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Cash Management Improvement Act Agreement

between

The State of California

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 California (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 California shall be the Chief, Fiscal Systems and Consulting Unit for the Department 

of Finance in all matters concerning this Agreement.

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

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

2.0 AUTHORITY

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

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

U.S.C. 6503.

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

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

3.0 DURATION, AMENDING, TERMINATING, AND MISCELLANEOUS PROVISIONS

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

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

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

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

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

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

Service.

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

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

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

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

State.

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3.5.0 DEFINITIONS

In addition to the definitions contained in 31 CFR Section 205.2 which will govern the interpretation of any terms 

cited in this Agreement, the following definitions will clarify the terms used in this Agreement which are unique to 

the State:

Check is an instrument for payment on demand for a specific amount from a bank account in the centralized State 

Treasury System. Note: The Fiscal Service uses the term check instead of warrant in this Agreement. Therefore, for 

the purposes of this Agreement, terms check and warrant will be used synonymously.

Warrant is an order drawn by the State Controller's Office for payment from a fund in the State Treasury and not 

from a bank account. Note: The Fiscal Service uses the term check instead of warrant in this Agreement. Therefore, 

for the purposes of this Agreement, the terms check and warrant will be used synonymously.

Clearance Pattern, as defined in 31 CFR Section 205.2, will be used to schedule the receipt of Federal funds. For the 

purposes of this Agreement, the term Clearance Pattern and Redemption Pattern are used synonymously for those 

programs utilizing the Pre-Issuance funding technique.

Redemption Patterns are the weighted average days from warrant issuance to clearance/redemption that are used to 

calculate the interest liabilities for pre-issuance funded payment components. For the purposes of this Agreement, 

the term Clearance Pattern and Redemption Pattern are used synonymously for those programs utilizing the PreIssuance funding technique.

Clearance/redemption is paying out funds for program purposes.

Refund Transaction means an entry to the record of a State bank account representing a single deposit of refunds of 

$50,000 or more. A refund transaction may consist of a single check or item, or a bundle of accumulated checks.

State Controller's Office (SCO) is responsible, in part, for fiscal control over the receipt and disbursement of public 

funds.

State Treasurer's Office (STO) is responsible, in part, for the custody of all money and securities, investment of 

money, and the redemption and reconciliation of State warrants drawn by the SCO.

State Department of Finance (Finance) is responsible, in part, for maintaining a complete and uniform State 

accounting system. The Fiscal Systems and Consulting Unit is responsible for administering the Cash Management 

Improvement Act.

Local agencies are entities that receive assistance payments from the State departments. Depending on the programs, 

disbursements are made to one or more local agencies. The primary entities include city government, county 

government, community-based organizations, school districts, and various service providers.

4.0 PROGRAMS COVERED

4.1 The State's threshold and its major Federal assistance programs shall be determined based on the State's 2018-19 Single 

Audit Report for fiscal year ending 06/30/2019.

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 $285,000,000.

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

CFDA Program Name

10.551 Supplemental Nutrition Assistance Program

10.553 School Breakfast Program

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10.555 National School Lunch Program

10.557 Special Supplemental Nutrition Program for Women, Infants, and 

Children

10.558 Child and Adult Care Food Program

10.561 State Administrative Matching Grants for the Supplemental 

Nutrition Assistance Program

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

17.225S Unemployment Insurance -- State Benefit Account

20.205 Highway Planning and Construction

84.010 Title I Grants to Local Educational Agencies

84.027 Special Education -- Grants to States

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to 

States

93.268 Immunization Grants

93.558 Temporary Assistance for Needy Families

93.563 Child Support Enforcement

93.575 Child Care and Development Block Grant

93.658 Foster Care -- Title IV-E

93.659 Adoption Assistance

93.667 Social Services Block Grant

93.767 Children's Health Insurance Program

93.778 Medical Assistance Program

96.006 Supplemental Security Income

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

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

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

4.0 of this Agreement:

Department of Child Support Services (5175)

Department of Education (6100)

Department of Health Care Services (4260)

Department of Public Health (4265)

Department of Rehabilitation (5160)

Department of Social Services (5180)

Department of Transportation (2660)

Employment Development Department (7100)

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

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

Fiscal Agent CFDA Program Name

Xerox State and Local Solutions, Inc. 10.551 Supplemental Nutrition Assistance 

Program

Bank of America 17.225F Unemployment Insurance -- Federal 

Benefit Account and Administrative Costs

Bank of America 17.225S Unemployment Insurance -- State Benefit 

Account

6.0 FUNDING TECHNIQUES

6.1 General Terms

6.1.1 The State shall request Federal funds in accordance with the appropriate cut-off times shown in Exhibit I to ensure funds will 

be received and credited to a State account by the times specified in the funding techniques. Exhibit I is incorporated by reference 

herein.

6.1.2 The State shall schedule the receipt of Federal funds such that the funds are received and credited to a State account in 

accordance with the clearance patterns specified in Exhibit II - List of State Clearance Patterns. Exhibit II is incorporated by 

reference herein.

6.1.3 In instances where the receipt of funds is scheduled for a Saturday, the State shall request funds for deposit on Friday. In 

instances where the receipt of funds is scheduled for a Sunday, the State shall request funds for deposit on Monday. In instances 

where the receipt of Federal funds is scheduled for deposit on a day when the State is not open for business, the State shall request 

funds for deposit the day following the scheduled day; in instances where the receipt of Federal funds is scheduled for deposit on a 

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

day.

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6.1.4 Estimates and Reconciliation of Estimates:

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

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

between the estimate and the State's actual expenditures.

6.1.5 Supplemental Funding:

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

costs due to unforeseen circumstances.

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

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

and associated administrative payments (CFDA 93.778):

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

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

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

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

requested.

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

Services.

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

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

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

a. Timing of the Request

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

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

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

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

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

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

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

b. Justification for the Request

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

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

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

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

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

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

delayed until the next quarter.

c. Form Submittal

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

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

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

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

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

may initiate drawdowns against the supplemental funding.

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

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

6.2 Description of Funding Techniques

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

funding technique is applied in section 6.3.2 of this Agreement.

Funding Technique Name Description

Actual Clearance, ZBA - 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 I. 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.

Pre-Issuance The State shall request funds such that they are deposited in a State account not more 

than three business days prior to the day the State makes a disbursement. The request 

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

specified in Exhibit I. The amount of the request shall be the amount the State expects 

to disburse. This funding technique is not interest neutral.

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

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

There are currently no funding techniques listed in Section 6.2.2.

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

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

Funding Technique Name Description

Reverse Flow Program - SSI (CFDA 96.006) In accordance with the terms in Section 9.0 of this Agreement, the Federal 

Government makes payments on behalf of the State for the Supplemental Security 

Income (SSI) program, CFDA No. 96.006. This funding technique is interest neutral.

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

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

Funding Technique Name Description

Monthly Estimate/Monthly Draw The State departments will estimate the monthly expenditures during the first week of 

each month. This amount will be requested within the first ten working days of each 

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

cut-off time specified in Exhibit l. The State will reconcile the actual expenditures to 

the estimate for each month and adjust the subsequent request for funds. This funding 

technique is interest neutral.

Monthly Estimate/Monthly Draw--

Administrative Costs

Monthly operating and equipment expenditures shall be estimated monthly and 

recorded on the median day of the month. The State shall request payroll funds such 

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that they are deposited to coincide with the State's monthly payroll cycle. The amount 

of the requests shall be an estimate of expenditures based on historical data. The 

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

specified in Exhibit I. The estimate will be reconciled to actual costs within 45 days 

after the end of the month, and future draws will be adjusted accordingly. This 

funding technique is interest neutral.

Reimbursement--Department of 

Transportation

The Department of Transportation will request Federal funds once the expenditures 

have been incurred, recorded, and identified as billable. In most instances, the request 

of funds will occur after the State has paid out its funds. This funding technique is 

interest neutral.

Unemployment Insurance Electronic 

Benefits

The Employment Development Department (EDD) shall request an estimated amount 

of federal funds for CFDA 17.225 F/S such that they are deposited by FedWire in a 

State account on the date of payments issued by the State. The request shall be made 

in accordance with the appropriate Federal Agency cut-off time specified in Exhibit I. 

EDD shall track daily (1) the amount of federal funds received, (2) actual 

disbursement amounts and (3) the residual between (1) and (2). The State shall 

estimate and request federal funds based these three inputs. Any residual amount shall 

be disbursed on the following working day. The EDD shall evaluate and adjust daily 

to minimize the residual amount based on the actual weekly trend. This funding 

technique is not interest neutral.

Zero Balance Accounting The State departments will request Federal funds one day before the funds are 

transferred to the service delivery area agencies. The funds will be transferred to the 

State on the following business day. The request shall be made in accordance with the 

appropriate Federal agency cut-off time specified in Exhibit I. On the same day that 

the Federal Funds are deposited into the State account, the funds will be wire 

transferred or interbranch deposited into the service delivery area department bank 

account. No State and Federal interest liability will be incurred if funds are deposited 

in a State account on the next business day and the funds are paid out for program 

purposes on the same 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: Department of Social Services (5180)

% of Funds Agency Receives: 100

Component: Benefit Payments

Technique: Zero Balance Accounting

Average Day of Clearance: 0 Days

10.553 School Breakfast Program

Recipient: Department of Education (6100)

% of Funds Agency Receives: 100

Component: Payments to local agencies

Technique: Pre-Issuance

Average Day of Clearance: N/A

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10.555 National School Lunch Program

Recipient: Department of Education (6100)

% of Funds Agency Receives: 100

Component: Payments to local agencies

Technique: Pre-Issuance

Average Day of Clearance: N/A

10.557 Special Supplemental Nutrition Program for Women, Infants, 

and Children

Recipient: Department of Public Health (4265)

% of Funds Agency Receives: 35

Component: Payments to local contractors

Technique: Pre-Issuance

Average Day of Clearance: N/A

10.557 Special Supplemental Nutrition Program for Women, Infants, 

and Children

Recipient: Department of Public Health (4265)

% of Funds Agency Receives: 59

Component: Electronic Benefit Transfer (EBT) food benefit 

redemption

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

10.557 Special Supplemental Nutrition Program for Women, Infants, 

and Children Recipient: Department of Public Health (4265)

% of Funds Agency Receives: 6

Component: Payroll/Operating expenses

Technique: Monthly Estimate/Monthly Draw--Administrative Costs

Average Day of Clearance: N/A

10.558 Child and Adult Care Food Program

Recipient: Department of Education (6100)

% of Funds Agency Receives: 99.3

Component: Payments to local agencies

Technique: Pre-Issuance

Average Day of Clearance: N/A

10.558 Child and Adult Care Food Program

Recipient: Department of Education (6100)

% of Funds Agency Receives: .7

Component: Payroll/Operating Expenses

Technique: Monthly Estimate/Monthly Draw--Administrative Costs

Average Day of Clearance: N/A

10.561 State Administrative Matching Grants for the Supplemental 

Nutrition Assistance Program

Recipient: Department of Social Services (5180)

% of Funds Agency Receives: 98

Component: Payments to local agencies

Technique: Pre-Issuance

Average Day of Clearance: N/A

10.561 State Administrative Matching Grants for the Supplemental 

Nutrition Assistance Program

Recipient: Department of Social Services (5180)

% of Funds Agency Receives: 2

Component: Payroll/Operating expenses

Technique: Monthly Estimate/Monthly Draw--Administrative Costs

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Average Day of Clearance: N/A

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Employment Development Department (7100)

% of Funds Agency Receives: 9

Component: Payroll/Operating expenses

Technique: Monthly Estimate/Monthly Draw--Administrative Costs

Average Day of Clearance: N/A

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Employment Development Department (7100)

% of Funds Agency Receives: 91

Component: Benefit payments

Technique: Unemployment Insurance Electronic Benefits

Average Day of Clearance: N/A

17.225S Unemployment Insurance -- State Benefit Account

Recipient: Employment Development Department (7100)

% of Funds Agency Receives: 100

Component: Benefit Payments

Technique: Unemployment Insurance Electronic Benefits

Average Day of Clearance: N/A

20.205 Highway Planning and Construction

Recipient: Department of Transportation (2660)

% of Funds Agency Receives: 86.12

Component: Payments for Right-of-Way, Consultant Contracts, 

Subventions, Subvention Reimbursements, Labor, Construction 

Contracts, and Indirect Cost Rate Assessments

Technique: Pre-Issuance

Average Day of Clearance: N/A

20.205 Highway Planning and Construction

Recipient: Department of Transportation (2660)

% of Funds Agency Receives: 13.88

Component: Payments for revolving fund, miscellaneous direct 

payments, utilities, service center charges, accounts 

receivable/reimbursement adjustments, and other miscellaneous 

adjustments

Technique: Reimbursement--Department of Transportation

Average Day of Clearance: N/A

84.010 Title I Grants to Local Educational Agencies

Recipient: Department of Education (6100)

% of Funds Agency Receives: 99

Component: Payments to local agencies

Technique: Pre-Issuance

Average Day of Clearance: N/A

84.010 Title I Grants to Local Educational Agencies

Recipient: Department of Education (6100)

% of Funds Agency Receives: 1

Component: Payroll/Operating expenses

Technique: Monthly Estimate/Monthly Draw--Administrative Costs

Average Day of Clearance: N/A

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84.027 Special Education -- Grants to States

Recipient: Department of Education (6100)

% of Funds Agency Receives: 97

Component: Payments to local agencies

Technique: Pre-Issuance

Average Day of Clearance: N/A

84.027 Special Education -- Grants to States

Recipient: Department of Education (6100)

% of Funds Agency Receives: 3

Component: Payroll/Operating expenses

Technique: Monthly Estimate/Monthly Draw--Administrative Costs

Average Day of Clearance: N/A

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to 

States

Recipient: Department of Rehabilitation (5160)

% of Funds Agency Receives: 40

Component: Payment to local agencies

Technique: Pre-Issuance

Average Day of Clearance: N/A

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to 

States

Recipient: Department of Rehabilitation (5160)

% of Funds Agency Receives: 60

Component: Payroll/Operating Expenses

Technique: Monthly Estimate/Monthly Draw--Administrative Costs

Average Day of Clearance: N/A

93.268 Immunization Grants

Recipient: Department of Public Health (4265)

% of Funds Agency Receives: 44

Component: Payments to health care providers and to states and local 

agencies

Technique: Pre-Issuance

Average Day of Clearance: N/A

93.268 Immunization Grants

Recipient: Department of Public Health (4265)

% of Funds Agency Receives: 56

Component: Payroll/Operating Expenses

Technique: Monthly Estimate/Monthly Draw--Administrative Costs

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families

Recipient: Department of Social Services (5180)

% of Funds Agency Receives: 99

Component: Payments to local agencies

Technique: Pre-Issuance

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families

Recipient: Department of Social Services (5180)

% of Funds Agency Receives: 1

Component: Payroll/Operating expenses

Technique: Monthly Estimate/Monthly Draw--Administrative Costs

Average Day of Clearance: N/A

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93.563 Child Support Enforcement

Recipient: Department of Child Support Services (5175)

% of Funds Agency Receives: 74

Component: Payments to local agencies

Technique: Pre-Issuance

Average Day of Clearance: N/A

93.563 Child Support Enforcement

Recipient: Department of Child Support Services (5175)

% of Funds Agency Receives: 26

Component: Payroll/Operating expenses

Technique: Monthly Estimate/Monthly Draw--Administrative Costs

Average Day of Clearance: N/A

93.575 Child Care and Development Block Grant

Recipient: Department of Education (6100)

% of Funds Agency Receives: 16

Component: Payments to local education agencies and various state 

departments

Technique: Pre-Issuance

Average Day of Clearance: N/A

93.575 Child Care and Development Block Grant

Recipient: Department of Education (6100)

% of Funds Agency Receives: 83

Component: Payments to child care providers

Technique: Monthly Estimate/Monthly Draw

Average Day of Clearance: N/A

93.575 Child Care and Development Block Grant

Recipient: Department of Education (6100)

% of Funds Agency Receives: 1

Component: Payroll/Operating expenses

Technique: Monthly Estimate/Monthly Draw--Administrative Costs

Average Day of Clearance: N/A

93.658 Foster Care -- Title IV-E

Recipient: Department of Social Services (5180)

% of Funds Agency Receives: 96

Component: Payments to local agencies

Technique: Pre-Issuance

Average Day of Clearance: N/A

93.658 Foster Care -- Title IV-E

Recipient: Department of Social Services (5180)

% of Funds Agency Receives: 4

Component: Payroll/Operating expenses

Technique: Monthly Estimate/Monthly Draw--Administrative Costs

Average Day of Clearance: N/A

93.659 Adoption Assistance

Recipient: Department of Social Services (5180)

% of Funds Agency Receives: 99

Component: Payments to local agencies

Technique: Pre-Issuance

Average Day of Clearance: N/A

93.659 Adoption Assistance

Recipient: Department of Social Services (5180)

% of Funds Agency Receives: 1

Component: Payroll/Operating expenses

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Technique: Monthly Estimate/Monthly Draw--Administrative Costs

Average Day of Clearance: N/A

93.667 Social Services Block Grant

Recipient: Department of Social Services (5180)

% of Funds Agency Receives: 70

Component: Payments to service providers and to state and local 

agencies

Technique: Pre-Issuance

Average Day of Clearance: N/A

93.667 Social Services Block Grant

Recipient: Department of Social Services (5180)

% of Funds Agency Receives: 30

Component: Payroll/Operating expenses

Technique: Monthly Estimate/Monthly Draw--Administrative Costs

Average Day of Clearance: N/A

93.767 Children's Health Insurance Program

Recipient: Department of Health Care Services (4260)

% of Funds Agency Receives: 99.91

Component: Payments to health care providers and to state and local 

agencies

Technique: Pre-Issuance

Average Day of Clearance: N/A

93.767 Children's Health Insurance Program

Recipient: Department of Health Care Services (4260)

% of Funds Agency Receives: .09

Component: Payroll/Operating expenses

Technique: Monthly Estimate/Monthly Draw--Administrative Costs

Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: Department of Health Care Services (4260)

% of Funds Agency Receives: 99.47

Component: Payments to health care providers and to state and local 

agencies

Technique: Pre-Issuance

Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: Department of Health Care Services (4260)

% of Funds Agency Receives: .53

Component: Payroll/Operating expenses

Technique: Monthly Estimate/Monthly Draw--Administrative Costs

Average Day of Clearance: N/A

96.006 Supplemental Security Income

Recipient: Department of Social Services (5180)

% of Funds Agency Receives: 100

Component: Benefit payments

Technique: Reverse Flow Program - SSI (CFDA 96.006)

Average Day of Clearance: N/A

6.3.3 Materiality Exemptions

Agencies exempt from coverage on the basis of materiality:

State Board of Equalization (0860)

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6.4.1 Unless otherwise specified, the State uses the pre-issuance funding technique for the major Federal assistance 

programs. Interest liabilities are incurred by the State under the provisions of CMIA because the State Constitution 

requires cash on hand before warrants are issued. Therefore, Federal funds will be requested before warrants are 

issued--and will not be based on the clearance/redemption patterns specified in Section 6.1.2. The State's interest 

liabilities will be based on the number of days from the time Federal funds are deposited in the State account until 

the funds are paid out for federal assistance program purposes.

The State Department of Child Support Services will request federal funds to cover Child Support Enforcement 

(CFDA 93.563) Administrative Costs using the Pre-Issuance funding technique only in those instances where the 

Monthly Estimate/Monthly Draw technique would cause the inability to meet Payroll/Operating expense obligations 

under Section 6.3.2.

7.0 CLEARANCE PATTERNS

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

CFDA Program Name

10.553 School Breakfast Program

10.555 National School Lunch Program

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

10.558 Child and Adult Care Food Program

10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program

84.010 Title 1 Grants to Local Educational Agencies

84.027 Special Education- Grants to States (IDEA, Part B)

84.126 Rehabilitation Services - Vocation Rehabilitation Grants to States

93.268 Immunization Grants

93.558 Temporary Assistance for Needy Families

93.563 Child Support Enforcement

93.575 Child Care and Development Block Grant

93.658 Foster Care - Title IV-E

93.659 Adoption Assistance, Recovery Act Funded

93.667 Social Services Block Grant

93.767 Children's Health Insurance Program

93.778 Medical Assistance Program

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

The SCO will develop the clearance patterns for specified programs and funds.

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

The SCO's paid warrants files.

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

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

period of at least three months.

7.5 The State shall identify for each check or warrant (hereafter, check) in the population: (1) the date the check was released 

for payment; (2) the date the check was debited from the State's account, and, (3) the amount of the check.

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

To determine the number of days each check was outstanding (clearance time), the issue date shall be subtracted from the date the 

check cleared the State's account.

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

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

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

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

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

following the disbursement.

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

with the following exceptions:

NONE

The State shall also adjust each clearance pattern to reflect:

For the clearance patterns that are more than one day, the State will adjust by one day each redemption pattern applied to the preissuance funded payment components for the programs listed in Section 7.1. Funds are paid out for program purposes by the bank one 

day earlier than the date stamped on the warrants by the STO. The number of redemption days calculated by the SCO is based on the 

issuance date of the warrant and the date stamped by the STO after the bank redeems the warrant. (The issuance date is the date the 

warrants are mailed, released or otherwise made available to the recipients.) This adjustment will reflect accurately when funds are paid 

out for program purposes.

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

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

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

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

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

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

7.11.0 The redemption patterns for programs covered in this agreement were developed from warrants redeemed from 

January through December 2020.

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 - Same Day Payment

Monthly Estimate/Monthly Draw

Monthly Estimate/Monthly Draw--Administrative Costs

Reimbursement--Department of Transportation

Reverse Flow Program - SSI (CFDA 96.006)

Zero Balance Accounting

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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:

To determine the total time State money is disbursed, the State shall separately measure two time periods: (1) warrants issuance to 

Federal funds deposit in State account; and (2) warrants issuance to the redemption. With Federal-State matching programs, interest 

shall be calculated on the Federal percentage of the disbursement.

The calculation procedure is:

Clearance Time--Pre-Deposit Time:

I=Pxrx{CT-PD}, where

I=Total Federal interest liability

P=Total annual amount of Federal funds deposited subsequent to the State's payment of its own funds

r=Annualized rate equal to the average equivalent yields of 13-week Treasury bills auctioned during a State's fiscal year divided by 365 

days

CT=Dollar-weighted average number of days between issuance and clearance of checks, as determined by the appropriate clearance 

pattern in Exhibit II

PD=Dollar-weighted average number of days between warrant issuance and deposit of Federal funds in State account

8.3 The Unemployment Trust Fund

8.3.1 The State shall use the following method to calculate State interest liabilities on funds withdrawn from the several accounts 

in the Unemployment Trust Fund:

The State shall track daily (1) federal funds received, (2) actual disbursement amounts, and (3) the residual between (1) and (2). The 

interest liabilities will be based on the residual (3) of federal funds.

Calculation Procedure:

I = P x R x CT, where

I = State's total interest liability

P = Total annual residual of federal funds

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

365 days

CT = Dollar-weighted average number of days residual of federal funds are held by State prior to disbursement.

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8.4 Refund Liabilities

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

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

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

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

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

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

(3) amount of the refund

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

Refunds deposited to Non-Interest Neutral Programs - Liability Calculated from when the refund is deposited in a State account until 

refunds are paid out for program purposes, except for the Medical Assistance Program (CFDA 93.778):

The State will measure this period by dividing it into two periods: the pre-disbursement period and the redemption period. The predisbursement period is from the deposit of refunds to issuance of warrants. The redemption period is from the issuance to redemption 

of warrants.

8.5 Exemptions

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

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

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

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

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

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

8.6 State Interest Liabilities

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

date those funds are paid out for program purposes.

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

8.6.2.1 Measuring Time Funds Are Held

Deposit to Issuance; Issuance to Clearance:

To determine the total time Federal funds are held, the State shall separately measure two time periods: (1) the date Federal funds are 

deposited to the date checks are issued; and (2) the date checks are issued to the date funds are debited from the State's account.

8.6.2.2 Source of Data

The period from when Federal funds are deposited and warrants are issued will be determined from information 

documented by State departments that administer the programs. The time period from warrant issuance to redemption will 

be determined by the appropriate program or fund redemption pattern specified in Exhibit II.

8.6.2.3 Standards Applied

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

(a) The State will use the actual activity method to calculate State interest liabilities. With Federal-State matching programs, interest 

will be calculated on the Federal share of the disbursement.

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(b) To determine the total time Federal funds are held, the State will separately measure two time periods: (1) Federal funds deposit in 

State account to warrants issuance, and (2) warrants issuance to redemption.

8.6.2.4 Calculation Procedure

Pre-Issuance Time + Clearance Time:

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

I = State's total interest liability

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

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

divided by 365 days

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

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

determined by the appropriate clearance pattern in Exhibit II

8.7.0 The dollar-weighted average days of redemption for each month shall be weighted against the total amount of dollars 

redeemed each month. The sum of the dollar-weighted average days of redemption will be used in the calculation of 

the interest liability.

8.8.0 In addition to Section 8.4.2, the State shall also identify the warrant issue date for the disbursement related to the 

subsequent deposit of federal funds.

The dollar-weighted average days of redemption for each month shall be weighted against the total amount of dollars 

redeemed each month. The sum of the dollar-weighted average days of redemption will be used in the calculation of 

the interest liability.

8.8.1 For purposes of this Agreement, Section 8.4.1 - 8.4.3 does not apply to the Medical Assistance Program.

8.8.2 The State Department of Health Care Services (DHCS) will document the following information on separate 

worksheets for the refunds received by the Medical Assistance Program:

(1) Mid-point date between the date refunds are deposited in a bank account in the centralized State Treasury System 

and the date refunds are credited to a State account.

(2) Warrant issue date for the disbursement related to the subsequent deposit of Federal funds.

(3) Amount of the refunds.

8.8.3 The State will use the following methodology to calculate interest liabilities on refunds for the Medical Assistance 

Program:

Interest will be calculated based on the difference in whole days between the mid-point date of the refunds and the 

date refunds are paid out for program purposes. The State will measure this period by dividing it into two periods: 

the pre-disbursement period and the redemption period. The pre-disbursement period is from the mid-point date 

between the date refunds are deposited in a bank account in the centralized State Treasury System and the date the 

refunds are credited to a State account to the issuance of warrants. The redemption period is from the issuance to 

redemption of warrants.

8.8.4 For the pre-disbursement period, the individual refund amounts and corresponding number of pre-disbursement days 

will be used to calculate the total weighted average days for each program. For the redemption period, the period 

will be determined by the appropriate program redemption pattern specified in Exhibit II.

The total weighted average days for the two periods will be applied to the total refunds to calculate the State interest 

liabilities. The calculations will use a formula similar to Section 8.6.

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8.8.5 A State department will have the option of returning the refunds to the Federal government and/or offsetting the 

refunds against subsequent fund requests. If a refund is returned, the State interest liability to the Federal 

government will be calculated from the refund deposit date in the State account to the deposit date in the Federal 

government's bank account.

8.9.0 The State DOT will use the following method to calculate and document the interest liability for payments for 

construction contracts, right-of-way, consultant contracts, subventions, labor and indirect cost assessments for the 

Highway Planning and Construction program (CFDA 20.205).

(a) To determine the total time Federal funds are held for construction contract right-of-way, consultant contracts, 

subventions, labor and indirect cost assessments payments, the State DOT will measure the time from when Federal 

funds are deposited in a State account and the funds are paid out for program purposes.

(b) This period will be determined from information captured by the State DOT's accounting system and information 

recorded at the State Controller's Office.

(c) To measure the time Federal funds are held in a State account, from deposit to pay out, the State DOT will use 

statistical sampling. The sample will be randomly selected and will be of sufficient size to ensure, at a minimum, a 

95% confidence level no wider than + or - 0.3 dollar-weighted days about the estimated mean.

For each warrant in the sample population, the State DOT will:

(1) Subtract the deposit date from the redemption date.

(2) Multiply the difference of step 1 by the warrant amount.

(3) Divide the product of step 2 by the total amount of funds drawn in the sample to determine the dollar-weighted 

number of days Federal funds were held in a State account.

(4) Sum the result of step 3 for each warrant to arrive at the total dollar-weighted average number of days Federal 

funds were held in a State account.

8.9.1 The State's interest liability for the Highway Planning and Construction program's construction contract, right-ofway, consultant contracts, subventions, labor and indirect cost assessments payments will be calculated by applying 

the following formula:

I = P x R x T where

I = State's interest liability

P = Amount of Federal funds drawn for construction contract payments

R = Annualized interest rate equal to the average equivalent yields of 13-week Treasury Bills auctioned during the 

State's fiscal year divided by 365 days.

T = Dollar-weighted average number of days Federal funds are held in a State account, as calculated above.

8.10.

0

Supplemental Provisions

8.10.

1

State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (CFDA 10.561)--

Reimbursements. After the Food Nutrition Service's close-out of a Letter of Credit, any additional Federal funds for 

a given fiscal year will be requested through the submission of a Request for Advance or Reimbursement. The 

reimbursement process may require from 6 months to several years before Federal fund payments are made.

During this waiting period, the State department will maintain an accounts receivable" until the reimbursement 

payments are received. If State funds are paid out to reimburse local agencies, the Federal government will incur an 

interest liability to the State from when State funds are paid out for program purposes and Federal funds are 

deposited in a State account (subject to the limitation stated in 31 CFR 205.14).

8.10.

2

Highway Planning and Construction (CFDA 20.205)--Advance Construction and Other Payments. The State and 

Federal government will not incur any interest liability related to advance construction payments, or for the 

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categories of reimbursements which are not material to the program and the tracking of and accounting for the 

related interest liability would constitute an undue administrative burden. These categories are specified as follows: 

revolving fund payments, miscellaneous payments made directly to vendors by the SCO, utility payments, service 

center charges, accounts receivable/reimbursement adjustments, and other miscellaneous adjustments.

8.10.

3

Interest Liability Adjustments. The calculation of interest liabilities covered by this Agreement will be based upon 

simple interest. Interest will not be calculated on interest, including interest liability adjustments.

8.10.

4

Adjustments to the Amount of Federal Funds Requested. To calculate interest liability, the State will track the cash 

flows of Federal fund requests and refunds for the applicable Federal assistance programs specified in Section 6.3.

The State will not calculate an interest liability on adjustments made to the amount of Federal funds requested, such 

as changes to Federal-State funding ratios, reconciliation for underdraws or overdraws, and the like.

8.10.

5

Funds Drawn Down, Paid Out, But Never Redeemed. The State will not incur an interest liability on funds drawn 

down according to the appropriate funding technique/clearance pattern, paid out by the State but are never redeemed. 

These funds will be used to either reduce a subsequent federal drawdown or will be returned to the federal 

government.

8.10.

6

Disbursements Without Warrants. For payments made with journal entries (without warrants) between state 

departments, the state will incur an interest liability between the time federal funds are deposited in the state account 

and the journal entry date. The federal government will incur an interest liability between the journal entry date and 

the deposit of federal funds. The funds are paid out for program purposes when transferred to the other state 

department's account. In this case, one state department is acting as a vendor for another state department. There is 

no redemption period for these payments because the journal entries between state departments occur 

simultaneously.

9.0 REVERSE FLOW PROGRAMS

9.1 The Federal government makes payments on behalf of the State for the Supplemental Security Income (SSI) program.

9.2 Definitions

State Supplementary Payment (SSP): Monthly payment made by the State to the Social Security Administration (SSA), as a 

voluntary supplement to monthly SSI payments made by the SSA to the State's SSI beneficiaries.

SSI/SSP: The monthly SSI payment made by the SSA to beneficiaries, which combines both Federal SSI program funds and 

SSP funds.

SSI/SSP Transfer Date: The dollar-weighted average day of clearance of the regularly issued monthly SSI/SSP checks issued 

by the SSA, adjusted to reflect three payment variations.

Due Date: The day on which States are required to deposit funds to the SSA.

Deposit Date: The day on which State funds are deposited to the SSA.

9.3 Funding Technique

The State and the Federal government will apply the following funding technique to the SSI program:

Component: State Supplementary Payment

Technique: SSI Funding Technique

Description: In accordance with Public Law 106-170, the State shall deposit funds to the SSA no later than the business day 

preceding the date on which the SSA Commissioner pays monthly benefits, or with respect to monthly benefits paid for the 

month that is the last month of the State's fiscal year, the fifth business day following such date.

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9.4 Clearance Pattern

The SSI/SSP Transfer Date is determined by adjusting the dollar weighted average day of clearance for regularly issued monthly 

SSI/SSP checks, as determined by the Federal Reserve Bank's Survey of Float on US Government Checks, with the three payment 

variations below, to reflect the proportion of SSI/SSP payments made to beneficiaries as follows:

By check on days later in a month: To calculate this adjustment, SSA will determine the nationwide percentage of total SSI/SSP 

payments made to beneficiaries by check on days later in a month, using full data from the most recent Federal fiscal year. The 

average day of clearance for regularly issued monthly SSI/SSP checks shall be dollar-weighted for SSI/SSP payments made to 

beneficiaries by check on days later in the month, which are assumed to be issued on the 11th business day of the month.

By direct deposit on the regularly designated day of the month for delivery of SSI/SSP payments: To calculate this adjustment, SSA 

will determine the nationwide percentage of total SSI/SSP payments made to beneficiaries by direct deposit on the regularly 

designated day of the month for delivery of SSI/SSP payments, using full data from the most recent Federal fiscal year. The average 

day of clearance for regularly issued monthly SSI/SSP checks shall be dollar-weighted with the average day of clearance for SSI/SSP 

payments made to beneficiaries by direct deposit on the regularly designated day of the month for delivery of SSI/SSP payments to 

beneficiaries.

By direct deposit on days later in a month: To calculate this adjustment, SSA will determine the nationwide percentage of total 

SSI/SSP payments made to beneficiaries by direct deposit on days later in a month, using full data from the most recent Federal fiscal 

year. The average day of clearance for regularly issued monthly SSI/SSP checks shall be dollar-weighted with the average day of 

clearance for SSI/SSP payments made to beneficiaries by direct deposit on days later in a month, which are assumed to be issued on 

the 11th business day of the month.

9.5 Interest Calculations

The Federal Government shall use the following methods to calculate and document Federal and State interest liabilities for SSI.

To calculate the interest liability, SSA shall record the Deposit Date of each monthly SSP payment and compare it to the SSI/SSP 

Transfer Date for each month. The liability for interest will be based on the following:

Payments received before the Due Date: The interest liability provisions of the CMIA do not apply to payments paid by a State

before the Due Date, pursuant to Public Law 106-170. All payments received prior to the Due Date will be deemed as received on the 

Due Date, for the purposes of calculating interest.

Payments received on the Due Date: A Federal interest liability should be computed from (1) the Due Date to (2) the day SSA pays 

out the State funds for program purposes (SSI/SSP Transfer Date).

Payments received after the Due Date but on or before the SSI/SSP Transfer Date: Interest liability provisions of the CMIA do not 

apply.

Payments received after the SSI/SSP Transfer Date: A State interest liability will accrue from (1) the SSI/SSP Transfer Date until (2) 

the day State funds are credited to the SSA.

SSA shall calculate Federal and State interest liabilities on the variance between (1) the amount of the monthly State payment, which 

is an estimate, and (2) the actual monthly outlays for program purposes made by the SSA on behalf of the State. The monthly State 

payment includes the cumulative balance brought forward from the previous month. For each month of the State's fiscal year, SSA 

will compare the amount of the State payment to the amount of the actual outlays made on behalf of the State. To the extent the State 

payment (including the estimated cumulative balance) is greater than actual outlays, a Federal interest liability will accrue. To the 

extent the State payment (including estimated cumulative balance) is less than actual outlays, a State interest liability will be 

calculated. In either case, the interest liability will be calculated based on the difference in whole days from (1) the day the monthly 

State payment was deposited to a Federal account to (2) the day a subsequent monthly State payment is deposited to a Federal 

account.

Any overpayment that results in a cumulative balance does not constitute an early deposit as defined in Public Law 106-170, Section 

410, Schedule for SSI Supplementation Agreements.

9.6 Refunds

Pursuant to 31 CFR 205.25 (c)(3), the State or the Federal government will not incur interest liabilities on refunds under the 

Supplemental Security Income Program as States are credited with the refunds in advance, before SSA collects the funds.

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9.1.0 Interest Report

In order for the State to meet the December 31 CMIA Annual Report deadline, the Federal agency for the reverse 

flow program shall provide the interest report to Finance, Fiscal Systems and Consulting Unit, on or before 

November 1 each year, or as soon as practical thereafter but preferably no later than November 15.

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:

As a result of CMIA regulations, interest calculation costs will include those costs incurred by the Department of Finance that are 

related to the calculation of interest, including the cost of developing and maintaining clearance patterns in support of interest 

calculations.

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

CFR 205.

11.0 NON-COMPLIANCE

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

this Agreement.

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12.0 AUTHORIZED SIGNATURES

Larry Satter

Chief, Fiscal System and Consulting Unit Department of Finance State of California

Signature: Date Signed:

Date Submitted 6/29/2021

Sandra R. Paylor

Acting Assistant Commissioner

Revenue Collections Management

Bureau of the Fiscal Service

U.S. Department of the Treasury

Signature: Date Signed:

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7/1/2021

7/11/2021
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Exhibit I - Funds Request and Receipt Times Schedule

State of California

Federal Agency Payment Type Request Cut-Off Time Receipt Window

Agriculture-FNS ACH 11:59 PM 1 day

Agriculture-FNS Fedwire 5:45 PM 0 day

Agriculture-FS ACH 3:00 PM 1 day

Air National Guard ACH 12:00 PM 15 days

Army National Guard ACH 12:00 PM 15 days

Commerce-NOAA ACH 2:00 PM 1 day

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

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

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

EPA ACH 2:00 PM 2 days

EPA Fedwire 2:00 PM 0 day

Education ACH 3:00 PM 1 day

Education Fedwire 2:00 PM 0 day

Energy ACH 4:00 PM 1 day

Energy Fedwire 3:00 PM 0 day

HHS ACH 5:00 PM 1 day

HHS Fedwire 3:00 PM 0 day

HUD ACH 5:30 PM 2 days

HUD Fedwire 3:00 PM 0 day

Interior-FWS ACH 11:59 PM 1 day

Interior-FWS Fedwire 5:45 PM 0 day

Interior-OSM ACH 3:00 PM 1 day

Interior-OSM Fedwire 1:00 PM 0 day

Justice ACH 11:00 PM 6 days

Justice Fedwire 2:00 PM 2 days

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

Labor-UTF ACH 3:00 PM 1 day

Labor-UTF Fedwire 3:00 PM 0 day

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

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

Social Security Administration ACH 11:59 PM 1 day

Social Security Administration Fedwire 5:45 PM 0 day

Transportation (FAA) ACH 2:00 PM 1 day

Transportation (FHWA) ACH 12:00 PM 3 days

Transportation (FHWA) Fedwire 12:00 PM 0 day

Transportation (FTA) ACH 2:00 PM 1 day

Veterans Administration ACH 12:00 PM 3 days

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Exhibit II - State of California

LIST OF STATE CLEARANCE TIMES

(Rounded Dollar-Weighted Average Day of Clearance)

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

CFDA Program Name Recipient % Component Technique Rounded 

days

10.551 Supplemental 

Nutrition 

Assistance 

Program

Department of 

Social Services 

(5180)

100.0 Benefit Payments Zero Balance 

Accounting

0 Days

10.553 School Breakfast 

Program

Department of 

Education (6100)

100.0 Payments to local 

agencies

Pre-Issuance N/A

10.555 National School 

Lunch Program

Department of 

Education (6100)

100.0 Payments to local 

agencies

Pre-Issuance N/A

10.557 Special 

Supplemental 

Nutrition Program 

for Women, 

Infants, and 

Children

Department of 

Public Health 

(4265)

35.0 Payments to local 

contractors

Pre-Issuance N/A

Special 

Supplemental 

Nutrition Program 

for Women, 

Infants, and 

Children

Department of 

Public Health 

(4265)

59.0 Electronic Benefit 

Transfer (EBT) food 

benefit redemption

Actual Clearance, 

ZBA - Same Day 

Payment

0 Days

Special 

Supplemental 

Nutrition Program 

for Women, 

Infants, and 

Children

Department of 

Public Health 

(4265)

6.0 Payroll/Operating 

expenses

Monthly 

Estimate/Monthly 

Draw--

Administrative 

Costs

N/A

10.558 Child and Adult 

Care Food 

Program

Department of 

Education (6100)

99.3 Payments to local 

agencies

Pre-Issuance N/A

Child and Adult 

Care Food 

Program

Department of 

Education (6100)

0.7 Payroll/Operating 

Expenses

Monthly 

Estimate/Monthly 

Draw--

Administrative 

Costs

N/A

10.561 State 

Administrative 

Matching Grants 

for the 

Supplemental 

Nutrition 

Assistance 

Program

Department of 

Social Services 

(5180)

98.0 Payments to local 

agencies

Pre-Issuance N/A

State 

Administrative 

Matching Grants 

for the 

Supplemental 

Nutrition 

Assistance 

Program

Department of 

Social Services 

(5180)

2.0 Payroll/Operating 

expenses

Monthly 

Estimate/Monthly 

Draw--

Administrative 

Costs

N/A

DocuSign Envelope ID: F2D78BC0-0B22-4276-A7EE-20C90AF4DC19
Page 25 of 29

17.225

F

Unemployment 

Insurance --

Federal Benefit 

Account and 

Administrative 

Costs

Employment 

Development 

Department 

(7100)

9.0 Payroll/Operating 

expenses

Monthly 

Estimate/Monthly 

Draw--

Administrative 

Costs

N/A

Unemployment 

Insurance --

Federal Benefit 

Account and 

Administrative 

Costs

Employment 

Development 

Department 

(7100)

91.0 Benefit payments Unemployment 

Insurance Electronic 

Benefits

N/A

17.225

S

Unemployment 

Insurance -- State 

Benefit Account

Employment 

Development 

Department 

(7100)

100.0 Benefit Payments Unemployment 

Insurance Electronic 

Benefits

N/A

20.205 Highway Planning 

and Construction

Department of 

Transportation 

(2660)

86.12 Payments for Rightof-Way, Consultant 

Contracts, 

Subventions, 

Subvention 

Reimbursements, 

Labor, Construction 

Contracts, and 

Indirect Cost Rate 

Assessments

Pre-Issuance N/A

Highway Planning 

and Construction

Department of 

Transportation 

(2660)

13.88 Payments for 

revolving fund, 

miscellaneous direct 

payments, utilities, 

service center 

charges, accounts 

receivable/reimburse

ment adjustments, 

and other 

miscellaneous 

adjustments

Reimbursement--

Department of 

Transportation

N/A

84.010 Title I Grants to 

Local Educational 

Agencies

Department of 

Education (6100)

99.0 Payments to local 

agencies

Pre-Issuance N/A

Title I Grants to 

Local Educational 

Agencies

Department of 

Education (6100)

1.0 Payroll/Operating 

expenses

Monthly 

Estimate/Monthly 

Draw--

Administrative 

Costs

N/A

84.027 Special Education 

-- Grants to States

Department of 

Education (6100)

97.0 Payments to local 

agencies

Pre-Issuance N/A

Special Education 

-- Grants to States

Department of 

Education (6100)

3.0 Payroll/Operating 

expenses

Monthly 

Estimate/Monthly 

Draw--

Administrative 

Costs

N/A

84.126 Rehabilitation 

Services --

Vocational 

Rehabilitation 

Grants to States

Department of 

Rehabilitation 

(5160)

40.0 Payment to local 

agencies

Pre-Issuance N/A

Rehabilitation 

Services --

Vocational 

Department of 

Rehabilitation 

(5160)

60.0 Payroll/Operating 

Expenses

Monthly 

Estimate/Monthly 

N/A

DocuSign Envelope ID: F2D78BC0-0B22-4276-A7EE-20C90AF4DC19
Page 26 of 29

Rehabilitation 

Grants to States Draw--

Administrative 

Costs

93.268 Immunization 

Grants

Department of 

Public Health 

(4265)

44.0 Payments to health 

care providers and to 

states and local 

agencies

Pre-Issuance N/A

Immunization 

Grants

Department of 

Public Health 

(4265)

56.0 Payroll/Operating 

Expenses

Monthly 

Estimate/Monthly 

Draw--

Administrative 

Costs

N/A

93.558 Temporary 

Assistance for 

Needy Families

Department of 

Social Services 

(5180)

99.0 Payments to local 

agencies

Pre-Issuance N/A

Temporary 

Assistance for 

Needy Families

Department of 

Social Services 

(5180)

1.0 Payroll/Operating 

expenses

Monthly 

Estimate/Monthly 

Draw--

Administrative 

Costs

N/A

93.563 Child Support 

Enforcement

Department of 

Child Support 

Services (5175)

74.0 Payments to local 

agencies

Pre-Issuance N/A

Child Support 

Enforcement

Department of 

Child Support 

Services (5175)

26.0 Payroll/Operating 

expenses

Monthly 

Estimate/Monthly

Draw--

Administrative 

Costs

N/A

93.575 Child Care and 

Development 

Block Grant

Department of 

Education (6100)

16.0 Payments to local 

education agencies 

and various state 

departments

Pre-Issuance N/A

Child Care and 

Development 

Block Grant

Department of 

Education (6100)

83.0 Payments to child 

care providers

Monthly 

Estimate/Monthly 

Draw

N/A

Child Care and 

Development 

Block Grant

Department of 

Education (6100)

1.0 Payroll/Operating 

expenses

Monthly 

Estimate/Monthly 

Draw--

Administrative 

Costs

N/A

93.658 Foster Care --

Title IV-E

Department of 

Social Services 

(5180)

96.0 Payments to local 

agencies

Pre-Issuance N/A

Foster Care --

Title IV-E

Department of 

Social Services 

(5180)

4.0 Payroll/Operating 

expenses

Monthly 

Estimate/Monthly 

Draw--

Administrative 

Costs

N/A

93.659 Adoption 

Assistance

Department of 

Social Services 

(5180)

99.0 Payments to local 

agencies

Pre-Issuance N/A

Adoption 

Assistance

Department of 

Social Services 

(5180)

1.0 Payroll/Operating 

expenses

Monthly 

Estimate/Monthly 

Draw--

N/A

DocuSign Envelope ID: F2D78BC0-0B22-4276-A7EE-20C90AF4DC19
Page 27 of 29

Administrative 

Costs

93.667 Social Services 

Block Grant

Department of 

Social Services 

(5180)

70.0 Payments to service 

providers and to state 

and local agencies

Pre-Issuance N/A

Social Services 

Block Grant

Department of 

Social Services 

(5180)

30.0 Payroll/Operating 

expenses

Monthly 

Estimate/Monthly 

Draw--

Administrative 

Costs

N/A

93.767 Children's Health 

Insurance 

Program

Department of 

Health Care 

Services (4260)

99.91 Payments to health 

care providers and to 

state and local 

agencies

Pre-Issuance N/A

Children's Health 

Insurance 

Program

Department of 

Health Care 

Services (4260)

0.09 Payroll/Operating 

expenses

Monthly 

Estimate/Monthly 

Draw--

Administrative 

Costs

N/A

93.778 Medical 

Assistance 

Program

Department of

Health Care 

Services (4260)

99.47 Payments to health 

care providers and to 

state and local 

agencies

Pre-Issuance N/A

Medical 

Assistance 

Program

Department of 

Health Care 

Services (4260)

0.53 Payroll/Operating 

expenses

Monthly 

Estimate/Monthly 

Draw--

Administrative 

Costs

N/A

96.006 Supplemental 

Security Income

Department of 

Social Services 

(5180)

100.0 Benefit payments Reverse Flow 

Program - SSI 

(CFDA 96.006)

N/A

Certification

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

in Exhibit 2 of this Treasury-State Agreement:

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

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

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

4. Are auditable.

Date: 

Printed Name: 

DocuSign Envelope ID: F2D78BC0-0B22-4276-A7EE-20C90AF4DC19

6/30/2021

Margie Daniels
Page 28 of 29

Certifying Signature: 

Title: 

DocuSign Envelope ID: F2D78BC0-0B22-4276-A7EE-20C90AF4DC19

Supervising Administrative Analyst (AS)
Page 29 of 29

DocuSign Envelope ID: F2D78BC0-0B22-4276-A7EE-20C90AF4DC19