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Cash Management Improvement Act Agreement

between

The State of Ohio

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 Ohio (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 Ohio shall be the Director, Office of Budget and Management in all matters 

concerning this Agreement.

1.2 The Assistant Commissioner, Revenue Collections Management, Bureau of the Fiscal Service (Fiscal Service), U.S. 

Department of the Treasury, shall act as the Secretary's representative in all matters concerning this Agreement.

2.0 AUTHORITY

2.1 The authority for this Agreement is the Cash Management Improvement Act of 1990 (Public Law 101-453), as amended by 

the Cash Management Improvement Act of 1992 (Public Law 102-589), codified at 31 U.S.C. 6501 and 31

U.S.C. 6503.

2.2 The regulations codified at 31 CFR Part 205 shall apply to all matters pertaining to this Agreement, and are incorporated 

herein by reference. In the event of any inconsistency between this Agreement and 31 CFR Part 205, the regulations shall govern.

3.0 DURATION, AMENDING, TERMINATING, AND MISCELLANEOUS PROVISIONS

3.1 This Agreement shall take effect on 07/01/2021 and shall remain in effect until 06/30/2022.

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

be amended annually to incorporate new programs that qualify as major Federal assistance programs and remove programs that no

longer qualify as major Federal assistance programs. A State must notify the Fiscal Service in writing within 30 days of the time the 

State becomes aware of a change that involves additions or deletions of programs subject to Subpart A, changes in funding 

techniques, and/or changes in clearance patterns. The notification must include a proposed amendment for review by the Fiscal 

Service.

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

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

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

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

State.

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4.0 PROGRAMS COVERED

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

year ending 06/30/2020.

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

Agreement.

4.2 The State's threshold for major Federal assistance programs is $118,588,454.

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

CFDA Program Name

10.551 Supplemental Nutrition Assistance Program

10.553 School Breakfast Program

10.555 National School Lunch Program

10.557 Special Supplemental Nutrition Program for Women, Infants, and 

Children

10.561 State Administrative Matching Grants for the Supplemental 

Nutrition Assistance Program

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

17.225S Unemployment Insurance -- State Benefit Account

20.205 Highway Planning and Construction

84.010 Title I Grants to Local Educational Agencies

84.027 Special Education -- Grants to States

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to 

States

93.558 Temporary Assistance for Needy Families

93.563 Child Support Enforcement

93.568 Low-Income Home Energy Assistance

93.575 Child Care and Development Block Grant

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

Development Fund

93.658 Foster Care -- Title IV-E

93.659 Adoption Assistance

93.667 Social Services Block Grant

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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:

CFDA Program Name Exclusion Reason

93.268 Immunization Grants Non-Cash

4.5.0 This further clarifies section 4.4:

The Immunization Cooperative Agreements, program 93.268, exceeded the threshold due to immunizations received 

into the State. This is a non-cash transaction which would not have interest considerations within the Treasury-State 

Agreement; therefore, this program was excluded.

5.0 ENTITIES COVERED

5.1 State agencies and instrumentalities that meet the definition of a State per 31 CFR Part 205, shall be subject to the terms of this 

Agreement. The following is a list of such entities that administer funds under the programs listed in Section

4.0 of this Agreement:

Department of Developmental Disabilities

Department of Education

Department of Health

Department of Job & Family Services

Department of Medicaid

Department of Mental Health & Addiction Services

Department of Transportation

Development Services Agency

Opportunities for Ohioans with Disabilities Agency

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

Xerox 10.551 Supplemental Nutrition Assistance 

Program

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U.S. Bank 17.225F Unemployment Insurance -- Federal 

Benefit Account and Administrative Costs

U.S. Bank 17.225S Unemployment Insurance -- State Benefit 

Account

Gainwell Technologies 93.767 Children's Health Insurance Program

Gainwell Technologies 93.778 Medical 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.

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.

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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

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.

Composite Clearance The State shall request funds such that they are deposited on the dollar-weighted 

average number of days required for funds to be paid out for a series of disbursements, 

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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 the sum of the payments issued in the 

series of disbursements. This funding technique is interest neutral.

Estimated Clearance The State shall request funds such that they are deposited in a State account in 

accordance with the clearance pattern specified in Exhibit II - EC (Estimated 

Clearance). The request shall be made in accordance with the appropriate Federal 

agency cut-off time specified in Exhibit I. The amount of each request will be a 

percentage of the disbursement, according to the State's clearance pattern specified in 

Exhibit II - EC. This funding technique is interest neutral.

6.2.2 The following are terms under which funding techniques for administrative costs shall be implemented for all transfers 

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

There are currently no funding techniques listed in Section 6.2.2.

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

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

There are currently no funding techniques listed in Section 6.2.3.

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

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

Funding Technique Name Description

Modified Pre-Issuance The State of Ohio's accounting system requires funding to be available prior to 

initiating a disbursement. In addition, disbursements take two business days to 

produce a payment. Given this fact pattern, State of Ohio agencies are typically 

unable to meet the three business day requirement and an eight business day 

requirement is necessary for agency compliance with this agreement. The State shall 

request funds such that they are deposited in a State account not more than eight 

business days prior to the day the State makes a disbursement. 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 the amount the State expects to disburse. 

This funding technique is not interest neutral.

Reimbursable The State shall request funds such that they are deposited on a weekly, monthly, or 

quarterly basis. 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 equal to 

the amount of the reimbursement requested by each respective state agency for 

allowable administrative and program costs. The State of Ohio voluntarily waives its 

right to claim federal interest liability. This funding technique is not 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.

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10.551 Supplemental Nutrition Assistance Program

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 99.2

Component: Payments to Beneficiaries - Merchant Payments - ACH

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

10.551 Supplemental Nutrition Assistance Program

Recipient: Department of Job & Family Services

% of Funds Agency Receives: .8

Component: SSI Cash Out Benefits

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

10.553 School Breakfast Program

Recipient: Department of Education

% of Funds Agency Receives: 100

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

10.555 National School Lunch Program

Recipient: Department of Education

% of Funds Agency Receives: 100

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

10.557 Special Supplemental Nutrition Program for Women, Infants, 

and Children

Recipient: Department of Health

% of Funds Agency Receives: 100

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

10.561 State Administrative Matching Grants for the Supplemental 

Nutrition Assistance Program

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 100

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 99

Component: Administrative Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 1

Component: Unemployment Insurance - Federal Benefit Payments

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

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17.225S Unemployment Insurance -- State Benefit Account

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 100

Component: Benefits Costs

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: 100

Component: All Costs

Technique: Composite Clearance

Average Day of Clearance: 0 Days

84.010 Title I Grants to Local Educational Agencies

Recipient: Department of Education

% of Funds Agency Receives: 100

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

84.027 Special Education -- Grants to States

Recipient: Department of Education

% of Funds Agency Receives: 100

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to 

States

Recipient: Opportunities for Ohioans with Disabilities Agency

% of Funds Agency Receives: 100

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 100

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

93.563 Child Support Enforcement

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 100

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

93.568 Low-Income Home Energy Assistance

Recipient: Development Services Agency

% of Funds Agency Receives: 100

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

93.575 Child Care and Development Block Grant

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 100

Component: All costs

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Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

93.596 Child Care Mandatory and Matching Funds of the Child Care 

and Development Fund

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 100

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

93.658 Foster Care -- Title IV-E

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 100

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

93.659 Adoption Assistance

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 100

Component: Administrative Costs and Benefits

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

93.667 Social Services Block Grant

Recipient: Department of Job & Family Services

% of Funds Agency Receives: 86.42

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

93.667 Social Services Block Grant

Recipient: Department of Mental Health & Addiction Services

% of Funds Agency Receives: 7.08

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

93.667 Social Services Block Grant

Recipient: Department of Developmental Disabilities

% of Funds Agency Receives: 6.5

Component: All Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

93.767 Children's Health Insurance Program

Recipient: Department of Medicaid

% of Funds Agency Receives: 86.59

Component: Administrative Costs and Provider Payments (paid from 

the State's General Revenue Fund by EFT)

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

93.767 Children's Health Insurance Program

Recipient: Department of Developmental Disabilities

% of Funds Agency Receives: 1.97

Component: State Agency Reimbursements for Program and 

Administrative Costs

Technique: Reimbursable

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Average Day of Clearance: N/A

93.767 Children's Health Insurance Program

Recipient: Department of Medicaid

% of Funds Agency Receives: 8.81

Component: State Agency Reimbursements for Program and 

Administrative Costs

Technique: Reimbursable

Average Day of Clearance: N/A

93.767 Children's Health Insurance Program

Recipient: Department of Medicaid

% of Funds Agency Receives: 2.63

Component: Administrative Costs and Provider Payments (paid from 

the State's General Revenue Fund by Warrant)

Technique: Estimated Clearance

Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: Department of Medicaid

% of Funds Agency Receives: 71.74

Component: Administrative Costs, Provider Payments and County 

Advances (paid from the State's General Revenue Fund by EFT)

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Department of Medicaid

% of Funds Agency Receives: .85

Component: Administrative Costs and Provider Payments (paid from 

the State's General Revenue Fund by Warrant)

Technique: Estimated Clearance

Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: Department of Medicaid

% of Funds Agency Receives: 1.21

Component: State Agency Reimbursements for Program and 

Administrative Costs

Technique: Reimbursable

Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: Department of Developmental Disabilities

% of Funds Agency Receives: 9.86

Component: State Agency Reimbursements for Program and 

Administrative Costs

Technique: Reimbursable

Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: Department of Medicaid

% of Funds Agency Receives: 16.26

Component: Hospital Care Assurance, Supplemental Inpatient 

Payments, Administrative Costs, Provider Payments including 

Medicaid Expansion (paid from the State's Federal Special Revenue 

Fund)

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

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93.778 Medical Assistance Program

Recipient: Department of Health

% of Funds Agency Receives: .08

Component: State Agency Reimbursements for Program and 

Administrative Costs

Technique: Modified Pre-Issuance

Average Day of Clearance: N/A

6.3.3 Materiality Exemptions

Agencies exempt from coverage on the basis of materiality:

There are currently no agencies exempt from coverage on the basis of materiality.

7.0 CLEARANCE PATTERNS

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

10.551 Supplemental Nutrition Assistance Program

10.553 School Breakfast Program

10.555 National School Lunch Program for Children

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

10.561 State Administrative Matching Grants for Food Stamp Program

17.225 F Unemployment Insurance -- Federal Benefit Payments

20.205 Highway Planning and Construction

84.010 Title I Grants to Local Educational Agencies

84.027 Special Education -- Grants to States

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to States

93.558 Temporary Assistance for Needy Families

93.563 Child Support Enforcement

93.568 Low-Income Home Energy Assistance

93.575 Childcare and Development Block Grant

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

93.658 Foster Care -- Title IV-E

93.659 Adoption Assistance

93.667 Social Services Block Grant

93.767 State Children's Health Insurance Program

93.778 Medical Assistance Program

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

The Ohio Office of Budget and Management shall develop the State's clearance patterns.

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

The source of data the State shall use is the disbursement data from the Ohio Administrative Knowledge System.

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.

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

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

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

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

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

following the disbursement.

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

with the following exceptions:

N/A

The State shall also adjust each clearance pattern to reflect:

two additional days due to the State's internal processing time.

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

7.9 An authorized State official shall certify that each clearance pattern developed by the State accurately corresponds to the 

clearance activity of the programs to which it is applied. This certification shall be provided to the Fiscal Service prior to the 

effective date of the Agreement. The State shall recertify its clearance patterns at least every five years.

7.10 The State shall follow the procedures of 31 CFR 205 if it has actual or constructive knowledge, at any time, that a clearance 

pattern does not correspond to a program's clearance activity.

8.0 INTEREST CALCULATION METHODOLOGY

8.1 General Terms

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

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

Actual Clearance, ZBA - ACH

Composite Clearance

Estimated Clearance

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

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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:

Average Clearance:

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

liability shall be based on the difference in whole days between the average date of clearance for a disbursement, as specified in Exhibit 

II, and the date the related Federal funds are credited to a State account. 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.

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.

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8.5 Exemptions

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

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

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

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

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

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

8.6 State Interest Liabilities

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

date those funds are paid out for program purposes.

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

8.6.2.1 Measuring Time Funds Are Held

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

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

8.6.2.2 Source of Data

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

appropriate clearance pattern specified in Exhibit II.

8.6.2.3 Standards Applied

Census (Average Daily Balance):

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

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

8.6.2.4 Calculation Procedure

Average Daily Balance + Clearance Pattern:

I = {ADB x R} + {P x r x T}, 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

P = Total annual expenditures of Federal funds for program or component cash flow of program

r = R/365 days

T = Dollar-weighted average day of clearance, as determined by the appropriate clearance pattern in Exhibit II

9.0 REVERSE FLOW PROGRAMS

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The State is not required to cover any reverse flow programs under the terms of this Agreement because the State does not 

participate in the program.

10.0 INTEREST CALCULATION COSTS

10.1 As set forth in 31 CFR 205.27, interest calculation costs are defined as those costs necessary for the actual calculation of 

interest, including the cost of developing and maintaining clearance patterns in support of the interest calculations. Interest 

calculation costs do not include expenses for normal disbursing services, such as processing of checks or maintaining records for 

accounting and reconciliation of cash balances, or expenses for upgrading or modernizing accounting systems. Interest 

calculation costs in excess of $50,000 in any year are not eligible for reimbursement, unless the State provides justification with 

the annual report.

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

The State anticipates incurring cost for Annual Report preparation and Clearance Pattern study.

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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12.0 AUTHORIZED SIGNATURES

Kimberly A. Murnieks

Director Office of Budget and Management

Signature: Date Signed:

Date Submitted 6/16/2021

Sandra R. Paylor

Acting Assistant Commissioner

Revenue Collections Management

Bureau of the Fiscal Service

U.S. Department of the Treasury

Signature: Date Signed:

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6/22/2021

6/28/2021
Page 17 of 24

Exhibit I - Funds Request and Receipt Times Schedule

State of Ohio

Federal Agency Payment Type Request Cut-Off Time Receipt Window

Agriculture-FNS ACH 11:59 PM 1 day

Agriculture-FNS Fedwire 5:45 PM 0 day

Agriculture-FS ACH 3:00 PM 1 day

Air National Guard ACH 12:00 PM 15 days

Army National Guard ACH 12:00 PM 15 days

Commerce-NOAA ACH 2:00 PM 1 day

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

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

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

EPA ACH 2:00 PM 2 days

EPA Fedwire 2:00 PM 0 day

Education ACH 3:00 PM 1 day

Education Fedwire 2:00 PM 0 day

Energy ACH 4:00 PM 1 day

Energy Fedwire 3:00 PM 0 day

HHS ACH 5:00 PM 1 day

HHS Fedwire 3:00 PM 0 day

HUD ACH 5:30 PM 2 days

HUD Fedwire 3:00 PM 0 day

Interior-FWS ACH 11:59 PM 1 day

Interior-FWS Fedwire 5:45 PM 0 day

Interior-OSM ACH 3:00 PM 1 day

Interior-OSM Fedwire 1:00 PM 0 day

Justice ACH 11:00 PM 6 days

Justice Fedwire 2:00 PM 2 days

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

Labor-UTF ACH 3:00 PM 1 day

Labor-UTF Fedwire 3:00 PM 0 day

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

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

Social Security Administration ACH 11:59 PM 1 day

Social Security Administration Fedwire 5:45 PM 0 day

Transportation (FAA) ACH 2:00 PM 1 day

Transportation (FHWA) ACH 12:00 PM 3 days

Transportation (FHWA) Fedwire 12:00 PM 0 day

Transportation (FTA) ACH 2:00 PM 1 day

Veterans Administration ACH 12:00 PM 3 days

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Exhibit II - State of Ohio

LIST OF STATE CLEARANCE TIMES

(Rounded Dollar-Weighted Average Day of Clearance)

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

CFDA Program Name Recipient % Component Technique Rounded 

days

10.551 Supplemental 

Nutrition 

Assistance 

Program

Department of 

Job & Family 

Services

99.2 Payments to 

Beneficiaries -

Merchant Payments -

ACH

Actual Clearance, 

ZBA - ACH

0 Days

Supplemental 

Nutrition 

Assistance 

Program

Department of 

Job & Family 

Services

0.8 SSI Cash Out 

Benefits

Modified PreIssuanceN/A

10.553 School Breakfast 

Program

Department of 

Education

100.0 All Costs Modified PreIssuanceN/A

10.555 National School 

Lunch Program

Department of 

Education

100.0 All Costs Modified PreIssuanceN/A

10.557 Special 

Supplemental 

Nutrition Program 

for Women, 

Infants, and 

Children

Department of 

Health

100.0 All Costs Modified PreIssuanceN/A

10.561 State 

Administrative 

Matching Grants 

for the 

Supplemental 

Nutrition 

Assistance 

Program

Department of 

Job & Family 

Services

100.0 All Costs Modified PreIssuanceN/A

17.225

F

Unemployment 

Insurance --

Federal Benefit 

Account and 

Administrative 

Costs

Department of 

Job & Family 

Services

99.0 Administrative Costs Modified PreIssuanceN/A

Unemployment 

Insurance --

Federal Benefit 

Account and 

Administrative 

Costs

Department of 

Job & Family 

Services

1.0 Unemployment 

Insurance - Federal 

Benefit Payments

Actual Clearance, 

ZBA - ACH

0 Days

17.225

S

Unemployment 

Insurance -- State 

Benefit Account

Department of 

Job & Family 

Services

100.0 Benefits Costs Actual Clearance, 

ZBA - ACH

0 Days

20.205 Highway Planning 

and Construction

Department of 

Transportation

100.0 All Costs Composite 

Clearance

0 Days

84.010 Title I Grants to 

Local Educational 

Agencies

Department of 

Education

100.0 All Costs Modified PreIssuanceN/A

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84.027 Special Education 

-- Grants to States

Department of 

Education

100.0 All Costs Modified PreIssuanceN/A

84.126 Rehabilitation 

Services --

Vocational 

Rehabilitation 

Grants to States

Opportunities for 

Ohioans with 

Disabilities 

Agency

100.0 All Costs Modified PreIssuanceN/A

93.558 Temporary 

Assistance for 

Needy Families

Department of 

Job & Family 

Services

100.0 All Costs Modified PreIssuanceN/A

93.563 Child Support 

Enforcement

Department of 

Job & Family 

Services

100.0 All Costs Modified PreIssuanceN/A

93.568 Low-Income 

Home Energy 

Assistance

Development 

Services Agency

100.0 All Costs Modified PreIssuanceN/A

93.575 Child Care and 

Development 

Block Grant

Department of 

Job & Family 

Services

100.0 All costs Modified PreIssuanceN/A

93.596 Child Care 

Mandatory and 

Matching Funds 

of the Child Care 

and Development 

Fund

Department of 

Job & Family 

Services

100.0 All Costs Modified PreIssuanceN/A

93.658 Foster Care --

Title IV-E

Department of 

Job & Family 

Services

100.0 All Costs Modified PreIssuanceN/A

93.659 Adoption 

Assistance

Department of 

Job & Family 

Services

100.0 Administrative Costs 

and Benefits

Modified PreIssuanceN/A

93.667 Social Services 

Block Grant

Department of 

Job & Family 

Services

86.42 All Costs Modified PreIssuanceN/A

Social Services 

Block Grant

Department of 

Mental Health & 

Addiction 

Services

7.08 All Costs Modified PreIssuanceN/A

Social Services 

Block Grant

Department of 

Developmental 

Disabilities

6.5 All Costs Modified PreIssuanceN/A

93.767 Children's Health 

Insurance 

Program

Department of 

Medicaid

86.59 Administrative Costs 

and Provider 

Payments (paid from 

the State's General 

Revenue Fund by 

EFT)

Actual Clearance, 

ZBA - ACH

0 Days

Children's Health 

Insurance 

Program

Department of 

Developmental 

Disabilities

1.97 State Agency 

Reimbursements for 

Program and 

Administrative Costs

Reimbursable N/A

Children's Health 

Insurance 

Program

Department of 

Medicaid

8.81 State Agency 

Reimbursements for 

Program and 

Administrative Costs

Reimbursable N/A

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Children's Health 

Insurance 

Program

Department of 

Medicaid

2.63 Administrative Costs 

and Provider 

Payments (paid from 

the State's General 

Revenue Fund by 

Warrant)

Estimated Clearance N/A

93.778 Medical 

Assistance 

Program

Department of 

Medicaid

71.74 Administrative Costs, 

Provider Payments 

and County 

Advances (paid from 

the State's General 

Revenue Fund by 

EFT)

Actual Clearance, 

ZBA - ACH

0 Days

Medical 

Assistance 

Program

Department of 

Medicaid

0.85 Administrative Costs 

and Provider 

Payments (paid from 

the State's General 

Revenue Fund by 

Warrant)

Estimated Clearance N/A

Medical 

Assistance 

Program

Department of 

Medicaid

1.21 State Agency 

Reimbursements for 

Program and 

Administrative Costs

Reimbursable N/A

Medical 

Assistance 

Program

Department of 

Developmental 

Disabilities

9.86 State Agency 

Reimbursements for 

Program and 

Administrative Costs

Reimbursable N/A

Medical 

Assistance 

Program

Department of 

Medicaid

16.26 Hospital Care 

Assurance, 

Supplemental 

Inpatient Payments, 

Administrative Costs, 

Provider Payments 

including Medicaid 

Expansion (paid from 

the State's Federal 

Special Revenue 

Fund)

Modified PreIssuanceN/A

Medical 

Assistance 

Program

Department of 

Health

0.08 State Agency 

Reimbursements for 

Program and 

Administrative Costs

Modified PreIssuanceN/A

Certification

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

in Exhibit 2 of this Treasury-State Agreement:

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

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

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

4. Are auditable.

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Date: 

Printed Name: 

Certifying Signature: 

Title: 

DocuSign Envelope ID: 3AB95609-2EC5-4E19-97D0-DC724D033090

Director, Ohio Office of Budget and Management

Kimberly A. Murnieks

6/22/2021
Page 22 of 24

Cash Management Improvement Act - 2022 Treasury State Agreement

State of Ohio

Exhibit II Estimated Clearance

Effective 07/01/2021 until 06/30/2022

93.767 Children's Health Insurance Program

Day % Cleared

Day 1 0.0

Day 2 0.0

Day 3 0.58

Day 4 1.88

Day 5 11.77

Day 6 15.82

Day 7 22.0

Day 8 10.91

Day 9 0.14

Day 10 0.6

Day 11 8.34

Day 12 5.48

Day 13 2.42

Day 14 1.1

Day 15 3.2

Day 16 0.0

Day 17 0.53

Day 18 13.19

Day 19 0.4

Day 20 0.6

Day 21 0.12

Day 22 0.02

Day 23 0.0

Day 24 0.0

Day 25 0.56

Day 26 0.03

Day 27 0.01

Day 28 0.29

Day 29 0.01

Day 30 0.0

Day 31 0.0

Total 100.0

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93.778 Medical Assistance Program

Day % Cleared

Day 1 0.0

Day 2 0.0

Day 3 0.85

Day 4 3.65

Day 5 15.46

Day 6 24.05

Day 7 18.74

Day 8 8.75

Day 9 0.22

Day 10 1.33

Day 11 6.17

Day 12 3.82

Day 13 3.7

Day 14 2.36

Day 15 2.11

Day 16 0.78

Day 17 0.45

Day 18 3.97

Day 19 0.56

Day 20 0.98

Day 21 0.52

Day 22 0.38

Day 23 0.02

Day 24 0.04

Day 25 0.52

Day 26 0.17

Day 27 0.17

Day 28 0.11

Day 29 0.11

Day 30 0.01

Day 31 0.0

Total 100.0

Certification

I hereby certify that the % Cleared listed in Exhibit II Estimated Clearance of this Treasury State Agreement:

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

2. Accurately represents the flow of federal funds under the federal assistance programs to which they apply;

3. Reflects seasonal or other periodic variations in the clearance activities;

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4. Is auditable; and,

5. Has been certified as accurate by an authorized State Official.

Date: 

Printed Name: 

Certifying Signature: 

Title: 

DocuSign Envelope ID: 3AB95609-2EC5-4E19-97D0-DC724D033090

6/22/2021

Director, Ohio Office of Budget and Management

Kimberly A. Murnieks