Certifying Signature:

Title: Directo £ ten! Ogre Ue S

Page 20 of 20



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

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

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

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 shail be prorated to 100% of program funding.

8.6 State Interest Liabilities

8.6.1 The State shall be liable for interest on Federal funds from the date Federal funds are credited to a State account
until the date those funds are paid out for program purposes.

8.6.2 The State shall use the following method to calculate State interest liabilities on Federal funds:
8.6.2.1 Measuring Time Funds Are Held

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

Central Accounting System:

The time period from deposit to issuance shall be determined from information captured by TAMI (Treasury Automated
Management Information System). TAMI is an electronic cash receipt system that provides bank validation dates for
accounting transactions and can be used to determine when a deposit was made. AdvantageME (State accounting
system) and the GQL Warehouse (Database of archived accounting transactions) can be queried to provide dates of
check issuance/s in relation to the date of deposit.

8.6.2.3 Standards Applied

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

8.6.2.4 Calculation Procedure

Page 14 of 20



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.

Average Clearance

The State shall request funds such that they are deposited by ACH on the dollar-weighted average day of clearance for
the disbursement, in accordance with the clearance pattern specified in Exhibit Il. The request shall be made in
accordance with the appropriate Federal agency cut-off time specified in Exhibit |. The amount of the request shall be for
the exact amount of that disbursement. This funding technique is interest neutral.

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

Actual Drawdown - Weekly

The State will draw down funds on a weekly basis based on the actual expenditures which occurred in the past weekly
period, The request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit |.
This funding technique is interest neutral.

Actual Drawdown- Bi-weekly

The State will get reimbursement and drawdown on a bi-weekly basis based on the actual expenditures which occurred in
the past bi-weekly period. The request shall be made in accordance with the appropriate Federal agency cut-off time
specified in Exhibit !. This funding technique is interest neutral.

Allocation - Monthly

The State shall request funds once a month based upon a monthly reconciliation of expenditures. The request shall be
made in accordance with the appropriate Federal agency cut-off time specified in Exhibit 1. The amount of the request
shall be the actual costs of the month distributed to the program according to the allocation of costs in the monthly
reconciliation. This funding technique is interest neutral.

Payment Schedule - Weekly with Adjustment

The State shall request funds such that they are deposited in a State account on the median business day of the week.
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 prorated share of the lesser of (1) the annual grant divided by 52, or (2) the total
amount of Federal Funds expected to be paid out during the year divided by 52, plus an adjustment to the amount
(positive or negative) made for the consideration of existing cash balances. This funding technique is interest neutral.

Page 5 of 20



Exhibit I] - State of Maine
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 | Department of Health and|100. |Payment to Beneficiaries |Actual Clearance, ZBA- |N/A
Assistance Program Human Services 00 Same Day Payment

10.555 | National School Lunch —_| Department of Education |100. |Payments to Local Average Clearance 2 Days
Program 00__|Educational Agencies

12.401 |National Guard Military + |Department of Defense {33.0 /MMA Parts Actual Drawdown - N/A
‘Operations and 0 Weekly
Maintenance (O&M)
Projects

12,401 |National Guard Military |Department of Defense |33.0 |Air/Army National Guard |Actual Drawdown- Bi- N/A
‘Operations and 0 weekly
Maintenance (O&M)
Projects

12.401 |National Guard Military |Department of Defense {30.0 |MMA Payroll Prorated Payroll - Bi- NVA
Operations and 0 weekly
Maintenance (O&M)
Projects

12.401 {National Guard Military |Department of Defense 4.00 |MMA All Other [Allocation - Monthly NA
Operations and
Maintenance (O&M)
Projects

17,.225F |Unemployment Insurance | Department of Labor 1.00 |Payment to Beneficiaries | Actual Drawdown - NIA
-- Federal Benefit - Weekly
Account and
Administrative Costs

17.225F |Unemployment Insurance | Department of Labor 2.00 {Administrative (Other) Actual Drawdown - NIA
|-- Federal Benefit Weekly
Account and
Administrative Costs

17.225F |Unemployment Insurance | Department of Labor 6.00 |Administrative (Payroll) |Average Clearance 0 Days
— Federal Benefit
Account and
Administrative Costs

17,.225F |Unemployment Insurance| Department of Labor 91.0 |Payments to Actual Clearance, ZBA- |0 Days
-- Federal Benefit 0 Beneficiaries - MAP Card |ACH
Account and
Administrative Costs

17.2258 |Unemployment Insurance |Department of Labor 5.00 |Payment to Beneficiaries | Actual Drawdown - N/A
-- State Benefit_ Account Weekly

17.2258 |Unemployment Insurance | Department of Labor 95.0 |Payments to Actual Clearance, ZBA- |0 Days
-- State Benefit Account tt) Beneficiaries - MAP Card |ACH

20.205 |Highway Planning and Department of 1.00 |Administrative (Other) Actual Drawdown - NIA
Construction Transportation Weekly

20.205 Highway Planning and =| Department of 88.0 |Direct Costs Average Clearance 2 Days
Construction Transportation 0

20.205 | Highway Planning and Department of 411.0 |Administrative (Payroll) {Average Clearance 0 Days
Construction Transportation Lt}

84.010 | Title | Grants to Local Department of Education |1.00 |Administrative (Other) Actual Drawdown - N/A
Educational Agencies Weekly

Page 18 of 20



Technique: Actual Drawdown - Weekly
Average Day of Clearance: N/A

Recipient: Department of Health and Human Services
% of Funds Agency Receives: 51.00

Component: Administrative (Payroll)

Technique: Average Clearance

Average Day of Clearance: 0 Days

93.767 Children's Health Insurance Program
Recipient: Department of Health and Human Services
% of Funds Agency Receives: 3.00

Component: Administrative (Other)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

Recipient: Department of Health and Human Services
% of Funds Agency Receives: 8.00

Component: Provider Payments - Misc

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

Recipient: Department of Health and Human Services
% of Funds Agency Receives: 1.00

Component: Administrative (Payroll)

Technique: Average Clearance

Average Day of Clearance: 0 Days

Recipient: Department of Health and Human Services
% of Funds Agency Receives: 88.00

Component: Provider Payments - MIHMS Weekly
Technique: Average Clearance

Average Day of Clearance: 2 Days

93.778 Medical Assistance Program

Recipient: Department of Health and Human Services
% of Funds Agency Receives: 3.00

Component: Administrative (Other)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

Recipient: Department of Health and Human Services
% of Funds Agency Receives: 8.00

Component: Administrative (Payroll)

Technique: Average Clearance

Average Day of Clearance: 0 Days

Page 10 of 20



Recipient: Department of Defense

% of Funds Agency Receives: 33.00
Component: Air/Army National Guard
Technique: Actual Drawdown- Bi-weekly
Average Day of Clearance: N/A

Recipient: Department of Defense
% of Funds Agency Receives: 4.00
Component: MMA All Other
Technique: Allocation - Monthly
Average Day of Clearance: N/A

Recipient: Department of Defense

% of Funds Agency Receives: 30.00
Component: MMA Payroll

Technique: Prorated Payroll - Bi-weekly
Average Day of Clearance: N/A

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

Recipient: Department of Labor
% of Funds Agency Receives: 91.00

Component: Payments to Beneficiaries ~ MAP Card

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

Recipient: Department of Labor

% of Funds Agency Receives: 2.00
Component: Administrative (Other)
Technique: Actual Drawdown - Weekly
Average Day of Clearance: N/A

Recipient: Department of Labor

% of Funds Agency Receives: 1.00
Component: Payment to Beneficiaries -
Technique: Actual Drawdown - Weekly
Average Day of Clearance: N/A

Recipient: Department of Labor

% of Funds Agency Receives: 6.00
Component: Administrative (Payroll)
Technique: Average Clearance
Average Day of Clearance: 0 Days

17,2258 Unemployment Insurance -- State Benefit Account

Recipient: Department of Labor
% of Funds Agency Receives: 95.00

Page 7 of 20



Prorated Payroll - Bi-weekly

The State shall request funds on a bi-weekly basis based upon the estimated program share of labor costs. The request
shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit 1. At the end of the
month, reconciliation will be completed and funds will be requested to match the program expenditures, This funding
technique is interest neutral.

Weekly Drawdown - Actual & Estimate

State shall request funds such that they are deposited in a State account on the median business day of the week. The
request shall be made in accordance with the appropriate Federal Agency cut-off time specified in Exhibit |. The amount
requested shall be comprised of two portions. Portion 1 - will include the actual expenditures made during the previous
two business days, Portion 2 - will include an estimate of the expenditures to be made in the next three business days.
Each week, the current cash balance will be taken into consideration through revenue and expense analysis. Any cash
imbalances will be corrected in the current week's drawdown. In the event the Payment Management System (PMS) will
not allow funds to be returned on the draw date, they can be returned in the days following the draw date. 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 Health and Human Services

% of Funds Agency Receives: 100.00

Component: Payment to Beneficiaries

Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: N/A

10.555 National School Lunch Program

Recipient: Department of Education

% of Funds Agency Receives: 100.00

Component: Payments to Local Educational Agencies
Technique: Average Clearance

Average Day of Clearance: 2 Days

12.401 National Guard Military Operations and Maintenance (O&M) Projects
Recipient: Department of Defense

% of Funds Agency Receives: 33.00

Component: MMA Parts

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A.

Page 6 of 20



84.010 |Title | Grants to Local Department of Education |98.0 |Payments to Local Average Clearance 2 Days
Educational Agencies. 0 Educational Agencies

84.010 —_|Title | Grants to Local Department of Education |1.00 |Administrative (Payroll) |Average Clearance 0 Days
Educational Agencies

84.027 |Special Education -- Department of Education {1.00 {Administrative (Other) Actual Drawdown - N/A
Grants to States Weekly

84.027 |Special Education — Department of Education |8.00 |Administrative (Payroll) |Average Clearance 10 Days
Grants to States

84.027 | Special Education — Department of Education |91.0 |Payments to LEA & Average Clearance 2 Days
Grants to States 0 Discretionary

84.126 |Rehabilitation Services -- | Department of Labor 50.0 |Payroll Average Clearance 0 Days
Vocational Rehabilitation 0
Grants to States

84.126  |Rehabilitation Services -- | Department of Labor 50.0 |Client Services and All Payment Schedule - N/A
Vocational Rehabilitation 0 Other Weekly with Adjustment
Grants to States

93.558 {Temporary Assistance for| Department of Health and] 100. |All Expenses Weekly Drawdown - N/A
Needy Families Human Services 00. Actual & Estimate

93.563 | Child Support Department of Health and}49.0 |Administrative (All Other} {Actual Drawdown - NIA
Enforcement Human Services 10 Weekly

93.563 |Child Support Department of Health and|51.0 |Administrative (Payroll) |Average Clearance 0 Days
Enforcement Human Services 0

93.767 |Children's Health Department of Health and|8.00 | Provider Payments - Misc|Actual Drawdown - N/A
insurance Program Human Services [Weekly

93.767 | Children’s Health Department of Health andj3.00 | Administrative (Other) Actual Drawdown - N/A
Insurance Program Human Services Weekly

93.767 | Children's Health Department of Health and}1.00 |Administrative (Payroll) {Average Clearance 0 Days
Insurance Program Human Services,

93.767 |Children's Health Department of Health and|88.0 |Provider Payments - Average Clearance 2 Days
Insurance Program Human Services 0 MIHMS Weekly

93.778 |Medical Assistance Department of Health and/3.00 |Administrative (Other) Actual Drawdown - NIA
Program Human Services Weekly

93.778 {Medical Assistance Department of Heaith and|8.00 {Administrative (Payroll) | Average Clearance 0 Days
Program. Human Services

93.778 |Medical Assistance Department of Health and|89.0 |Provider Payments - Average Clearance |2 Days
Program Human Services o MIHMS Weekly

thereby 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:

LENZ

Printed Name:

Jim Godevauvrez.

Page 19 of 20



Average Day of Clearance: 2 Days

84.027 Special Education -- Grants to States
Recipient: Department of Education

% of Funds Agency Receives: 1.00
Component: Administrative (Other)
Technique: Actual Drawdown - Weekly
Average Day of Clearance: N/A

Recipient: Department of Education
% of Funds Agency Receives: 8.00
Component: Administrative (Payroll)
Technique: Average Clearance
Average Day of Clearance: 0 Days

Recipient: Department of Education

% of Funds Agency Receives: 91.00
Component: Payments to LEA & Discretionary
Technique: Average Clearance

Average Day of Clearance: 2 Days

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to States

Recipient: Department of Labor

% of Funds Agency Receives: 50.00
Component: Payroll

Technique: Average Clearance
Average Day of Clearance: 0 Days

Recipient: Department of Labor

% of Funds Agency Receives: 50.00

Component: Client Services and All Other

Technique: Payment Schedule - Weekly with Adjustment
Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families
Recipient: Department of Health and Human Services
% of Funds Agency Receives: 100.00

Component: All Expenses

Technique: Weekly Drawdown - Actual & Estimate
Average Day of Clearance: N/A

93.563 Child Support Enforcement

Recipient: Department of Health and Human Services
% of Funds Agency Receives: 49.00

Component: Administrative (Ail Other)

Page 9 of 20



Cash Management Improvement Act Agreement
between
The State of Maine
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 Maine
{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 Maine shall be the Director of Internal Operations 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 ail 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 07/01/2017 and shall remain in effect until 06/30/2018.

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 wiil prescribe the funding techniques, clearance patterns, and methods for calculating interest liabilities to
be used by the State.

Page 1 of 20



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

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

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

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

For each day following issuance, the clearance time of the checks paid out that day shali 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:

NIA

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

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

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

8.0 INTEREST CALCULATION METHODOLOGY
8.1 General Terms

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

Actual Clearance, ZBA - ACH

Actual Clearance, ZBA - Same Day Payment
Actual Drawdown - Weekly

Actual Drawdown- Bi-weekly

Allocation - Monthly

Average Clearance

Page 12 of 20



Recipient: Department of Health and Human Services
% of Funds Agency Receives: 89.00

Component: Provider Payments - MIHMS Weekly
Technique: Average Clearance

Average Day of Ciearance: 2 Days

6.3.3 Materiality Exemptions

Agencies exempt from coverage on the basis of materiality:
No exempt agencies.

7.0 CLEARANCE PATTERNS.

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

The State of Maine has developed clearance patterns for three centralized accounts:

Primary Disbursement Account #0366

This is the primary disbursement account for the State of Maine excluding state payroll and unemployment benefits. The
clearance pattern for this account also factors in the clearance pattern of ACH payments issued from the #9798 (ACH
Primary Disbursement) account.

Payroll Checking Account #0374
This is the State of Maine payroll account for employee payroll payments. The clearance pattern for this account also
factors in the clearance pattern of direct deposit (ACH) payments issued from the #9790 (ACH Payroll) account.

Unemployment Compensation #9709
This is the benefit payment account used for direct deposit (ACH) payments.

7.2 The following shall develop the State's clearance patterns:
U.S. Bank and the Office of the State Treasurer
7.3 The sources of data the State shall use when developing its clearance patterns are as follows:

1. Range of check numbers for checks issued during specified 90-calendar-day time period.

2. Total number of payments and total amount of payments during time period.

3. Total of daily checks presented that fall within the predefined check number range.

4. The number of days from the date of issue by the State to the day the dollars were removed from the State's bank
account. Percentage of daily checks presented (number and amount) compared against the total issuance of the period.
5. Dollar-weighted factor created by applying percentage against number of days before check presentation.

The sum of dollar-weighted factors represents the average amount of time for a check to be presented for payment to the
bank after the check issuance date.

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.

Page 11 of 20



Component: Payments to Beneficiaries - MAP Card
Technique: Actual Clearance, ZBA - ACH
Average Day of Clearance: 0 Days

Recipient: Department of Labor

% of Funds Agency Receives: 5.00
Component: Payment to Beneficiaries
Technique: Actual Drawdown - Weekly
Average Day of Clearance: N/A

20.205 Highway Planning and Construction
Recipient: Department of Transportation

% of Funds Agency Receives: 1.00
Component: Administrative (Other)
Technique: Actual Drawdown - Weekly
Average Day of Clearance: N/A

Recipient: Department of Transportation
% of Funds Agency Receives: 11.00
Component: Administrative (Payroll)
Technique: Average Clearance
Average Day of Clearance: 0 Days

Recipient: Department of Transportation
% of Funds Agency Receives: 88.00
Component: Direct Costs

Technique: Average Clearance
Average Day of Clearance: 2 Days

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

% of Funds Agency Receives: 1.00

Component: Administrative (Other)

Technique: Actual Drawdown - Weekly

Average Day of Clearance: N/A

Recipient: Department of Education
% of Funds Agency Receives: 1.00
Component: Administrative (Payroll)
Technique: Average Clearance
Average Day of Clearance: 0 Days

Recipient: Department of Education

% of Funds Agency Receives: 98.00

Component: Payments to Local Educational Agencies
Technique: Average Clearance

Page 8 of 20



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
in Exhibit 1. 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

Page 4 of 20



|= ADB x R/365 x T , 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 bills auctioned during a State's fiscal year
365 = Calendar days

T = Days of State Liability
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
catculations. 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:
N/A

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 15 of 20



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

Agriculture-FNS_ [ACH 44:59 PM 1 day
Agriculture-FNS Fedwire 5:45 PM 0 day
Agriculture-FS: JACH 3:00 PM 1 day
Air National Guard ACH. 12:00 PM 15 days
Army National Guard ACH 15 days
Commerce-NOAA ACH 41 day
Dept of Homeland Security (FEMA) Fedwire 2 days
Dept of Homeland Security (ODP) ACH 2 days
Dept of Homeland Security (ODP) Fedwire 2 days
EPA ACH 2 days
EPA Fedwire 0 day
Education ACH 4 day
Education Fedwire OQ day
Energy ACH 1 day
Energy Fedwire Q day
HHS. ACH 4 day
HHS: Fedwire 0 day
HUD ACH 2 days
HUD Fedwire 0 day
Interior-FWS [ACH 11:59 PM 1 day
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 14:00 PM 6 days
Justice Fedwire 2:00 PM 2 days
Labor-Non-UTF ACH 3:00 PM 4day
Labor-UTF ACH 3:00 PM i day
Labor-UTF. Fedwire 3:00 PM O day
National Science Foundation (NSF) ACH 8:00 PM. 1 day
National Science Foundation (NSF) Fedwire 5:45 PM Q 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 4 day
Transportation (FHWA) |ACH 12:00 PM 13 days
Transportation (FHWA) Fedwire 12:00 PM 0 day
Transportation (FTA) [ACH 2:00 PM. day
Veterans Administration (ACH. 12:00 PM 3 days

Page 17 of 20



XEROX State and Local Solutions 10.551 Supplemental Nutrition Assistance Program
XEROX State and Local Solutions 93.558 Temporary Assistance for Needy Families

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 shall schedule the receipt of Federal funds such that the funds are received and credited to a State
account in accordance with the clearance patterns specified in Exhibit Il - List of State Clearance Patterns. Exhibit 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:
Uniess 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):

Page 3 of 20



4.0 PROGRAMS COVERED

4.1 The State's threshold and its major Federal assistance programs shall be determined based on the Schedule of
Expenditures of Federal Awards 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 $17,933,217.
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 Schoo! Lunch Program

12.401 National Guard Military Operations and Maintenance (O&M) Projects
17.225F Unemployment Insurance -- Federal Benefit Account and Administrative Costs
17.2258 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

93.767 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 exciuded 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:

Department of Defense

Department of Education

Department of Health and Human Services
Department of Labor

Department of Transportation

5.2 Entities that meet the definition of a Fiscal Agent per 31 CFR Part 205 shail be subject to the terms of this Agreement.
The following is a list of Fiscal Agents that administer funds under the programs listed in the Section 4.0 of this
Agreement:

Page 2 of 20



Payment Schedule - Weekly with Adjustment
Prorated Payroll - Bi-weekly
Weekly Drawdown - Actual & Estimate

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

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

(1) amount of the issuance

(2) date of issuance

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

(4) amount of Federal funds received

(5) date funds were requested

8.2 Federal interest Liabilities

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

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

Actual Activity:

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

8.3 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:

Federal and State Funds are Interest Neutral:

There are no interest earnings on funds withdrawn from the State account, as the State has implemented average
clearance, an interest-neutral funding technique, for such transfers. For UTF transfers that do not follow the technique
specified in section 6.2 and result in a positive balance of funds in a State account, the State's liability for interest on funds
withdrawn from its account in the UTF shall consist of the actual interest earnings of the benefit payment account on the
pro-rata share less the related banking costs attributed to such funds,

8.4 Refund Liabilities

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

8.4.2 For each refund, the State shall maintain information identifying:
(1) date a refund is credited to a State account

Page 13 of 20


12.0 AUTHORIZED SIGNATURES

Timothy Rodriguez
Director of Internal Operations

Signature: Date Signed: ZZE /7

Date Submitted 05/31/2017

Corvelli A. McDaniel

Assistant Commissioner

Revenue Collections Management
Bureau of the Fiscal Service

U.S. Department of the Treasury

{
if

Nk

é
Signature:__.. Pharch Date Signed:

Page 16 of 20