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Cash Management Improvement Act Agreement

between

The State of Louisiana

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 Louisiana (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 Louisiana shall be the Commissioner of Administration 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 07/01/2021 and shall remain in effect until 06/30/2022.

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.

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4.0 PROGRAMS COVERED

4.1 The State's threshold and its major Federal assistance programs shall be determined based on State Single Audit Report for 

fiscal year ending 06/30/2020.

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 $60,000,000.

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

CFDA Program Name

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

14.228 Community Development Block Grants/State's 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

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)

97.039 Hazard Mitigation Grant

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:

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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

93.268 Immunization Grants 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

4.0 of this Agreement:

Department of Children and Family Services

Department of Education

Department of Transportation and Development

Executive Department

Governor's Office of Homeland Security and Emergency Preparedness

Louisiana Department of Health

Louisiana Workforce Commission

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 State & Local Solutions, Inc 10.551 Supplemental Nutrition Assistance 

Program

Solutran 10.557 Special Supplemental Nutrition Program 

for Women, Infants, and Children

Conduent State & Local Solutions, 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 II - List of State Clearance Patterns. Exhibit II is incorporated by 

reference herein.

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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 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 

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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 - 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 dollarweighted average day of clearance for the disbursement, in accordance with the 

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 and Adjusted Estimate Administrative costs for all programs will be drawn at the same time as payroll. The 

request shall be made in accordance with the appropriate Federal agency cut-off time 

specified in Exhibit I. The draw will consist of an amount to fund the actual 

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expenditures of the prior week and an amount to fund the estimated expenditures of 

the current/upcoming week based on year to date actual expenditures. The estimated 

draws will be adjusted for variances between the most recent estimate and actual 

expenditures each time a draw is made. This funding technique is interest neutral.

Actual at Fixed Intervals The State shall request funds at a fixed interval, i.e., bi-weekly, monthly, quarterly, 

etc., for the actual program expenditures of the period prior to the draw. 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 the 

previous period's disbursements. This funding technique is interest neutral.

Allocation of Payroll and Administrative 

Costs

The State will request funds on a bi-weekly basis. The request shall be made in 

accordance with the appropriate Federal agency cut-off time specified in Exhibit I. 

Administrative costs for all programs are to be drawn at the same time as payroll 

costs. The draw will be completed to meet the cash requirements based on the most 

recent certified cost allocations with subsequent adjustments completed pursuant to 

the actual allocation of costs. This funding technique is interest neutral.

Payroll and Administrative - Fixed 

Frequency

The State shall request funds once at a fixed interval, i.e., bi-weekly, monthly, 

quarterly, etc., such that they are deposited to fund the actual activity of the previous 

period. 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 based on the 

amount of the actual cash outlays for payroll and administrative costs during the 

previous period. This funding technique is interest neutral.

6.3 Application of Funding Techniques to Programs

6.3.1 The State shall apply the following funding techniques when requesting Federal funds for the component cash flows of the 

programs listed in sections 4.2 and 4.3 of this Agreement.

6.3.2 Programs

Below are programs listed in Section 4.2 and Section 4.3.

10.551 Supplemental Nutrition Assistance Program

Recipient: Department of Children and Family Services

% of Funds Agency Receives: 100

Component: Assistance Payments - EBT

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

10.553 School Breakfast Program

Recipient: Department of Education

% of Funds Agency Receives: 100

Component: Payments to Parishes, Universities, Public Schools and 

Daycare Providers

Technique: Average Clearance

Average Day of Clearance: 0 Days

10.555 National School Lunch Program

Recipient: Department of Education

% of Funds Agency Receives: 100

Component: Payments to Parishes, Universities, Public Schools and 

Daycare Providers

Technique: Average Clearance

Average Day of Clearance: 0 Days

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10.557 Special Supplemental Nutrition Program for Women, Infants, 

and Children

Recipient: Louisiana Department of Health

% of Funds Agency Receives: 57.12

Component: Vouchers and EBT

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

10.557 Special Supplemental Nutrition Program for Women, Infants, 

and Children

Recipient: Louisiana Department of Health

% of Funds Agency Receives: 22.31

Component: Administrative Costs

Technique: Actual and Adjusted Estimate

Average Day of Clearance: 0 Days

10.557 Special Supplemental Nutrition Program for Women, Infants, 

and Children

Recipient: Louisiana Department of Health

% of Funds Agency Receives: 20.57

Component: Payroll

Technique: Allocation of Payroll and Administrative Costs

Average Day of Clearance: 0 Days

10.558 Child and Adult Care Food Program

Recipient: Department of Education

% of Funds Agency Receives: 100

Component: Payments to Parishes, Universities, Public Schools and 

Daycare Providers

Technique: Average Clearance

Average Day of Clearance: 0 Days

10.561 State Administrative Matching Grants for the Supplemental 

Nutrition Assistance Program

Recipient: Department of Children and Family Services

% of Funds Agency Receives: 100

Component: Payroll and Administrative Costs

Technique: Allocation of Payroll and Administrative Costs

Average Day of Clearance: 0 Days

14.228 Community Development Block Grants/State's Program

Recipient: Executive Department

% of Funds Agency Receives: 89.29

Component: Disaster Recovery Program Costs

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

14.228 Community Development Block Grants/State's Program

Recipient: Executive Department

% of Funds Agency Receives: 6.06

Component: CDBG Program Costs

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

14.228 Community Development Block Grants/State's Program

Recipient: Executive Department

% of Funds Agency Receives: .21

Component: CDBG Administrative Costs

Technique: Actual and Adjusted Estimate

Average Day of Clearance: 0 Days

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14.228 Community Development Block Grants/State's Program

Recipient: Executive Department

% of Funds Agency Receives: 4.44

Component: Disaster Recovery Administrative Costs

Technique: Actual at Fixed Intervals

Average Day of Clearance: 0 Days

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Louisiana Workforce Commission

% of Funds Agency Receives: 79.72

Component: Benefits Payments - Federal

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Louisiana Workforce Commission

% of Funds Agency Receives: 19.43

Component: Benefits Payments - State

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Louisiana Workforce Commission

% of Funds Agency Receives: .85

Component: Administrative Costs

Technique: Actual and Adjusted Estimate

Average Day of Clearance: 0 Days

17.225S Unemployment Insurance -- State Benefit Account

Recipient: Louisiana Workforce Commission

% of Funds Agency Receives: 100

Component: Benefit Payments - State

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

20.205 Highway Planning and Construction

Recipient: Department of Transportation and Development

% of Funds Agency Receives: 79.71

Component: Capital Projects

Technique: Average Clearance

Average Day of Clearance: 2 Days

20.205 Highway Planning and Construction Recipient: Department of Transportation and Development

% of Funds Agency Receives: 8.73

Component: Payroll

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

20.205 Highway Planning and Construction

Recipient: Department of Transportation and Development

% of Funds Agency Receives: 11.56

Component: Indirect Costs

Technique: Average Clearance

Average Day of Clearance: 2 Days

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84.010 Title I Grants to Local Educational Agencies

Recipient: Department of Education

% of Funds Agency Receives: 99.06

Component: Program Expenditures

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

84.010 Title I Grants to Local Educational Agencies

Recipient: Department of Education

% of Funds Agency Receives: .94

Component: Payroll & Administrative Costs

Technique: Payroll and Administrative - Fixed Frequency

Average Day of Clearance: 0 Days

84.027 Special Education -- Grants to States

Recipient: Department of Education

% of Funds Agency Receives: 92.23

Component: Program Expenditures

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

84.027 Special Education -- Grants to States

Recipient: Department of Education

% of Funds Agency Receives: 7.77

Component: Payroll & Administrative Costs

Technique: Payroll and Administrative - Fixed Frequency

Average Day of Clearance: 0 Days

93.558 Temporary Assistance for Needy Families

Recipient: Department of Children and Family Services

% of Funds Agency Receives: 9.69

Component: Assistance Payments - EBT

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

93.558 Temporary Assistance for Needy Families

Recipient: Department of Children and Family Services

% of Funds Agency Receives: .39

Component: Assistance Payments - EFT Findwork

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

93.558 Temporary Assistance for Needy Families

Recipient: Department of Children and Family Services

% of Funds Agency Receives: 55.75

Component: TANF Contract Payments

Technique: Actual at Fixed Intervals

Average Day of Clearance: 0 Days

93.558 Temporary Assistance for Needy Families

Recipient: Department of Children and Family Services

% of Funds Agency Receives: 34.17

Component: Payroll & Administrative Costs

Technique: Actual at Fixed Intervals

Average Day of Clearance: 0 Days

93.575 Child Care and Development Block Grant

Recipient: Department of Education

% of Funds Agency Receives: 73.67

Component: Program Expenditures

Technique: Actual Clearance, ZBA - Same Day Payment

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Average Day of Clearance: 0 Days

93.575 Child Care and Development Block Grant

Recipient: Department of Education

% of Funds Agency Receives: 26.33

Component: Payroll & Administrative Costs

Technique: Payroll and Administrative - Fixed Frequency

Average Day of Clearance: 0 Days

93.767 Children's Health Insurance Program

Recipient: Louisiana Department of Health

% of Funds Agency Receives: 95.66

Component: Children's Insurance Benefits -EFT

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

93.767 Children's Health Insurance Program

Recipient: Louisiana Department of Health

% of Funds Agency Receives: 2.18

Component: Payroll

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

93.767 Children's Health Insurance Program

Recipient: Louisiana Department of Health

% of Funds Agency Receives: 2.16

Component: Medicaid Administrative Cost Grant

Technique: Actual and Adjusted Estimate

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Louisiana Department of Health

% of Funds Agency Receives: 3

Component: Medicare Buy-In Premiums

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Louisiana Department of Health

% of Funds Agency Receives: 1.74

Component: Payroll

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Louisiana Department of Health

% of Funds Agency Receives: 7.64

Component: Medicaid Benefits and Disproportionate Share Pool 

Payments - EFT

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Louisiana Department of Health

% of Funds Agency Receives: .75

Component: Medicaid Administrative Cost Grant

Technique: Actual and Adjusted Estimate

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Louisiana Department of Health

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% of Funds Agency Receives: .04

Component: Electronic Health Records - EHR

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Louisiana Department of Health

% of Funds Agency Receives: 86.83

Component: Medicaid Benefits - EFT

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

97.036 Disaster Grants - Public Assistance (Presidentially Declared 

Disasters)

Recipient: Governor's Office of Homeland Security and Emergency 

Preparedness

% of Funds Agency Receives: 11.95

Component: State Subrecipient - EFT

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

97.036 Disaster Grants - Public Assistance (Presidentially Declared 

Disasters)

Recipient: Governor's Office of Homeland Security and Emergency 

Preparedness

% of Funds Agency Receives: 32.75

Component: Payroll and Administrative Costs

Technique: Actual at Fixed Intervals

Average Day of Clearance: N/A

97.036 Disaster Grants - Public Assistance (Presidentially Declared 

Disasters)

Recipient: Governor's Office of Homeland Security and Emergency 

Preparedness

% of Funds Agency Receives: 55.3

Component: Applicant Payments Technique: Average Clearance

Average Day of Clearance: 1 Day

97.039 Hazard Mitigation Grant

Recipient: Governor's Office of Homeland Security and Emergency 

Preparedness

% of Funds Agency Receives: 94.11

Component: Applicant Payments

Technique: Average Clearance

Average Day of Clearance: 1 Day

97.039 Hazard Mitigation Grant

Recipient: Governor's Office of Homeland Security and Emergency 

Preparedness

% of Funds Agency Receives: 5.89

Component: Payroll and Administrative Costs

Technique: Actual at Fixed Intervals

Average Day of Clearance: 0 Days

6.3.3 Materiality Exemptions

Agencies exempt from coverage on the basis of materiality:

N/A

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6.4.0 The State will request funds from the Federal granting agency based on estimates when a State or Federal holiday 

coincides with the release of checks for program components using an actual clearance pattern. These estimates will 

be based on historical data from prior check issuances of a similar nature. The estimates will be reconciled to actual 

check issuance data received from the financial system the checks were issued from. The subsequent drawdown of 

Federal funds will be adjusted to reflect the actual amount expended.

7.0 CLEARANCE PATTERNS

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

N/A

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

Department of Education, Department of Transportation and Development and the Governor's Office of Homeland Security and 

Emergency Preparedness

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

Check registers, checks cleared reports from the bank, and reconciliation tapes.

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:

N/A

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.

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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 and Adjusted Estimate

Actual at Fixed Intervals

Actual Clearance, ZBA - Same Day Payment

Allocation of Payroll and Administrative Costs

Average Clearance

Payroll and Administrative - Fixed Frequency

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

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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 Funds Interest Neutral, State Funds not:

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

UTF under the Unemployment Insurance program.

Based on statements provided by its financial institution (or other appropriate sources), the State shall determine the actual interest 

earnings and the related banking costs attributable to funds withdrawn from its account in the UTF. At the end of the State's fiscal year, 

the State shall calculate the percentage of its total unemployment compensation expenditures for (1) funds withdrawn from the State 

account in the UTF, or the State %, and (2) funds withdrawn from the Federal Employees Compensation Account (FECA) and the 

Extended Unemployment Compensation Account (EUCA) and any other accounts of Federal funds in the UTF, or the Federal %.

The actual interest earnings of the benefit payment account on the whole constitute the actual interest earnings attributable to funds 

withdrawn from the State account in the UTF, since the State shall apply an appropriate interest neutral funding technique, to funds 

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

The State shall calculate the related banking costs attributable to funds withdrawn from the State account in the UTF by multiplying the 

State % by the amount of the related banking costs of the benefit payment account as a whole. The 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 whole less the 

related banking costs attributed to such funds.

8.4 Refund Liabilities

8.4.1 The State shall be liable for interest on refunds from the date the refund is credited to a State account until the date the refund 

is debited from the State account for program purposes. The State shall apply a $50,000 refund transaction threshold below which 

the State shall not incur or calculate interest liabilities on refunds. A transaction is defined as a single deposit.

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

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

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

(3) amount of the refund

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

Refunds Deposited to Interest Neutral Programs:

With programs to which applicable interest neutral funding techniques are applied, the State interest liability shall be based on the 

difference in whole days between the date the refund is deposited in a State account and the date the refund is offset against a 

subsequent deposit of Federal funds.

8.5 Exemptions

8.5.1 Where more than one State agency is a recipient of Federal funds under a program, a particular State agency's funding may be 

excluded from interest calculation procedures if the State agency receives an amount of funds less than 5

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

shall less than 90% of a program's total funding be subject to interest calculation procedures.

Proration of calculations: If less than total program funding is subject to interest calculation procedures, the resulting interest 

liability calculations shall be prorated to 100% of program funding.

8.6 State Interest Liabilities

8.6.1 The State shall be liable for interest on Federal funds from the date Federal funds are credited to a State account until the 

date those funds are paid out for program purposes.

8.6.2 The State shall use the following method to calculate State interest liabilities on Federal funds:

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8.6.2.1 Measuring Time Funds Are Held

To determine the total time Federal funds are held, the State shall measure the time between the date Federal funds are received and 

credit to a State's account and the date those funds are debited from the State's account.

8.6.2.2 Source of Data

Clearance Patterns:

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

appropriate clearance pattern specified in Exhibit II.

8.6.2.3 Standards Applied

Census (Average Daily Balance):

The average daily cash balance of Federal funds in the program's account reflects the actual activity of each draw from the date of 

deposit to the date of issuance or clearance, whichever is pertinent.

8.6.2.4 Calculation Procedure

Average Daily Balance:

I = ADB x R, where

I = 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

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:

The state expects to incur the following types of interest calculation costs:

(1) warrant clearance development

(2) interest calculation, and

(3) preparation of annual report

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

CFR 205.

11.0 NON-COMPLIANCE

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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.

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12.0 AUTHORIZED SIGNATURES

Desireé Honoré Thomas

Assistant Commissioner - Statewide Services (Designee for Commissioner of Administration)

Signature: Date Signed:

Date Submitted 7/2/2021

Sandra R. Paylor

Acting Assistant Commissioner

Revenue Collections Management

Bureau of the Fiscal Service

U.S. Department of the Treasury

Signature: Date Signed:

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7/6/2021

7/7/2021
Page 18 of 23

Exhibit I - Funds Request and Receipt Times Schedule

State of Louisiana

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

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Exhibit II - State of Louisiana

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

10.551 Supplemental 

Nutrition 

Assistance 

Program

Department of 

Children and 

Family Services

100.0 Assistance Payments 

- EBT

Actual Clearance, 

ZBA - Same Day 

Payment

0 Days

10.553 School Breakfast 

Program

Department of 

Education

100.0 Payments to Parishes, 

Universities, Public 

Schools and Daycare 

Providers

Average Clearance 0 Days

10.555 National School 

Lunch Program

Department of 

Education

100.0 Payments to Parishes, 

Universities, Public 

Schools and Daycare 

Providers

Average Clearance 0 Days

10.557 Special 

Supplemental 

Nutrition Program 

for Women, 

Infants, and 

Children

Louisiana 

Department of 

Health

57.12 Vouchers and EBT Actual Clearance, 

ZBA - Same Day 

Payment

0 Days

Special 

Supplemental 

Nutrition Program 

for Women, 

Infants, and 

Children

Louisiana 

Department of 

Health

22.31 Administrative Costs Actual and Adjusted 

Estimate

0 Days

Special 

Supplemental 

Nutrition Program 

for Women, 

Infants, and 

Children

Louisiana 

Department of 

Health

20.57 Payroll Allocation of 

Payroll and 

Administrative 

Costs

0 Days

10.558 Child and Adult 

Care Food 

Program

Department of 

Education

100.0 Payments to Parishes, 

Universities, Public 

Schools and Daycare 

Providers

Average Clearance 0 Days

10.561 State 

Administrative 

Matching Grants 

for the 

Supplemental 

Nutrition 

Assistance 

Program

Department of 

Children and 

Family Services

100.0 Payroll and 

Administrative Costs

Allocation of 

Payroll and 

Administrative 

Costs

0 Days

14.228 Community 

Development 

Block 

Grants/State's 

Program

Executive 

Department

89.29 Disaster Recovery 

Program Costs

Actual Clearance, 

ZBA - Same Day 

Payment

0 Days

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Community 

Development 

Block 

Grants/State's 

Program

Executive 

Department

6.06 CDBG Program 

Costs

Actual Clearance, 

ZBA - Same Day 

Payment

0 Days

Community 

Development 

Block 

Grants/State's 

Program

Executive 

Department

0.21 CDBG 

Administrative Costs

Actual and Adjusted 

Estimate

0 Days

Community 

Development 

Block 

Grants/State's 

Program

Executive 

Department

4.44 Disaster Recovery 

Administrative Costs

Actual at Fixed 

Intervals

0 Days

17.225

F

Unemployment 

Insurance --

Federal Benefit 

Account and 

Administrative 

Costs

Louisiana 

Workforce 

Commission

79.72 Benefits Payments -

Federal

Actual Clearance, 

ZBA - Same Day 

Payment

0 Days

Unemployment 

Insurance --

Federal Benefit 

Account and 

Administrative 

Costs

Louisiana 

Workforce 

Commission

19.43 Benefits Payments -

State

Actual Clearance, 

ZBA - Same Day 

Payment

0 Days

Unemployment 

Insurance --

Federal Benefit 

Account and

Administrative 

Costs

Louisiana 

Workforce 

Commission

0.85 Administrative Costs Actual and Adjusted 

Estimate

0 Days

17.225

S

Unemployment 

Insurance -- State 

Benefit Account

Louisiana 

Workforce 

Commission

100.0 Benefit Payments -

State

Actual Clearance,

ZBA - Same Day 

Payment

0 Days

20.205 Highway Planning 

and Construction

Department of 

Transportation 

and Development

79.71 Capital Projects Average Clearance 2 Days

Highway Planning 

and Construction

Department of 

Transportation 

and Development

8.73 Payroll Actual Clearance, 

ZBA - Same Day 

Payment

0 Days

Highway Planning 

and Construction

Department of 

Transportation 

and Development

11.56 Indirect Costs Average Clearance 2 Days

84.010 Title I Grants to 

Local Educational 

Agencies

Department of 

Education

99.06 Program 

Expenditures

Actual Clearance, 

ZBA - Same Day 

Payment

0 Days

Title I Grants to 

Local Educational 

Agencies

Department of 

Education

0.94 Payroll & 

Administrative Costs

Payroll and 

Administrative -

Fixed Frequency

0 Days

84.027 Special Education 

-- Grants to States

Department of 

Education

92.23 Program 

Expenditures

Actual Clearance, 

ZBA - Same Day 

Payment

0 Days

Special Education 

-- Grants to States

Department of 

Education

7.77 Payroll & 

Administrative Costs

Payroll and 

Administrative -

Fixed Frequency

0 Days

93.558 Temporary 

Assistance for 

Needy Families

Department of 

Children and 

Family Services

9.69 Assistance Payments 

- EBT

Actual Clearance, 

ZBA - Same Day 

Payment

0 Days

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Temporary 

Assistance for 

Needy Families

Department of 

Children and 

Family Services

0.39 Assistance Payments - EFT FindworkActual Clearance, 

ZBA - Same Day 

Payment

0 Days

Temporary 

Assistance for 

Needy Families

Department of 

Children and 

Family Services

55.75 TANF Contract 

Payments

Actual at Fixed 

Intervals

0 Days

Temporary 

Assistance for 

Needy Families

Department of 

Children and 

Family Services

34.17 Payroll & 

Administrative Costs

Actual at Fixed 

Intervals

0 Days

93.575 Child Care and 

Development 

Block Grant

Department of 

Education

73.67 Program 

Expenditures

Actual Clearance, 

ZBA - Same Day 

Payment

0 Days

Child Care and 

Development 

Block Grant

Department of 

Education

26.33 Payroll & 

Administrative Costs

Payroll and 

Administrative -

Fixed Frequency

0 Days

93.767 Children's Health 

Insurance 

Program

Louisiana 

Department of 

Health

95.66 Children's Insurance 

Benefits - EFT

Actual Clearance, 

ZBA - Same Day 

Payment

0 Days

Children's Health 

Insurance 

Program

Louisiana 

Department of 

Health

2.18 Payroll Actual Clearance, 

ZBA - Same Day 

Payment

0 Days

Children's Health 

Insurance 

Program

Louisiana 

Department of 

Health

2.16 Medicaid 

Administrative Cost 

Grant

Actual and Adjusted 

Estimate

0 Days

93.778 Medical 

Assistance 

Program

Louisiana 

Department of 

Health

3.0 Medicare Buy-In 

Premiums

Actual Clearance, 

ZBA - Same Day 

Payment

0 Days

Medical 

Assistance 

Program

Louisiana 

Department of 

Health

1.74 Payroll Actual Clearance, 

ZBA - Same Day 

Payment

0 Days

Medical 

Assistance 

Program

Louisiana 

Department of 

Health

7.64 Medicaid Benefits 

and Disproportionate 

Share Pool Payments - EFT

Actual Clearance, 

ZBA - Same Day 

Payment

0 Days

Medical 

Assistance 

Program

Louisiana 

Department of 

Health

0.75 Medicaid 

Administrative Cost 

Grant

Actual and Adjusted 

Estimate

0 Days

Medical 

Assistance 

Program

Louisiana 

Department of 

Health

0.04 Electronic Health 

Records - EHR

Actual Clearance, 

ZBA - Same Day 

Payment

0 Days

Medical 

Assistance 

Program

Louisiana 

Department of 

Health

86.83 Medicaid Benefits -

EFT

Actual Clearance, 

ZBA - Same Day

Payment

0 Days

97.036 Disaster Grants 

-

Public Assistance 

(Presidentially 

Declared 

Disasters)

Governor's Office 

of Homeland 

Security and 

Emergency 

Preparedness

11.95 State Subrecipient -

EFT

Actual Clearance, 

ZBA - Same Day 

Payment

0 Days

Disaster Grants -

Public Assistance 

(Presidentially 

Declared 

Disasters)

Governor's Office 

of Homeland 

Security and 

Emergency 

Preparedness

32.75 Payroll and 

Administrative Costs

Actual at Fixed 

Intervals

N/A

Disaster Grants -

Public Assistance 

(Presidentially 

Declared 

Disasters)

Governor's Office 

of Homeland 

Security and 

Emergency 

Preparedness

55.3 Applicant Payments Average Clearance 1 Day

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97.039 Hazard Mitigation 

Grant

Governor's Office 

of Homeland 

Security and 

Emergency 

Preparedness

94.11 Applicant Payments Average Clearance 1 Day

Hazard Mitigation 

Grant

Governor's Office 

of Homeland 

Security and 

Emergency 

Preparedness

5.89 Payroll and 

Administrative Costs

Actual at Fixed 

Intervals

0 Days

Certification

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: 

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Desiree Honoré Thomas

7/6/2021

Assistant Commissioner, Statewide Services
Page 23 of 23

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