department of Human

Services

4.00 Payroll Payroll N/A

93.596 Child Care Mandatory

and Matching Funds of

the Child Care and

Development Fund

Department of Human

Services

100.

00

Payments to Local

Agencies/Vendor

Payments/Indirect Costs

Reimbursement N/A

93.596 Child Care Mandatory

and Matching Funds of

the Child Care and

Development Fund

Department of Human

Services

0.00 Payroll Payroll N/A

93.658 Foster Care -- Title IV-E Department of Human

Services

1.00 Indirect Costs (Cost

Allocation Plan)

Modified Monthly Draws

(CFDA Nos. 10.561,

93.558, 93.563, 93.658,

93.659, 93.778 Indirect

Costs (Cost Allocation

Plan))

N/A

93.658 Foster Care -- Title IV-E Department of Human

Services

99.0

0

Payments to Local

Agencies/Vendor

Payments/Operating

Costs

Reimbursement N/A

93.658 Foster Care -- Title IV-E Department of Human

Services

0.00 Payroll Payroll N/A

93.659 Adoption Assistance Department of Human

Services

5.00 Indirect Costs (Cost

Allocation Plan)

Modified Monthly Draws

(CFDA Nos. 10.561,

93.558, 93.563, 93.658,

93.659, 93.778 Indirect

Costs (Cost Allocation

Plan))

N/A

93.659 Adoption Assistance Department of Human

Services

95.0

0

Payments to Local

Agencies/Vendor

Payments/Operating

Costs

Reimbursement N/A

93.659 Adoption Assistance Department of Human

Services

0.00 Payroll Payroll N/A

93.667 Social Services Block

Grant

Department of Human

Services

83.0

0

Payments to Local

Agencies/Vendor

Payments

Reimbursement N/A

93.667 Social Services Block

Grant

Department of Human

Services

0.00 Payroll Payroll N/A

93.667 Social Services Block

Grant

Department of Human

Services

17.0

0

Indirect Costs (Cost

Allocation Plan)

Monthly Draws (CFDA

No. 93.667 Indirect

Costs)

N/A

93.767 Children's Health

Insurance Program

Department of Human

Services

100.

00

Payments to Local

Agencies/ Payments to

Beneficiaries/Vendor

Payments/Operating

Costs

Reimbursement N/A

93.767 Children's Health

Insurance Program

Department of Human

Services

0.00 Payroll Payroll N/A

Page 29 of 30
________________________________________________________________________________________________________

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

Exhibit 2 of this Treasury-State Agreement:

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

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

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

4. Are auditable.

Date: ___________________________________________________________

Printed Name: ____________________________________________________

Certifying Signature: _______________________________________________

Title: ___________________________________________________________

CFDA Program Name Recipient % Component Technique Round

ed

days

93.778 Medical Assistance

Program

Department of Human

Services

2.00 Indirect Costs (Costs

Allocation Plan)

Modified Monthly Draws

(CFDA Nos. 10.561,

93.558, 93.563, 93.658,

93.659, 93.778 Indirect

Costs (Cost Allocation

Plan))

N/A

93.778 Medical Assistance

Program

Department of Human

Services

98.0

0

Payments to Local

Agencies/ Payments to

Service Providers/Vendor

Payments/Operating

Costs

Reimbursement N/A

93.778 Medical Assistance

Program

Department of Human

Services

0.00 Payroll Payroll N/A

96.001 Social Security --

Disability Insurance

Department of Labor and

Industry

41.0

0

Operating Costs/Vendor

Payments/Payments to

Beneficiaries/Indirect

Costs

Reimbursement N/A

96.001 Social Security --

Disability Insurance

Department of Labor and

Industry

59.0

0

Payroll Payroll N/A

96.006 Supplemental Security

Income

Individual State SSI

Recipients

100.

00

State Supplementary

Payment

Modified Reverse Flow

(CFDA No. 96.006)

N/A

Page 30 of 30

Michael J. Burns (Jun 6, 2019)

Michael J. Burns

Director, Bureau of Accounting & Financial Management Jun 6, 2019 Michael J. Burns