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:

Preparing Annual CMIA Report
Development and Maintenance of Clearance Patterns

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

11.0 NON-COMPLIANCE

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

Page 14 of 18


in Exhibit ]. The amount of the request shall be for the amount of funds that clear the State’s account on the settlement
date. This funding technique is interest neutral.

Actual Clearance, ZBA - Same Day Payment

The State shall request funds the same day it pays out funds, in accordance with the appropriate Federal agency cut-off
time specified in Exhibit |. A Federal agency will deposit funds in a State account the same day as requested. The amount
of the request shall be for the amount of funds that clear the State's account that day. This funding technique is interest
neutral.

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

Composite Clearance - Modified

The composite average clearance day shall be calculated by combining the average clearance days for each cash flow
component within the program.

The State shall multiply the average clearance days for each cash flow component by the percentage of the total program
costs represented by each cash flow component to yield the composite average clearance day.

Cash flow components include: Payroll and Related Costs, W2 Payments- CHK, Home Energy Assistance Payments,
Provider Payments Fiscal Agent checks, Provider Payments Fiscal Agent ACH, WIC Food Costs, Payments - Checks,
Payments - ACH, Child Care Payments - CHK and Allocated Costs. 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 for the exact amount of
the disbursement. This funding technique is interest neutral.

Composite Clearance - Modified for Highway Planning and Construction

CFDA #20.205 Construction, Payroll and Allocated Costs.

The State shall request funds weekly such that they are deposited on the dollar weighted average number of days
required for funds to be paid out for a series of construction and payroll disbursements (i.e. the composite average
clearance day see description below). 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. The composite average clearance day shall be calculated by combining the average clearance days for
the construction and payroll cash flow components within the Highway Planning and Construction Program.

The State shall determine the average clearance day for construction costs by analyzing the actual construction costs
billed to highway projects during state fiscal year 2015 and applying the average clearance pattern listed in Exhibit Il of
this Agreement. The State books payroil costs to highway projects weekly but payroll checks are disbursed biweekly.

Page 5 of 18



Medicat Assistance
Program

Wisconsin Department of Hie

Health Services

|All Program Costs

Composite Clearance -
Modified

4. Are auditable.

9 ly [20 mM

Exhibit 2 of this Treasury-State Agreement:

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

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

Printed Name: S creepy C. AWVEpSoN

Certifying Signature:

STATE _ConTRoUR.

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

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

Page 18 of 18



Average Day of Clearance: 8.27

93.778 Medical Assistance

Component : Provider Payments Fiscal Agent

Pattern calculation based on five months (Jan 2015 - May 2015) of check clearance data provided by fiscal agent.
Average Day of Clearance: 8.27

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

The State Controller's Office will develop clearance patterns for all programs except the following:

20.205 Highway Planning and Construction
Developed by the Wisconsin Department of Transportation.

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

Voucher disbursements from the Federal Cash Management System, Department of Administration.
Checks issued data from the State's central accounting system.
Checks cleared data from U.S. Bank, the State Working Bank.

For 93.767 and 93.778, check clearance data is provided by fiscal agent.
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
teleased 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:

Page 10 of 18


% of Funds Agency Receives: 100.00
Component: All Program Costs

Technique: Composite Clearance - Modified
Average Day of Clearance: 1 Day

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

Recipient: Wisconsin Department of Workforce Development
% of Funds Agency Receives: 3.22

Component: Benefit payments funded by the Federal Employees Compensation Account and the Extended

Unemployment Compensation Account in the UTF
Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: 0 Days

Recipient: Wisconsin Department of Workforce Development
% of Funds Agency Receives: 96.78

Component: All Other Program Costs

Technique: Composite Clearance - Modified

Average Day of Clearance: 0 Days

17.225S Unemployment Insurance -- State Benefit Account

Recipient: Wisconsin Department of Workforce Development

% of Funds Agency Receives: 100.00

Component: Benefit payments funded from the State Account in the UTF
Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

20.205 Highway Planning and Construction

Recipient: Wisconsin Department of Transportation

% of Funds Agency Receives: 100.00

Component: Construction, Payroll and Allocated Costs

Technique: Composite Clearance - Modified for Highway Planning and Construction
Average Day of Clearance: 6 Days

84.010 Title | Grants to Local Educational Agencies
Recipient: Wisconsin Department of Public Instruction
% of Funds Agency Receives: 100.00

Component: All Program Costs

Technique: Composite Clearance - Modified

Average Day of Clearance: 0 Days

84.027 Special Education -- Grants to States
Recipient: Wisconsin Department of Public Instruction
% of Funds Agency Receives: 100.00

Component: All Program Costs.

Page 7 of 18



Payroll costs for the first week of the pay period are booked to highway projects the following first business week, included
in the federal bill the second business week and are disbursed through a B Series payroll check during the third business
week. Payroll costs for the second week of the pay period are booked to highway projects the following first business
week, included in the federal bill the second business are also disbursed through a B Series payroll the second business
week. Since each has a different clearance day, the State shall determine the average clearance day for the first and
second week of the pay period by analyzing the actual payroll costs booked to highway projects during state fiscal year
2015 and calculating an average clearance pattern separately for the first and second week relative to the highway
project book week. The State shail then combine the construction cost average clearance day with the payroll cost
average clearance days to determine a composite average clearance day for the Highway Planning and Construction
Program. The State shall multiply the average clearance days for each cash flow component by the percentage of total
program costs represented by each cash flow component to yield the composite average clearance day for the Highway
Planning and Construction Program. The State shall not use allocated costs in determining the composite average
clearance day. 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: Wisconsin Department of Health Services

% of Funds Agency Receives: 100.00 m
Component: Daily EBT Settlement

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

10.555 National School Lunch Program

Recipient: Wisconsin Department of Public Instruction
% of Funds Agency Receives: 100.00

Component: All Program Costs

Technique: Composite Clearance - Modified

Average Day of Clearance: 1 Day

10.557 Special Supplemental Nutrition Program for Women, Infants, and Children
Recipient: Wisconsin Department of Health Services

% of Funds Agency Receives: 100.00

Component: All Program Costs

Technique: Composite Clearance - Modified

Average Day of Clearance: 0 Days

10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program
Recipient: Wisconsin Department of Health Services

Page 6 of 18


Average Day of Clearance: 1 Day

93.778 Medical Assistance Program

Recipient: Wisconsin Department of Health Services
% of Funds Agency Receives: 100.00

Component: All Program Costs

Technique: Composite Clearance - Modified
Average Day of Clearance: 1 Day

6.3.3 Materiality Exemptions

Agencies exempt from coverage on the basis of materiality:
None.

7.0 CLEARANCE PATTERNS

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

Component: Payroll and Related Costs

The State uses a separate check series (B) for these payments. All B series checks for the period March 1, 2015 - May
31, 2015 are included in the calculation of the average clearance day. The State uses direct deposit (ACH) for a large
portion of payroll disbursements. These ACH payments are included in the calculation of the average clearance day.

Component: Child Care Payments - CHK

The State uses a separate check series (M) for these payments. All M series checks for the period March.1,-2015.-May .... -

31, 2015 are included in the calculation of the average clearance day.

Component : Home Energy Assistance Payments
The State uses a separate check series (P) for these payments. All P series checks for the period March 1, 2015 - May
31, 2015 are included in the calculation of the average clearance day.

Component : W2 Payments - CHK
The State uses a separate check series (J) for these payments. All J series checks for the period March 1, 2015 - May
31, 2015 are included in the calculation of the average clearance day.

Component: Payments - Check
Ail disbursements processed for the period of March 2015 - May 2015 in the Federal Cash Management System matched
* with corresponding A series checks issued and checks cleared date from the State Working Bank.

20.205 Highway Pianning and Construction
Component : Construction, Payroll and Allocated Costs
All checks issued during the period March 1, 2015 - May 31, 2015.

93.767 State Children's Insurance Program
Component : Provider Payments Fiscal Agent

Pattern calculation based on five months (Jan 2015 - May 2015) of check clearance data provided by fiscal agent.

Page 9 of 18



Cash Management Improvement Act Agreement
between
The State of Wisconsin
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 Wisconsin
(hereafter ‘State’), in order to implement Section 5 of the Cash Management Improvement Act of 1990, as amended
(hereafter 'Act'), agree as follows:

1,0 AGENTS OF THE AGREEMENT

1.1 The Authorized Official(s) for the State of Wisconsin shall be the the State Controller 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 shail apply to all matters pertaining tu this Agreement, and aré
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 07/01/2017 and shall remain in effect until terminated.

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

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

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

Page 1 of 18



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 composite 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

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

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

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

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

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

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

8.4 Refund Liabilities

8.4.1 The State shall be liable for interest on refunds from the date the refund is credited to a State account until the date
the refund is debited from the State account for program purposes. The State shail 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:

Page 12 of 18


None
The State shail also adjust each clearance pattern to reflect:

In addition to the calculated number of check clearance days, the State shall account for any pre-issuance days between
the day an accounting transaction is processed and the corresponding check issue date so that the State's receipt of
Federal funds is on the estimated clearance day or average clearance day.

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 206 if it has actual or constructive knowledge, at any time, that a
clearance pattern does not correspond to a program's clearance activity.

8.0 INTEREST CALCULATION METHODOLOGY
8.1 General Terms

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

Actual Clearance, ZBA - ACH
Actual Clearance, ZBA - Same Day Payment

... Gomposite Clearance - Modified ~
Composite Clearance - Modified for Highway Planning and Construction

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

8.1.3 Added to 8.1.2(5) the state does not request funds before funds are available.
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:

Page 11 of 18



Technique: Composite Clearance - Modified
Average Day of Clearance: 0 Days

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to States
Recipient: Wisconsin Department of Workforce Development

% of Funds Agency Receives: 100.00
Component: All Program Costs

Technique: Composite Clearance - Modified
Average Day of Clearance: 3 Days

93.558 Temporary Assistance for Needy Families
Recipient: Wisconsin Department of Children and Families
% of Funds Agency Receives: 100.00

Component: All Program Costs

Technique: Composite Clearance - Modified

Average Day of Clearance: 1 Day

93.563 Child Support Enforcement

Recipient: Wisconsin Department of Children and Families
% of Funds Agency Receives: 100.00

Component: All Program Costs

Technique: Composite Clearance - Modified

Average Day of Clearance: 0 Days

93.568 Low-Income Home Energy Assistance
Recipient: Wisconsin Department of Administration
‘% of Funds Agency Receives: 100.00
Component: All Program Costs

Technique: Composite Clearance - Modified
Average Day of Clearance: 3 Days

93.575 Child Care and Development Biock Grant
Recipient: Wisconsin Department of Children and Families
% of Funds Agency Receives: 100.00

Component: All Program Costs

Technique: Composite Clearance - Modified

Average Day of Clearance: 1 Day

93.767 Children's Health Insurance Program
Recipient: Wisconsin Department of Health Services
% of Funds Agency Receives: 100.00

Component: All Program Costs

Technique: Composite Clearance - Modified

Page 8 of 18


The State will comply with the following guidelines when requesting supplemental funding for TANF (CFDA 93.558),
CCDF (CFDA 93.575), CSE (93.563), and the FC/AA (CFDA 93.658 and CFDA 93.659) programs administered by the
U.S. Department of Human Services, Administration for Children and Families (HHS/ACF):

a. Timing of the Request

A State should initiate its request for supplemental funding during a quarter as soon as it becomes aware of the fact that a
shortfall does/will exist. For the TANF and CCDF grants, supplemental funding requests (estimates) may be submitted by
a State, for consideration by ACF, up through and including the 15th day of the third month of the first, second or third
quarter of any fiscal year. Since TANF and CCDF are block grant programs, all unawarded portions of the annual
allotment will automatically be issued at the beginning of the fourth quarter. Therefore, supplemental funding requests will
not be available during the fourth quarter for these programs. For the CSE and FC/AA programs, supplemental funding
requests may be submitted by a state, for consideration by ACF, up through and including the 15th day of the third month
of any quarter of a fiscal year.

b. Justification for the Request

The request for a supplemental funding for any of the above mentioned programs should contain a justification clearly
documenting the need for the additional funding authority during the current quarter. This documentation should be in the
form of State accounting records or similar documents that will show the actual expenditures through the most recent
month for which such data are available, as well as the State's most accurate projection of its anticipated expenditures
during the remaining month(s) of the quarter. For either the TANF or the CCDF program, the State's justification should
also include an explanation of the activities requiring the obligation and/or expenditure of amounts that exceed the normal
quarterly grant award restrictions and why these activities could not have been delayed until the next quarter.

c. Form Submittal
Supplemental funding requests should be made by completing the appropriate ACF quarterly report of expenditures and
estimates applicable to the particular program for which the grant award request is being made.

d. Approval Process

Upon receipt of the state's request for additional funding authority for a quarter, the ACF Regional Office will promptly
review the supporting documentation. If the request is properly justified, so long as ACF has adequate funding
availability, the State's request will be expedited and supplemental funding will be issued within 5 days of ACF receiving
the request. The State will be notified by the Regional Office when the supplemental award has been transmitted to the
Payment Management System (PMS) and when it may initiate drawdowns against the supplemental funding.

Additional guidance on this policy is provided in the U.S. Department of Health & Human Services, Administration for
Children and Families, letter (May 19, 2004) to State Administrators from the Deputy Assistant Secretary for
Administration.

6.2 Description of Funding Techniques

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

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

Page 4 of 18


12.0 AUTHORIZED SIGNATURES

Jeffery Anderson
State Controller
State of Wisconsin

Signature: Date Signed: 7 lifes] )

Date Submitted 06/23/2017

Corvelli A. McDaniel

Assistant Commissioner

Revenue Collections Management
Bureau of the Fiscal Service ~
U.S. Department of the Treasu

Signature: (“gyal A. nel) amor Date Signed: 6falr2

Page 15 of 18



Exhibit Il - State of Wisconsin

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
10.551 {Supplemental Nutrition | Wisconsin Department of |100. {Daily EBT Settlement Actual Clearance, ZBA- |0 Days
Assistance Program Health Services 00 ACH.
10.555 {National School Lunch —_| Wisconsin Department of |100. |All Program Costs Composite Clearance - | 1 Day
Program Public Instruction 00 Modified
10.557 |Special Supplemental Wisconsin Department of }100. |All Program Costs ‘Composite Clearance- |0 Days
Nutrition Program for Health Services 00 Modified
Women, Infants, and
Children
10.561 | State Administrative (Wisconsin Department of |100. |All Program Costs Composite Clearance - | 1 Day
Matching Grants for the |Health Services 00 Modified
Supplemental Nutrition
Assistance Program
17.225F Unemployment insurance |Wisconsin Department of |96.7 |All Other Program Costs |Composite Clearance - 0 Days
-- Federal Benefit ‘Workforce Development |8 lodified
Account and
Administrative Costs
17.225F |Unemployment Insurance |Wisconsin Department of |3.22 |Benefit payments funded |Actual Clearance, ZBA- |0 Days
-- Federal Benefit Workforce Development by the Federal Same Day Payment
Account and Employees
Administrative Costs Compensation Account
and the Extended
Unemployment
Compensation Account in
the UTF
17.225S {Unemployment Insurance |Wisconsin Department of |100. |Benefit payments funded |Actual Clearance, ZBA- |0 Days
-- State Benefit Account |Workforce Development |00 fom the State Account in |Same Day Payment
e
20.205 Highway Planning and —_| Wisconsin Department of }100. |Construction, Payroll and {Composite Clearance - {6 Days
Construction Transportation 00 Allocated Costs Modified for Highway
Planning and
Construction
84.010 | Title | Grants to Local Wisconsin Department of | 100. |All Program Costs Composite Clearance - {0 Days
Educational Agencies. Public Instruction 00 Modified
84.027 |Special Education — Wisconsin Department of |100. |All Program Costs Composite Clearance- |0 Days
Grants to States Public Instruction 00 Modified
84.126 |Rehabilitation Services — |Wisconsin Department of |100. |All Program Costs Composite Clearance - 3 Days
Vocational Rehabilitation |Workforce Development |00 Modified
Grants to States
93.558 |Temporary Assistance for|Wisconsin Department of |100. |All Program Costs Composite Clearance- |1 Day
Needy Families Children and Families 00 Modified
93.563 {Child Support Wisconsin Department of |100. |All Program Costs. Composite Clearance- |0 Days
Enforcement Children and Families 00 Modified
93.568 jLow-income Home Wisconsin Department of |100. |All Program Costs. ‘Composite Clearance- |3 Days
Energy Assistance Administration 00 Modified
93.575 —|Child Care and Wisconsin Department of |100. |All Program Costs Composite Clearance - |1 Day
Development Block Grant |Children and Families 00. Modified
93.767 {Children's Health Wisconsin Department of |100. |All Program Costs Composite Clearance- |1 Day
Insurance Program Health Services 00 Modified

Page 17 of 18



Wisconsin Department of Workforce Development

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:

There are currently no fiscal agencies listed for Section 5.2.
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 | 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 shail schedule the receipt of Federal funds such that the funds are received and credited to a State
account in accordance with the clearance patterns specifled in Exhibit II - List of State Clearance Patterns. Exhibit II is
incorporated by reference herein.

6.1.3 In instances where the receipt of funds is scheduled for a Saturday, the State shall request funds for deposit on
Friday. In instances where the receipt of funds is scheduled for a Sunday, the State shall request funds for deposit on
Monday. In instances where the receipt of Federal funds is scheduled for deposit on a day when the State is not open for
business, the State shall request funds for deposit the day following the scheduled day; in instances where the receipt of
Federal funds is scheduled for deposit on a day when the Federal Government is not open for business, the State shall
request funds for deposit the day prior to the scheduled day.

6.1.4 Estimates and Reconciliation of Estimates:

Where estimated expenditures are used to determine the amount of the drawdown, the State will indicate in the terms of
the State unique funding technique how the estimated amount is determined and when and how the State will reconcile
the difference between the estimate and the State's actual expenditures.

6.1.5 Supplemental Funding:
Unless otherwise defined by program rules, Supplemental Funding is the award of additional funds to provide for an
increase in costs due to unforeseen circumstances.

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

The State will comply with the following guidelines when requesting supplemental funding for the Medical Assistance
Program and associated administrative payments (CFDA 93.778):

The State must submit a revised Medicaid Program Budget Report (CMS-37) to request supplemental funding. The CMS
guidelines and instructions for completing the CMS-37 are provided in Section 2600F of the State Medicaid Manual
(SMM). The CMS/CO must receive the revised Form CMS-37 through the Medicaid Budget Expenditure
System/Children's Budget Expenditure System (MBES/CBES) no later than 10 calendar days before the end of the
quarter for which the supplemental grant award is being requested.

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

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4.0 PROGRAMS COVERED

4.1 The State's threshold and its major Federal assistance programs shall be determined based on State FY16 Single
Audit Report for fiscal year ending 06/30/2016.

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 Supplemental 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
17.225S 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

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 .
93.767 Children's Health Insurance Program

93.778 Medical Assistance Program

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

There are currently no programs listed for Section 4.3.

4.4 The following programs exceed the State's threshold but have been excluded from coverage for the reason indicated:
There are currently no programs listed for Section 4.4.

5.0 ENTITIES COVERED

5.1 State agencies and instrumentalities that meet the definition of a State per 31 CFR Part 205, shall be subject to the
terms of this Agreement. The following is a list of such entities that administer funds under the programs listed in Section
4.0 of this Agreement:

Wisconsin Department of Administration
Wisconsin Department of Children and Families
Wisconsin Department of Health Services
Wisconsin Department of Public instruction
Wisconsin Department of Transportation

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Refunds Deposited to 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.

8.5 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 shail 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 credit to a State's account and the date those funds are debited from the State's account.

8.6.2.2 Source of Data

Bank or Agency:

The time period from the date Federal funds are deposited to the date checks are issued shall be determined from
information captured by the Statewide Accounting System (STAR), Department of Transportation Accounting System,
Department of Workforce Development Accounting System.

8.6.2.3 Standards Applied

The average daily cash balance of Federal Funds in the program's account reflects the actual activity of each draw from
the date of deposit to the date of issuance or clearance, whichever is pertinent.

8.6.2.4 Calculation Procedure

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

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

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Exhibit | - Funds Request and Receipt Times Schedule
State of Wisconsin

equesiCul

Agriculture-FNS ACH 11:59 PM

Agriculture-FNS Fedwire 5:45 PM

Agriculture-FS |ACH 3:00 PM iday
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. iday
Education Fedwire 2:00 PM. 0 day
Energy ACH 4:00 PM. iday
Energy Fedwire 3:00 PM 0 day
HHS ACH 6:30 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 14:59 PM 1day
Interior-FWS Fedwire 5:45 PM. 0 day
Interior-OSM ACH 3:00 PM 4 day
Interior-OSM Fedwire 1:00 PM 0 day
Justice ACH E 6 days
Justice Fedwire 2 days
Labor-Non-UTF ACH 4 day
Labor-UTF. ACH 4 day
Labor-UTF. Fedwire 0 day
National Science Foundation (NSF) |ACH 1day
National Science Foundation (NSF) Fedwire Oday
Social Security Administration |ACH 11:59 PM 4day
Social Security Administration Fedwire 5:45 PM 10 day
[Transportation (FAA) [ACH 2:00 PM Aday
Transportation (FHWA) ACH. 12:00 PM 3 days
Transportation (FHWA) Fedwire 12:00 PM. (0 day
Transportation (FTA) ACH 2:00 PM iday
(Veterans Administration [ACH 12:00 PM 3 days

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