Exhibit Il - State of Oregon

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
‘Supplemental Nutrition . |Program Payments Actual Clearance, ZBA- |0 Days
Assistance Program Human Services 00 ACH
10.555 |National School Lunch —_|581---Department of 100. | Program Payments & Post-Issuance NIA
Program Education 00 {Direct Administrative
Costs
10.557 | Special Supplemental 443 - Oregon Health 100. |Program Payments Actuat Clearance, ZBA- |1 Day
Nutrition Program for Authority 00 ACH (Modified)
Women, Infants, and
Children
10.561 |State Administrative 100---Department of 12.0 |Program Payments Estimated Clearance N/A.
Matching Grants for the {Human Services 0 (Truncated)
Supplemental Nutrition
Assistance Program
10.561 |State Administrative 100---Department of 73.0 ||Indirect Payroll Costs Cost Allocation Plans- 0 Days
Matching Grants for the |/Human Services ty) Monthly
Supplemental Nutrition
Assistance Program
10.561 {State Administrative 100—-Department of 15.0 |Allocated Administrative |Cost Allocation Plans- |N/A
Matching Grants forthe /|Human Services 0 Costs Estimated Allocation -
Supplemental Nutrition Monthly
Assistance Program
17,.225F |Unemployment Insurance |471-—-Employment 31.0 [ACH Program Payments |Actual Clearance, ZBA- [0 Days
— Federal Benefit Department i} ACH
Account and
Administrative Costs
17.225F |Unemployment Insurance |471---Employment 13.0 |Allocated Administrative |Cost Allocation Plans- |N/A
— Federal Benefit Department 0 Costs Monthly
Account and
Administrative Costs
17.225F |Unemployment Insurance |471---Employment 53.0 |Payroll Costs & Direct Direct Administrative N/A
-- Federal Benefit Department 0 Administrative Costs Costs - Drawdowns on a
Account and Payroll Cycle
Administrative Costs
17.225F |Unemployment Insurance |471—--Employment 3.00 {Program Payments Estimated Clearance N/A
-- Federal Benefit Department (clearance pattern based
Account and ‘on calendar days)
Administrative Costs
17.225S |Unemployment insurance |471---Employment 90.0 JACH Program Payments |Actual Clearance, ZBA- }0 Days
-- State Benefit Account_|Department 0 ACH
17.225S {Unemployment Insurance |471---Employment 10.0 |Program Payments Estimated Clearance N/A
-- State Benefit Account {Department ty) (clearance pattern based
on calendar days)
20.205 | Highway Planning and 730--Department of 100. {All Components Composite Clearance 5 Days
Construction Transportation 00
84.010 {Title | Grants to Local 581---Department of 1.00 {Payroll Costs Post-issuance N/A
Educational Agencies Education
84.010 | Title | Grants to Local 581-—Department of 99.0 |Program Payments & Post-Issuance N/A
Educational Agencies Education 0 Direct Administrative
Costs

Page 20 of 25


8.1 General Terms

8.1.1 The State and the Secretary agree that no interest liabilities will be incurred for transfers of funds made in
accordance with the procedures specified in section 6 of this Agreement where the following funding techniques are
applied:

Actual Clearance, ZBA - ACH

Actual Clearance, ZBA-ACH (Modified)

Composite Clearance

Cost Allocation Plans - Estimated Allocation - Monthly

Cost Allocation Plans - Monthly

Direct Administrative Costs - Drawdowns on a Payroll Cycle
Estimated Clearance

Estimated Clearance (Truncated)

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

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

(1) amount of the issuance

(2) date of issuance

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

(4) amount of Federal funds received

(5) date funds were requested

8.2 Federal Interest Liabilities

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

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

Actual Activity:

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

8.2.4 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 il, 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

Page 14 of 25


a

Day 4
Day 5
Day 6
Day 7
Day 8
Day 9
Day 10
Day 11
Day 12
Day 13
Day 14
Day 15
Day 16
Day 17
Day 18
Day 19
Day 20
Day 21
Day 22
Day 23
Day 24
Day 25
Day 26
Day 27
Day 28
Day 29
Day 30
Day 31
Total

Certification
| hereby certify that the % Cleared listed in Exhibit ! Estimated Clearance of this Treasury State Agreement:

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

. Reflects seasonal or other periodic variations in the clearance activities;
. Is auditable; and,

akon a

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

July 7 2a
a
Signat Date Signed

Geonoe. Neughtay

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

Page 24 of 25


6.2 Description of Funding Techniques

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

Actual Clearance, ZBA - 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 |. The amount of the request shail 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, in accordance with the clearance pattern specified in Exhibit Il. The
request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit |. 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 Il - EC (Estimated Clearance). The request shall be made in accordance with the appropriate Federal
agency cut-off time specified in Exhibit 1. The amount of each request will be a percentage of the disbursement, according
to the State's clearance pattern specified in Exhibit Il - EC. This funding technique is interest neutral.

Post-lssuance

The State shall request funds such that they are deposited in a State account after the State issues checks, but before the
checks clear. The request shall be made in accordance with the appropriate Federal agency cut-off time specified in
Exhibit |. The amount of the request shall be the amount of the disbursement. This funding technique is not 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.

Cost Allocation Plans - Estimated Allocation - Monthly

The State shall request funds once a month, such that they are deposited on the median day of the month, to fund the
costs incurred during that month. Thé request shall be made in accordance with the appropriate Federal agency cut-off
time specified in Exhibit !. The amount of the request shail be an estimate based on the actual allocation of costs fo the
program for the preceding six months. This funding technique is interest neutral.

Cost Allocation Plans - Monthly

The State shall request funds once a month, such that they are deposited on the median day of the month, to fund activity
of the prior month. The request shall be made in accordance with the appropriate Federal agency cut-off time specified in
Exhibit I. The amount of the request for a given month's activity shall be based on actual costs distributed in accordance
with the State's approved cost allocation plan. This funding technique is interest neutral.

Page 5 of 25


Monthly

84.027 |Special Education — 581---Department of 97.0 |Program Payments & Post-Issuance NIA
Grants to States Education 0 Direct Administrative
Costs
84.027 |Special Education — 581---Department of 3.00 |Payroll Costs Post-Issuance N/A
Grants to States Education
84.027 |Special Education — 581--Department of 0.00 | Indirect Administrative Post-Issuance N/A
Grants to States Education Costs
93.558 |Temporary Assistance for|100-—-Department of 41.0 |EBT/ACH Payments Actual Clearance, ZBA- |0 Days
Needy Families Human Services 0 ACH
93.558 | Temporary Assistance for} 100--Department of 14.0 |Program Payments Estimated Clearance NIA
Needy Families Human Services 0 (Truncated)
93.558 | Temporary Assistance for |100—Department of 34.0 indirect Payroll costs Cost Allocation Plans- 0 Days
Needy Families Human Services 0 Monthly
93.558 |Temporary Assistance for|100---Department of 11.0 |Allocated Administrative |Cost Allocation Plans- |N/A
Needy Families Human Services 0 Costs Estimated Allocation -
Monthly
93,658 |Foster Care -- Title V-E | 100-—Department of 10.0 |EBT/ACH Payments Actual Clearance, ZBA- |0 Days
Human Services 0 ACH
93.658 |Foster Care — Title IV-E |100---Department of 2.00 |Direct Payroll Costs Estimated Clearance N/A
Human Services. (Truncated)
93,658 |Foster Care — Title IV-E | 100--Department of 13.0 |Program Payments Estimated Clearance N/A
Human Services 9 (Truncated)
93.658 |Foster Care -- Title 1V-E _|100--Department of 57,0 jIndirect Payroll Costs Cost Allocation Plans- {0 Days
Human Services it} Monthly
93.658 Foster Care — Title 1V-E | 100---Department of 18.0 |Allocated Administrative |Cost Allocation Plans- |N/A
Human Services 0 Costs Estimated Allocation -
Monthly
93.767 {Children's Health 443 - Oregon Health 87.0 j|EBT/ACH Payments Actual Clearance, ZBA- |0 Days
Insurance Program Authority 0 ACH
93.767 {Children's Health 443 - Oregon Health 7.00 |Program Payments Estimated Clearance NIA
Insurance Program | Authority (Truncated)
93.767 {Children's Health 443 - Oregon Health 2.00 |Indirect Payroll Costs Cost Allocation Plans- —|0 Days
Insurance Program Authority Monthly
93.767 |Children's Health 443 - Oregon Health 4.00 [Allocated Administrative {Cost Allocation Plans- |N/A
Insurance Program Authority Costs Estimated Allocation -
Monthly
93.778 {Medical Assistance 443 - Oregon Health 79.0 |EBT/ACH Payments Actual Clearance, ZBA- |0 Days
Program Authority oO ACH
93.778 |Medical Assistance 443 - Oregon Health 1.00 | Direct Payroll Costs Estimated Clearance N/A
Program Authority (Truncated)
93.778 |Medical Assistance 443 - Oregon Health 18.0 |Program Payments Estimated Clearance N/A
Program Authority i} (Truncated)
93.778 |Medical Assistance 443 - Oregon Health 1.00 | Indirect Payroll Costs Cost Allocation Plans- —|Q Days
Program Authority Monthly
93.778 |Medical Assistance 443 - Oregon Health 41.00 |Allocated Administrative |Cost Allocation Plans- |N/A
Program Authority Costs Estimated Allocation ~

| 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:

4. 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,

Page 21 of 25



Cash Management Improvement Act - 2017 Treasury State Agreement
State of Oregon - Exhibit Il Estimated Clearance

17.225F Unemployment insurance -- Federal Benefit Account and Administrative Costs
Program Payments (clearance pattern based on calendar days)

Day 1 0.00
Day 2 0.00:
Day 3 3.00.
Day 4 8.00:
Day 5 2.00:
Day 6 12.00
Day 7 30.00:
Day 8 15.00
Day 9 8.00
Day 10 5.00)
Day 114 3.00)
Day 12 2.00;
Day 13. 2.00)
Day 14 2.00)
Day 15 8.00
Day 16 0.00
Day 17 0.00
Day 18 0.00
Day 19 0,00
Day 20 0.00
Day 21 0.00)
Day 22 0.00)
Day 23 0.00
Day 24 0.00)
Day 25 0.00
Day 26 0.00)
Day 27 0.00)
Day 28 0.00)
Day 29 0,00)
Day 30 0.00)
Day 31 0,00)
Total 100.00!

17.225S Unemployment Insurance — State Benefit Account
Program Payments (clearance pattern based on calendar days)

Day 2

0.00)

Day 3

3,00)

Effective 07/01/2016 until 06/30/2017

Page 23 of 25


12.0 AUTHORIZED SIGNATURES

George Naughton

Acting Director, 1on Department of Administrative Services

Signature: Date Signed: tude 7 206
a

Date Submitte:

Corvelli A. McDaniel

Assistant Commissioner

Revenue Collections Management
Bureau of the Fiscal Service

U.S. Department of the ae
Signature: eva A. Hao Date Signed: wk Ob, U4

Page 18 of 25


Component: EBT/ACH Payments
Technique: Actual Clearance, ZBA - ACH
Average Day of Clearance: 0 Days

Recipient: 100--Department of Human Services

% of Funds Agency Receives: 18.00

Component: Allocated Administrative Costs

Technique: Cost Allocation Plans - Estimated Allocation - Monthly
Average Day of Clearance: N/A

Recipient: 100---Department of Human Services
% of Funds Agency Receives: 57.00
Component: Indirect Payrol} Costs

Technique: Cost Allocation Plans - Monthly
Average Day of Clearance: 0 Days

Recipient: 100--Department of Human Services
% of Funds Agency Receives: 2.00

Component: Direct Payroll Costs

Technique: Estimated Clearance (Truncated)
Average Day of Clearance: N/A

Recipient: 100---Department of Human Services
% of Funds Agency Receives: 13.00
Component: Program Payments

Technique: Estimated Clearance (Truncated)
Average Day of Clearance: N/A

93.767 Children's Health Insurance Program
Recipient: 443 - Oregon Health Authority

% of Funds Agency Receives: 87.00
Component: EBT/ACH Payments
Technique: Actual Clearance, ZBA - ACH
Average Day of Clearance: 0 Days

Recipient: 443.- Oregon Health Authority

% of Funds Agency Receives: 4.00

Component: Allocated Administrative Costs

Technique: Cost Allocation Plans - Estimated Allocation - Monthly
Average Day of Clearance: N/A

Recipient: 443 - Oregon Heaith Authority
% of Funds Agency Receives: 2.00
Component: Indirect Payroll Costs
Technique: Cost Allocation Plans - Monthly
Average Day of Clearance: 0 Days

Page 10 of 25


Recipient: 581---Department of Education

% of Funds Agency Receives: 100.00

Component: Program Payments & Direct Administrative Costs
Technique: Post-lssuance

Average Day of Clearance: N/A

10.557 Special Supplemental Nutrition Program for Women, Infants, and Children
Recipient: 443 - Oregon Health Authority

% of Funds Agency Receives: 100.00

Component: Program Payments

Technique: Actual Clearance, ZBA-ACH (Modified)

Average Day of Clearance: 1 Day

10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program
Recipient: 100—-Department of Human Services

% of Funds Agency Receives: 15.00

Component: Allocated Administrative Costs

Technique: Cost Allocation Plans - Estimated Allocation - Monthly

Average Day of Clearance: N/A

Recipient: 100--Department of Human Services
% of Funds Agency Receives: 73.00
Component: Indirect Payroll Costs

Technique: Cost Allocation Plans - Monthly
Average Day of Clearance: 0 Days

Recipient: 100---Department of Human Services
% of Funds Agency Receives: 12.00
Component: Program Payments

Technique: Estimated Clearance (Truncated)
Average Day of Clearance: N/A

17.225F Unemployment Insurance -- Federal Benefit Account and Administrative Costs
Recipient: 471---Employment Department

% of Funds Agency Receives: 31.00

Component: ACH Program Payments

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

Recipient: 471---Employment Department
% of Funds Agency Receives: 13.00
Component: Allocated Administrative Costs
Technique: Cost Allocation Plans - Monthly
Average Day of Clearance: N/A

Recipient: 471---Employment Department

Page 7 of 25


Direct Administrative Costs - Drawdowns on a Payroll Cycle

The State shall request funds for all direct administrative costs such that they are deposited on the dollar-weighted
average date of clearance of payroll. The request shall be made in accordance with the appropriate Federal agency cut-
off time specified in Exhibit |. The amount of funds requested shall be based on the amount of liabilities recorded for direct
administrative costs since the last request for funds. This funding technique is interest neutral.

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

There are no funding techniques listed in Section 6.2.3

6.2.4 The following are terms under which State unique funding techniques shail be implemented for all transfers of funds
to which the funding technique is applied in section 6.3.2 of this Agreement.

Actual Clearance, ZBA-ACH (Modified)

The State shall request funds such that they are deposited by ACH in a State account the following day. The request shall
be made in accordance with the appropriate Federal agency cut-off times specified in Exhibit 1. The amount of the
request shall be for the amount of funds that clear the State's account the previous day. This funding technique is interest
neutral.

Estimated Clearance (Truncated)

For the first ten (10) business days, the State shail request funds such that they are deposited in accordance with the
clearance pattern specified. The State shall make a request for all funds outstanding after ten business days such that
the funds are deposited on the dollar-weighted average day of clearance for the outstanding funds, in accordance with the
clearance pattern specified. The request for funds shall be made in accordance with the appropriate Federal agency cut-
off time specified in Exhibit 1. This funding technique is interest neutral.

6.2.5 When the average clearance funding technique is used, average clearance days will be rounded down from .01
through .49 and rounded up from .50 through .99.
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: 100---Depariment of Human Services

% of Funds Agency Receives: 100.00

Component: Program Payments

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

10.555 National School Lunch Program

Page 6 of 25


Exhibit | - Funds Request and Receipt Times Schedule

State of Oregon
Pay Request

Agriculture-FNS ACH 41:59 PM
Agriculture-FNS Fedwire 5:45 PM
Agriculture-FS ACH 3:00 PM
Air National Guard ACH 12:00 PM
Army National Guard ACH 12:00 PM
Commerce-NOAA ACH 2:00 PM
Dept of Homeland Security (FEMA) Fedwire 2:00 PM
Dept of Homeland Security (ODP) ACH 2:00 PM
Dept of Homeland Security (ODP) Fedwire 2:00 PM
EPA ACH 2:00 PM
EPA Fedwire 2:00 PM
Education ACH 3:00 PM
Education Fedwire 2:00 PM
Energy ACH 4:00 PM
Energy Fedwire 3:00 PM
HHS: ACH 6:30 PM
HHS Fedwire 3:00 PM
HUD ACH 5:30 PM
HUD Fedwire 3:00 PM
Interior-FWS ACH 11:59 PM
Interior-FWS Fedwire 5:45.PM
Interior-OSM ACH 3:00 PM
Interior-OSM Fedwire 5:45 PM
Justice ACH 11:00 PM
Justice Fedwire 2:00 PM
Labor-Non-UTF ACH 3:00 PM
Labor-UTF ACH 3:00 PM
Labor-UTF Fedwire 3:00 PM
National Science Foundation (NSF) ACH 8:00 PM
National Science Foundation (NSF) Fedwire 5:45 PM.
Social Security Administration ACH 11:59 PM
Social Security Administration Fedwire 5:45 PM
Transportation (FAA) ACH 2:00 PM
Transportation (FHWA) ACH 12:00 PM
Transportation (FHWA) Fedwire 12:00 PM
Transportation (FTA) ACH 2:00 PM
Veterans Administration ACH 12:00 PM

Page 19 of 25


Recipient: 581—-Department of Education
% of Funds Agency Receives: 0.00
Component: Indirect Administrative Costs
Technique: Post-Issuance

Average Day of Clearance: N/A

Recipient: 581---Department of Education
% of Funds Agency Receives: 3.00
Component: Payroll Costs

Technique: Post-Issuance

Average Day of Clearance: N/A

Recipient: 581---Department of Education

% of Funds Agency Receives: 97.00

Component: Program Payments & Direct Administrative Costs
Technique: Post-Issuance

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families
Recipient: 100---Department of Human Services
% of Funds Agency Receives: 41.00

Component: EBT/ACH Payments

Technique: Actual Clearance, ZBA - ACH
Average Day of Clearance: 0 Days

Recipient: 100---Department of Human Services

% of Funds Agency Receives: 11.00

Component: Allocated Administrative Costs

Technique: Cost Allocation Plans - Estimated Allocation - Monthly
Average Day of Clearance: N/A

Recipient: 100--Department of Human Services
% of Funds Agency Receives: 34.00
Component: Indirect Payroll costs

Technique: Cost Allocation Plans - Monthly
Average Day of Clearance: 0 Days

Recipient: 100---Department of Human Services
% of Funds Agency Receives: 14.00
Component: Program Payments

Technique: Estimated Clearance (Truncated)
Average Day of Clearance: N/A

93.658 Foster Care -- Title IV-E
Recipient: 100---Department of Human Services
% of Funds Agency Receives: 10.00

Page 9 of 25


Printed Name

Adiay Coo /Dincton az
o

Printed Title

Page 25 of 25


Cash Management Improvement Act Agreement
between
The State of Oregon
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 Oregon
(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

4.1 The Authorized Official(s) for the State of Oregon shall be the Director of the Oregon Department of Administrative
Services 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 conceming 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 07/01/2016 and shall remain in effect until 06/30/2017.

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

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

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

Page 1 of 25


198 - Judicial Department

213 - Oregon Crimminal Justice Commission

248 - Oregon Military Department

250 - Oregon State Marine Board

257 - Oregon State Police

259 - Board on Public Safety Standards & Training

274 - Department of Veteran's Affairs

291 - Department of Corrections

330 - Department of Energy

340 - Department of Environmental Quality

399 - Psychiatric Security Review Board

415 - Oregon Youth Authority

423 - Oregon Commission on Children and Families

440 - Oregon Department of Consumer and Business Services
543 - Oregon State Library

575 - Oregon Student Assistance Commission

584 - Teacher Standards & Practices Commission

585 - Commission for the Blind

586 - Department of Community College & Workforce Develop
603 - Department of Agriculture

632 - Oregon Department of Geology & Mineral Industries
634 - Oregon Parks and Recreation

635 - Oregon Department of Fish and Wildlife

660 - Department of Land Conservation and Development
690 - Water Resources Department

691 - Oregon Watershed Enhancement Board

839 - Bureau of Labor & Industries

851 - Oregon State Board of Nursing

860 - Public Utility Commission

914 - Housing and Community Services Department

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

10.561 State Administrative Matching Grants for Food Stamp Program

17.225F Unemployment Insurance-Federal Benefit Account and Administrative Costs
17.225S Unemployment insurance-State Benefit Account

93.558 State Family Assistance Grant

93.658 Foster Care - Title IV-E

93.767 State Children's Insurance Program

93.778 Medical Assistance Program

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

The agencies administering the Federal programs shall develop the State's clearance patterns, or use an alternative as

outlined in Section 7.3.

Page 12 of 25


Recipient: 443 - Oregon Health Authority

% of Funds Agency Receives: 7.00
Component: Program Payments

Technique: Estimated Clearance (Truncated)
Average Day of Clearance: N/A

93.778 Medical Assistance Program
Recipient: 443 - Oregon Health Authority
% of Funds Agency Receives: 79.00
Component: EBT/ACH Payments
Technique: Actual Clearance, ZBA - ACH
Average Day of Clearance: 0 Days

Recipient: 443 - Oregon Health Authority

% of Funds Agency Receives: 1.00

Component: Allocated Administrative Costs

Technique: Cost Allocation Plans - Estimated Allocation - Monthly
Average Day of Clearance: N/A

Recipient: 443 - Oregon Health Authority
% of Funds Agency Receives: 1.00
Component: Indirect Payroll Costs
Technique: Cost Allocation Plans - Monthly
Averagé Day of Clearance: 0 Days

Recipient: 443 - Oregon Health Authority

% of Funds Agency Receives: 1.00
Component: Direct Payroll Costs

Technique: Estimated Clearance (Truncated)
Average Day of Clearance: N/A

Recipient: 443 - Oregon Health Authority

% of Funds Agency Receives: 18.00
Component: Program Payments

Technique: Estimated Clearance (Truncated)
Average Day of Clearance: N/A

6.3.3 Materiality Exemptions
Agencies exempt from coverage on the basis of materiality:

109 - Department of Aviation

114 - Long-Term Care Ombudsman
121 - Office of the Governor

123 - Business Oregon

137 - Oregon Department of Justice
141 - Department of State Lands
165 - Secretary of State

Page 11 of 25


% of Funds Agency Receives: 53.00

Component: Payroll Costs & Direct Administrative Costs

Technique: Direct Administrative Costs - Drawdowns on a Payroll Cycle
Average Day of Clearance: N/A

Recipient: 471---Employment Department

% of Funds Agency Receives: 3.00

Component: Program Payments (clearance pattern based on calendar days)
Technique: Estimated Clearance

Average Day of Clearance: N/A

17,2258 Unemployment Insurance -- State Benefit Account
Recipient: 471---Employment Department

% of Funds Agency Receives: 90.00

Component: ACH Program Payments

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

Recipient: 471---Employment Department

% of Funds Agency Receives: 10.00

Component: Program Payments (clearance pattern based on calendar days)
Technique: Estimated Clearance

Average Day of Clearance: N/A

20.205 Highway Planning and Construction
Recipient: 730---Department of Transportation
% of Funds Agency Receives: 100.00
Component: All Components

Technique: Composite Clearance

Average Day of Clearance: 5 Days

84.010 Title | Grants to Local Educational Agencies
Recipient: 581---Department of Education

% of Funds Agency Receives: 1.00

Component: Payroll Cosis

Technique: Post-Issuance

Average Day of Clearance: N/A

Recipient: 581---Department of Education

% of Funds Agency Receives: 99.00

Component: Program Payments & Direct Administrative Costs
Technique: Post-Issuance

Average Day of Clearance: N/A

84.027 Special Education -- Grants to States

Page 8 of 25


4. Are auditable.

Date: July 7 206
7

J

Printed Name: George Niwa hyo 4

Certifying Signature:

Title: A Hog 600/00 oc = « CFo
n 7

Page 22 of 25


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
aliotment will automatically be issued at the beginning of the fourth quarter. Therefore, supplemental funding requests will
not be availabie 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.

6.1.6 issuance of Payments:

A State Attorney General's opinion, dated February 10, 1992, addresses certain issues dealing with implementation of the
Act. The Attorney General has concluded that funds must be on deposit prior to the issuance of payments, Therefore,
the State shall use various funding techniques, including Pre-Issuance Funding, Average Clearance, and Estimated
Clearance. Some programs may utilize more than one technique.

The State and Fiscal Service agree that the Pre-Issuance Funding technique will be used as little as possible. The
Attorney General's opinion requires that the State apply Pre-Issuance to a limited number of programs. The State intends
to use an Estimated Clearance or Average Clearance Funding technique to the extent that State funds are available to
draw the check or warrant against. When State funds are not available, the State shall switch to the Pre-Issuance Funding
technique. These programs are described in section 6.3. Each State entity shall be responsible for determining when this
switch is to take place.

Page 4 of 25


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

Federal Funds Interest Neutral, State Funds not:
The State shall use the following methodology to calculate State interest liabilities on funds withdrawn from the State's
account in the UTF under the Unemployment Insurance program.

Based on statements provided by its financial institution (or other appropriate sources), the State shall determine the
actual interest earnings and the related banking costs attributable to funds withdrawn from its account in the UTF. At the
end of the State's fiscal year, the State shall calculate the percentage of its total unemployment compensation
expenditures for (1) funds withdrawn from the State account in the UTF, or the State %, and (2) funds withdrawn from the
Federal Employees Compensation Account (FECA) and the Extended Unemployment Compensation Account (EUCA)
and any other accounts of Federal funds in the UTF, or the Federal %.

The actual interest earnings of the benefit payment account on the whole constitute the actual interest earnings
attributable to funds withdrawn from the State's account in the UTF, since the State shall apply an appropriate interest
neutral funding technique, to funds withdrawn from the FECA and EUCA and any other benefit accounts of Federal funds
in the UTF from which the State draws.

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

8.4 Refund Liabilities

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

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

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

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

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

Refunds Deposited fo Interest Neutral Programs:

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

8.4.4 Refunds Deposited to Non-interest Neutral Programs - Part of Liability Captured Under State's Pre-lssuance
Calculation:

With programs to which Pre-Issuance funding is applied, the State interest liability, payment subject to lawfully available
funds, shall be based on two periods: (1) the difference in whole days between the date the refund is deposited fo a State
account and the date the refund is offset against a subsequent deposit of Federal funds; (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

Page 15 of 25


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

8.6.7 Agencies not using the model in Sections 8.6.2 through 8.6.5, due to either cost/benefit or administrative capability
considerations, shall calculate interest using appropriate statistical sampling methodology. The sampling populations
shall include individual programs or logical groups of programs. The State shall conduct statistical sampling in
accordance with 31 CFR Part 205.19 of the regulations.

9.0 REVERSE FLOW PROGRAMS

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

10.0 INTEREST CALCULATION COSTS

10.1 As set forth in 31 CFR 205.27, interest calculation costs are defined as those costs necessary for the actual
calculation of interest, including the cost of developing and maintaining clearance patterns in support of the interest
calculations. Interest calculation costs do not include expenses for normal disbursing services, such as processing of
checks or maintaining records for accounting and reconciliation of cash balances, or expenses for upgrading or
modernizing accounting systems. Interest calculation costs in excess of $50,000 in any year are not eligible for
reimbursement, unless the State provides justification with the annual report.

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

Prorated portion of consultant's contract related to development of clearance patterns and interest calculation
methodologies.

Agency and State Treasury personnel time to calculate clearance patterns and interest.

Agency and State Treasury EDP costs (not including system upgrades) incurred in the calculation of clearance patterns
and interest.

Other costs identified that qualify under 31 CFR 205.27.

10.3 The State shal! submit all claims for reimbursement of interest calculation costs with its Annual Report in accordance
with 31 CFR 205.

11.0 NON-COMPLIANCE

11.1 The provisions of 31 CFR Part 205.29 and 31 CFR Part 205.30 shall apply in cases of non-compliance with the
terms of this Agreement.

Page 17 of 25


EFD eFunds Corporation 10.551 Supplemental Nutrition Assistance Program
6.0 FUNDING TECHNIQUES
6.1 General Terms

6.1.1 The State shall request Federal funds in accordance with the appropriate cut-off times shown in Exhibit I to ensure
funds will be received and credited to a State account by the times specified in the funding techniques. Exhibit | 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 Il - List of State Clearance Patterns. Exhibit Il 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
Systern/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

Page 3 of 25




4.0 PROGRAMS COVERED

4.1 The State's threshold and its major Federal assistance programs shall be determined based on the State’s Schedule
of Expenditures of Federal Awards for fiscal year ending 06/30/2015.

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:

10.551 Suppiemental Nutrition Assistance 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
417.225S Unemployment Insurance -- State Benefit Account

20.205 Highway Planning and Construction

84.010 Title | Grants to Local Educational Agencies

84.027 Special Education -- Grants to States

93.558 Temporary Assistance for Needy Families

93.658 Foster Care -- Title IV-E

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:
84.268 Federal Direct Student Loan --- Exclusion:Non-State

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:

100---Department of Human Services
443 - Oregon Health Authority
471---Employment Department
581---Department of Education
730---Department of Transportation

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:

Page 2 of 25


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

Agency accounting records, State treasury records, banking records and other records appropriate.

For Programs where the actual State warrant clearance information is not available, alternate methods of developing
clearance patterns shall be used. These other methods shall consist of the clearance patterns developed by Fiscal
Service or use of valid statistical sampling techniques.

7.4 The State shall use the following methodology when developing its clearance patterns:

When developing each clearance pattern, the State shall track at least 99% of the funds disbursed, from issuance to
clearance, for a period of at least three months.

7.5 The State shall identify for each check or warrant (hereafter, check) in the population: (1) the date the check was
released for payment; (2) the date the check was debited from the State's account, and, (3) the amount of the check.

7.6 The State shall use the following method to calculate the dollar-weighted average day of clearance:

To determine the number of days each check was outstanding (clearance time), the issue date shall be subtracted from
the date the check cleared the State's account.

To determine the percentage of the disbursement paid out each day following issuance, the amount of the checks that
clear the State's account each day shall be summed and then divided by the amount of the total disbursement.

For each day following issuance, the clearance time of the checks paid out that day shall be multiplied by the percentage
of the total disbursement those checks represent. This product is the clearance factor.

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

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

NIA

The State shall also adjust each clearance pattern to reflect:

NIA

7.8 Each of the State’s clearance patterns is calculated in business days.

7.9 An authorized State official shall certify that each clearance pattern developed by the State accurately corresponds to
the clearance activity of the programs to which it is applied. This certification shall be provided to the Fiscal Service prior
to the effective date of the Agreement. The State shall recertify its clearance patterns at least every five years.

7.10 The State shall follow the procedures of 31 CFR 205 if it has actual or constructive knowledge, at any time, that a
clearance pattern does not correspond to a program's clearance activity.

8.0 INTEREST CALCULATION METHODOLOGY

Page 13 of 25


program purposes.

Interest on refunds during period 1 will be calculated using the information recorded in a separate account. Interest on
refunds during period 2 will be captured under the State method for calculating interest under pre-issuance funding.
Under this method, interest is calculated on totals disbursed, which includes refunds on hand as well as amounts drawn.
The reported interest liability for refunds, therefore, will reflect period 1 only.

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 shail 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

Deposit to Clearance:
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

Bank or Agency:
The time period from deposit to clearance shall be determined from information captured by agency accounting records,
State Treasury records, banking records, and other records as appropriate.

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:
1 = ADB x R, where

| = State's total interest liability

ADB = Average Daily Balance of cash in a program's account, measured from deposit to clearance

Page 16 of 25