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Cash Management Improvement Act Agreement

between

The Commonwealth of Virginia

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 Commonwealth of Virginia

(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 Commonwealth of Virginia shall be the Comptroller of Virginia 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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3.5.0 Virginia monitors check clearance patterns monthly and calculates a dollar weighted average for the latest 3-month 

and 12-month periods to accommodate seasonal variation. Clearance patterns often fluctuate by one or more days 

(rounded) during the year. To avoid having to submit unnecessary formal TSA amendments, Virginia agrees to 

submit a formal TSA amendment to address clearance pattern changes as follows:

Whenever the latest clearance pattern analysis indicates that the current federal drawdown is one or more days less 

than the scheduled days shown in the Exhibit II of the approved TSA, Virginia will continue to monitor the clearance 

pattern to determine if the change is due to a seasonal variation. Only when it has been determined that the change is 

not a result of a seasonable variation and is one or more days less than the scheduled days shown in the approved 

TSA will Virginia submit a formal amendment because only more frequent federal drawdowns reduce cash 

availability at the Federal Grantor Agency.

Virginia will notify affected state agencies to adjust the timing of Federal fund transfers to be as close as 

administratively feasible to the State's actual cash outlay for direct program costs. Such notifications shall be made 

by the Virginia Department of Accounts (DOA) based on not less than the most recent three consecutive months of 

disbursement data provided by the bank.

3.6.0 Significant delays in the receipt of federal funds, reported to DOA, that are not otherwise captured by the annual 

modified pre- issuance funding random sampling process will be included separately in the State's Annual Report to 

the Fiscal Service. The interest costs associated with these delays will be included for consideration by the Secretary 

as an offset to the State's overall annual interest liability.

3.7.0 Payments of federal funds to vendor State entities for goods or services rendered, including payments into Internal 

Service Funds or Enterprise Funds within the State's Comprehensive Annual Financial Report, are considered to be 

paid out for federal assistance program purposes pursuant to the definitions in 31 CFR 205.2.

3.8.0 This writing, along with the attachments referenced herein, constitutes the entire Agreement between the parties, 

supersedes any existing agreement between the parties hereto relative to the matters contained herein, and may be 

modified only by written amendment executed by the parties hereto. The parties hereto agree that if one party 

proposes an amendment, the other party shall respond in writing within 30 days of its receipt of the proposed 

amendment.

3.9.0 The laws of the Commonwealth of Virginia will govern this Agreement whenever State law is to be applied.

4.0 PROGRAMS COVERED

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

Audit Report for fiscal year ending 06/30/2020.

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

Agreement.

4.2 The State's threshold for major Federal assistance programs is $60,000,000.

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

CFDA Program Name

10.551 Supplemental Nutrition Assistance Program

10.553 School Breakfast Program

10.555 National School Lunch Program

10.557 Special Supplemental Nutrition Program for Women, Infants, and 

Children

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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

93.767 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

84.063 Federal Pell Grant Program Non-State

84.268 Federal Direct Student Loan Non-State

93.268 Immunization Grants Non-Cash

5.0 ENTITIES COVERED

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

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

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4.0 of this Agreement:

Department for Aging and Rehabilitative Services (DARS)

Department for the Blind and Vision Impaired (DBVI)

Department of Education (DOE)

Department of Health (VDH)

Department of Housing and Community Development (DHCD)

Department of Medical Assistance Services (DMAS)

Department of Rail and Public Transportation (DRPT)

Department of Social Services (DSS)

Department of Transportation (VDOT)

Virginia Employment Commission (VEC)

5.2 Entities that meet the definition of a Fiscal Agent per 31 CFR Part 205 shall be subject to the terms of this Agreement. The 

following is a list of Fiscal Agents that administer funds under the programs listed in the Section 4.0 of this Agreement:

Fiscal Agent CFDA Program Name

Conduent 10.551 Supplemental Nutrition Assistance 

Program

Conduent 10.557 Special Supplemental Nutrition Program 

for Women, Infants, and Children

Conduent State Healthcare, LLC 93.767 Children's Health Insurance Program

Conduent State Healthcare, LLC 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 

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day when the Federal Government is not open for business, the State shall request funds for deposit the day prior to the scheduled 

day.

6.1.4 Estimates and Reconciliation of Estimates:

Where estimated expenditures are used to determine the amount of the drawdown, the State will indicate in the terms of the State 

unique funding technique how the estimated amount is determined and when and how the State will reconcile the difference 

between the estimate and the State's actual expenditures.

6.1.5 Supplemental Funding:

Unless otherwise defined by program rules, Supplemental Funding is the award of additional funds to provide for an increase in 

costs due to unforeseen circumstances.

The State will comply with all Federal program agency policies and procedures for requesting supplemental grant funding.

The State will comply with the following guidelines when requesting supplemental funding for the Medical Assistance Program 

and associated administrative payments (CFDA 93.778):

The State must submit a revised Medicaid Program Budget Report (CMS-37) to request supplemental funding. The CMS guidelines 

and instructions for completing the CMS-37 are provided in Section 2600F of the State Medicaid Manual (SMM). The CMS/CO must 

receive the revised Form CMS-37 through the Medicaid Budget Expenditure System/Children's Budget Expenditure System 

(MBES/CBES) no later than 10 calendar days before the end of the quarter for which the supplemental grant award is being 

requested.

Additional guidance on this policy is available from the respective CMS Regional Office, U.S. Department of Health & Human 

Services.

The State will comply with the following guidelines when requesting supplemental funding for TANF (CFDA 93.558), CCDF 

(CFDA 93.575), CSE (93.563), and the FC/AA (CFDA 93.658 and CFDA 93.659) programs administered by the

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

a. Timing of the Request

A State should initiate its request for supplemental funding during a quarter as soon as it becomes aware of the fact that a shortfall 

does/will exist. For the TANF and CCDF grants, supplemental funding requests (estimates) may be submitted by a State, for 

consideration by ACF, up through and including the 15th day of the third month of the first, second or third quarter of any fiscal year. 

Since TANF and CCDF are block grant programs, all unawarded portions of the annual allotment will automatically be issued at the 

beginning of the fourth quarter. Therefore, supplemental funding requests will not be available during the fourth quarter for these 

programs. For the CSE and FC/AA programs, supplemental funding requests may be submitted by a state, for consideration by ACF, 

up through and including the 15th day of the third month of any quarter of a fiscal year.

b. Justification for the Request

The request for a supplemental funding for any of the above-mentioned programs should contain a justification clearly documenting 

the need for the additional funding authority during the current quarter. This documentation should be in the form of State accounting 

records or similar documents that will show the actual expenditures through the most recent month for which such data are available, 

as well as the State's most accurate projection of its anticipated expenditures during the remaining month(s) of the quarter. For either 

the TANF or the CCDF program, the State's justification should also include an explanation of the activities requiring the obligation 

and/or expenditure of amounts that exceed the normal quarterly grant award restrictions and why these activities could not have been 

delayed until the next quarter.

c. Form Submittal

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

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

d. Approval Process

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

supporting documentation. If the request is properly justified, so long as ACF has adequate funding availability, the State's request 

will be expedited and supplemental funding will be issued within 5 days of ACF receiving the request. The State will be notified by 

the Regional Office when the supplemental award has been transmitted to the Payment Management System (PMS) and when it 

may initiate drawdowns against the supplemental funding.

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

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

6.2 Description of Funding Techniques

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

funding technique is applied in section 6.3.2 of this Agreement.

There are currently no funding techniques listed in Section 6.2.1.

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

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

There are currently no funding techniques listed in Section 6.2.2.

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

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

There are currently no funding techniques listed in Section 6.2.3.

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

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

Funding Technique Name Description

Actual Base Modified Monthly (DOE 84.010, 84.027) The State shall request funds once each month, such that they 

are deposited not earlier than the 25th of the month, and not later than the end of the 

month. The request shall be made in accordance with the appropriate Federal agency 

cut-off time specified in Exhibit I and the State clearance days shown in Exhibit II. 

The amount of the request shall be determined by applying the indirect cost rate to the 

total prior month cost of salaries, fringe benefits, travel, materials, supplies, freight 

and express services, postal services, printing and reproduction, organization 

memberships, and convention and education services. This funding technique is 

interest neutral.

Actual Base Monthly (DARS, DBVI 84.126) The State shall request funds once each month, such that they 

are deposited at the end of the month. The request shall be made in accordance with 

the appropriate Federal agency cut-off time specified in Exhibit I and the State 

clearance days shown in Exhibit II. The amount of the request shall be determined by 

applying the indirect cost rate to the appropriate direct cost base (usually salaries and 

wages) of the prior month. This funding technique is interest neutral.

Actual Base Quarterly (VDH 10.557) The State shall request funds once a quarter, such that they are 

deposited on or about the middle of the first month, following the quarter and not later 

than the end of the same month. The request shall be made in accordance with the 

appropriate Federal agency cut-off time specified in Exhibit I and the State clearance 

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days shown in Exhibit II. The amount of the request shall be determined by applying 

the indirect cost rate to the appropriate direct cost base (usually salaries and wages) of 

the quarter. This funding technique is interest neutral.

Actual Clearance: CDA for EFT Payments 

by the Fiscal Agent

(DMAS 93.767, 93.778) In a Controlled Disbursement Account (CDA) for EFT 

Payments by the Fiscal Agent, the State shall request funds the same day that it pays 

out funds in accordance with the cut-off time specified in Exhibit I and the State 

clearance days shown in Exhibit II. HHS will deposit the funds in a State account the 

same day as requested. The amount of the request shall be for the amount of funds that 

clear the bank by EFT that day. This funding technique is interest neutral.

Actual Clearance: ZBA (DOE 10.553, 10.555, 84.010, 84.027) For the program components called Weekly 

EDI Payments to Local Governments, the Virginia Department of Education (DOE) 

shall request funds such that they are deposited in a State account on the settlement 

date of the EDI payments issued by the State to local governments. The request shall 

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

Exhibit I and the State clearance days shown in Exhibit II. The amount of the request 

shall be for the amount of the EDI payments that clear the State's account on the 

settlement date. DOE shall maintain an audit trail of the request dates and the amounts 

requested and deposit dates and the amounts deposited. If it is determined that the 

Federal government is the cause of a late payment, the State is owed interest from the 

day the State pays out its own funds until the day Federal funds are deposited in a 

State account. This funding technique is interest neutral.

Actual Costs - Estimated Allocation (SemiMonthly)(DSS 10.561, 93.558, 93.563, 93.568, 93.658, and 93.659) The State shall request 

funds at semi-monthly intervals, such that funds are deposited on or about the 1st and 

the 16th of the month. The request shall be made in accordance with the appropriate 

Federal agency cut-off time specified in Exhibit I and the State clearance days shown 

in Exhibit II. The amount of the request shall be an estimated allocation derived from 

prior quarter data as allocated based on the Cost Allocation Plan. Each quarter, after 

actual costs have been determined, the State shall adjust the estimated allocations to 

actual allocations based on an approved cost allocation plan. This funding technique is 

interest neutral.

Actual Costs - Estimated Allocation Monthly (DSS 10.561, 93.558, 93.568, 93.658, 93.659, and 93.778) The State shall request 

funds once a month such that the funds are deposited on the fifth business day before 

the end of the month to fund the activities of the prior month for Local Department of 

Social Services (LDSS) expenditures. The request shall be made in accordance with 

the appropriate Federal agency cut-off time specified in Exhibit I and the State 

clearance days shown in Exhibit II. The amount of each monthly request shall be an 

estimated allocation derived from prior quarter data as allocated based on the Cost 

Allocation Plan. Each quarter, after actual costs have been determined, the State shall 

adjust the estimated allocations to actual allocations based on an approved cost 

allocation plan. This funding technique is interest neutral.

Annually (DMAS 93.767, 93.778) The Commonwealth shall draw down statewide indirect costs 

once a year, upon receipt of the federally approved amount from DOA. The request 

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

Exhibit I and the State clearance days shown in Exhibit II. This funding technique is 

interest neutral.

Average Clearance Funding Technique for 

the Medicaid/CHIP Combined Account

(DMAS 93.767, 93.778) The Medicaid/ Children's Health Insurance Program (CHIP) 

programs use a combined bank account for weekly remittance checks issued on a 

fixed weekly schedule by the Department of Medical Assistance Services (DMAS) 

Fiscal Agent. Checks issued by the DMAS Fiscal Agent exclude DMAS Fiscal Agent 

manual remittance check payments and EFT transfers.

For weekly remittance checks issued each Friday by the DMAS Fiscal Agent, the 

State shall request funds as a single weekly drawdown request for deposit on the 

dollar-weighted average day of check clearance. The request for Federal funds shall be 

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made in accordance with the appropriate agency cut-off time specified in Exhibit I and 

the State clearance days shown in Exhibit II. In the event that the check clearance 

pattern should change to a day less than that shown in Exhibit II, DMAS will notify 

the Department of Accounts (DOA) that it needs to adjust the drawdown to one day 

less than that shown in Exhibit II to avoid having the account go negative. The 

clearance pattern calculation will be based upon the latest 3 months. DOA will review 

the new check clearance pattern calculation and confirm to DMAS that it can begin 

drawing down funds on the lower day. DOA will notify the Bureau of the Fiscal 

Service of any changes. Any said clearance pattern changes by DMAS and confirmed 

by DOA will not require the submission of a formal amendment to the TSA. Per 

§205.12 (3) of the Federal CMIA regulations, the dollar-weighted average day of 

clearance is the day when, on a cumulative basis, 50 percent of the funds have been 

paid out. To comply with §205.12 (3), DMAS shall determine the dollar-weighted 

average day of check clearance, Department of Accounts (DOA) concurring, from the 

latest three consecutive months of bank float reports for the Combined 

Medicaid/CHIP bank account. The bank provides monthly float reports to the DMAS 

Fiscal Agent who forwards them to DMAS and DOA. This funding technique is 

interest neutral.

Average Clearance Technique for 

Maintenance Payments to Beneficiaries

(DSS 93.558, 93.568) For the direct cost components in the Temporary Assistance for 

Needy Families (TANF) and Low-Income Home Energy Assistance Program 

(LIHEAP) programs (CFDA #'s 93.558 and 93.568), the State shall request funds for 

deposit on the dollar weighted average number of days required for related funds to 

clear the bank. The request shall be made in accordance with the appropriate agency 

cut-off time specified in Exhibit I and the State clearance days shown in Exhibit II. 

The check issuance dates are set by DSS. The monthly dollar weighted average 

number of days from the check issuance date to the bank clearance date for social 

service benefits is calculated by the bank, and distributed to DOA. DOA shall prepare 

and advise DSS of the dollar weighted average clearance days to be used for timing 

the drawdown of Federal TANF and LIHEAP funds. This estimate shall be based on 

not less than three consecutive months of disbursement data provided by the bank. 

This funding technique is interest neutral.

Fixed Administrative Allowance (Semimonthly Payroll)(VEC 17.225F) The State shall make semi-monthly requests for payroll funds such 

that they are deposited by ACH on the average day of clearance for the payroll in 

accordance with the statewide payroll check clearance pattern, modified by the 

percentage of payroll direct deposits for VEC. The request for funds shall be made in 

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

the State clearance days shown in Exhibit II. The amount of the request for funds shall 

be the estimated payroll portion of the annual grant award divided by 24. The estimate 

of the payroll portion shall be based upon the actual proportion of payroll costs to total 

grant costs in the previous quarter. After reconciling the difference between the 

estimate and the State's actual expenditures, at the end of each quarter, the agency 

recalculates its quarterly drawdown schedule. This schedule compares the cumulative 

year to date and quarterly expenditures. Any overage/shortage is taken into 

consideration during the recalculation of the schedule and is adjusted on the first 

drawdown of the quarter. The recalculation may occur more often if changes in 

payroll (increases or decreases) dictate the need for a change. VEC submits electronic 

reports to the U. S. Department of Labor quarterly that include cash receipts and 

expenditure data that is reconciled to VEC's internal records. This funding technique 

is interest neutral.

Modified Pre-Issuance Funding (VDH 10.557, DARS, DBVI 84.126, DMAS 93.767, 93.778) The Commonwealth 

shall request Federal funds so that they are deposited not more than three business 

days prior to the day on which the related expenditure is recorded in the 

Commonwealth's Accounting System (Cardinal), and not later than the day the related 

payment is issued by the Commonwealth. The request shall be made in accordance 

with the appropriate agency cut-off time specified in Exhibit I and the State clearance 

days shown in Exhibit II. The amount of the request should be the amount that the 

State expects to disburse. Under this modified pre-issuance funding technique, Federal 

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funds may be deposited after the related expenditure recording date in Cardinal, 

provided sufficient Federal cash was on hand at the time the related expenditure was 

released into Cardinal. This funding technique is not interest neutral.

Payment Schedule (Semi-monthly 

Nonpersonal Services)

(VEC 17.225F) The State shall request funds such that they are deposited in a State 

account on semimonthly paydays. The request shall be made in accordance with the 

appropriate Federal agency cut-off time specified in Exhibit I and the State clearance 

days shown in Exhibit II. The amount of the request for funds shall be the estimated 

nonpersonal services portion of the obligated expenditures applied to the annual grant 

award with the exception of large invoices being submitted (such as automation 

money) which will be requested when expended. The estimate of the nonpersonal 

services portion shall be based upon the actual proportion of nonpersonal service costs 

to total grant costs. The VEC will reconcile the difference between the estimate and 

the State's actual expenditures, at the end of each month. Any overage/shortage is 

taken into consideration during the calculation on the first drawdown of the month. 

VEC submits electronic reports to the U.S. Department of Labor quarterly that include 

cash receipts and expenditure data that is reconciled to VEC's internal records.

An interest liability will not be incurred by using this technique. This funding 

technique is interest neutral.

Payment Schedule Two-Week Intervals (DOE 93.575, 93.596) The State shall draw down 1/6th of the quarterly award at twoweek intervals at the midpoint of interval, which is on or about the 1st and the 16th of 

the month. The request shall be made in accordance with the appropriate cutoff time 

specified in Exhibit I and the State clearance days shown in Exhibit II. The 

semimonthly amount drawn will be 1/6th of the quarterly award. This funding 

technique is interest neutral.

Post Expenditure Funding (DOE 10.553, 10.555, 84.010, 84.027),(DSS 10.561, 93.558, 93.568, 93.658, and 

93.659),(VDOT, DRPT 20.205) The State shall request Federal funds only after 

related expenditures have been recorded in the Commonwealth's Accounting System 

(Cardinal). The request shall be made in accordance with the appropriate agency cutoff time specified in Exhibit I and the State clearance days shown in Exhibit II. When 

using this funding technique, neither the State nor the Federal government shall be 

required to calculate or incur an interest liability. The State voluntarily waives Federal 

interest liabilities resulting from the post expenditure funding technique. This funding 

technique is interest neutral.

Post Expenditure Funding Technique for the 

WIC Program

(VDH 10.557) Every State business day, the State shall draw down and deposit federal 

funds to the State's bank clearance account for the WIC program. The fiscal agent 

Conduent request daily wire transfers from the State's clearance account in amounts 

equal to WIC drafts approved for payment each day. The request shall be made in 

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

State clearance days shown in Exhibit II. The State uses a Post Expenditure Funding 

Technique for the WIC program because the Virginia Department of Health (VDH) 

draws an amount equal to the prior day's expenditure. This requires the State to 

maintain an estimated amount in the Bank Clearance Account to avoid a negative 

balance due to fluctuations in the Fiscal Agent's daily requests for payment vouchers. 

Each day, the previous day's expenditures are reconciled against the current day's 

deposit. When using this funding technique, neither the State nor the Federal 

government shall be required to calculate or incur an interest liability. The State 

voluntarily waives Federal interest liabilities resulting from the Post Expenditure 

Funding Technique. This funding technique is interest neutral.

Proportionate Share (VEC 17.225F) The State shall include a proportionate share of the indirect cost 

allowance in each request for funds by applying the indirect cost rate to the 

appropriate direct cost base (usually salaries and wages) of each drawdown. The 

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

in Exhibit I and the State clearance days shown in Exhibit II. This funding technique 

is interest neutral.

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ZBA - SNAP Benefits (DSS 10.551) Electronic Benefit Transfer (EBT) Funding: Conduent will draw down 

federal funds from the Supplemental Nutrition Assistance Program (SNAP) letter of 

credit through ASAP to cover the amount of EBT transactions being settled that day. 

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

specified in Exhibit I and the State clearance days shown in Exhibit II. Funds from the 

ASAP payment request are wired by Federal Reserve Bank of Richmond (FRB 

Richmond) to the VA EBT Clearing account. EDS provides an auto-reconciliation 

file to Conduent on a daily basis that is used to reconcile the draw down against the 

amount of the ACH debit, and adjustments are netted against the next subsequent 

payment request. This funding technique is interest neutral.

ZBA - UI Benefits-ACH (VEC 17.225F, 17.225S) EFT payments are estimated at more than 99.96% of total 

Unemployment Insurance benefits. For payments to recipients in the Unemployment 

Insurance (UI) Benefits Program by electronic funds transfer (EFT) that are received 

by the Trust Fund accountant by 12 noon each business day, VEC shall request State 

and Federal Funds such that they are deposited in the benefit account on the respective 

settlement date(s) of the EFT payments to recipients. The request shall be made in 

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

State clearance days shown in Exhibit II. The amount of the request for Federal and 

State unemployment benefits shall be based on the amount of payments presented for 

payment that day as reported by the bank. The Bureau of the Fiscal Service will 

deposit the funds in the State account the same day as requested. The drawdown 

request shall be adjusted by any refunds in accordance with Section 8.8.4 of the TSA. 

Federal expenditures are reconciled quarterly through the federal ETA 191 report 

which shows benefit expenditures for each federal agency. The total for each type of 

federal agency is compared to the agency's internal Trust Fund records, and any 

overage/shortage is adjusted to regular UI expenditures funded from Virginia's Trust 

Fund. Benefit expenditures, both regular UI and federal benefits, occur daily, and the 

assurance that drawdowns of federal funds do not exceed federal expenditures lies in 

our maintaining a negative book balance insofar as there are outstanding checks in the 

Fund. At Virginia's fiscal year end the state-mandated positive book balance will be 

maintained. This funding technique is interest neutral.

ZBA - TANF and LIHEAP Benefits by EFT (DSS 93.558, 93.568, DHCD 93.568) For Maintenance payments to beneficiaries in 

the TANF and LIHEAP Programs by electronic means, including electronic funds 

transfer (EFT) and debit card transactions that are received by the Grants 

Administrative Supervisor by 12 noon each business day, DSS and DHCD shall 

request Federal Funds such that they are deposited in a State account on the respective 

settlement date(s) of the EFT payments to beneficiaries. The request shall be made in 

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

State clearance days shown in Exhibit II. The amount of the request(s) shall be the 

amount of related EFT funds clearing the bank on the respective settlement date(s). 

This funding technique is interest neutral.

6.3 Application of Funding Techniques to Programs

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

programs listed in sections 4.2 and 4.3 of this Agreement.

6.3.2 Programs

Below are programs listed in Section 4.2 and Section 4.3.

10.551 Supplemental Nutrition Assistance Program

Recipient: Department of Social Services (DSS)

% of Funds Agency Receives: 100

Component: EBT Benefits to Recipients

Technique: ZBA - SNAP Benefits

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Average Day of Clearance: N/A

10.553 School Breakfast Program

Recipient: Department of Education (DOE)

% of Funds Agency Receives: 99

Component: Weekly EDI Payments to Local Governments

Technique: Actual Clearance: ZBA

Average Day of Clearance: N/A

10.553 School Breakfast Program

Recipient: Department of Education (DOE)

% of Funds Agency Receives: 1

Component: Other Direct Costs

Technique: Post Expenditure Funding

Average Day of Clearance: N/A

10.555 National School Lunch Program

Recipient: Department of Education (DOE)

% of Funds Agency Receives: 99

Component: Weekly EDI Payments to Local Governments

Technique: Actual Clearance: ZBA

Average Day of Clearance: N/A

10.555 National School Lunch Program

Recipient: Department of Education (DOE)

% of Funds Agency Receives: 1

Component: Direct Costs

Technique: Post Expenditure Funding

Average Day of Clearance: N/A

10.557 Special Supplemental Nutrition Program for Women, Infants, 

and Children

Recipient: Department of Health (VDH)

% of Funds Agency Receives: 2

Component: Indirect Costs

Technique: Actual Base Quarterly

Average Day of Clearance: N/A

10.557 Special Supplemental Nutrition Program for Women, Infants, 

and Children

Recipient: Department of Health (VDH)

% of Funds Agency Receives: 52

Component: Direct Costs (WIC Food)

Technique: Post Expenditure Funding Technique for the WIC Program

Average Day of Clearance: N/A

10.557 Special Supplemental Nutrition Program for Women, Infants, 

and Children

Recipient: Department of Health (VDH)

% of Funds Agency Receives: 46

Component: Direct Costs (WIC Administration)

Technique: Modified Pre-Issuance Funding

Average Day of Clearance: N/A

10.561 State Administrative Matching Grants for the Supplemental 

Nutrition Assistance Program

Recipient: Department of Social Services (DSS)

% of Funds Agency Receives: 13

Component: State Indirect Costs

Technique: Actual Costs - Estimated Allocation (Semi-Monthly)

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Average Day of Clearance: N/A

10.561 State Administrative Matching Grants for the Supplemental 

Nutrition Assistance Program

Recipient: Department of Social Services (DSS)

% of Funds Agency Receives: 80

Component: Administrative Costs (Local)

Technique: Actual Costs - Estimated Allocation Monthly

Average Day of Clearance: N/A

10.561 State Administrative Matching Grants for the Supplemental 

Nutrition Assistance Program

Recipient: Department of Social Services (DSS)

% of Funds Agency Receives: 7

Component: Other Direct Costs---Other Than Administrative Costs (Local)

Technique: Post Expenditure Funding

Average Day of Clearance: N/A

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Virginia Employment Commission (VEC)

% of Funds Agency Receives: .7

Component: Unemployment Insurance Administration (Payroll)

Technique: Fixed Administrative Allowance (Semi-monthly Payroll)

Average Day of Clearance: 0 Days

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Virginia Employment Commission (VEC)

% of Funds Agency Receives: .4

Component: Unemployment Insurance Administration (Nonpersonal 

Services)

Technique: Payment Schedule (Semi-monthly Nonpersonal Services)

Average Day of Clearance: N/A

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Virginia Employment Commission (VEC)

% of Funds Agency Receives: 98.7

Component: Unemployment Insurance Benefits by EFT (Federal)

Technique: ZBA - UI Benefits-ACH

Average Day of Clearance: N/A

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Virginia Employment Commission (VEC)

% of Funds Agency Receives: .2

Component: Indirect Costs

Technique: Proportionate Share

Average Day of Clearance: N/A

17.225S Unemployment Insurance -- State Benefit Account

Recipient: Virginia Employment Commission (VEC)

% of Funds Agency Receives: 100

Component: Unemployment Insurance Benefits by EFT (State)

Technique: ZBA - UI Benefits-ACH

Average Day of Clearance: N/A

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20.205 Highway Planning and Construction

Recipient: Department of Transportation (VDOT)

% of Funds Agency Receives: 99.05

Component: Direct Costs for Current and Previously Capped Projects

Technique: Post Expenditure Funding

Average Day of Clearance: N/A

20.205 Highway Planning and Construction

Recipient: Department of Rail and Public Transportation (DRPT)

% of Funds Agency Receives: .95

Component: Direct Costs

Technique: Post Expenditure Funding

Average Day of Clearance: N/A

84.010 Title I Grants to Local Educational Agencies

Recipient: Department of Education (DOE)

% of Funds Agency Receives: .1

Component: Indirect Costs

Technique: Actual Base Modified Monthly

Average Day of Clearance: N/A

84.010 Title I Grants to Local Educational Agencies

Recipient: Department of Education (DOE)

% of Funds Agency Receives: 99.8

Component: Weekly EDI Payments to Local Governments

Technique: Actual Clearance: ZBA

Average Day of Clearance: N/A

84.010 Title I Grants to Local Educational Agencies

Recipient: Department of Education (DOE)

% of Funds Agency Receives: .1

Component: Other Directs Costs

Technique: Post Expenditure Funding

Average Day of Clearance: N/A

84.027 Special Education -- Grants to States

Recipient: Department of Education (DOE)

% of Funds Agency Receives: 2

Component: Indirect Costs

Technique: Actual Base Modified Monthly

Average Day of Clearance: N/A

84.027 Special Education -- Grants to States

Recipient: Department of Education (DOE)

% of Funds Agency Receives: 7

Component: Other Directs Costs

Technique: Post Expenditure Funding

Average Day of Clearance: N/A

84.027 Special Education -- Grants to States

Recipient: Department of Education (DOE)

% of Funds Agency Receives: 91

Component: Weekly EDI Payments to Local Governments

Technique: Actual Clearance: ZBA

Average Day of Clearance: N/A

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to 

States

Recipient: Department for Aging and Rehabilitative Services (DARS)

% of Funds Agency Receives: 6.85

Component: Indirect Costs

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Technique: Actual Base Monthly

Average Day of Clearance: N/A

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to 

States

Recipient: Department for Aging and Rehabilitative Services (DARS)

% of Funds Agency Receives: 82.3

Component: Direct Costs

Technique: Modified Pre-Issuance Funding

Average Day of Clearance: N/A

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to 

States

Recipient: Department for the Blind and Vision Impaired (DBVI)

% of Funds Agency Receives: 1.33

Component: Indirect Costs

Technique: Actual Base Monthly

Average Day of Clearance: N/A

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to 

States

Recipient: Department for the Blind and Vision Impaired (DBVI)

% of Funds Agency Receives: 9.52

Component: Direct Costs

Technique: Modified Pre-Issuance Funding

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families

Recipient: Department of Social Services (DSS)

% of Funds Agency Receives: 8

Component: Indirect Costs

Technique: Actual Costs - Estimated Allocation (Semi-Monthly)

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families

Recipient: Department of Social Services (DSS)

% of Funds Agency Receives: 42

Component: Administrative Costs (Local)

Technique: Actual Costs - Estimated Allocation Monthly

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families

Recipient: Department of Social Services (DSS)

% of Funds Agency Receives: 2

Component: Direct Costs for Maintenance Payments to Beneficiaries -

Checks

Technique: Average Clearance Technique for Maintenance Payments 

to Beneficiaries

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families

Recipient: Department of Social Services (DSS)

% of Funds Agency Receives: 33

Component: Other Direct Costs (Other than Maintenance Payments, 

Admin Local and Pass Thru)

Technique: Post Expenditure Funding

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families

Recipient: Department of Social Services (DSS)

% of Funds Agency Receives: 15

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Component: Direct Costs for Maintenance Payments to Beneficiaries --

EFT

Technique: ZBA - TANF and LIHEAP Benefits by EFT

Average Day of Clearance: N/A

93.563 Child Support Enforcement

Recipient: Department of Social Services (DSS)

% of Funds Agency Receives: 100

Component: All Administrative Costs

Technique: Actual Costs - Estimated Allocation (Semi-Monthly)

Average Day of Clearance: N/A

93.568 Low-Income Home Energy Assistance

Recipient: Department of Social Services (DSS)

% of Funds Agency Receives: 3

Component: Indirect Costs

Technique: Actual Costs - Estimated Allocation (Semi-Monthly)

Average Day of Clearance: N/A

93.568 Low-Income Home Energy Assistance

Recipient: Department of Housing and Community Development 

(DHCD)

% of Funds Agency Receives: 12

Component: Direct Costs for Maintenance Payments to Beneficiaries -

EFT

Technique: ZBA - TANF and LIHEAP Benefits by EFT

Average Day of Clearance: N/A

93.568 Low-Income Home Energy Assistance

Recipient: Department of Social Services (DSS)

% of Funds Agency Receives: 9

Component: Administrative Costs (Local)

Technique: Actual Costs - Estimated Allocation Monthly

Average Day of Clearance: N/A

93.568 Low-Income Home Energy Assistance

Recipient: Department of Social Services (DSS)

% of Funds Agency Receives: 4

Component: Maintenance Payments to Beneficiaries - Checks

Technique: Average Clearance Technique for Maintenance Payments 

to Beneficiaries

Average Day of Clearance: N/A

93.568 Low-Income Home Energy Assistance

Recipient: Department of Social Services (DSS)

% of Funds Agency Receives: 1

Component: Other Direct Costs (Other than Maintenance Payments and 

Admin Local)

Technique: Post Expenditure Funding

Average Day of Clearance: N/A

93.568 Low-Income Home Energy Assistance

Recipient: Department of Social Services (DSS)

% of Funds Agency Receives: 71

Component: Direct Costs for Maintenance Payments to Beneficiaries -

EFT

Technique: ZBA - TANF and LIHEAP Benefits by EFT

Average Day of Clearance: N/A

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93.575 Child Care and Development Block Grant

Recipient: Department of Education (DOE)

% of Funds Agency Receives: 100

Component: All Program Costs

Technique: Payment Schedule Two-Week Intervals

Average Day of Clearance: N/A

93.596 Child Care Mandatory and Matching Funds of the Child Care 

and Development Fund

Recipient: Department of Education (DOE)

% of Funds Agency Receives: 100

Component: All Program Costs

Technique: Payment Schedule Two-Week Intervals

Average Day of Clearance: N/A

93.658 Foster Care -- Title IV-E

Recipient: Department of Social Services (DSS)

% of Funds Agency Receives: 5

Component: State Indirect Costs

Technique: Actual Costs - Estimated Allocation (Semi-Monthly)

Average Day of Clearance: N/A

93.658 Foster Care -- Title IV-E

Recipient: Department of Social Services (DSS)

% of Funds Agency Receives: 1

Component: Direct Costs Other Than Administrative Costs (Local)

Technique: Post Expenditure Funding

Average Day of Clearance: N/A

93.658 Foster Care -- Title IV-E

Recipient: Department of Social Services (DSS)

% of Funds Agency Receives: 94

Component: Administrative Costs (Local)

Technique: Actual Costs - Estimated Allocation Monthly

Average Day of Clearance: N/A

93.659 Adoption Assistance

Recipient: Department of Social Services (DSS)

% of Funds Agency Receives: 93

Component: Administrative Costs (Local)

Technique: Actual Costs - Estimated Allocation Monthly

Average Day of Clearance: N/A

93.659 Adoption Assistance

Recipient: Department of Social Services (DSS)

% of Funds Agency Receives: 6

Component: State Indirect Costs

Technique: Actual Costs - Estimated Allocation (Semi-Monthly)

Average Day of Clearance: N/A

93.659 Adoption Assistance

Recipient: Department of Social Services (DSS)

% of Funds Agency Receives: 1

Component: Direct Costs Other Than Administrative Costs (Local)

Technique: Post Expenditure Funding

Average Day of Clearance: N/A

93.767 Children's Health Insurance Program

Recipient: Department of Medical Assistance Services (DMAS)

% of Funds Agency Receives: .09

Component: Provider Payments by Check (Fiscal Agent)

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Technique: Average Clearance Funding Technique for the 

Medicaid/CHIP Combined Account

Average Day of Clearance: 7 Days

93.767 Children's Health Insurance Program

Recipient: Department of Medical Assistance Services (DMAS)

% of Funds Agency Receives: .02

Component: Indirect Costs

Technique: Annually

Average Day of Clearance: N/A

93.767 Children's Health Insurance Program

Recipient: Department of Medical Assistance Services (DMAS)

% of Funds Agency Receives: 4.74

Component: Manual Payments: Provider Payments Not Processed by 

the Fiscal Agent, and Direct Administrative Costs

Technique: Modified Pre-Issuance Funding

Average Day of Clearance: N/A

93.767 Children's Health Insurance Program

Recipient: Department of Medical Assistance Services (DMAS)

% of Funds Agency Receives: 95.15

Component: Provider Payment by EFT (Fiscal Agent)

Technique: Actual Clearance: CDA for EFT Payments by the Fiscal 

Agent

Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: Department of Social Services (DSS)

% of Funds Agency Receives: 2.15

Component: Administrative Costs (Local)

Technique: Actual Costs - Estimated Allocation Monthly

Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: Department of Medical Assistance Services (DMAS)

% of Funds Agency Receives: .02

Component: Indirect Costs

Technique: Annually

Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: Department of Medical Assistance Services (DMAS)

% of Funds Agency Receives: .27

Component: Provider Payments by Check (Fiscal Agent)

Technique: Average Clearance Funding Technique for the 

Medicaid/CHIP Combined Account

Average Day of Clearance: 7 Days

93.778 Medical Assistance Program

Recipient: Department of Medical Assistance Services (DMAS)

% of Funds Agency Receives: 1.64

Component: Medicaid Provider Payments Not Processed by the Fiscal 

Agent, and Direct Administrative Costs

Technique: Modified Pre-Issuance Funding

Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: Department of Medical Assistance Services (DMAS)

% of Funds Agency Receives: 95.92

Component: Provider Payments by EFT (Fiscal Agent)

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Technique: Actual Clearance: CDA for EFT Payments by the Fiscal 

Agent

Average Day of Clearance: N/A

6.3.3 Materiality Exemptions

Agencies exempt from coverage on the basis of materiality:

None

6.4.0 There is no additional language listed for Section 6.1.6.

6.4.1 For DMAS: In instances where the receipt of funds is scheduled for a Saturday or 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 before 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.

In addition, the State will comply with the protocols and processes specified by the Centers for Medicare and 

Medicaid Services (CMS) guidelines when requesting Federal funds from the Division of Payment Management and 

reporting Federal expenditures within the associated quarterly reporting periods during the Federal fiscal year. In 

instances where the disbursement/expenditure has already been realized and posted to the State's accounting system 

but the receipt of the Federal funds is scheduled for deposit on a day beyond the end of a quarterly reporting period, 

the State shall request funds for deposit on the last business day of the associated quarterly reporting period. 

Adhering to this matching principle of accounting will allow the State to efficiently and accurately reconcile 

quarterly cash receipts reported on the quarterly Federal Financial Reports (FFR's) - Standard Form 425, and 

quarterly certified expenditures reported on the quarterly Federal CMS 21 and 64 Reports within the respective 

quarterly reporting period.

7.0 CLEARANCE PATTERNS

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

Medicaid/CHIP Combined Account checks to 3rd Party Providers by Conduent State Healthcare, LLC

Social Service Program Benefits

Payroll checks

General Warrants (Vendor Payments)

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

The banks under contract with the Virginia Department of Treasury.

The bank under contract with Conduent.

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

General warrants, payroll checks, social service payments, and checks issued by the Fiscal Agent for Medical Assistance Services 

Program (CFDA #93.778) and the Children's Health Insurance Program (93.767).

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:

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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:

No exceptions. See Section 7.13.0

The State shall also adjust each clearance pattern to reflect:

See Section 7.13.0

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.

7.11.0 For the general warrants, social services, and payroll accounts, the respective banks track all checks issued until 

payment, or until payment is stopped on the individual checks because of theft, loss, or other reasons. In all 

cases, the Commonwealth's banks produce check clearance patterns for over 99% of the checks issued. For all 

checks paid during each month, the program calculates the number of business and/or calendar days outstanding 

by subtracting the issue date from the paid date, and then calculates a dollar weighted average number of days 

that the checks paid during the month were outstanding.

7.12.0 For CMIA interest calculations, the Virginia Department of Accounts (DOA) prepares an annualized dollar 

weighted average number of calendar days for the most recently completed SFY that cleared checks were 

outstanding each month in the general warrant, and payroll accounts.

7.12.1 Where functional or other clearance pattern data is available that is suitable for estimating the programmatic 

flow of federal funds, DOA shall estimate a program's clearance pattern based upon the expenditure 

characteristics of the respective program. In estimating a program's clearance pattern for interest calculations, 

DOA shall use program expenditure data from not less than 3 months, and not more than 12 months, of the fiscal 

year, including, at a minimum, the last three months of the fiscal year. The State agencies responsible for the 

respective programs shall provide the required program expenditure data to DOA upon request. For example, if 

it is determined that a major federal assistance program covered by the Agreement has $1 million in 

expenditures in the following proportions: 20% payroll by check, 15% payroll by direct deposit, 5% ATA 

payments to other State agencies, 50% EDI payments and 10% general warrants, then the program's overall 

clearance pattern would be estimated as follows:

Type of Program Expenditure $ Amount Days Dollar Weighted

Payroll payments by check $ 200,000 4.61 0.922

Payroll direct deposits $ 150,000 0.00 0.000

ATA payments $ 50,000 0.00 0.000

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EDI payments $ 500,000 0.00 0.000

General warrants $ 100,000 10.24 1.024

Total/Overall Clearance Pattern $ 1,000,000 N/A 1.946 Days

7.13.0 The State adjusts each program's check clearance pattern(s) to reflect, where applicable, the dollar-weighted 

proportion of funds paid out by either wire transfer or ACH; for example, Electronic Data Interchange (EDI) 

payments and payroll direct deposits.

The State shall also adjust each program's check clearance pattern to reflect, where applicable, simultaneous 

internal transfer payments, such as book entry transfers, or internal electronic transfers (ATA's).

7.14.0 Each of the State's monthly check clearance patterns is calculated in business and/or calendar days as applicable. 

Calendar day patterns are used for the calculation of interest. When necessary, available and appropriate, 

business day clearance patterns may be used for estimating the timing of drawdowns instead of calendar days. 

When necessary and appropriate, monthly business day check clearance patterns may be converted to calendar 

days by multiplying the average business day clearance pattern for the respective months by a factor of 

approximately 1.4. The conversion factor is obtained by dividing the number of calendar days in the month by 

the number of business days in the month.

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 Base Modified Monthly

Actual Base Monthly

Actual Base Quarterly

Actual Clearance: CDA for EFT Payments by the Fiscal Agent

Actual Clearance: ZBA

Actual Costs - Estimated Allocation (Semi-Monthly)

Actual Costs - Estimated Allocation Monthly

Annually

Average Clearance Funding Technique for the Medicaid/CHIP Combined Account

Average Clearance Technique for Maintenance Payments to Beneficiaries

Fixed Administrative Allowance (Semi-monthly Payroll)

Payment Schedule (Semi-monthly Nonpersonal Services)

Payment Schedule Two-Week Intervals

Post Expenditure Funding

Post Expenditure Funding Technique for the WIC Program

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Proportionate Share

ZBA - SNAP Benefits

ZBA - UI Benefits-ACH

ZBA - TANF and LIHEAP Benefits by EFT

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:

There are no interest earnings on funds withdrawn from the State account, as the State has implemented ZBA, an interest-neutral 

funding technique, for such transfers. For transfers from the UTF that do not follow the technique specified in section 6.2 and result in a 

positive balance of funds in a State account, the State's liability for interest on funds withdrawn from its account in the UTF shall 

consist of the actual interest earnings of the benefit payment account on the pro-rata share less the related banking costs attributed to 

such funds.

8.4 Refund Liabilities

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

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

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

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

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

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

(3) amount of the refund

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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 

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 the Cardinal expenditure recording date to the payment issue date shall be determined from 

information captured by Cardinal (Commonwealth's Accounting System). See complete explanation in Section 8.7.1 

through 8.7.6.

8.6.2.3 Standards Applied

Statistical Sampling (Pre-Issuance):

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 a 96 percent confidence interval no more than plus or minus 

0.25 weighted days above or below the estimated mean.

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

Pre-Issuance Time + Clearance Time:

I = P x r x {PI + CT}, where

I = State's total interest liability

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

r = Annualized rate equal to the average equivalent yields of 13-week Treasury bills auctioned during a State's fiscal year 

divided by 365 days

PI = Dollar-weighted average number of days Federal funds are held by State prior to issuance

CT = Dollar-weighted average number of days Federal funds are held by State between issuance and clearance of checks, as 

determined by the appropriate clearance pattern in Exhibit II

8.8.0 The manual payments component of the Medicaid program, which includes Medicaid provider payments not 

processed by the fiscal agent and administrative costs, uses the Modified Pre-Issuance Funding technique defined in 

§6.2.4. The actual Federal share of Medicaid refunds are Fedwired and these Fedwire transfers are performed as 

soon as administratively feasible, after the Federal share of each refund is determined. Interest owed is calculated by 

the State on the Federal share of each refund for the actual time each refund is held in a State account.

8.8.1 With programs to which modified pre-issuance funding will be applied, the State interest liability will be based on 

two periods: 1) the difference in whole days between the date the refund is deposited to a State account and the date 

the refund is offset against a subsequent deposit of Federal funds, and 2) the difference in whole days between the 

date the refund is offset against a subsequent deposit of Federal funds and the date the refund is paid out for program 

purposes.

8.8.2 Refunds of unemployment insurance benefits will be deposited directly to the State's unemployment insurance 

payment account on the same day that they are received. Since these refunds are used to offset daily drawdowns 

made by the VEC for Unemployment Insurance benefits as described in §6.2.4 of the TSA, they will not incur an 

interest liability for the State or the Federal government.

8.8.3 Interest earned by the State on rebate funds for infant formula and other foods under the Special Supplemental Food 

Program for Women, Infants and Children (WIC) shall be retained by the State and used for WIC program purposes.

8.9.0 Notwithstanding Section 8.6.6, under Virginia's modified pre-issuance funding technique, where federal funds are 

transferred to the State before payments are issued, the State shall use the following method(s) to calculate and 

document State and Federal interest liabilities. The current State internal control system requires cash to be in the 

bank in order to pay expenditures. Modified pre-issuance funding interest calculations require the measurement of 

the time elapsed from the date of a program deposit to the date that related payments clear the bank.

Since the State does not have a single system capability to track a specific federal program deposit all the way 

through until this money is paid out, the State combines data recorded in the Commonwealth's Accounting System 

(Cardinal) with bank float data, dividing the time that the federal money is held into three separately measured time 

periods. The three periods are dollar weighted separately before combining them to determine the total time that 

federal money is held.

The three time periods are described below:

First Time Period (1) = Deposit Date (DD) to Cardinal Expenditure

Recording (ER) Date

Second Time Period (2) = ER Date to Payment Issue (PI) (\"System Float\")

Third Time Period (3) = PI Date until Bank Clearance (BC) (\"Bank Float\")

Total Time (1+2+3) = Total Days From Deposit(DD) To Bank Clearance (BC).

8.9.1 The first time period is from a program deposit date to the related expenditure recording date(s) in Cardinal, and is 

sampled by the State agency or institution receiving the federal program funds. First, the overall sample size needed 

to ensure a 96 percent confidence interval no more than plus or minus 0.25 weighted days above or below the 

estimated mean is determined from the dollar weighted standard deviation of a randomly selected pilot sample of 

thirty samples using a formula provided by the Fiscal Service. Because the pilot sample is randomly selected it may 

be included as a part of the overall sample which is also randomly selected. Second, for the overall sample, the

recipient dollar weights the days that it takes for all expenditures related to a particular sample to be recorded. A 

sample will include expenditures related to money received from refunds where federal drawdowns have been 

adjusted for refunds received since the last draw. Third, the results of all the samples are dollar weighted. These 

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results are indicated in terms of positive days when the federal funds are deposited before the related expenditures 

are recorded, and as negative days when expenditures are recorded before the related federal funds are deposited.

Notwithstanding these sampling requirements, a State agency has the option of examining ALL (100%) of its federal 

deposits for the year in order to determine the dollar weighted average days from the deposit date to the Cardinal 

expenditure recording date.

8.9.2 The second time period (expenditure recording date to payment issue date) is known as the System Float and is 

measured by DOA from internal Cardinal records on an agency by agency basis. Since the data is available on an

agency by agency basis, and not a program by program basis, an assumption is made that agency specific results can 

be applied at the program level. To determine the "System Float," expenditure recording dates of all Federal fund 

payments on the Cardinal history file are linked to their related payment issue dates on the vendor payment file by 

the expenditure journal identifier, and the time between the two is measured and dollar weighted. The overall agency 

results for each month of the most recently completed SFY are dollar weighted to arrive at the estimated annual 

"System Float" for the respective federal programs administered by those agencies.

8.9.3 The third time period (payment issue date to bank clearance date), known as Bank Float is measured by DOA

using the clearance patterns, and other clearance pattern data, as described in §7.0 (Clearance Pattern Method) of this

Agreement.

8.9.4 The results of the three time periods are added together to obtain the estimated total time that federal program money 

is held, or State money advanced on behalf of the federal program. Using the following formula, the interest liability 

to the State (or federal government) is calculated on a program by program basis, as shown in the example below. 

Interest will be calculated based on the amount of expenditures relating to the sampled drawdowns, then prorated to 

the total applicable revenue for the year. The State and federal interest liabilities are calculated separately.

Formula: I = R x T x $, Where I = the Annual Program Interest Payable or Receivable,

R = the Daily Interest Rate

T= the Weighted Average Days that the Federal Money is Held or State Money Advanced

$ = Dollar Amount of Yearly Expenditures

For Example, Given That:

Yearly Expenditures = $13,509,943

Annual Interest Rate = 3.65% (0.0365)

Daily Interest Rate = 0.0001

Net $ Weighted Days Held = 5.60 Days

The following interest liabilities are calculated:

State Interest Liability = $8,767

Federal Interest Liability = $1,202

Net State Interest Liability = $7,565.

In the above example, all 28 drawdowns for the year were tested. Of these, 24 (amounting to a total of $11,196,859 

or 83% of the federal program funds) were deposited 7.83 dollar weighted average days before the estimated check 

clearance date, for a State interest liability of $8,767. The other 4 drawdowns (amounting to a total of $2,313,084 or 

17% of the federal program funds) were deposited 5.20 dollar-weighted average days after the estimated check 

clearance date, for a federal interest liability of $1,202.

8.7.0 Notwithstanding the explanation in Section 8.3.1, there are no interest earnings on funds withdrawn from the State 

account in the UTF, as the State has implemented an interest Zero Balance Account for EFT payments.

9.0 REVERSE FLOW PROGRAMS

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

participate in the program.

10.0 INTEREST CALCULATION COSTS

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

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

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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:

Personal services and related fringe benefit costs of staff conducting and reviewing CMIA interest calculations, and check clearance 

pattern maintenance.

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

David A. Von Moll

Comptroller of Virginia

Signature: Date Signed:

Date Submitted 6/22/2021

Sandra R. Paylor

Acting Assistant Commissioner

Revenue Collections Management

Bureau of the Fiscal Service

U.S. Department of the Treasury

Signature: Date Signed:

DocuSign Envelope ID: 53CE97D3-0FCD-4DEF-80F9-56D16A60C481

7/2/2021

7/14/2021
Page 27 of 33

Exhibit I - Funds Request and Receipt Times Schedule

Commonwealth of Virginia

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 - Commonwealth of Virginia

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 

Social Services 

(DSS)

100.0 EBT Benefits to 

Recipients

ZBA - SNAP 

Benefits

N/A

10.553 School Breakfast 

Program

Department of 

Education (DOE)

99.0 Weekly EDI 

Payments to Local 

Governments

Actual Clearance: 

ZBA

N/A

School Breakfast 

Program

Department of 

Education (DOE)

1.0 Other Direct Costs Post Expenditure 

Funding

N/A

10.555 National School 

Lunch Program

Department of 

Education (DOE)

99.0 Weekly EDI 

Payments to Local 

Governments

Actual Clearance: 

ZBA

N/A

National School 

Lunch Program

Department of 

Education (DOE)

1.0 Direct Costs Post Expenditure 

Funding

N/A

10.557 Special 

Supplemental 

Nutrition Program 

for Women, 

Infants, and 

Children

Department of 

Health (VDH)

2.0 Indirect Costs Actual Base 

Quarterly

N/A

Special 

Supplemental 

Nutrition Program 

for Women, 

Infants, and 

Children

Department of 

Health (VDH)

52.0 Direct Costs (WIC 

Food)

Post Expenditure 

Funding Technique 

for the WIC 

Program

N/A

Special 

Supplemental 

Nutrition Program 

for Women, 

Infants, and 

Children

Department of 

Health (VDH)

46.0 Direct Costs (WIC 

Administration)

Modified PreIssuance FundingN/A

10.561 State 

Administrative 

Matching Grants 

for the 

Supplemental 

Nutrition 

Assistance 

Program

Department of 

Social Services 

(DSS)

13.0 State Indirect Costs Actual Costs -

Estimated 

Allocation (SemiMonthly)

N/A

State 

Administrative 

Matching Grants 

for the 

Supplemental 

Nutrition 

Assistance 

Program

Department of 

Social Services 

(DSS)

80.0 Administrative Costs 

(Local)

Actual Costs -

Estimated 

Allocation Monthly

N/A

State 

Administrative 

Matching Grants 

for the 

Supplemental 

Department of 

Social Services 

(DSS)

7.0 Other Direct Costs---

Other Than 

Administrative Costs 

(Local)

Post Expenditure 

Funding

N/A

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Nutrition 

Assistance 

Program

17.225 F

Unemployment 

Insurance --

Federal Benefit 

Account and 

Administrative 

Costs

Virginia 

Employment 

Commission 

(VEC)

0.7 Unemployment 

Insurance 

Administration 

(Payroll)

Fixed 

Administrative 

Allowance (Semi-

monthly Payroll)

0 Days

Unemployment 

Insurance --

Federal Benefit 

Account and 

Administrative 

Costs

Virginia 

Employment 

Commission 

(VEC)

0.4 Unemployment 

Insurance 

Administration 

(Nonpersonal 

Services)

Payment Schedule 

(Semi-monthly 

Nonpersonal 

Services)

N/A

Unemployment 

Insurance --

Federal Benefit 

Account and 

Administrative 

Costs

Virginia 

Employment 

Commission 

(VEC)

98.7 Unemployment 

Insurance Benefits by 

EFT (Federal)

ZBA - UI Benefits-

ACH

N/A

Unemployment 

Insurance --

Federal Benefit 

Account and 

Administrative 

Costs

Virginia 

Employment 

Commission 

(VEC)

0.2 Indirect Costs Proportionate Share N/A

17.225 S

Unemployment 

Insurance -- State 

Benefit Account

Virginia 

Employment 

Commission 

(VEC)

100.0 Unemployment 

Insurance Benefits by 

EFT (State)

ZBA - UI Benefits-

ACH

N/A

20.205 Highway Planning 

and Construction

Department of 

Transportation 

(VDOT)

99.05 Direct Costs for 

Current and 

Previously Capped 

Projects

Post Expenditure 

Funding

N/A

Highway Planning 

and Construction

Department of 

Rail and Public 

Transportation 

(DRPT)

0.95 Direct Costs Post Expenditure 

Funding

N/A

84.010 Title I Grants to 

Local Educational 

Agencies

Department of 

Education (DOE)

0.1 Indirect Costs Actual Base 

Modified Monthly

N/A

Title I Grants to 

Local Educational 

Agencies

Department of 

Education (DOE)

99.8 Weekly EDI 

Payments to Local 

Governments

Actual Clearance: 

ZBA

N/A

Title I Grants to 

Local Educational 

Agencies

Department of 

Education (DOE)

0.1 Other Directs Costs Post Expenditure 

Funding

N/A

84.027 Special Education 

-- Grants to States

Department of 

Education (DOE)

2.0 Indirect Costs Actual Base 

Modified Monthly

N/A

Special Education 

-- Grants to States

Department of 

Education (DOE)

7.0 Other Directs Costs Post Expenditure 

Funding

N/A

Special Education 

-- Grants to States

Department of 

Education (DOE)

91.0 Weekly EDI 

Payments to Local 

Governments

Actual Clearance: 

ZBA

N/A

84.126 Rehabilitation 

Services --

Vocational 

Rehabilitation 

Grants to States

Department for 

Aging and 

Rehabilitative 

Services (DARS)

6.85 Indirect Costs Actual Base 

Monthly

N/A

Rehabilitation 

Services --

Vocational 

Department for 

Aging and 

82.3 Direct Costs Modified Pre-

Issuance Funding

N/A

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Rehabilitation 

Grants to States

Rehabilitative 

Services (DARS)

Rehabilitation 

Services --

Vocational 

Rehabilitation 

Grants to States

Department for 

the Blind and 

Vision Impaired 

(DBVI)

1.33 Indirect Costs Actual Base 

Monthly

N/A

Rehabilitation 

Services --

Vocational 

Rehabilitation 

Grants to States

Department for 

the Blind and 

Vision Impaired 

(DBVI)

9.52 Direct Costs Modified Pre-

Issuance Funding

N/A

93.558 Temporary 

Assistance for 

Needy Families

Department of 

Social Services 

(DSS)

8.0 Indirect Costs Actual Costs -

Estimated 

Allocation (Semi-

Monthly)

N/A

Temporary 

Assistance for 

Needy Families

Department of 

Social Services 

(DSS)

42.0 Administrative Costs 

(Local)

Actual Costs -

Estimated 

Allocation Monthly

N/A

Temporary 

Assistance for 

Needy Families

Department of 

Social Services 

(DSS)

2.0 Direct Costs for 

Maintenance 

Payments to 

Beneficiaries -

Checks

Average Clearance 

Technique for 

Maintenance 

Payments to 

Beneficiaries

N/A

Temporary 

Assistance for 

Needy Families

Department of 

Social Services 

(DSS)

33.0 Other Direct Costs 

(Other than 

Maintenance 

Payments, Admin 

Local and Pass Thru)

Post Expenditure 

Funding

N/A

Temporary 

Assistance for 

Needy Families

Department of 

Social Services 

(DSS)

15.0 Direct Costs for 

Maintenance 

Payments to 

Beneficiaries -- EFT

ZBA - TANF and 

LIHEAP Benefits 

by EFT

N/A

93.563 Child Support 

Enforcement

Department of 

Social Services 

(DSS)

100.0 All Administrative 

Costs

Actual Costs -

Estimated 

Allocation (Semi-

Monthly)

N/A

93.568 Low

-Income 

Home Energy 

Assistance

Department of 

Social Services 

(DSS)

3.0 Indirect Costs Actual Costs -

Estimated 

Allocation (Semi-

Monthly)

N/A

Low-Income 

Home Energy 

Assistance

Department of 

Housing and 

Community 

Development 

(DHCD)

12.0 Direct Costs for 

Maintenance 

Payments to 

Beneficiaries -EFT

ZBA - TANF and 

LIHEAP Benefits 

by EFT

N/A

Low-Income 

Home Energy 

Assistance

Department of 

Social Services 

(DSS)

9.0 Administrative Costs 

(Local)

Actual Costs -

Estimated 

Allocation Monthly

N/A

Low-Income 

Home Energy 

Assistance

Department of 

Social Services 

(DSS)

4.0 Maintenance 

Payments to 

Beneficiaries -

Checks

Average Clearance 

Technique for 

Maintenance 

Payments to Beneficiaries

N/A

Low-Income 

Home Energy 

Assistance

Department of 

Social Services 

(DSS)

1.0 Other Direct Costs 

(Other than 

Maintenance 

Payments and Admin 

Local)

Post Expenditure 

Funding

N/A

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Low-Income 

Home Energy 

Assistance

Department of 

Social Services 

(DSS)

71.0 Direct Costs for 

Maintenance 

Payments to 

Beneficiaries - EFT

ZBA - TANF and 

LIHEAP Benefits 

by EFT

N/A

93.575 Child Care and 

Development 

Block Grant

Department of 

Education (DOE)

100.0 All Program Costs Payment Schedule 

Two-Week Intervals

N/A

93.596 Child Care 

Mandatory and 

Matching Funds 

of the Child Care 

and Development 

Fund

Department of 

Education (DOE)

100.0 All Program Costs Payment Schedule 

Two-Week Intervals

N/A

93.658 Foster Care --

Title IV-E

Department of 

Social Services 

(DSS)

5.0 State Indirect Costs Actual Costs -

Estimated 

Allocation (SemiMonthly)

N/A

Foster Care --

Title IV-E

Department of 

Social Services 

(DSS)

1.0 Direct Costs Other 

Than Administrative 

Costs (Local)

Post Expenditure 

Funding

N/A

Foster Care --

Title IV-E

Department of 

Social Services 

(DSS)

94.0 Administrative Costs 

(Local)

Actual Costs -

Estimated 

Allocation Monthly

N/A

93.659 Adoption 

Assistance

Department of 

Social Services 

(DSS)

93.0 Administrative Costs 

(Local)

Actual Costs -

Estimated 

Allocation Monthly

N/A

Adoption 

Assistance

Department of 

Social Services 

(DSS)

6.0 State Indirect Costs Actual Costs -

Estimated 

Allocation (SemiMonthly)

N/A

Adoption 

Assistance

Department of 

Social Services 

(DSS)

1.0 Direct Costs Other 

Than Administrative 

Costs (Local)

Post Expenditure 

Funding

N/A

93.767 Children's Health 

Insurance 

Program

Department of 

Medical 

Assistance 

Services (DMAS)

0.09 Provider Payments 

by Check (Fiscal 

Agent)

Average Clearance 

Funding Technique 

for the 

Medicaid/CHIP 

Combined Account

7 Days

Children's Health 

Insurance 

Program

Department of 

Medical 

Assistance 

Services (DMAS)

0.02 Indirect Costs Annually N/A

Children's Health 

Insurance 

Program

Department of 

Medical 

Assistance 

Services (DMAS)

4.74 Manual Payments: 

Provider Payments 

Not Processed by the 

Fiscal Agent, and 

Direct Administrative 

Costs

Modified PreIssuance FundingN/A

Children's Health 

Insurance 

Program

Department of 

Medical 

Assistance 

Services (DMAS)

95.15 Provider Payment by 

EFT (Fiscal Agent)

Actual Clearance: 

CDA for EFT 

Payments by the 

Fiscal Agent

N/A

93.778 Medical 

Assistance 

Program

Department of 

Social Services 

(DSS)

2.15 Administrative Costs 

(Local)

Actual Costs -

Estimated 

Allocation Monthly

N/A

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Medical 

Assistance 

Program

Department of 

Medical 

Assistance 

Services (DMAS)

0.02 Indirect Costs Annually N/A

Medical 

Assistance 

Program

Department of 

Medical 

Assistance 

Services (DMAS)

0.27 Provider Payments 

by Check (Fiscal 

Agent)

Average Clearance 

Funding Technique 

for the 

Medicaid/CHIP 

Combined Account

7 Days

Medical 

Assistance 

Program

Department of 

Medical 

Assistance 

Services (DMAS)

1.64 Medicaid Provider 

Payments Not 

Processed by the 

Fiscal Agent, and 

Direct Administrative 

Costs

Modified PreIssuance FundingN/A

Medical

Assistance 

Program

Department of 

Medical 

Assistance 

Services (DMAS)

95.92 Provider Payments 

by EFT (Fiscal 

Agent)

Actual Clearance: 

CDA for EFT 

Payments by the 

Fiscal Agent

N/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.

Date: 

Printed Name: 

Certifying Signature: 

Title: 

DocuSign Envelope ID: 53CE97D3-0FCD-4DEF-80F9-56D16A60C481

State Comptroller

David Von Moll

7/2/2021
Page 33 of 33

DocuSign Envelope ID: 53CE97D3-0FCD-4DEF-80F9-56D16A60C481