DocuSign Envelope ID: 126255EE-F794-4D6A-960B-92262D586B6E

For each check in the sample population, the State shall:
1 subtract the deposit date from the issuance date

2 multiply the difference of step 1 by the check amount

3 divide the product of step 2 by the total amount of funds drawn in the sample to determine the dollar-weighted pre-issuance time for
that check

The State shall then sum the dollar-weighted pre-issuance time for each check to arrive at the total dollar-weighted average pre-issuance
time to be used for calculating State interest liabilities.

8.6.2.4 Calculation Procedure

T= ADB x RXN, where
I= State's total interest liability
ADB = Average Daily Balance of cash in a program's account, measured from deposit to clearance

R = Daily interest rate equal to the average equivalent yields of 13-week Treasury bills auctioned during a State's fiscal year
obtained from:
https://www. fiscal. treasury. gov/fsservices/gov/rvnColl/emias/rvnColl_cmia_rates.htm

N = Number of business days cash was advance funded (i.e. drawdown requested too early and not in compliance with
established funding technique) or received late to the designated State account.

9.0 REVERSE FLOW PROGRAMS

The State is not required to cover any reverse flow programs under the terms of this Agreement because the program falls below
the State's threshold.

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:

Annual calculation of interest liabilities.

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.

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DocuSign Envelope ID: 126255EE-F794-4D6A-960B-92262D586B6E

6.2.1 The following are terms under which standard funding techniques shall be implemented for all transfers of funds to which the
funding technique is applied in section 6.3.2 of this Agreement.

Funding Technique Name Description

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

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

Funding Technique Name Description
Capitalization Grants for State Revolving The State shall request funds to minimize the time between the drawdown of funds
Funds from Treasury and their deposit into the revolving fund. The timing of the drawdown

of Federal funds for deposit to the revolving fund is subject to the interest provisions
of 31 CFR Part 205, however there is an interest exemption for the interest the State
earns once the funds are deposited into the revolving fund. The request for funds
shall be made in accordance with the appropriate Federal agency cut-off time
specified in Exhibit I. The amount of the request shall be for the amount of the funds
to be used for immediate program purposes. The State will not incur an interest
liability for interest earned on revolving fund loans. This funding technique is interest
neutral.

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

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

Funding Technique Name Description

Actual Draw - Monthly The State shall request funds monthly after the allocation of funds has been processed
by the State's financial system. Requests shall be made in accordance with the cut-off
time(s) in Exhibit 1. Amount(s) requested shall be based on actual expenditures over
the prior month. This funding technique is interest neutral.

‘Actual Draw - Quarterly The State shall request funds once a quarter after federal reporting has been
completed. The amount of the request shall be based on the actual costs of the prior
quarter that have been allocated to the program in accordance with the Department's
approved cost allocation plan. This funding technique is interest neutral.

Actual Draw - Twice Weekly The State shall request funds up to twice weekly through the use of the Department's
Current Bill system which calculates invoices processed in the prior period. The State
shall request funds in accordance with applicable cut-off times in Exhibit I. The
amount requested shall be based on actual costs of the prior period. This funding
technique is interest neutral.

Actual Draw - Weekly The State shall request reimbursement up to twice per week. The State shall request
funds in accordance with applicable cut-off times in Exhibit 1. The amount requested
shall be based on actual expenditures over the prior period. This funding technique is
interest neutral.

Page 5 of 19


DocuSign Envelope ID: 126255EE-F794-4D6A-960B-92262D586B6E

84.010 Title I Grants to Department of 98.0 | Direct Program Average Clearance | 1 Day
Local Educational Education
Agencies
Title I Grants to Department of 2.0 Administrative Actual Draw - N/A
Local Educational Education Monthl
Agencies y
84.027 Special Education Department of 95.0 Direct Program Average Clearance 1 Day
-- Grants to States Education
Special Education Department of 5.0 Administrative Actual Draw - N/A
-- Grants to States Education Monthly
84.425 Education Department of 99.3 Direct Program Average Clearance 1 Day
Stabilization Fund Education
Education Department of 0.7 Administrative Actual Draw - 1 Day
Stabilization Fund Education Monthly
93.323 Epidemiology and Department of 100.0 | Direct Average Clearance 1 Day
Laboratory Health and _
Capacity for Human Services
Infectious
Diseases (ELC)
93.558 Temporary Department of 85.0 Direct Program Average Clearance 1 Day
Assistance for Health and
Needy Families Human Services
Temporary Department of 15.0 Administrative Costs | Cost Allocation N/A
Assistance for Health and _ Plans - Monthly
Needy Families Human Services
93.563 Child Support Department of 100.0 | Administrative Cost Allocation N/A
Enforcement Health and _ Plans - Monthly
Human Services
93.568 Low-Income Department of 98.0 | Direct Program Actual Draw - N/A
lome Energ nergy
Assistance ” . Monthly
Low-Income Department of 2.0 Administrative Costs_| Actual Draw - N/A
Home Energy Energy Monthly
Assistance
93.575 Child Care and Department of 100.0 | Direct Program Average Clearance 1 Day
Development Health and _
Block Grant Human Services
93.596 Child Care Department of 90.0 | Direct Program Average Clearance | 3 Days
Mandatory and Health and
Matching Funds Human Services
of the Child Care
and Development
Fund
Child Care 4 Department of 10.0 Administrative Costs | Cost Allocation N/A
landatory anc lealth an .
Matching Funds Human Services Plans - Monthly
of the Child Care
and Development
Fund
93.658 Foster Care -- Department of 90.0 Direct Program Average Clearance 3 Days
Title IV-E Health and |
Human Services
Foster Care -- Department of 10.0 Administrative Costs | Cost Allocation N/A
Title IV-E Health and | Plans - Monthly
Human Services °

Page 18 of 19


DocuSign Envelope ID: 126255EE-F794-4D6A-960B-92262D586B6E

Component: Administrative Costs
Technique: Cost Allocation Plans - Monthly
Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: Department of Health and Human Services
% of Funds Agency Receives: 90

Component: Direct Program

Technique: Average Clearance

Average Day of Clearance: 1 Day

93.778 Medical Assistance Program

Recipient: Department of Health and Human Services
% of Funds Agency Receives: 10

Component: Administrative Costs

Technique: Cost Allocation Plans - Monthly

Average Day of Clearance: N/A

93.788 State Targeted Response to the Opioid Crisis Grants
Recipient: Department of Health and Human Services

% of Funds Agency Receives: 90

Component: Direct Program

Technique: Average Clearance

Average Day of Clearance: 5 Days

93.788 State Targeted Response to the Opioid Crisis Grants
Recipient: Department of Health and Human Services

% of Funds Agency Receives: 10

Component: Administrative Costs

Technique: Cost Allocation Plans - Monthly

Average Day of Clearance: N/A

97.036 Disaster Grants - Public Assistance (Presidentially Declared
Disasters)
Recipient: Department of Safety
% of Funds Agency Receives: 100
Component: Direct
Technique: Actual Draw - Quarterly
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:
Average Clearance
7.2 The following shall develop the State's clearance patterns:
NH State Treasury

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

For the first year that a program is incorporated under this Agreement the State shall use Fiscal Service-provided clearance patterns if
available or the clearance pattern of a program currently in compliance with the Act that most closely compares with the newly

Page 10 of 19


DocuSign Envelope ID: 126255EE-F794-4D6A-960B-92262D586B6E

Technique: Actual Draw - Monthly
Average Day of Clearance: N/A

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

Recipient: Department of Military Affairs and Veteran Services

% of Funds Agency Receives: |

Component: Administrative

Technique: Actual Draw - Quarterly

Average Day of Clearance: N/A

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

Recipient: Department of Employment Security

% of Funds Agency Receives: |

Component: Direct Costs

Technique: Average Clearance

Average Day of Clearance: 2 Days

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

Recipient: Department of Employment Security

% of Funds Agency Receives: 99

Component: Administrative Costs

Technique: Estimated Draw - Bi-Weekly Other

Average Day of Clearance: N/A

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

% of Funds Agency Receives: 100

Component: Direct Program

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

20.205 Highway Planning and Construction
Recipient: Department of Transportation

% of Funds Agency Receives: 10
Component: Administrative Costs
Technique: Actual Draw - Twice Weekly
Average Day of Clearance: N/A

20.205 Highway Planning and Construction
Recipient: Department of Transportation

% of Funds Agency Receives: 90
Component: Direct Program

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

66.458 Capitalization Grants for Clean Water State Revolving Funds
Recipient: Department of Environmental Services

% of Funds Agency Receives: 6

Component: Administrative Costs

Technique: Cost Allocation Plans - Quarterly - Other

Average Day of Clearance: N/A

66.458 Capitalization Grants for Clean Water State Revolving Funds
Recipient: Department of Environmental Services

% of Funds Agency Receives: 94

Component: Direct Program

Technique: Capitalization Grants for State Revolving Funds

Page 7 of 19


DocuSign Envelope ID: 126255EE-F794-4D6A-960B-92262D586B6E

Cost Allocation Plans - Monthly The state shall request funds monthly once Cost Allocation is available to fund
activity of the prior month. The request shall be made in accordance with the
appropriate Federal agency cut-off time specified in Exhibit I. The requested amount
shall be based on actual costs distributed in accordance with the approved cost
allocation plan. This funding technique is interest neutral.

Cost Allocation Plans - Quarterly - Other The state shall request funds no less than quarterly once Cost Allocation is available to
fund activity of the prior Quarter. The request shall be made in accordance with the
appropriate Federal agency cut-off time specified in Exhibit I. The requested amount
shall be based on actual costs distributed in accordance with the approved cost
allocation plan. This funding technique is interest neutral.

Estimated Draw - Bi-Weekly Other The State shall request funds bi-weekly. The request shall be made in accordance with
the appropriate Federal agency cut-off time specified in Exhibit I. The amount of the
draw for each bi-weekly period shall be an estimate based on the average cost
allocations of the prior three month period and immediate cash needs. The bi-weekly
draws will be adjusted to actual once a month once cost allocation is completed.
Adjustments will be made by reducing or increasing the subsequent draw. 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.

10.542 Pandemic EBT Food Benefits

Recipient: Department of Health and Human Services
% of Funds Agency Receives: 100

Component: Direct Program

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

10.551 Supplemental Nutrition Assistance Program
Recipient: Department of Health and Human Services
% of Funds Agency Receives: 100

Component: Direct Program

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

10.553 School Breakfast Program
Recipient: Department of Education
% of Funds Agency Receives: 100
Component: Direct Program
Technique: Average Clearance
Average Day of Clearance: 1 Day

10.555 National School Lunch Program
Recipient: Department of Education

% of Funds Agency Receives: 100
Component: Direct Program
Technique: Average Clearance
Average Day of Clearance: | Day

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

Recipient: Department of Military Affairs and Veteran Services

% of Funds Agency Receives: 99

Component: Direct Program

Page 6 of 19


DocuSign Envelope ID: 126255EE-F794-4D6A-960B-92262D586B6E

93.778 Medical Department of 90.0 | Direct Program Average Clearance | 1 Day
Assistance Health and
Program Human Services
Medical Department of 10.0 | Administrative Costs | Cost Allocation N/A
ssistance lealth an
Program Human Services Plans - Monthly
93.788 State Targeted Department of 90.0 | Direct Program Average Clearance 5 Days
Response to the Health and
Opioid Crisis Human Services
Grants
State Targeted Department of 10.0 | Administrative Costs | Cost Allocation N/A
Response to the Health and Plans - Monthl.
Opioid Crisis Human Services y
Grants
97.036 Disaster Grants - ay artment of 100.0 | Direct Actual Draw - N/A
ublic Assistance afety
(Presidentially Quarterly
eclared
Disasters)
Certification

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

in Exhibit 2 of this Treasury-State Agreement:

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

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

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

4. Are auditable.

8/1/2023

Date:

Printed Name:

Certifying Signature:

Title:

Rachel Miller

Docusigned by:

Redlal, Miller

Chief Deputy State Treasurer

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DocuSign Envelope ID: 126255EE-F794-4D6A-960B-92262D586B6E

93.558 Temporary Assistance for Needy Families
Recipient: Department of Health and Human Services
% of Funds Agency Receives: 15

Component: Administrative Costs

Technique: Cost Allocation Plans - Monthly

Average Day of Clearance: N/A

93.563 Child Support Enforcement

Recipient: Department of Health and Human Services
% of Funds Agency Receives: 100

Component: Administrative

Technique: Cost Allocation Plans - Monthly

Average Day of Clearance: N/A

93.568 Low-Income Home Energy A:
Recipient: Department of Energy

% of Funds Agency Receives: 98
Component: Direct Program
Technique: Actual Draw - Monthly
Average Day of Clearance: N/A

93.568 Low-Income Home Energy Assistance
Recipient: Department of Energy

% of Funds Agency Receives: 2

Component: Administrative Costs

Technique: Actual Draw - Monthly

Average Day of Clearance: N/A

93.575 Child Care and Development Block Grant
Recipient: Department of Health and Human Services
% of Funds Agency Receives: 100

Component: Direct Program

Technique: Average Clearance

Average Day of Clearance: 1 Day

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

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 90

Component: Direct Program

Technique: Average Clearance

Average Day of Clearance: 3 Days

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

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 10

Component: Administrative Costs

Technique: Cost Allocation Plans - Monthly

Average Day of Clearance: N/A

93.658 Foster Care -- Title IV-E

Recipient: Department of Health and Human Services
% of Funds Agency Receives: 90

Component: Direct Program

Technique: Average Clearance

Average Day of Clearance: 3 Days

93.658 Foster Care -- Title IV-E
Recipient: Department of Health and Human Services
% of Funds Agency Receives: 10

Page 9 of 19


DocuSign Envelope ID: 126255EE-F794-4D6A-960B-92262D586B6E

Cash Management Improvement Act Agreement
between
The State of New Hampshire
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 New Hampshire
(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 New Hampshire shall be the Chief Deputy State Treasurer in all matters concerning
this Agreement.

1.2 The Assistant Commissioner, Revenue Collections Management, Bureau of the Fiscal Service (Fiscal Service), U.S.
Department of the Treasury, shall act as the Secretary's representative in all matters concerning this Agreement.

2.0 AUTHORITY

2.1 The authority for this Agreement is the Cash Management Improvement Act of 1990 (Public Law 101-453), as amended by
the Cash Management Improvement Act of 1992 (Public Law 102-589), codified at 31 U.S.C. 6501 and 31
U.S.C. 6503.

2.2 The regulations codified at 31 CFR Part 205 shall apply to all matters pertaining to this Agreement, and are incorporated
herein by reference. In the event of any inconsistency between this Agreement and 31 CFR Part 205, the regulations shall govern.

3.0 DURATION, AMENDING, TERMINATING, AND MISCELLANEOUS PROVISIONS
3.1 This Agreement shall take effect on 07/01/2023 and shall remain in effect until 06/30/2024.

3.2 This Agreement may be amended at any time by written, mutual consent of the State and the Fiscal Service. This Agreement shall
be amended annually to incorporate new programs that qualify as major Federal assistance programs and remove programs that no
longer qualify as major Federal assistance programs. A State must notify the Fiscal Service in writing within 30 days of the time the
State becomes aware of a change that involves additions or deletions of programs subject to Subpart A, changes in funding
techniques, and/or changes in clearance patterns. The notification must include a proposed amendment for review by the Fiscal
Service.

3.3 Notwithstanding section 3.2, in the event of Federal or State non-compliance with Subpart B of 31 CFR, Part 205, the Fiscal
Service may amend this Agreement at any time to incorporate additional programs and the entities that administer those programs.

3.4 This Agreement may be terminated by either party with 30 days written notice. If this Agreement is terminated, the Fiscal
Service will prescribe the funding techniques, clearance patterns, and methods for calculating interest liabilities to be used by the
State.

Page | of 19


DocuSign Envelope ID: 126255EE-F794-4D6A-960B-92262D586B6E

Actual Draw - Weekly
Average Clearance

Capitalization Grants for State Revolving Funds
Cost Allocation Plans - Monthly

Cost Allocation Plans - Quarterly - Other
Estimated Draw - Bi-Weekly Other

8.1.2 The State shall maintain information on disbursements and receipts of funds to verify the implementation of any funding
technique and document interest liabilities.

For each disbursement, the State shall be able to identify:

(1) amount of the issuance

(2) date of issuance

(3) date Federal funds are received and credited to a State account

(4) amount of Federal funds received

(5) date funds were requested

8.2 Federal Interest Liabilities

8.2.1 A Federal interest liability shall accrue from the day the State pays out its own funds for program purposes to the day Federal
funds are credited to a State account. With regard to funds transferred out of the Federal Highway Trust Fund, if a State does not bill
at least weekly for current project costs, the Federal interest liability shall not accrue prior to the day the State submits a request for
funds.

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

For all transactions where the State pays out its own funds for program purposes prior to receiving Federal funds, the State shall track
each payment from the date it is paid out of a State account to the date Federal funds are subsequently credited to a State account to
cover that outlay. The Federal interest liability on each payment shall be based on the difference in whole days between the two events.
With Federal-State matching programs, interest shall be calculated on the Federal percentage of the disbursement.

8.3 The Unemployment Trust Fund

8.3.1 The State shall use the following method to calculate State interest liabilities on funds withdrawn from the several accounts.
in the Unemployment Trust Fund:

The State shall use the following methodology to calculate State interest liabilities on funds withdrawn from the several accounts in the
UTF under the Unemployment Insurance program.

Based on statements provided by its financial institution, or other appropriate source, the State shall determine the actual interest
earnings and the related banking costs attributable to funds withdrawn from its account in the UTF.

At the end of the State's fiscal year, the State shall calculate the percentage of its total unemployment compensation expenditures for (1)
funds withdrawn from the State account in the UTF, or the State %, and (2) funds withdrawn from the Federal Employees
Compensation Account (FECA) and the Extended Unemployment Compensation Account (EUCA) and any other accounts of Federal
funds in the UTF, or the Federal %.

The State shall calculate the actual interest earnings and the related banking costs attributable to funds withdrawn from the State
account in the UTF by multiplying the State % by the amount of the actual interest earnings and the related banking costs of the account
as a whole. The State's liability for interest on funds withdrawn from its account in the UTF shall consist of the actual interest earnings
attributable to such funds less the related banking costs attributed to such funds.

The State shall determine the average daily cash balance of its unemployment compensation benefit payment account for its fiscal year.
The State shall calculate the average daily cash balance of Federal funds by multiplying the Federal % by the average daily cash balance
of the benefit payment account on the whole. The State's liability for interest on funds withdrawn from the FECA and EUCA (and any
other benefit accounts of Federal funds in the UTF from which the State draws funds) shall be the average daily cash balance of Federal
funds multiplied by the annualized rate equal to the average equivalent yields of 13-week Treasury bills auctioned during the State's
fiscal year.

Page 12 of 19


DocuSign Envelope ID: 126255EE-F794-4D6A-960B-92262D586B6E

complying program.
For years subsequent to the first year, the State shall use its accounting system data and bank account clearance data to determine an
accurate clearance pattern of each program. (For a summary of the results of clearance pattern calculations refer to Exhibit II).

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:

NA

The State shall also adjust each clearance pattern to reflect:

NA

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 - ACH
Actual Draw - Monthly
Actual Draw - Quarterly
Actual Draw - Twice Weekly

Page 11 of 19


DocuSign Envelope ID: 126255EE-F794-4D6A-960B-92262D586B6E

Average Day of Clearance: N/A

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

% of Funds Agency Receives: 98

Component: Direct Program

Technique: Average Clearance

Average Day of Clearance: | Day

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

% of Funds Agency Receives: 2

Component: Administrative

Technique: Actual Draw - Monthly

Average Day of Clearance: N/A

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

% of Funds Agency Receives: 95
Component: Direct Program

Technique: Average Clearance

Average Day of Clearance: | Day

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

% of Funds Agency Receives: 5
Component: Administrative

Technique: Actual Draw - Monthly
Average Day of Clearance: N/A

84.425 Education Stabilization Fund
Recipient: Department of Education
% of Funds Agency Receives: 99.3
Component: Direct Program
Technique: Average Clearance
Average Day of Clearance: 1 Day

84.425 Education Stabilization Fund
Recipient: Department of Education
% of Funds Agency Receives: .7
Component: Administrative
Technique: Actual Draw - Monthly
Average Day of Clearance: 1 Day

93.323 Epidemiology and Laboratory Capacity for Infectious Diseases
(ELC)

Recipient: Department of Health and Human Services

% of Funds Agency Receives: 100

Component: Direct

Technique: Average Clearance

Average Day of Clearance: | Day

93.558 Temporary Assistance for Needy Families
Recipient: Department of Health and Human Services
% of Funds Agency Receives: 85

Component: Direct Program

Technique: Average Clearance

Average Day of Clearance: 1 Day

Page 8 of 19


DocuSign Envelope ID: 126255EE-F794-4D6A-960B-92262D586B6E

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.

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

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DocuSign Envelope ID: 126255EE-F794-4D6A-960B-92262D586B6E
12.0 | AUTHORIZED SIGNATURES

Rachel K. Miller
Chief Deputy State Treasurer

DocuSigned by:

Signature: Kadluel Miller

Date Signed: 8/1/2023

GB25ACSOSOCESTT

Date Submitted 7/26/2023

Sandra R. Paylor

Assistant Commissioner

Revenue Collections Management
Bureau of the Fiscal Service

U.S. Department of the Treasury

Signature: [ sand a? aylor

Date Signed: 8/7/2023

cA CETSTESHUBIBE.

Page 15 of 19


DocuSign Envelope ID: 126255EE-F794-4D6A-960B-92262D586B6E

Exhibit II - State of New Hampshire
LIST OF STATE CLEARANCE TIMES
(Rounded Dollar-Weighted Average Day of Clearance)

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

CFDA Program Name Recipient % Component Technique Rounded
days
10.542 Pandemic EBT Department of 100.0 | Direct Program Actual Clearance, 0 Days
Food Benefits Health and | ZBA - ACH
Human Services
10.551 Supplemental Department of 100.0 | Direct Program Actual Clearance, 0 Days
Nutrition Health and ZBA - ACH
Assistance Human Services .
Program
10.553 School Breakfast Department of 100.0 | Direct Program Average Clearance 1 Day
Program Education
10.555 National School Department of 100.0 | Direct Program Average Clearance 1 Day
Lunch Program Education
12.401 National Guard Department of 99.0 Direct Program Actual Draw - N/A
Military Military Affairs Month:
Operations and and Veteran y
laintenance Services
(O&M) Projects
National Guard De rartment of 1.0 Administrative Actual Draw - N/A
ilitar ilita fairs
Oj erations and and Veteran Quarterly
laintenance Services
(O&M) Projects
17.225 Unemployment Department of 1.0 Direct Costs Average Clearance | 2 Days
F Insurance -- Employment
Federal Benefit Security
Account and
Administrative
Costs
{zemployment Pepartment of 99.0 Administrative Costs | Estimated Draw - N/A
insurance -~ mployment i
Federal Benefit Security Bi-Weekly Other
Account and
Administrative
Costs
17.225 Unemployment Department of 100.0 | Direct Program Actual Clearance, 0 Days
Ss Insurance -- State Employment ZBA - ACH
Benefit Account Security
20.205 | Highway Planning Department of 10.0 | Administrative Costs_| Actual Draw - N/A
and Construction Transportation Twice Weekl
Highway Planning Department of 90.0 | Direct Program Actual Draw - N/A
and Construction Transportation Twice Weekly
66.458 Capitalization Department of 6.0 Administrative Costs | Cost Allocation N/A
Grants for Clean Environmental Plans - Quarterly -
Water State Services y
Revolving Funds Other
Capitalization Department of 94.0 | Direct Program Capitalization N/A
Grants for Clean Environmental Grants for State
Water State Services .
Revolving Funds Revolving Funds

Page 17 of 19


DocuSign Envelope ID: 126255EE-F794-4D6A-960B-92262D586B6E

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:

Business & Economic Affairs Department
Department of Education

Department of Employment Security

Department of Energy

Department of Environmental Services

Department of Health and Human Services
Department of Military Affairs and Veteran Services
Department of Safety

Department of Transportation

Governor's Office for Emergency Relief and Recovery

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

Wells Fargo Bank 10.551 Supplemental Nutrition Assistance
Program

Citizens Bank 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.

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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DocuSign Envelope ID: 126255EE-F794-4D6A-960B-92262D586B6E

4.0 PROGRAMS COVERED

4.1 The State's threshold and its major Federal assistance programs shall be determined based on the State's most recently
completed Single Audit for fiscal year ending 06/30/2022.

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

Agreement.

4.2 The State's threshold for major Federal assistance programs is $10,573,581.

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

CFDA Program Name

10.542 Pandemic EBT Food Benefits

10.551 Supplemental Nutrition Assistance Program

10.553 School Breakfast Program

10.555 National School Lunch Program

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

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

17.2258 Unemployment Insurance -- State Benefit Account

20.205 Highway Planning and Construction

66.458 Capitalization Grants for Clean Water State Revolving Funds

84.010 Title I Grants to Local Educational Agencies

84.027 Special Education -- Grants to States

84.425 Education Stabilization Fund

93.323 Epidemiology and Laboratory Capacity for Infectious Diseases
(ELC)

93.558 Temporary Assistance for Needy Families

93.563 Child Support Enforcement

93.568 Low-Income Home Energy Assistance

93.575 Child Care and Development Block Grant

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

93.658 Foster Care -- Title 1V-E

93.778 Medical Assistance Program

93.788 State Targeted Response to the Opioid Crisis Grants

97.036 Disaster Grants - Public Assistance (Presidentially Declared
Disasters)

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

There are currently no programs listed for Section 4.3.

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

CFDA Program Name Exclusion Reason

21.019 Coronavirus Relief Fund Federal Statute - Full Exemption

21.023 Emergency Rental Assistance Program Federal Statute - Full Exemption

21.026 Homeowner Assistance Fund Federal Statute - Full Exemption

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

93.268 Immunization Cooperative Agreements Non-Cash

5.0 ENTITIES COVERED

Page 2 of 19



DocuSign Envelope ID: 126255EE-F794-4D6A-960B-92262D586B6E

8.4 Refund Liabilities

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

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

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

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

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

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

8.5 Exemptions

8.5.1 Where more than one State agency is a recipient of Federal funds under a program, a particular State agency's funding may be
excluded from interest calculation procedures if the State agency receives an amount of funds less than 5

% of the State's threshold for major Federal assistance programs. Notwithstanding this potential exemption, however, in no case
shall less than 90% of a program's total funding be subject to interest calculation procedures.

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

8.6 State Interest Liabilities

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

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

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

Central Accounting System: New Hampshire First (NH First) statewide financial and accounting system. Treasury relies
on agency reported drawdown dates (the date on which an agency drew down federal funds) and compares those to the
expenditure as well as subsequent cash receipt date. Federal programs are loaded in the NHFirst activity subsystem with
clearance pattern and other characteristics such that when an expenditure occurs, the system calculates what day federal
funds should be drawn down to be received in a State bank account on the same day that bank account is debited for the
expenditure. Reporting is based on running queries against the financial system. Treasury also validates the date the funds
are received by approving the cash receipt based on bank statements and/or on-line bank data.

8.6.2.3 Standards Applied
To measure the time Federal funds are held in a State account prior to being disbursed, the State shall use statistical sampling. The

sample shall be randomly selected, and shall be of sufficient size to ensure, at a minimum, a 95% confidence interval no wider than a
0.3 dollar-weighted days about the estimated mean.

Page 13 of 19


DocuSign Envelope ID: 126255EE-F794-4D6A-960B-92262D586B6E

Exhibit I - Funds Request and Receipt Times Schedule

State of New Hampshire
Federal Agency Payment Type | Request Cut-Off Time Receipt Window
Agriculture-FNS ‘ACH 11:59 PM I day
Agriculture-FNS Fedwire 3:45 PM Oday
Agriculture-FS ‘ACH 3:00 PM T day
Air National Guard ‘ACH 12:00 PM 15 days
Army National Guard ACH 12:00 PM 15 days
Commerce-NOAA ACH 2:00 PM 1 day
Dept of Homeland Security (FEMA) Fedwire 2:00 PM 2 days
Dept of Homeland Security (ODP) ACH 2:00 PM 2 days
Dept of Homeland Security (ODP) Fedwire 2:00 PM 2 days
EPA ACH 2:00 PM 2 days
EPA Fedwire 2:00 PM Oday
Education ‘ACH 3:00 PM T day
Education Fedwire 2:00 PM Oday
Energy ACH 4:00 PM I day
Energy Fedwire 3:00 PM 0 day
HHS ‘ACH 3:00 PM I day
HHS Fedwire 3:00 PM Oday
HUD ACH 5:30 PM 2 days
HUD Fedwire 3:00 PM 0 day
Interior-FWS ACH 11:59 PM 1 day
Interior-FWS Fedwire 5:45 PM 0 day
Interior-OSM ACH 3:00 PM 1 day
Interior-OSM Fedwire 1:00 PM 0 day
Justice ‘ACH 11:00 PM 6 days
Justice Fedwire 2:00 PM 2 days
Labor-Non-UTF ‘ACH 3:00 PM T day
Labor-UTF ‘ACH 3:00 PM I day
Labor-UTF Fedwire 3:00 PM Oday
National Science Foundation (NSF) ACH 8:00 PM T day
National Science Foundation (NSF) Fedwire 3:45 PM 0 day
Social Security Administration ‘ACH 11:59 PM T day
Social Security Administration Fedwire 3:45 PM Oday
Transportation (FAA) ACH 2:00 PM I day
Transportation (FHWA) ‘ACH 12:00 PM 3 days
Transportation (FHWA) Fedwire 12:00 PM 0 day
Transportation (FTA) ‘ACH 2:00 PM T day
Veterans Administration ACH 12:00 PM 3 days

Page 16 of 19