DocuSign Envelope ID: 792421F8-CD3D-40FC-A24C-4593EEB69441

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:

N/A

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 14 of 19


DocuSign Envelope ID: 792421F8-CD3D-40FC-A24C-4593EEB69441

clearance pattern specified in Exhibit II. The request shall be made in accordance with
the appropriate Federal agency cut-off time specified in Exhibit I. The amount of the
request shall be for the exact amount of that disbursement. This funding technique is
interest neutral.

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 currently 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 currently no funding techniques listed in Section 6.2.3.

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

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

Funding Technique Name

Description

Actual Drawdown - BiWeekly

The State will draw down funds on a biweekly basis based on the actual expenditures
which occurred in the past biweekly period. The request shall be made in accordance
with the appropriate Federal agency cut-off time specified in Exhibit I. This funding
technique is interest neutral.

Actual Drawdown - Weekly

The State will draw down funds on a weekly basis based on the actual expenditures
which occurred in the past weekly period. The request shall be made in accordance
with the appropriate Federal agency cut-off time specified in Exhibit I. This funding
technique is interest neutral.

Daily Estimated Draw

The State will use historical data to determine an estimate for the daily average debit
card payments and will draw funds the day the unemployment payment batch file is
sent to the bank. This is the same day that the debit card amount is debited from the
bank account. The estimate will be reconciled on a daily basis and any shortfall will
be added to the next estimated federal draw. Any overage will be subtracted from the
next estimated federal draw. This funding technique is interest neutral. This funding
technique is interest neutral.

Daily Estimated Draw ZBA - ACH

The State will use historical data to determine an estimate for the daily average debit
card payments and will request and receive funds via Fedwire on

the same day the unemployment payment batch file is sent to the bank. This is the
same day that the debit card amount is debited from the bank account. The estimate
will be reconciled on a daily basis and any shortfall will be added to the next
estimated federal draw. Any overage will be subtracted from the next estimated
federal draw. This funding technique is interest neutral. This funding technique is
interest neutral. This funding technique is interest neutral.

Weekly Drawdown - Actual & Estimate

State shall request funds such that they are deposited in a State account on the median
business day of the week. The request shall be made in accordance with the
appropriate Federal Agency cut-off time specified in Exhibit I. The amount requested
shall be comprised of two portions. Portion 1 - will include the actual expenditures
made during the previous two business days, Portion 2 - will include an estimate of
the expenditures to be made in the next three business days. Each week, the current
cash balance will be taken into consideration through revenue and expense analysis.
Any cash imbalances will be corrected in the current week's drawdown. In the event
the Payment Management System (PMS) will not allow funds to be returned on the
draw date, they can be returned in the days following the draw date. 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.

Page 5 of 19


DocuSign Envelope ID: 792421F8-CD3D-40FC-A24C-4593EEB69441

Highway Planning Department of 93.0 Direct Costs Average Clearance 2 Days
and Construction Transportation
84.010 Title I Grants to Department of 1.0 Administrative Actual Drawdown - | N/A
Local Educational Education (Payroll) Weekly
Agencies y
Title I Grants to Department of 98.0 Payments to Local Average Clearance 2 Days
Local Educational Education Educational Agencies
Agencies
Fite I Grants to j Department of 1.0 Administrative Actual Drawdown - | N/A
ocal lucational lucation
reer (Other) Weekly
84.027 Special Education Department of 8.0 Administrative Average Clearance 0 Days
-- Grants to States Education (Payroll)
Special Education Department of 91.0 Payments to LEA & Average Clearance 2 Days
-- Grants to States Education Discretionary
Special Education Department of 1.0 Administrative Actual Drawdown - | N/A
-- Grants to States Education (Other) Weekly
84.425 Education Department of 90.0 Payments to Local Average Clearance | 2 Days
Stabilization Fund Education Education Agencies
Education Department of 10.0 Administrative (All Actual Drawdown - | N/A
Stabilization Fund Education Other) Weekly
93.323 Epidemiology and Department of 36.0 Administrative Actual Drawdown - | N/A
Laboratory Health and | (Payroll) Weekl
Capacity for Human Services y y
Infectious
Diseases (ELC)
Epidemiology and Department of 64.0 Administrative (All Actual Drawdown - | N/A
Laboratory Health and Other) Weekly
Capacity for Human Services
Infectious
Diseases (ELC)
93.558 Temporary Department of 100.0 | All Expenses Weekly Drawdown | N/A
Assistance for Health and _ - Actual & Estimate
Needy Families Human Services
93.575 Child Care and Department of 12.0 | Administrative (All Actual Drawdown - | N/A
evelopment lealth an e
Block Grant Human Services Other) Weekly
Child Care and Department of 9.0 Cost Allocation Actual Drawdown - | N/A
evelopment lealth an
Block Grant Human Services Payments Weekly
Child Care and Department of 79.0 | Payments to Actual Drawdown - | 2 Days
evelopment lealth an iders
Block Grant Human Services Providers Weekly
93.767 Children's Health Department of 88.0 Provider Payments - | Average Clearance 2 Days
Insurance Health and _ MIHMS Weekly
Program Human Services
Children's Health Department of 1.0 Administrative Average Clearance | 0 Days
Insurance Health and _ (Payroll)
Program Human Services
Children's Health Department of 3.0 Administrative Actual Drawdown - | N/A
Insurance Health and _ (Other) Weekly
Program Human Services
Children's Health Department of 8.0 Miscellaneous Actual Drawdown - | N/A
Insurance Health and Provider Payments & | Weekly
ee ° Other Misc.
93.778 Medical Department of 1.0 Miscellaneous Actual Drawdown - | N/A
Assistance Health and Provider Payments & | Weekly
Program Human Services :
Other Misc.

Page 18 of 19


DocuSign Envelope ID: 792421F8-CD3D-40FC-A24C-4593EEB69441

93.778 Medical Assistance Program
Recipient: Department of Health and Human Services
% of Funds Agency Receives: 1

Component: Administrative (Payroll)

Technique: Average Clearance

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Department of Health and Human Services
% of Funds Agency Receives: 6

Component: Administrative (Other)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

97.036 Disaster Grants - Public Assistance (Presidentially Declared
Disasters)

Recipient: Department of Defense, Veterans and Emergency
Management

% of Funds Agency Receives: 100
Component: Grants

Technique: Actual Drawdown - Weekly
Average Day of Clearance: N/A

6.3.3 Materiality Exemptions
Agencies exempt from coverage on the basis of materiality:
No exempt agencies.
7.0 CLEARANCE PATTERNS
7.1 The State shall develop separate clearance patterns for each of the following:
The State of Maine has developed clearance patterns for three centralized accounts:
Primary Disbursement Account #0366
This is the primary disbursement account for the State of Maine excluding state payroll and unemployment benefits. The clearance
pattern for this account also factors in the clearance pattern of ACH payments issued from the #9798 (ACH Primary Disbursement)
account.
Payroll Checking Account #0374
This is the State of Maine payroll account for employee payroll payments. The clearance pattern for this account also factors in the

clearance pattern of direct deposit (ACH) payments issued from the #9790 (ACH Payroll) account.

Unemployment Compensation #9709
This is the benefit payment account used for direct deposit (ACH) payments.

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

U.S. Bank and the Office of the State Treasurer

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

1. Range of check numbers for checks issued during specified 90-calendar-day time period.

2. Total number of payments and total amount of payments during time period.

3. Total of daily checks presented that fall within the predefined check number range.

4. The number of days from the date of issue by the State to the day the dollars were removed from the State's bank account.

Percentage of daily checks presented (number and amount) compared against the total issuance of the period.
5. Dollar-weighted factor created by applying percentage against number of days before check presentation.

Page 10 of 19


DocuSign Envelope ID: 792421F8-CD3D-40FC-A24C-4593EEB69441

% of Funds Agency Receives: 62
Component: Administrative (payroll)
Technique: Actual Drawdown - BiWeekly
Average Day of Clearance: N/A

17.225S Unemployment Insurance -- State Benefit Account
Recipient: Department of Labor

% of Funds Agency Receives: 81

Component: Payment to Beneficiaries - Direct Deposit
Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: N/A

17.225S Unemployment Insurance -- State Benefit Account
Recipient: Department of Labor

% of Funds Agency Receives: 0

Component: Payment to Beneficiaries - Paper Checks
Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

17.225S Unemployment Insurance -- State Benefit Account
Recipient: Department of Labor

% of Funds Agency Receives: 19

Component: Payments to Beneficiaries - MAP Card
Technique: Daily Estimated Draw ZBA - ACH

Average Day of Clearance: N/A

20.205 Highway Planning and Construction
Recipient: Department of Transportation

% of Funds Agency Receives: 7
Component: Administrative (Payroll)
Technique: Average Clearance

Average Day of Clearance: 0 Days

20.205 Highway Planning and Construction
Recipient: Department of Transportation

% of Funds Agency Receives: 93
Component: Direct Costs

Technique: Average Clearance

Average Day of Clearance: 2 Days

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

% of Funds Agency Receives: 1

Component: Administrative (Payroll)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

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

% of Funds Agency Receives: 98

Component: Payments to Local Educational Agencies
Technique: Average Clearance

Average Day of Clearance: 2 Days

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

% of Funds Agency Receives: 1

Component: Administrative (Other)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

Page 7 of 19


DocuSign Envelope ID: 792421F8-CD3D-40FC-A24C-4593EEB69441

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

10.542 Pandemic EBT Food Benefits

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 100

Component: Payment to Beneficiaries

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

10.551 Supplemental Nutrition Assistance Program
Recipient: Department of Health and Human Services

% of Funds Agency Receives: 100

Component: Payment to Beneficiaries

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

10.555 National School Lunch Program

Recipient: Department of Education

% of Funds Agency Receives: 100

Component: Payments to Local Educational Agencies
Technique: Average Clearance

Average Day of Clearance: 2 Days

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

Recipient: Department of Labor

% of Funds Agency Receives: 0

Component: Payment to Beneficiaries - Paper Checks

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

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

Recipient: Department of Labor

% of Funds Agency Receives: 28

Component: Administrative (non-payroll)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

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

Recipient: Department of Labor

% of Funds Agency Receives: 2

Component: Payments to Beneficiaries - MAP Cards

Technique: Daily Estimated Draw ZBA - ACH

Average Day of Clearance: N/A

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

Recipient: Department of Labor

% of Funds Agency Receives: 8

Component: Payments to Beneficiaries - Direct Deposit
Technique: Daily Estimated Draw ZBA - ACH

Average Day of Clearance: N/A

17.225F Unemployment Insurance -- Federal Benefit Account and
Administrative Costs
Recipient: Department of Labor

Page 6 of 19


DocuSign Envelope ID: 792421F8-CD3D-40FC-A24C-4593EEB69441

Medical Department of 92.0 Provider Payments - | Average Clearance 2 Days

Assistance Health and _ MIHMS Weekl:

Program Human Services y

Medical Department of 1.0 Administrative Average Clearance 0 Days

Assistance Health and _ (Payroll)

Program Human Services y!

Medical Department of 6.0 Administrative Actual Drawdown - | N/A
ssistance lealth an

Program Human Services (Other) Weekly

97.036 Disaster Grants - Department of 100.0 | Grants Actual Drawdown - | N/A

Public Assistance Defense, Veterans Weekl

Presidentially and Emergency y
eclared Management

Disasters)

Certification

Thereby 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.

8/2/2023
ate:

Printed Name:

Certifying Signature:

Laura Hudson

Docusigned by:

(aura Hud sow

‘BOB 1846D42244CD.

Title; Director of Internal Operations

Page 19 of 19


DocuSign Envelope ID: 792421F8-CD3D-40FC-A24C-4593EEB69441

Component: Administrative (All Other)
Technique: Actual Drawdown - Weekly
Average Day of Clearance: N/A

93.575 Child Care and Development Block Grant
Recipient: Department of Health and Human Services
% of Funds Agency Receives: 9

Component: Cost Allocation Payments

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

93.575 Child Care and Development Block Grant
Recipient: Department of Health and Human Services
% of Funds Agency Receives: 79

Component: Payments to Providers

Technique: Actual Drawdown - Weekly

Average Day of Clearance: 2 Days

93.767 Children's Health Insurance Program
Recipient: Department of Health and Human Services
% of Funds Agency Receives: 88

Component: Provider Payments - MIHMS Weekly
Technique: Average Clearance

Average Day of Clearance: 2 Days

93.767 Children's Health Insurance Program
Recipient: Department of Health and Human Services
% of Funds Agency Receives: |

Component: Administrative (Payroll)

Technique: Average Clearance

Average Day of Clearance: 0 Days

93.767 Children's Health Insurance Program
Recipient: Department of Health and Human Services
% of Funds Agency Receives: 3

Component: Administrative (Other)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

93.767 Children's Health Insurance Program
Recipient: Department of Health and Human Services
% of Funds Agency Receives: 8

Component: Miscellaneous Provider Payments & Other Misc.

Technique: Actual Drawdown - Weekly
Average Day of Clearance: N/A

93.778 Medical Assistance Program
Recipient: Department of Health and Human Services
% of Funds Agency Receives: 1

Component: Miscellaneous Provider Payments & Other Misc.

Technique: Actual Drawdown - Weekly
Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: Department of Health and Human Services
% of Funds Agency Receives: 92

Component: Provider Payments - MIHMS Weekly
Technique: Average Clearance

Average Day of Clearance: 2 Days

Page 9 of 19


DocuSign Envelope ID: 792421F8-CD3D-40FC-A24C-4593EEB69441

Cash Management Improvement Act Agreement
between
The State of Maine
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 Maine (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 Maine shall be the Director of Internal Operations 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 07/01/2023 and shall remain in effect until 06/30/2024.

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 | of 19


DocuSign Envelope ID: 792421F8-CD3D-40FC-A24C-4593EEB69441

Daily Estimated Draw
Daily Estimated Draw ZBA - ACH
Weekly Drawdown - Actual & Estimate

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:

Actual Activity:

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:

Federal and State Funds are Interest Neutral:

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

8.4 Refund Liabilities

8.4.1 The State shall be liable for interest on refunds from the date the refund is credited to a State account until the date the refund
is debited from the State account for program purposes. The State shall apply a $50,000 refund transaction threshold below which
the State shall not incur or calculate interest liabilities on refunds. A transaction is defined as a single deposit.

8.4.2 For each refund, the State shall maintain information identifying:

(1) date a refund is credited to a State account

(2) date of the subsequent deposit of Federal funds against which the refund is offset
(3) amount of the refund

8.4.3 The State shall use the following methodology to calculate interest liabilities on refunds:

Page 12 of 19


DocuSign Envelope ID: 792421F8-CD3D-40FC-A24C-4593EEB69441

The sum of dollar-weighted factors represents the average amount of time for a check to be presented for payment to the bank after the
check issuance date.

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

When developing each clearance pattern, the State shall track at least 99% of the funds disbursed, from issuance to clearance, for a
period of at least three months.

7.5 The State shall identify for each check or warrant (hereafter, check) in the population: (1) the date the check was released
for payment; (2) the date the check was debited from the State's account, and, (3) the amount of the check.

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

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

check cleared the State's account.

To determine the percentage of the disbursement paid out each day following issuance, the amount of the checks that clear the
State's account each day shall be summed and then divided by the amount of the total disbursement.

For each day following issuance, the clearance time of the checks paid out that day shall be multiplied by the percentage of the total
disbursement those checks represent. This product is the clearance factor.

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

7.7 The State shall adjust each clearance pattern to reflect the dollar-weighted proportion of funds paid out by EFT/Direct payroll,
with the following exceptions:

None.

The State shall also adjust each clearance pattern to reflect:

N/A

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

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

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

8.0 INTEREST CALCULATION METHODOLOGY
8.1 General Terms

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

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

Actual Clearance, ZBA - ACH

Actual Clearance, ZBA - Same Day Payment
Actual Drawdown - BiWeekly

Actual Drawdown - Weekly

Average Clearance

Page 11 of 19


DocuSign Envelope ID: 792421F8-CD3D-40FC-A24C-4593EEB69441

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

% of Funds Agency Receives: 8
Component: Administrative (Payroll)
Technique: Average Clearance

Average Day of Clearance: 0 Days

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

% of Funds Agency Receives: 91

Component: Payments to LEA & Discretionary
Technique: Average Clearance

Average Day of Clearance: 2 Days

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

% of Funds Agency Receives: 1
Component: Administrative (Other)
Technique: Actual Drawdown - Weekly
Average Day of Clearance: N/A

84.425 Education Stabilization Fund

Recipient: Department of Education

% of Funds Agency Receives: 90

Component: Payments to Local Education Agencies
Technique: Average Clearance

Average Day of Clearance: 2 Days

84.425 Education Stabilization Fund
Recipient: Department of Education

% of Funds Agency Receives: 10
Component: Administrative (All Other)
Technique: Actual Drawdown - Weekly
Average Day of Clearance: N/A

93.323 Epidemiology and Laboratory Capacity for Infectious Diseases
(ELC)

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 36

Component: Administrative (Payroll)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

93.323 Epidemiology and Laboratory Capacity for Infectious Diseases
(ELC)

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 64

Component: Administrative (All Other)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families
Recipient: Department of Health and Human Services
% of Funds Agency Receives: 100

Component: All Expenses

Technique: Weekly Drawdown - Actual & Estimate
Average Day of Clearance: N/A

93.575 Child Care and Development Block Grant
Recipient: Department of Health and Human Services
% of Funds Agency Receives: 12

Page 8 of 19


DocuSign Envelope ID: 792421F8-CD3D-40FC-A24C-4593EEB69441

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

a. Timing of the Request

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

b. Justification for the Request

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

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

d. Approval Process

Upon receipt of the state's request for additional funding authority for a quarter, the ACF Regional Office will promptly review the
supporting documentation. If the request is properly justified, so long as ACF has adequate funding 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.

Funding Technique Name Description

Actual Clearance, ZBA - ACH The State shall request funds such that they are deposited by ACH in a State account
on the settlement date of payments issued by the State. The request shall be made in
accordance with the appropriate Federal agency cut-off time specified in Exhibit I.
The amount of the request shall be for the amount of funds that clear the State's
account on the settlement date. This funding technique is interest neutral.

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

Average Clearance The State shall request funds such that they are deposited by ACH on the dollar-
weighted average day of clearance for the disbursement, in accordance with the

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DocuSign Envelope ID: 792421F8-CD3D-40FC-A24C-4593EEB69441

12.0 | AUTHORIZED SIGNATURES

Laura Hudson
Director of Internal Operations

DocuSigned by:

(aura Hud sow

Signature:

Date Signed:

8/2/2023

Date Submitted 8/2/2023

Sandra R. Paylor

Assistant Commissioner

Revenue Collections Management
Bureau of the Fiscal Service

U.S. Department of the Treasury

Signature: [ sandr a. Paulor

Date Signed:

8/4/2023

VACETSTOSHOBASE.

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DocuSign Envelope ID: 792421F8-CD3D-40FC-A24C-4593EEB69441

Exhibit II - State of Maine
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 Rounded
days
10.542 Pandemic EBT Department of 100.0 | Payment to Actual Clearance, 0 Days
Food Benefits Health and Beneficiaries ZBA - Same Day
Payment
10.551 Supplemental Department of 100.0 | Payment to Actual Clearance, 0 Days
lutrition lealth an ‘ari
Assistance Human Services Beneficiaries ZBA - Same Day
Program Payment
10.555 National School Department of 100.0 | Payments to Local Average Clearance | 2 Days
Lunch Program Education Educational Agencies
17.225 Unemployment De artment of 0.0 Payment to Actual Drawdown - | N/A
F Insurance ~ it ador Beneficiaries - Paper_| Weekly
Account and Checks
Administrative
Costs
Unemployment Department of 28.0 Administrative (non- | Actual Drawdown - | N/A
insurance -- abor
Federal Benefit Payroll) Weekly
Account and
Administrative
Costs
Unemployment Department of 2.0 Payments to Daily Estimated N/A
Insurance ~ it ador Beneficiaries - MAP | Draw ZBA - ACH
Account and Cards
Administrative
Costs
Unemployment Department of 8.0 Payments to Daily Estimated N/A
Tnsurance = it abor Beneficiaries - Direct | Draw ZBA - ACH
Account and Deposit
Administrative
Costs
Unemployment pa artment of 62.0 | Administrative Actual Drawdown - | N/A
insurance -- abor : i
Federal Benefit (payroll) BiWeekly
Account and
Administrative
Costs
17.225 Unemployment Department of 81.0 | Payment to Actual Clearance, N/A
S Insurance ~~ State abor Beneficiaries - Direct | ZBA - ACH
Deposit
Unemployment Department of 0.0 Payment to Actual Drawdown -_ | N/A
Insurance -- State Labor Beneficiaries - Paper | Weekly
Checks
[nemployment Department of 19.0 Payments to Daily Estimated N/A
insurance -- State abor iari
Benefit Account Beneficiaries - MAP| Draw ZBA - ACH
Card
20.205 Highway Planning Department of 7.0 Administrative Average Clearance 0 Days
and Construction’ Transportation (Payroll)

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DocuSign Envelope ID: 792421F8-CD3D-40FC-A24C-4593EEB69441

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:

Fiscal Agent CFDA Program Name

Conduent Inc. 10.551 Supplemental Nutrition Assistance
Program

Conduent Inc. 93.558 Temporary Assistance for Needy Families

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 IT - List of State Clearance Patterns. Exhibit II is incorporated by

reference herein.

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

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DocuSign Envelope ID: 792421F8-CD3D-40FC-A24C-4593EEB69441

4.0 PROGRAMS COVERED

4.1 The State's threshold and its major Federal assistance programs shall be determined based on the Schedule of Expenditures
of Federal Awards for fiscal year ending 06/30/2022.

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 $30,893,916.

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

CFDA Program Name

10.542 Pandemic EBT Food Benefits

10.551 Supplemental Nutrition Assistance Program

10.555 National School Lunch Program

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

17.2258 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

84.425 Education Stabilization Fund

93.323 Epidemiology and Laboratory Capacity for Infectious Diseases
(ELC)

93.558 Temporary Assistance for Needy Families

93.575 Child Care and Development Block Grant

93.767 Children's Health Insurance Program

93.778 Medical Assistance Program

97.036 Disaster Grants - Public Assistance (Presidentially Declared
Disasters)

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:

CFDA Program Name Exclusion Reason

21.019 Coronavirus Relief Fund Federal Statute - Full Exemption

21.023 Emergency Rental Assistance Program Federal Statute - Full Exemption

21.027 Coronavirus State and Local Fiscal Federal Statute - Full Exemption
Recovery Funds

5.0 ENTITIES COVERED

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

Department of Defense, Veterans and Emergency Management
Department of Education

Department of Health and Human Services

Department of Labor

Department of Transportation

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DocuSign Envelope ID: 792421F8-CD3D-40FC-A24C-4593EEB69441

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 or paid out for program purposes.

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
than 5

% of the State's threshold for major Federal assistance programs. Notwithstanding this potential exemption, however, in no case

excluded from interest calculation procedures if the State agency receives an amount of funds |

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

Deposit to Clearance:

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

8.6.2.2 Source of Data

The time period from deposit to issuance shall be determined from information captured by the Advantage system that

provides bank validation dates for accounting transactions and can be used to determine when a deposit was made.

Advantage (State accounting system) and DAFS Analytics (Database of archived accounting transactions) can be queried

to provide dates of check

issuance/s in relation to the date of deposit

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

I= ADB x R/365 x T,, where

1 = 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

365 = Calendar days

T = Days of State Liability

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DocuSign Envelope ID: 792421F8-CD3D-40FC-A24C-4593EEB69441

Exhibit I - Funds Request and Receipt Times Schedule

State of Maine
Federal Agency Payment Type | Request Cut-Off Time Receipt Window
Agriculture-FNS ‘ACH 11:59 PM I day
Agriculture-FNS Fedwire 3:45 PM Oday
Agriculture-FS ‘ACH 3:00 PM T 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 Oday
Education ‘ACH 3:00 PM T day
Education Fedwire 2:00 PM Oday
Energy ACH 4:00 PM I day
Energy Fedwire 3:00 PM 0 day
HHS ‘ACH 3:00 PM I day
HHS Fedwire 3:00 PM Oday
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 I day
Labor-UTF ‘ACH 3:00 PM I day
Labor-UTF Fedwire 3:00 PM Oday
National Science Foundation (NSF) ACH 8:00 PM T day
National Science Foundation (NSF) Fedwire 3:45 PM 0 day
Social Security Administration ‘ACH 11:59 PM T day
Social Security Administration Fedwire 3:45 PM Oday
Transportation (FAA) ACH 2:00 PM I day
Transportation (FHWA) ‘ACH 12:00 PM 3 days
Transportation (FHWA) Fedwire 12:00 PM 0 day
Transportation (FTA) ‘ACH 2:00 PM T day
Veterans Administration ACH 12:00 PM 3 days

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