Cash Management Improvement Act Agreement

between

The Territory of Guam

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 Territory of Guam

(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 Territory of Guam shall be the Treasurer of Guam 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 10/01/2019 and shall remain in effect until 09/30/2020.

3.2 This Agreement may be amended at any time by written, mutual consent of the State and the Fiscal Service. This

Agreement shall be amended annually to incorporate new programs that qualify as major Federal assistance programs

and remove programs that no longer qualify as major Federal assistance programs. A State must notify the Fiscal Service

in writing within 30 days of the time the State becomes aware of a change that involves additions or deletions of programs

subject to Subpart A, changes in funding techniques, and/or changes in clearance patterns. The notification must include

a proposed amendment for review by the Fiscal Service.

3.3 Notwithstanding section 3.2, in the event of Federal or State non-compliance with Subpart B of 31 CFR, Part 205, the

Fiscal Service may amend this Agreement at any time to incorporate additional programs and the entities that administer

those programs.

3.4 This Agreement may be terminated by either party with 30 days written notice. If this Agreement is terminated, the

Fiscal Service will prescribe the funding techniques, clearance patterns, and methods for calculating interest liabilities to

be used by the State.

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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 the Single Audit for

fiscal year ending 09/30/2018.

All major Federal assistance programs shall be covered by this Agreement, unless otherwise specified in section 4.4 of

this Agreement.

4.2 The State's threshold for major Federal assistance programs is $1,886,489.

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

10.551 Supplemental Nutrition Assistance Program

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

12.401 National Guard Military Operations and Maintenance (O&M) Projects

15.605 Sport Fish Restoration

15.875 Economic, Social, and Political Development of the Territories and the Freely Associated States

17.258 WIA Adult Program

20.205 Highway Planning and Construction

66.600 EPA Consolidated Grant

81.128 Energy Efficiency and Conservation Block Grant Program

84.394 State Fiscal Stabilization Fund (SFSF) - Education State Grants, Recovery Act

93.558 Temporary Assistance for Needy Families

93.563 Child Support Enforcement

93.575 Child Care and Development Block Grant

93.667 Social Services Block Grant

93.767 Children's Health Insurance Program

93.778 Medical Assistance Program

4.3 The following programs fall below the State's threshold but have been required to be covered by Fiscal Service in

accordance with the non-compliance provisions of Subpart B of 31 CFR Part 205:

There are currently no programs listed for Section 4.3.

4.4 The following programs exceed the State's threshold but have been excluded from coverage for the reason indicated:

There are currently no programs listed for Section 4.4.

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:

Agency For Human Resources Development

Department of Administration

Department of Agriculture

Department of Bureau Planning and Statistics

Department of Military Affairs

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Department of Public Health and Social Services

Department of Public Works

Guam Department of Education

Guam Energy Office

Guam Environmental Protection Agency

Guam Fire Department

Guam Police Department

Office of the Attorney General

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:

Bank of Guam 10.557 Special Supplemental Nutrition Program for Women, Infants, and Children

Bank of Guam 15.875 Economic, Social, and Political Development of the Territories and the Freely Associated States

Bank of Guam 20.205 Highway Planning and Construction

Bank of Guam 66.600 EPA Consolidated Grant

Bank of Guam 93.778 Medical Assistance Program

FIS Global 10.551 Supplemental Nutrition Assistance Program

6.0 FUNDING TECHNIQUES

6.1 General Terms

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

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.

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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 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.

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Additional guidance on this policy is provided in the U.S. Department of Health & Human Services, Administration for

Children and Families, letter (May 19, 2004) to State Administrators from the Deputy Assistant Secretary for

Administration.

6.1.5 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 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

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Supplemental funding requests should be made by completing the appropriate ACF quarterly report of expenditures and

estimates applicable to the particular program for which the grant award request is being made.

d. Approval Process

Upon receipt of the state's request for additional funding authority for a quarter, the ACF Regional Office will promptly

review the supporting documentation. If the request is properly justified, so long as ACF has adequate funding

availability, the State's request will be expedited and supplemental funding will be issued within 5 days of ACF receiving

the request. The State will be notified by the Regional Office when the supplemental award has been transmitted to the

Payment Management System (PMS) and when it may initiate drawdowns against the supplemental funding.

Additional guidance on this policy is provided in the U.S. Department of Health & Human Services, Administration for

Children and Families, letter (May 19, 2004) to State Administrators from the Deputy Assistant Secretary for

Administration.

6.2 Description of Funding Techniques

6.2.1 The following are terms under which standard funding techniques shall be implemented for all transfers of funds to

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

Actual Clearance, ZBA - 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.

Payment Schedule - Weekly

The 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 of the request shall be a prorated share of the lesser of (1) the annual grant divided by 52, or (2) the total amount

of Federal funds expected to be paid out for program purposes during the year divided by 52. 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.

Direct Administrative Costs - Drawdowns on a Payroll Cycle

The State shall request funds for all direct administrative costs such that they are deposited on the dollar-weighted

average date of clearance of payroll. The request shall be made in accordance with the appropriate Federal agency cutoff time specified in Exhibit I. The amount of funds requested shall be based on the amount of liabilities recorded for direct

administrative costs since the last request for funds. This funding technique is interest neutral.

6.2.3 The following are terms under which miscellaneous funding techniques shall be implemented for all transfers of

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

There are no funding techniques listed in Section 6.2.3

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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.

There are no funding techniques listed in Section 6.2.4

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 Public Health and Social Services

% of Funds Agency Receives: 100.00

Component: Benefits

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: N/A

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

Recipient: Department of Public Health and Social Services

% of Funds Agency Receives: 5.00

Component: payroll

Technique: Direct Administrative Costs - Drawdowns on a Payroll Cycle

Average Day of Clearance: 3 Days

Recipient: Department of Public Health and Social Services

% of Funds Agency Receives: 55.00

Component: Vendor Payments - on island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

Recipient: Department of Public Health and Social Services

% of Funds Agency Receives: 40.00

Component: Vendor Payments - off island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

12.401 National Guard Military Operations and Maintenance (O&M) Projects

Recipient: Department of Military Affairs

% of Funds Agency Receives: 100.00

Component: Vendor Payment - On Island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

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15.605 Sport Fish Restoration

Recipient: Department of Agriculture

% of Funds Agency Receives: 100.00

Component: Vendor Payment - On Island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

15.875 Economic, Social, and Political Development of the Territories and the Freely Associated States

Recipient: Guam Police Department

% of Funds Agency Receives: 5.00

Component: payroll

Technique: Direct Administrative Costs - Drawdowns on a Payroll Cycle

Average Day of Clearance: 3 Days

Recipient: Department of Public Works

% of Funds Agency Receives: 6.00

Component: payroll

Technique: Direct Administrative Costs - Drawdowns on a Payroll Cycle

Average Day of Clearance: 3 Days

Recipient: Department of Administration

% of Funds Agency Receives: 2.00

Component: Vendor Payments- Off Island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

Recipient: Department of Administration

% of Funds Agency Receives: 2.00

Component: Vendor Payments-On Island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

Recipient: Department of Public Health and Social Services

% of Funds Agency Receives: 15.00

Component: Vendor Payments - off island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

Recipient: Department of Bureau Planning and Statistics

% of Funds Agency Receives: 7.00

Component: Vendor Payments - off island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

Recipient: Guam Police Department

% of Funds Agency Receives: 12.00

Component: Vendor Payments - off island

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Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

Recipient: Department of Public Health and Social Services

% of Funds Agency Receives: 4.00

Component: Vendor Payments - on island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

Recipient: Guam Police Department

% of Funds Agency Receives: 10.00

Component: Vendor Payments - on island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

Recipient: Guam Fire Department

% of Funds Agency Receives: 10.00

Component: Vendor Payments - off island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

Recipient: Guam Fire Department

% of Funds Agency Receives: 7.00

Component: Vendor Payments - on island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

Recipient: Guam Fire Department

% of Funds Agency Receives: 10.00

Component: Vendor Payments - On Island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

Recipient: Department of Bureau Planning and Statistics

% of Funds Agency Receives: 10.00

Component: Vendor Payments - On-Island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

17.258 WIA Adult Program

Recipient: Agency For Human Resources Development

% of Funds Agency Receives: 100.00

Component: Vendor Payment - On Island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

20.205 Highway Planning and Construction

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Recipient: Department of Public Works

% of Funds Agency Receives: 5.00

Component: payroll

Technique: Direct Administrative Costs - Drawdowns on a Payroll Cycle

Average Day of Clearance: 3 Days

Recipient: Department of Public Works

% of Funds Agency Receives: 35.00

Component: Vendor Payments - off island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

Recipient: Department of Public Works

% of Funds Agency Receives: 60.00

Component: Vendor Payments - on island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

66.600 EPA Consolidated Grant

Recipient: Guam Environmental Protection Agency

% of Funds Agency Receives: 52.00

Component: payroll

Technique: Direct Administrative Costs - Drawdowns on a Payroll Cycle

Average Day of Clearance: 3 Days

Recipient: Guam Environmental Protection Agency

% of Funds Agency Receives: 24.00

Component: Vendor Payments - off island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

Recipient: Guam Environmental Protection Agency

% of Funds Agency Receives: 24.00

Component: Vendor Payments - on island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

81.128 Energy Efficiency and Conservation Block Grant Program

Recipient: Guam Energy Office

% of Funds Agency Receives: 100.00

Component: Vendor Payment - On Island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

84.394 State Fiscal Stabilization Fund (SFSF) - Education State Grants, Recovery Act

Recipient: Guam Department of Education

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% of Funds Agency Receives: 100.00

Component: Vendor Payments - On Island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families

Recipient: Department of Public Health and Social Services

% of Funds Agency Receives: 100.00

Component: Vendor Payments - On Island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

93.563 Child Support Enforcement

Recipient: Office of the Attorney General

% of Funds Agency Receives: 100.00

Component: Vendor Payment - On Island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

93.575 Child Care and Development Block Grant

Recipient: Department of Public Health and Social Services

% of Funds Agency Receives: 100.00

Component: Vendor Payments - On Island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

93.667 Social Services Block Grant

Recipient: Department of Public Health and Social Services

% of Funds Agency Receives: 100.00

Component: Vendor Payment - On Island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

93.767 Children's Health Insurance Program

Recipient: Department of Public Health and Social Services

% of Funds Agency Receives: 100.00

Component: Vendor Payments - On Island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: Department of Public Health and Social Services

% of Funds Agency Receives: 10.00

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Component: payroll

Technique: Direct Administrative Costs - Drawdowns on a Payroll Cycle

Average Day of Clearance: 3 Days

Recipient: Department of Public Health and Social Services

% of Funds Agency Receives: 10.00

Component: Vendor Payments - on island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

Recipient: Department of Public Health and Social Services

% of Funds Agency Receives: 70.00

Component: benefits

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

Recipient: Department of Public Health and Social Services

% of Funds Agency Receives: 10.00

Component: Vendor Payments - off island

Technique: Payment Schedule - Weekly

Average Day of Clearance: N/A

6.3.3 Materiality Exemptions

Agencies exempt from coverage on the basis of materiality:

None

7.0 CLEARANCE PATTERNS

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

Functional payments for Benefit payments, vendor payments, administrative and indirect costs.

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

Guam Department of Administration

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

Budget & Accounting Information System (BACIS)/AS400 Platform

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.

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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:

Not Applicable

7.8 Each of the State's clearance patterns is calculated in business 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 - Same Day Payment

Direct Administrative Costs - Drawdowns on a Payroll Cycle

Payment Schedule - Weekly

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

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(4) amount of Federal funds received

(5) date funds were requested

8.2 Federal Interest Liabilities

8.2.1 A Federal interest liability shall accrue from the day the State pays out its own funds for program purposes to the

day Federal funds are credited to a State account. With regard to funds transferred out of the Federal Highway Trust

Fund, if a State does not bill at least weekly for current project costs, the Federal interest liability shall not accrue prior to

the day the State submits a request for funds.

8.2.2 The State shall use the following method to calculate Federal interest liabilities:

For all transactions where the State pays out its own funds for program purposes prior to receiving Federal funds, the

State shall track each payment from the date it is paid out of a State account to the date Federal funds are subsequently

credited to a State account to cover that outlay. The Federal interest liability on each payment shall be based on the

difference in whole days between the two events. With Federal-State matching programs, interest shall be calculated on

the Federal percentage of the disbursement.

8.3 The Unemployment Trust Fund

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

accounts in the Unemployment Trust Fund:

UTF does not apply

8.4 Refund Liabilities

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

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

threshold below which the State shall not incur or calculate interest liabilities on refunds. A transaction is defined as a

single deposit.

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

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

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

(3) amount of the refund

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

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

based on the difference in whole days between the date the refund is deposited in a State account and the date the

refund is offset against a subsequent deposit of Federal funds.

8.5 Exemptions

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

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

% of the State's threshold for major Federal assistance programs. Notwithstanding this potential exemption, however, in

no case shall less than 90% of a program's total funding be subject to interest calculation procedures.

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

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

8.6 State Interest Liabilities

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

until the date those funds are paid out for program purposes.

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

8.6.2.1 Measuring Time Funds Are Held

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

received and 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

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, 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:

Page 15 of 21
Direct Cost Claims for calculating interest and development and maintenance of Clearance Patterns.

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 16 of 21
12.0 AUTHORIZED SIGNATURES

Rosita T. Fejeran

Treasurer of Guam

Signature:________________________________________Date Signed:_______________

Date Submitted 06/01/2020

Corvelli A. McDaniel

Assistant Commissioner

Revenue Collections Management

Bureau of the Fiscal Service

U.S. Department of the Treasury

Signature:________________________________________Date Signed:_______________

Page 17 of 21

Rosita T. Fejeran (Nov 9, 2020 13:00 GMT+10)

Nov 9, 2020

Sandra R. Paylor (Nov 10, 2020 11:35 EST) Sandra R. Paylor

Nov 10, 2020
Exhibit I - Funds Request and Receipt Times Schedule

Territory of Guam

Federal Agency Payment Type Request Cut-Off Time Receipt Window

Agriculture-FNS ACH 11:59 PM 1 day

Agriculture-FNS Fedwire 5:45 PM 0 day

Agriculture-FS ACH 3:00 PM 1 day

Air National Guard ACH 12:00 PM 15 days

Army National Guard ACH 12:00 PM 15 days

Commerce-NOAA ACH 2:00 PM 1 day

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

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

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

EPA ACH 2:00 PM 2 days

EPA Fedwire 2:00 PM 0 day

Education ACH 3:00 PM 1 day

Education Fedwire 2:00 PM 0 day

Energy ACH 4:00 PM 1 day

Energy Fedwire 3:00 PM 0 day

HHS ACH 5:00 PM 1 day

HHS Fedwire 3:00 PM 0 day

HUD ACH 5:30 PM 2 days

HUD Fedwire 3:00 PM 0 day

Interior-FWS ACH 11:59 PM 1 day

Interior-FWS Fedwire 5:45 PM 0 day

Interior-OSM ACH 3:00 PM 1 day

Interior-OSM Fedwire 1:00 PM 0 day

Justice ACH 11:00 PM 6 days

Justice Fedwire 2:00 PM 2 days

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

Labor-UTF ACH 3:00 PM 1 day

Labor-UTF Fedwire 3:00 PM 0 day

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

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

Social Security Administration ACH 11:59 PM 1 day

Social Security Administration Fedwire 5:45 PM 0 day

Transportation (FAA) ACH 2:00 PM 1 day

Transportation (FHWA) ACH 12:00 PM 3 days

Transportation (FHWA) Fedwire 12:00 PM 0 day

Transportation (FTA) ACH 2:00 PM 1 day

Veterans Administration ACH 12:00 PM 3 days

Page 18 of 21
Exhibit II - Territory of Guam

LIST OF STATE CLEARANCE TIMES

(Rounded Dollar-Weighted Average Day of Clearance)

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

Pattern

CFDA Program Name Recipient % Component Technique Round

ed

days

10.551 Supplemental Nutrition

Assistance Program

Department of Public

Health and Social

Services

100.

00

Benefits Actual Clearance, ZBA -

Same Day Payment

N/A

10.557 Special Supplemental

Nutrition Program for

Women, Infants, and

Children

Department of Public

Health and Social

Services

5.00 payroll Direct Administrative

Costs - Drawdowns on a

Payroll Cycle

3 Days

10.557 Special Supplemental

Nutrition Program for

Women, Infants, and

Children

Department of Public

Health and Social

Services

40.0

0

Vendor Payments - off

island

Payment Schedule -

Weekly

N/A

10.557 Special Supplemental

Nutrition Program for

Women, Infants, and

Children

Department of Public

Health and Social

Services

55.0

0

Vendor Payments - on

island

Payment Schedule -

Weekly

N/A

12.401 National Guard Military

Operations and

Maintenance (O&M)

Projects

Department of Military

Affairs

100.

00

Vendor Payment - On

Island

Payment Schedule -

Weekly

N/A

15.605 Sport Fish Restoration Department of Agriculture 100.

00

Vendor Payment - On

Island

Payment Schedule -

Weekly

N/A

15.875 Economic, Social, and

Political Development of

the Territories and the

Freely Associated States

Department of

Administration

2.00 Vendor Payments- Off

Island

Payment Schedule -

Weekly

N/A

15.875 Economic, Social, and

Political Development of

the Territories and the

Freely Associated States

Department of

Administration

2.00 Vendor Payments-On

Island

Payment Schedule -

Weekly

N/A

15.875 Economic, Social, and

Political Development of

the Territories and the

Freely Associated States

Department of Bureau

Planning and Statistics

10.0

0

Vendor Payments - OnIslandPayment Schedule -

Weekly

N/A

15.875 Economic, Social, and

Political Development of

the Territories and the

Freely Associated States

Department of Bureau

Planning and Statistics

7.00 Vendor Payments - off

island

Payment Schedule -

Weekly

N/A

15.875 Economic, Social, and

Political Development of

the Territories and the

Freely Associated States

Department of Public

Health and Social

Services

15.0

0

Vendor Payments - off

island

Payment Schedule -

Weekly

N/A

15.875 Economic, Social, and

Political Development of

the Territories and the

Freely Associated States

Department of Public

Health and Social

Services

4.00 Vendor Payments - on

island

Payment Schedule -

Weekly

N/A

15.875 Economic, Social, and

Political Development of

the Territories and the

Freely Associated States

Department of Public

Works

6.00 payroll Direct Administrative

Costs - Drawdowns on a

Payroll Cycle

3 Days

Page 19 of 21
CFDA Program Name Recipient % Component Technique Round

ed

days

15.875 Economic, Social, and

Political Development of

the Territories and the

Freely Associated States

Guam Fire Department 10.0

0

Vendor Payments - On

Island

Payment Schedule -

Weekly

N/A

15.875 Economic, Social, and

Political Development of

the Territories and the

Freely Associated States

Guam Fire Department 10.0

0

Vendor Payments - off

island

Payment Schedule -

Weekly

N/A

15.875 Economic, Social, and

Political Development of

the Territories and the

Freely Associated States

Guam Fire Department 7.00 Vendor Payments - on

island

Payment Schedule -

Weekly

N/A

15.875 Economic, Social, and

Political Development of

the Territories and the

Freely Associated States

Guam Police Department 5.00 payroll Direct Administrative

Costs - Drawdowns on a

Payroll Cycle

3 Days

15.875 Economic, Social, and

Political Development of

the Territories and the

Freely Associated States

Guam Police Department 12.0

0

Vendor Payments - off

island

Payment Schedule -

Weekly

N/A

15.875 Economic, Social, and

Political Development of

the Territories and the

Freely Associated States

Guam Police Department 10.0

0

Vendor Payments - on

island

Payment Schedule -

Weekly

N/A

17.258 WIA Adult Program Agency For Human

Resources Development

100.

00

Vendor Payment - On

Island

Payment Schedule -

Weekly

N/A

20.205 Highway Planning and

Construction

Department of Public

Works

5.00 payroll Direct Administrative

Costs - Drawdowns on a

Payroll Cycle

3 Days

20.205 Highway Planning and

Construction

Department of Public

Works

35.0

0

Vendor Payments - off

island

Payment Schedule -

Weekly

N/A

20.205 Highway Planning and

Construction

Department of Public

Works

60.0

0

Vendor Payments - on

island

Payment Schedule -

Weekly

N/A

66.600 EPA Consolidated Grant Guam Environmental

Protection Agency

52.0

0

payroll Direct Administrative

Costs - Drawdowns on a

Payroll Cycle

3 Days

66.600 EPA Consolidated Grant Guam Environmental

Protection Agency

24.0

0

Vendor Payments - off

island

Payment Schedule -

Weekly

N/A

66.600 EPA Consolidated Grant Guam Environmental

Protection Agency

24.0

0

Vendor Payments - on

island

Payment Schedule -

Weekly

N/A

81.128 Energy Efficiency and

Conservation Block Grant

Program

Guam Energy Office 100.

00

Vendor Payment - On

Island

Payment Schedule -

Weekly

N/A

84.394 State Fiscal Stabilization

Fund (SFSF) - Education

State Grants, Recovery

Act

Guam Department of

Education

100.

00

Vendor Payments - On

Island

Payment Schedule -

Weekly

N/A

93.558 Temporary Assistance for

Needy Families

Department of Public

Health and Social

Services

100.

00

Vendor Payments - On

Island

Payment Schedule -

Weekly

N/A

93.563 Child Support

Enforcement

Office of the Attorney

General

100.

00

Vendor Payment - On

Island

Payment Schedule -

Weekly

N/A

93.575 Child Care and

Development Block Grant

Department of Public

Health and Social

Services

100.

00

Vendor Payments - On

Island

Payment Schedule -

Weekly

N/A

93.667 Social Services Block

Grant

Department of Public

Health and Social

Services

100.

00

Vendor Payment - On

Island

Payment Schedule -

Weekly

N/A

93.767 Children's Health

Insurance Program

Department of Public

Health and Social

Services

100.

00

Vendor Payments - On

Island

Payment Schedule -

Weekly

N/A

93.778 Medical Assistance

Program

Department of Public

Health and Social

Services

10.0

0

payroll Direct Administrative

Costs - Drawdowns on a

Payroll Cycle

3 Days

Page 20 of 21
________________________________________________________________________________________________________

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

Exhibit 2 of this Treasury-State Agreement:

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

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

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

4. Are auditable.

Date: ___________________________________________________________

Printed Name: ____________________________________________________

Certifying Signature: _______________________________________________

Title: ___________________________________________________________

CFDA Program Name Recipient % Component Technique Round

ed

days

93.778 Medical Assistance

Program

Department of Public

Health and Social

Services

10.0

0

Vendor Payments - off

island

Payment Schedule -

Weekly

N/A

93.778 Medical Assistance

Program

Department of Public

Health and Social

Services

10.0

0

Vendor Payments - on

island

Payment Schedule -

Weekly

N/A

93.778 Medical Assistance

Program

Department of Public

Health and Social

Services

70.0

0

benefits Payment Schedule -

Weekly

N/A

Page 21 of 21

Rosita T. Fejeran (Nov 9, 2020 13:00 GMT+10)

Treasurer of Guam Nov 9, 2020 Rosita T. Fejeran