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Cash Management Improvement Act Agreement

between

The Puerto Rico (Territory)

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 Puerto Rico (Territory)

(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 Puerto Rico (Territory) shall be the The Secretary of the Treasury 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 07/01/2020 and shall remain in effect until 06/30/2021.

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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4.0 PROGRAMS COVERED

4.1 The State's threshold and its major Federal assistance programs shall be determined based on the expenses for fiscal year 

ending 06/30/2015.

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

Agreement.

4.2 The State's threshold for major Federal assistance programs is $13,668,579.

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

CFDA Program Name

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

10.559 Summer Food Service Program for Children

10.566 Nutrition Assistance for Puerto Rico

12.401 National Guard Military Operations and Maintenance (O&M) 

Projects

14.228 Community Development Block Grants/State's Program

14.850 Public and Indian Housing

14.871 Section 8 Housing Choice Vouchers

14.872 Public Housing Capital Fund

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

17.225S Unemployment Insurance -- State Benefit Account

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

84.287 Twenty-First Century Community Learning Centers

84.367 Improving Teacher Quality State Grants

84.377 School Improvement Grants

84.388 School Improvement Grants, Recovery Act

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93.558 Temporary Assistance for Needy Families

93.563 Child Support Enforcement

93.569 Community Services Block Grant

93.575 Child Care and Development Block Grant

93.600 Head Start

93.778 Medical Assistance Program

93.779 Centers for Medicare and Medicaid Services (CMS) Research, 

Demonstrations and Evaluations

93.917 HIV Care Formula Grants

93.959 Block Grants for Prevention and Treatment of Substance Abuse

93.994 Maternal and Child Health Services Block Grant to the States

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.

4.5.0 The basis of total expenses for fiscal year, as discussed in Section 4.1, is a consolidated report produced from Puerto 

Rico's Integrated Financial Accounting System and it is used to determine the threshold and the major Federal 

assistance programs.

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:

Administration for the Childhood Care and Integrated Development

Administration of Mental Health and Addiction Services

Child Support Administration

Department of Education

Department of Health

Department of Housing

Department of Labor and Human Resources

Family Socioeconomic Development Administration

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Governor`s Office

National Guard

Public Housing Administration

Puerto Rico Office for Socioeconomic and Community Development

Puerto Rico Ombudsman Office for the Elderly

Vocational Rehabilitation Administration

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

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.

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):

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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

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.

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Funding Technique Name Description

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 I. 

The amount of the request shall be for the amount of funds that clear the State's 

account on the settlement date. This funding technique is interest neutral.

Actual Clearance, ZBA - Same Day Payment The State shall request funds the same day it pays out funds, in accordance with the 

appropriate Federal agency cut-off time specified in Exhibit 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.

Average Clearance The State shall request funds such that they are deposited by ACH on the dollarweighted average day of clearance for the disbursement, in accordance with the 

clearance pattern specified in Exhibit II. 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 for the exact amount of that disbursement. 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.

Funding Technique Name Description

Fixed Administrative Allowances - BiWeekly PayrollThe State shall request funds such that one-sixth (or one-seventh) of the quarterly 

administrative allowance is deposited on the dollar-weighted average date of clearance 

for payroll payments, as specified in the appropriate clearance pattern in Exhibit II. 

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

time specified in Exhibit I. This funding technique is interest neutral.

Indirect Cost Rates - Estimated Base The State shall request funds once a month, such that they are deposited on the median 

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

Federal agency cut-off time specified in Exhibit I. The amount of the request shall be 

determined by applying the indirect cost rate to the appropriate cost base estimated for 

the current month. The estimate of direct costs shall be based on the actual direct 

costs of the prior month. This funding technique is interest neutral.

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

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

There are currently no funding techniques listed in Section 6.2.3.

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

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

Funding Technique Name Description

Pre-Issuance - Modified The Commonwealth receives Federal funds from the US Department of Housing and 

Urban Development (HUD) on the first business day of each month. The payment of 

Federal funds is done automatically by US HUD and a request for funds is not 

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required of the Commonwealth. The Commonwealth subsequently makes 

disbursements to approved recipients. The amount of funds that are received each 

month is equal to 1/12th of the annual budget, which is approved by US HUD. This 

funding technique is not 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.

10.555 National School Lunch Program

Recipient: Department of Education

% of Funds Agency Receives: 20

Component: Indirect Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

10.555 National School Lunch Program

Recipient: Department of Education

% of Funds Agency Receives: 40

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

10.555 National School Lunch Program

Recipient: Department of Education

% of Funds Agency Receives: 20

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

10.555 National School Lunch Program

Recipient: Department of Education

% of Funds Agency Receives: 20

Component: Other Direct Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

10.557 Special Supplemental Nutrition Program for Women, Infants, 

and Children

Recipient: Department of Health

% of Funds Agency Receives: 25

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

10.557 Special Supplemental Nutrition Program for Women, Infants, 

and Children

Recipient: Department of Health

% of Funds Agency Receives: 75

Component: Administrative Costs (including Payroll)

Technique: Fixed Administrative Allowances - Bi-Weekly Payroll

Average Day of Clearance: 1 Day

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10.558 Child and Adult Care Food Program

Recipient: Department of Education

% of Funds Agency Receives: 100

Component: Payment to Services Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

10.559 Summer Food Service Program for Children Recipient: Department of Education

% of Funds Agency Receives: 1

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

10.559 Summer Food Service Program for Children

Recipient: Department of Education

% of Funds Agency Receives: 60

Component: Direct Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

10.559 Summer Food Service Program for Children

Recipient: Department of Education

% of Funds Agency Receives: 2

Component: Other Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

10.559 Summer Food Service Program for Children

Recipient: Department of Education

% of Funds Agency Receives: 23

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

10.559 Summer Food Service Program for Children

Recipient: Department of Education

% of Funds Agency Receives: 14

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

10.566 Nutrition Assistance for Puerto Rico

Recipient: Family Socioeconomic Development Administration

% of Funds Agency Receives: 4

Component: Administrative Costs

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 1 Day

10.566 Nutrition Assistance for Puerto Rico

Recipient: Family Socioeconomic Development Administration

% of Funds Agency Receives: 4

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

10.566 Nutrition Assistance for Puerto Rico

Recipient: Family Socioeconomic Development Administration

% of Funds Agency Receives: 2

Component: Indirect Costs

Technique: Actual Clearance, ZBA - ACH

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Average Day of Clearance: 1 Day

10.566 Nutrition Assistance for Puerto Rico

Recipient: Family Socioeconomic Development Administration

% of Funds Agency Receives: 90

Component: Payment to Beneficiaries

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

12.401 National Guard Military Operations and Maintenance (O&M) 

Projects

Recipient: National Guard

% of Funds Agency Receives: 14

Component: Purchase Services

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

12.401 National Guard Military Operations and Maintenance (O&M) 

Projects

Recipient: National Guard

% of Funds Agency Receives: 16

Component: Professional Services

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

12.401 National Guard Military Operations and Maintenance (O&M) 

Projects

Recipient: National Guard

% of Funds Agency Receives: 20

Component: Facilities and Services Payment

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

12.401 National Guard Military Operations and Maintenance (O&M) 

Projects

Recipient: National Guard % of Funds Agency Receives: 3

Component: Equipment

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

12.401 National Guard Military Operations and Maintenance (O&M) 

Projects

Recipient: National Guard

% of Funds Agency Receives: 15

Component: Other Expenses

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

12.401 National Guard Military Operations and Maintenance (O&M) 

Projects

Recipient: National Guard

% of Funds Agency Receives: 4

Component: Material

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

12.401 National Guard Military Operations and Maintenance (O&M) 

Projects

Recipient: National Guard

% of Funds Agency Receives: 28

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Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

14.228 Community Development Block Grants/State's Program

Recipient: Department of Housing

% of Funds Agency Receives: 51

Component: Payment to Beneficiaries

Technique: Average Clearance

Average Day of Clearance: 3 Days

14.228 Community Development Block Grants/State's Program

Recipient: Department of Housing

% of Funds Agency Receives: 37

Component: Payroll

Technique: Average Clearance

Average Day of Clearance: 2 Days

14.228 Community Development Block Grants/State's Program

Recipient: Department of Housing

% of Funds Agency Receives: 12

Component: Administrative Costs

Technique: Average Clearance

Average Day of Clearance: 3 Days

14.850 Public and Indian Housing

Recipient: Public Housing Administration

% of Funds Agency Receives: 1

Component: Payroll

Technique: Average Clearance

Average Day of Clearance: 2 Days

14.850 Public and Indian Housing

Recipient: Public Housing Administration

% of Funds Agency Receives: 96

Component: Payment to Beneficiaries

Technique: Average Clearance

Average Day of Clearance: 3 Days

14.850 Public and Indian Housing

Recipient: Public Housing Administration

% of Funds Agency Receives: 3

Component: Administrative Costs

Technique: Average Clearance

Average Day of Clearance: 3 Days

14.871 Section 8 Housing Choice Vouchers

Recipient: Public Housing Administration

% of Funds Agency Receives: 96

Component: Payment to Beneficiaries

Technique: Pre-Issuance - Modified

Average Day of Clearance: N/A

14.871 Section 8 Housing Choice Vouchers

Recipient: Public Housing Administration

% of Funds Agency Receives: 4

Component: Administrative Cost

Technique: Pre-Issuance - Modified

Average Day of Clearance: N/A

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14.872 Public Housing Capital Fund

Recipient: Public Housing Administration

% of Funds Agency Receives: 3

Component: Administrative Costs

Technique: Average Clearance

Average Day of Clearance: 3 Days

14.872 Public Housing Capital Fund

Recipient: Public Housing Administration

% of Funds Agency Receives: 96

Component: Payment to Beneficiaries

Technique: Average Clearance

Average Day of Clearance: 3 Days

14.872 Public Housing Capital Fund

Recipient: Public Housing Administration

% of Funds Agency Receives: 1

Component: Payroll

Technique: Average Clearance

Average Day of Clearance: 2 Days

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Department of Labor and Human Resources

% of Funds Agency Receives: 1

Component: Indirect Costs

Technique: Indirect Cost Rates - Estimated Base

Average Day of Clearance: 3 Days

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Department of Labor and Human Resources

% of Funds Agency Receives: 75

Component: Payment to Beneficiaries-FECA and EUCA

Technique: Actual Clearance, ZBA - Same Day Payment

Average Day of Clearance: 0 Days

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Department of Labor and Human Resources

% of Funds Agency Receives: 24

Component: Administrative Costs (Including Payroll)

Technique: Fixed Administrative Allowances - Bi-Weekly Payroll

Average Day of Clearance: 3 Days

17.225S Unemployment Insurance -- State Benefit Account

Recipient: Department of Labor and Human Resources

% of Funds Agency Receives: 100

Component: Payment to Beneficiaries-State Account

Technique: Pre-Issuance

Average Day of Clearance: N/A

84.010 Title I Grants to Local Educational Agencies

Recipient: Department of Education

% of Funds Agency Receives: 1

Component: Indirect Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.010 Title I Grants to Local Educational Agencies

Recipient: Department of Education

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% of Funds Agency Receives: 4

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.010 Title I Grants to Local Educational Agencies

Recipient: Department of Education

% of Funds Agency Receives: 61

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.010 Title I Grants to Local Educational Agencies

Recipient: Department of Education

% of Funds Agency Receives: 1

Component: Other Direct Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.010 Title I Grants to Local Educational Agencies

Recipient: Department of Education

% of Funds Agency Receives: 33

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.027 Special Education -- Grants to States

Recipient: Department of Education

% of Funds Agency Receives: 75

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.027 Special Education -- Grants to States

Recipient: Department of Education

% of Funds Agency Receives: 20

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.027 Special Education -- Grants to States

Recipient: Department of Education

% of Funds Agency Receives: 5

Component: Other Direct Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to 

States

Recipient: Vocational Rehabilitation Administration

% of Funds Agency Receives: 30

Component: Payment to Beneficiaries

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to 

States

Recipient: Vocational Rehabilitation Administration

% of Funds Agency Receives: 70

Component: Administrative Costs (including payroll)

Technique: Actual Clearance, ZBA - ACH

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Average Day of Clearance: 1 Day

84.287 Twenty-First Century Community Learning Centers

Recipient: Department of Education

% of Funds Agency Receives: 3

Component: Equipment

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.287 Twenty-First Century Community Learning Centers

Recipient: Department of Education

% of Funds Agency Receives: 1

Component: Materials and Supplies

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.287 Twenty-First Century Community Learning Centers

Recipient: Department of Education

% of Funds Agency Receives: 1

Component: Other Expenses

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.287 Twenty-First Century Community Learning Centers

Recipient: Department of Education

% of Funds Agency Receives: 77

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.287 Twenty-First Century Community Learning Centers

Recipient: Department of Education

% of Funds Agency Receives: 15

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.287 Twenty-First Century Community Learning Centers

Recipient: Department of Education

% of Funds Agency Receives: 3

Component: Transportation Expenses

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.367 Improving Teacher Quality State Grants

Recipient: Department of Education

% of Funds Agency Receives: 1

Component: Indirect Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.367 Improving Teacher Quality State Grants

Recipient: Department of Education

% of Funds Agency Receives: 20

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.367 Improving Teacher Quality State Grants

Recipient: Department of Education

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% of Funds Agency Receives: 74

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.367 Improving Teacher Quality State Grants

Recipient: Department of Education

% of Funds Agency Receives: 5

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.377 School Improvement Grants

Recipient: Department of Education

% of Funds Agency Receives: 1

Component: Other Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.377 School Improvement Grants

Recipient: Department of Education

% of Funds Agency Receives: 98

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.377 School Improvement Grants

Recipient: Department of Education

% of Funds Agency Receives: 1

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.388 School Improvement Grants, Recovery Act

Recipient: Department of Education

% of Funds Agency Receives: 3

Component: Administrative Cost

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.388 School Improvement Grants, Recovery Act

Recipient: Department of Education

% of Funds Agency Receives: 3

Component: Equipment

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.388 School Improvement Grants, Recovery Act

Recipient: Department of Education

% of Funds Agency Receives: 3

Component: Other Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

84.388 School Improvement Grants, Recovery Act

Recipient: Department of Education

% of Funds Agency Receives: 91

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

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93.558 Temporary Assistance for Needy Families

Recipient: Family Socioeconomic Development Administration

% of Funds Agency Receives: 4

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.558 Temporary Assistance for Needy Families

Recipient: Family Socioeconomic Development Administration

% of Funds Agency Receives: 90

Component: Payment to Beneficiaries

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.558 Temporary Assistance for Needy Families

Recipient: Family Socioeconomic Development Administration

% of Funds Agency Receives: 4

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.558 Temporary Assistance for Needy Families

Recipient: Family Socioeconomic Development Administration

% of Funds Agency Receives: 2

Component: Indirect Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.563 Child Support Enforcement

Recipient: Child Support Administration

% of Funds Agency Receives: 39

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.563 Child Support Enforcement

Recipient: Child Support Administration

% of Funds Agency Receives: 7

Component: Indirect Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.563 Child Support Enforcement

Recipient: Child Support Administration

% of Funds Agency Receives: 54

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.569 Community Services Block Grant

Recipient: Puerto Rico Office for Socioeconomic and Community 

Development

% of Funds Agency Receives: 5

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.569 Community Services Block Grant

Recipient: Puerto Rico Office for Socioeconomic and Community 

Development

% of Funds Agency Receives: 95

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Component: Payment to Services Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.575 Child Care and Development Block Grant

Recipient: Administration for the Childhood Care and Integrated 

Development

% of Funds Agency Receives: 3

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.575 Child Care and Development Block Grant

Recipient: Administration for the Childhood Care and Integrated 

Development

% of Funds Agency Receives: 3

Component: Operations

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.575 Child Care and Development Block Grant

Recipient: Administration for the Childhood Care and Integrated 

Development

% of Funds Agency Receives: 3

Component: Payment to Beneficiaries

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.575 Child Care and Development Block Grant

Recipient: Administration for the Childhood Care and Integrated 

Development

% of Funds Agency Receives: 23

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.575 Child Care and Development Block Grant

Recipient: Administration for the Childhood Care and Integrated 

Development

% of Funds Agency Receives: 68

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.600 Head Start

Recipient: Administration for the Childhood Care and Integrated 

Development

% of Funds Agency Receives: 1.5

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.600 Head Start

Recipient: Administration for the Childhood Care and Integrated 

Development

% of Funds Agency Receives: .5

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

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93.600 Head Start

Recipient: Governor`s Office

% of Funds Agency Receives: 33

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.600 Head Start

Recipient: Governor`s Office

% of Funds Agency Receives: 2

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.600 Head Start

Recipient: Governor`s Office

% of Funds Agency Receives: 6

Component: Operations

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.600 Head Start

Recipient: Administration for the Childhood Care and Integrated 

Development

% of Funds Agency Receives: 47

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.600 Head Start

Recipient: Administration for the Childhood Care and Integrated 

Development

% of Funds Agency Receives: 1

Component: Operations

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.600 Head Start

Recipient: Governor`s Office

% of Funds Agency Receives: 9

Component: Other Direct Cost

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.778 Medical Assistance Program

Recipient: Department of Health

% of Funds Agency Receives: 5

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.778 Medical Assistance Program

Recipient: Department of Health

% of Funds Agency Receives: 5

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.778 Medical Assistance Program

Recipient: Department of Health

% of Funds Agency Receives: 90

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Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.779 Centers for Medicare and Medicaid Services (CMS) Research, 

Demonstrations and Evaluations

Recipient: Department of Health

% of Funds Agency Receives: 39

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.779 Centers for Medicare and Medicaid Services (CMS) Research, 

Demonstrations and Evaluations

Recipient: Department of Health

% of Funds Agency Receives: 9

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.779 Centers for Medicare and Medicaid Services (CMS) Research, 

Demonstrations and Evaluations

Recipient: Department of Health

% of Funds Agency Receives: 9

Component: Administrative Cost

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.779 Centers for Medicare and Medicaid Services (CMS) Research, 

Demonstrations and Evaluations

Recipient: Department of Health

% of Funds Agency Receives: 39

Component: Payment to Beneficiaries

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.779 Centers for Medicare and Medicaid Services (CMS) Research, 

Demonstrations and Evaluations

Recipient: Puerto Rico Ombudsman Office for the Elderly

% of Funds Agency Receives: 4

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.917 HIV Care Formula Grants

Recipient: Department of Health

% of Funds Agency Receives: 11

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.917 HIV Care Formula Grants

Recipient: Department of Health

% of Funds Agency Receives: 1

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.917 HIV Care Formula Grants

Recipient: Department of Health

% of Funds Agency Receives: 1

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Component: Indirect Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.917 HIV Care Formula Grants

Recipient: Department of Health

% of Funds Agency Receives: 4

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.917 HIV Care Formula Grants

Recipient: Department of Health

% of Funds Agency Receives: 83

Component: Direct Services

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.959 Block Grants for Prevention and Treatment of Substance Abuse

Recipient: Administration of Mental Health and Addiction Services

% of Funds Agency Receives: 38

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.959 Block Grants for Prevention and Treatment of Substance Abuse

Recipient: Administration of Mental Health and Addiction Services

% of Funds Agency Receives: 21

Component: Operational Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.959 Block Grants for Prevention and Treatment of Substance Abuse

Recipient: Administration of Mental Health and Addiction Services

% of Funds Agency Receives: 2

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.959 Block Grants for Prevention and Treatment of Substance Abuse

Recipient: Administration of Mental Health and Addiction Services

% of Funds Agency Receives: 39

Component: Payment to Service Providers

Technique: Average Clearance

Average Day of Clearance: 1 Day

93.994 Maternal and Child Health Services Block Grant to the States

Recipient: Department of Health

% of Funds Agency Receives: 5

Component: Administrative Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.994 Maternal and Child Health Services Block Grant to the States

Recipient: Department of Health

% of Funds Agency Receives: 17

Component: Other Direct Costs

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

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93.994 Maternal and Child Health Services Block Grant to the States

Recipient: Department of Health

% of Funds Agency Receives: 1

Component: Payment to Service Providers

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

93.994 Maternal and Child Health Services Block Grant to the States

Recipient: Department of Health

% of Funds Agency Receives: 77

Component: Payroll

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 1 Day

6.3.3 Materiality Exemptions

Agencies exempt from coverage on the basis of materiality:

None

7.0 CLEARANCE PATTERNS

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

Group of Similar Programs - Composite clearance pattern for the administrative

costs and payroll components of the following group of programs:

CFDA Program

14.228 Community Development Block Grant's Program

14.850 Public and Indian Housing

Group of Similar Programs - Composite clearance pattern for the payroll costs of the

following programs:

CFDA Program

10.557 Special Supplemental Nutrition Program for Women, Infants and Children

93.778 Medical Assistance Program (Medicaid)

93.779 Children Health Insurance Program

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

Banco Popular de Puerto Rico

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

1. PRIFAS - The Central Accounting System

2. Information from agencies outside of PRIFAS

3. Banco Popular de Puerto Rico

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

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

period of at least three months.

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

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

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

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

check cleared the State's account.

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

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

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

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

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

following the disbursement.

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

with the following exceptions:

None

The State shall also adjust each clearance pattern to reflect:

None

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

Average Clearance

Fixed Administrative Allowances - Bi-Weekly Payroll

Indirect Cost Rates - Estimated Base

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

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

(4) amount of Federal funds received

(5) date funds were requested

8.2 Federal Interest Liabilities

8.2.1 A Federal interest liability shall accrue from the day the State pays out its own funds for program purposes to the day Federal 

funds are credited to a State account. With regard to funds transferred out of the Federal Highway Trust Fund, if a State does not bill 

at least weekly for current project costs, the Federal interest liability shall not accrue prior to the day the State submits a request for 

funds.

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

For all transactions where the State pays out its own funds for program purposes prior to receiving Federal funds, the State shall track 

each payment from the date it is paid out of a State account to the date Federal funds are subsequently credited to a State account to 

cover that outlay. The Federal interest liability on each payment shall be based on the difference in whole days between the two events. 

With Federal-State matching programs, interest shall be calculated on the Federal percentage of the disbursement.

8.3 The Unemployment Trust Fund

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

in the Unemployment Trust Fund:

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

UTF under the Unemployment Insurance program.

Based on statements provided by its financial institution, or other appropriate source, the State shall determine the actual interest 

earnings and the related banking costs attributable to funds withdrawn from its account in the UTF.

At the end of the State's fiscal year, the State shall calculate the percentage of its total unemployment compensation expenditures for (1) 

funds withdrawn from the State account in the UTF, or the State %, and (2) funds withdrawn from the Federal Employees 

Compensation Account (FECA) and the Extended Unemployment Compensation Account (EUCA) and any other accounts of Federal 

funds in the UTF, or the Federal %.

The State shall calculate the actual interest earnings and the related banking costs attributable to funds withdrawn from the State 

account in the UTF by multiplying the State % by the amount of the actual interest earnings and the related banking costs of the account 

as a whole. The State's liability for interest on funds withdrawn from its account in the UTF shall consist of the actual interest earnings 

attributable to such funds less the related banking costs attributed to such funds.

The State shall determine the average daily cash balance of its unemployment compensation benefit payment account for its fiscal year. 

The State shall calculate the average daily cash balance of Federal funds by multiplying the Federal % by the average daily cash balance 

of the benefit payment account on the whole. The State's liability for interest on funds withdrawn from the FECA and EUCA (and any 

other benefit accounts of Federal funds in the UTF from which the State draws funds) shall be the average daily cash balance of Federal 

funds multiplied by the annualized rate equal to the average equivalent yields of 13-week Treasury bills auctioned during the State's 

fiscal year.

8.4 Refund Liabilities

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

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

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

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

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

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

(3) amount of the refund

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

With programs to which applicable interest neutral funding techniques shall be applied, the State shall determine the actual amount of 

refunds received during the State fiscal year for each program using the information in its standard Federal financial status reports. For 

each program, the State shall estimate the number of days that refunds are held prior to being offset against a subsequent deposit of 

Federal funds. This shall be calculated as the average number of days between drawdown deposits, which is determined by dividing the 

total number of drawdowns into 365, and assuming that all refunds are received at the midpoint of the average number of days between 

drawdowns.

With programs to which applicable non-interest neutral funding techniques shall be applied, the State shall also calculate the time 

refunds are in a State account by comparing the date the refund is offset against a subsequent deposit of Federal funds and the date the 

refund is paid out for program purposes. This period will be measured for each program in accordance with the State method for 

calculating interest under pre-issuance funding, and will be applied independently to the amount of refunds under each program to 

calculate the interest on refunds.

8.5 Exemptions

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

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

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

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

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

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

8.6 State Interest Liabilities

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

date those funds are paid out for program purposes.

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

8.6.2.1 Measuring Time Funds Are Held

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

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

The time period from deposit to debit shall be determined from information captured by Banco Popular de Puerto Rico.

.

8.6.2.3 Standards Applied

To measure the time Federal funds are held in a State account prior to being disbursed, the State shall use statistical sampling. The 

sample shall be randomly selected, and shall be of sufficient size to ensure, at a minimum, a 95% confidence interval no wider than ą 

0.3 dollar-weighted days about the estimated mean.

For each check in the sample population, the State shall:

1 subtract the deposit date from the issuance date

2 multiply the difference of step 1 by the check amount

3 divide the product of step 2 by the total amount of funds drawn in the sample to determine the dollar-weighted pre-issuance time for 

that check

The State shall then sum the dollar-weighted pre-issuance time for each check to arrive at the total dollar-weighted average pre-issuance 

time to be used for calculating State interest liabilities.

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8.6.2.4 Calculation Procedure

I = ADB x R, where

I = 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

9.0 REVERSE FLOW PROGRAMS

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

participate in the program.

10.0 INTEREST CALCULATION COSTS

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

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

calculation costs do not include expenses for normal disbursing services, such as processing of checks or maintaining records for 

accounting and reconciliation of cash balances, or expenses for upgrading or modernizing accounting systems. Interest 

calculation costs in excess of $50,000 in any year are not eligible for reimbursement, unless the State provides justification with 

the annual report.

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

Those costs necessary for the development and maintenance of clearance patterns and to perform the actual calculation of interest 

liabilities.

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

Francisco Parés Alicea, CPA

Secretary of the Treasury, Commonwealth of Puerto Rico

Signature: Date Signed:

Date Submitted 10/15/2021

Sandra R. Paylor

Acting Assistant Commissioner

Revenue Collections Management

Bureau of the Fiscal Service

U.S. Department of the Treasury

Signature: Date Signed:

DocuSign Envelope ID: A42D6289-1105-4392-85C9-F3D0DDB0A13D

11/15/2021

11/16/2021
Page 26 of 34

Exhibit I - Funds Request and Receipt Times Schedule

Puerto Rico (Territory)

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 - Puerto Rico (Territory)

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

10.555 National School 

Lunch Program

Department of 

Education

20.0 Indirect Costs Actual Clearance, 

ZBA - ACH

1 Day

National School 

Lunch Program

Department of 

Education

40.0 Payment to Service 

Providers

Actual Clearance, 

ZBA - ACH

1 Day

National School 

Lunch Program

Department of 

Education

20.0 Payroll Actual Clearance, 

ZBA - ACH

1 Day

National School 

Lunch Program

Department of 

Education

20.0 Other Direct Costs Actual Clearance, 

ZBA - ACH

1 Day

10.557 Special 

Supplemental 

Nutrition Program 

for Women, 

Infants, and 

Children

Department of 

Health

25.0 Payment to Service 

Providers

Actual Clearance, 

ZBA - ACH

1 Day

Special 

Supplemental 

Nutrition Program 

for Women, 

Infants, and 

Children

Department of 

Health

75.0 Administrative Costs 

(including Payroll)

Fixed 

Administrative 

Allowances - BiWeekly Payroll

1 Day

10.558 Child and Adult 

Care Food 

Program

Department of 

Education

100.0 Payment to Services 

Providers

Actual Clearance, 

ZBA - ACH

1 Day

10.559 Summer Food 

Service Program 

for Children

Department of 

Education

1.0 Administrative Costs Actual Clearance, 

ZBA - ACH

1 Day

Summer Food 

Service Program 

for Children

Department of 

Education

60.0 Direct Costs Actual Clearance, 

ZBA - ACH

1 Day

Summer Food 

Service Program 

for Children

Department of 

Education

2.0 Other Costs Actual Clearance, 

ZBA - ACH

1 Day

Summer Food 

Service Program 

for Children

Department of 

Education

23.0 Payment to Service 

Providers

Actual Clearance, 

ZBA - ACH

1 Day

Summer Food 

Service Program 

for Children

Department of 

Education

14.0 Payroll Actual Clearance, 

ZBA - ACH

1 Day

10.566 Nutrition 

Assistance for 

Puerto Rico

Family 

Socioeconomic 

Development 

Administration

4.0 Administrative Costs Actual Clearance, 

ZBA - Same Day 

Payment

1 Day

Nutrition 

Assistance for 

Puerto Rico

Family 

Socioeconomic 

Development 

Administration

4.0 Payroll Actual Clearance, 

ZBA - ACH

1 Day

Nutrition 

Assistance for 

Puerto Rico

Family 

Socioeconomic 

Development 

Administration

2.0 Indirect Costs Actual Clearance, 

ZBA - ACH

1 Day

DocuSign Envelope ID: A42D6289-1105-4392-85C9-F3D0DDB0A13D
Page 28 of 34

Nutrition 

Assistance for 

Puerto Rico

Family 

Socioeconomic 

Development 

Administration

90.0 Payment to 

Beneficiaries

Actual Clearance, 

ZBA - ACH

1 Day

12.401 National Guard 

Military 

Operations and 

Maintenance 

(O&M) Projects

National Guard 14.0 Purchase Services Actual Clearance, 

ZBA - ACH

1 Day

National Guard 

Military 

Operations and 

Maintenance 

(O&M) Projects

National Guard 16.0 Professional Services Actual Clearance, 

ZBA - ACH

1 Day

National Guard 

Military 

Operations and 

Maintenance 

(O&M) Projects

National Guard 20.0 Facilities and 

Services Payment

Actual Clearance, 

ZBA - ACH

1 Day

National Guard 

Military 

Operations and 

Maintenance 

(O&M) Projects

National Guard 3.0 Equipment Actual Clearance, 

ZBA - ACH

1 Day

National Guard 

Military 

Operations and 

Maintenance 

(O&M) Projects

National Guard 15.0 Other Expenses Actual Clearance, 

ZBA - ACH

1 Day

National Guard 

Military 

Operations and 

Maintenance 

(O&M) Projects

National Guard 4.0 Material Actual Clearance, 

ZBA - ACH

1 Day

National Guard 

Military 

Operations and 

Maintenance 

(O&M) Projects

National Guard 28.0 Payroll Actual Clearance, 

ZBA - ACH

1 Day

14.228 Community 

Development 

Block 

Grants/State's 

Program

Department of 

Housing

51.0 Payment to 

Beneficiaries

Average Clearance 3 Days

Community 

Development 

Block 

Grants/State's 

Program

Department of 

Housing

37.0 Payroll Average Clearance 2 Days

Community 

Development 

Block 

Grants/State's 

Program

Department of 

Housing

12.0 Administrative Costs Average Clearance 3 Days

14.850 Public and Indian 

Housing

Public Housing 

Administration

1.0 Payroll Average Clearance 2 Days

Public and Indian 

Housing

Public Housing 

Administration

96.0 Payment to 

Beneficiaries

Average Clearance 3 Days

Public and Indian 

Housing

Public Housing 

Administration

3.0 Administrative Costs Average Clearance 3 Days

14.871 Section 8 Housing 

Choice Vouchers

Public Housing 

Administration

96.0 Payment to 

Beneficiaries

Pre-Issuance -

Modified

N/A

Section 8 Housing 

Choice Vouchers

Public Housing 

Administration

4.0 Administrative Cost Pre-Issuance -

Modified

N/A

14.872 Public Housing 

Capital Fund

Public Housing 

Administration

3.0 Administrative Costs Average Clearance 3 Days

DocuSign Envelope ID: A42D6289-1105-4392-85C9-F3D0DDB0A13D
Page 29 of 34

Public Housing 

Capital Fund

Public Housing 

Administration

96.0 Payment to 

Beneficiaries

Average Clearance 3 Days

Public Housing 

Capital Fund

Public Housing 

Administration

1.0 Payroll Average Clearance 2 Days

17.225

F

Unemployment 

Insurance --

Federal Benefit 

Account and 

Administrative 

Costs

Department of 

Labor and Human 

Resources

1.0 Indirect Costs Indirect Cost Rates -

Estimated Base

3 Days

Unemployment 

Insurance --

Federal Benefit 

Account and 

Administrative 

Costs

Department of 

Labor and Human 

Resources

75.0 Payment to 

Beneficiaries-FECA 

and EUCA

Actual Clearance, 

ZBA - Same Day 

Payment

0 Days

Unemployment 

Insurance --

Federal Benefit 

Account and 

Administrative 

Costs

Department of 

Labor and Human 

Resources

24.0 Administrative Costs 

(Including Payroll)

Fixed 

Administrative 

Allowances - BiWeekly Payroll

3 Days

17.225

S

Unemployment 

Insurance -- State 

Benefit Account

Department of 

Labor and Human 

Resources

100.0 Payment to 

Beneficiaries-State 

Account

Pre-Issuance N/A

84.010 Title I Grants to 

Local Educational 

Agencies

Department of 

Education

1.0 Indirect Costs Actual Clearance, 

ZBA - ACH

1 Day

Title I Grants to 

Local Educational 

Agencies

Department of 

Education

4.0 Administrative Costs Actual Clearance, 

ZBA - ACH

1 Day

Title I Grants to 

Local Educational 

Agencies

Department of 

Education

61.0 Payroll Actual Clearance, 

ZBA - ACH

1 Day

Title I Grants to 

Local Educational 

Agencies

Department of 

Education

1.0 Other Direct Costs Actual Clearance, 

ZBA - ACH

1 Day

Title I Grants to 

Local Educational 

Agencies

Department of 

Education

33.0 Payment to Service 

Providers

Actual Clearance, 

ZBA - ACH

1 Day

84.027 Special Education 

-- Grants to States

Department of 

Education

75.0 Payroll Actual Clearance, 

ZBA - ACH

1 Day

Special Education 

-- Grants to States

Department of 

Education

20.0 Payment to Service 

Providers

Actual Clearance, 

ZBA - ACH

1 Day

Special Education 

-- Grants to States

Department of 

Education

5.0 Other Direct Costs Actual Clearance, 

ZBA - ACH

1 Day

84.126 Rehabilitation 

Services --

Vocational 

Rehabilitation 

Grants to States

Vocational 

Rehabilitation 

Administration

30.0 Payment to 

Beneficiaries

Actual Clearance, 

ZBA - ACH

1 Day

Rehabilitation 

Services --

Vocational 

Rehabilitation 

Grants to States

Vocational

Rehabilitation 

Administration

70.0 Administrative Costs 

(including payroll)

Actual Clearance, 

ZBA - ACH

1 Day

84.287 Twenty-First 

Century 

Community 

Learning Centers

Department of 

Education

3.0 Equipment Actual Clearance, 

ZBA - ACH

1 Day

Twenty-First 

Century 

Department of 

Education

1.0 Materials and 

Supplies

Actual Clearance, 

ZBA - ACH

1 Day

DocuSign Envelope ID: A42D6289-1105-4392-85C9-F3D0DDB0A13D
Page 30 of 34

Community 

Learning Centers

Twenty-First 

Century 

Community 

Learning Centers

Department of 

Education

1.0 Other Expenses Actual Clearance, 

ZBA - ACH

1 Day

Twenty-First 

Century 

Community 

Learning Centers

Department of 

Education

77.0 Payment to Service 

Providers

Actual Clearance, 

ZBA - ACH

1 Day

Twenty-First 

Century 

Community 

Learning Centers

Department of 

Education

15.0 Payroll Actual Clearance, 

ZBA - ACH

1 Day

Twenty-First 

Century 

Community 

Learning Centers

Department of 

Education

3.0 Transportation 

Expenses

Actual Clearance, 

ZBA - ACH

1 Day

84.367 Improving 

Teacher Quality 

State Grants

Department of 

Education

1.0 Indirect Costs Actual Clearance, 

ZBA - ACH

1 Day

Improving 

Teacher Quality 

State Grants

Department of 

Education

20.0 Payment to Service 

Providers

Actual Clearance, 

ZBA - ACH

1 Day

Improving 

Teacher Quality 

State Grants

Department of 

Education

74.0 Payroll Actual Clearance, 

ZBA - ACH

1 Day

Improving 

Teacher Quality 

State Grants

Department of 

Education

5.0 Administrative Costs Actual Clearance, 

ZBA - ACH

1 Day

84.377 School 

Improvement 

Grants

Department of 

Education

1.0 Other Costs Actual Clearance, 

ZBA - ACH

1 Day

School 

Improvement 

Grants

Department of 

Education

98.0 Payment to Service 

Providers

Actual Clearance, 

ZBA - ACH

1 Day

School 

Improvement 

Grants

Department of 

Education

1.0 Payroll Actual Clearance, 

ZBA - ACH

1 Day

84.388 School 

Improvement 

Grants, Recovery 

Act

Department of 

Education

3.0 Administrative Cost Actual Clearance, 

ZBA - ACH

1 Day

School 

Improvement 

Grants, Recovery 

Act

Department of 

Education

3.0 Equipment Actual Clearance, 

ZBA - ACH

1 Day

School 

Improvement 

Grants, Recovery 

Act

Department of 

Education

3.0 Other Costs Actual Clearance, 

ZBA - ACH

1 Day

School 

Improvement 

Grants, Recovery 

Act

Department of 

Education

91.0 Payment to Service 

Providers

Actual Clearance, 

ZBA - ACH

1 Day

93.558 Temporary 

Assistance for 

Needy Families

Family 

Socioeconomic 

Development 

Administration

4.0 Payroll Actual Clearance, 

ZBA - ACH

1 Day

Temporary 

Assistance for 

Needy Families

Family 

Socioeconomic 

Development 

Administration

90.0 Payment to 

Beneficiaries

Actual Clearance, 

ZBA - ACH

1 Day

Temporary 

Assistance for 

Needy Families

Family 

Socioeconomic 

Development 

Administration

4.0 Administrative Costs Actual Clearance, 

ZBA - ACH

1 Day

DocuSign Envelope ID: A42D6289-1105-4392-85C9-F3D0DDB0A13D
Page 31 of 34

Temporary 

Assistance for 

Needy Families

Family 

Socioeconomic 

Development 

Administration

2.0 Indirect Costs Actual Clearance, 

ZBA - ACH

1 Day

93.563 Child Support 

Enforcement

Child Support 

Administration

39.0 Administrative Costs Actual Clearance, 

ZBA - ACH

1 Day

Child Support 

Enforcement

Child Support 

Administration

7.0 Indirect Costs Actual Clearance, 

ZBA - ACH

1 Day

Child Support 

Enforcement

Child Support 

Administration

54.0 Payroll Actual Clearance, 

ZBA - ACH

1 Day

93.569 Community 

Services Block 

Grant

Puerto Rico 

Office for 

Socioeconomic 

and Community 

Development

5.0 Administrative Costs Actual Clearance, 

ZBA - ACH

1 Day

Community 

Services Block 

Grant

Puerto Rico 

Office for 

Socioeconomic 

and Community 

Development

95.0 Payment to Services 

Providers

Actual Clearance, 

ZBA - ACH

1 Day

93.575 Child Care and 

Development 

Block Grant

Administration 

for the Childhood 

Care and 

Integrated 

Development

3.0 Administrative Costs Actual Clearance, 

ZBA - ACH

1 Day

Child Care and 

Development 

Block Grant

Administration 

for the Childhood 

Care and 

Integrated 

Development

3.0 Operations Actual Clearance, 

ZBA - ACH

1 Day

Child Care and 

Development 

Block Grant

Administration 

for the Childhood 

Care and 

Integrated 

Development

3.0 Payment to 

Beneficiaries

Actual Clearance, 

ZBA - ACH

1 Day

Child Care and 

Development 

Block Grant

Administration 

for the Childhood 

Care and 

Integrated 

Development

23.0 Payroll Actual Clearance, 

ZBA - ACH

1 Day

Child Care and 

Development 

Block Grant

Administration 

for the Childhood 

Care and 

Integrated 

Development

68.0 Payment to Service 

Providers

Actual Clearance, 

ZBA - ACH

1 Day

93.600 Head Start Administration 

for the Childhood 

Care and 

Integrated 

Development

1.5 Payroll Actual Clearance, 

ZBA - ACH

1 Day

Head Start Administration 

for the Childhood 

Care and 

Integrated 

Development

0.5 Administrative Costs Actual Clearance, 

ZBA - ACH

1 Day

Head Start Governor`s Office 33.0 Payroll Actual Clearance, 

ZBA - ACH

1 Day

Head Start Governor`s Office 2.0 Administrative Costs Actual Clearance, 

ZBA - ACH

1 Day

Head Start Governor`s Office 6.0 Operations Actual Clearance, 

ZBA - ACH

1 Day

Head Start Administration 

for the Childhood 

Care and 

Integrated 

Development

47.0 Payment to Service 

Providers

Actual Clearance, 

ZBA - ACH

1 Day

DocuSign Envelope ID: A42D6289-1105-4392-85C9-F3D0DDB0A13D
Page 32 of 34

Head Start Administration 

for the Childhood 

Care and 

Integrated 

Development

1.0 Operations Actual Clearance, 

ZBA - ACH

1 Day

Head Start Governor`s Office 9.0 Other Direct Cost Actual Clearance, 

ZBA - ACH

1 Day

93.778 Medical 

Assistance 

Program

Department of 

Health

5.0 Administrative Costs Actual Clearance, 

ZBA - ACH

1 Day

Medical 

Assistance 

Program

Department of 

Health

5.0 Payroll Actual Clearance, 

ZBA - ACH

1 Day

Medical 

Assistance 

Program

Department of 

Health

90.0 Payment to Service 

Providers

Actual Clearance, 

ZBA - ACH

1 Day

93.779 Centers for 

Medicare and 

Medicaid Services 

(CMS) Research, 

Demonstrations 

and Evaluations

Department of 

Health

39.0 Payment to Service 

Providers

Actual Clearance, 

ZBA - ACH

1 Day

Centers for 

Medicare and 

Medicaid Services 

(CMS) Research, 

Demonstrations 

and Evaluations

Department of 

Health

9.0 Payroll Actual Clearance, 

ZBA - ACH

1 Day

Centers for 

Medicare and 

Medicaid Services 

(CMS) Research, 

Demonstrations 

and Evaluations

Department of 

Health

9.0 Administrative Cost Actual Clearance, 

ZBA - ACH

1 Day

Centers for 

Medicare and 

Medicaid Services 

(CMS) Research, 

Demonstrations 

and Evaluations

Department of 

Health

39.0 Payment to 

Beneficiaries

Actual Clearance, 

ZBA - ACH

1 Day

Centers for 

Medicare and 

Medicaid Services 

(CMS) Research, 

Demonstrations 

and Evaluations

Puerto Rico 

Ombudsman 

Office for the 

Elderly

4.0 Payment to Service 

Providers

Actual Clearance, 

ZBA - ACH

1 Day

93.917 HIV Care Formula 

Grants

Department of 

Health

11.0 Payment to Service 

Providers

Actual Clearance, 

ZBA - ACH

1 Day

HIV Care Formula 

Grants

Department of 

Health

1.0 Administrative Costs Actual Clearance, 

ZBA - ACH

1 Day

HIV Care Formula 

Grants

Department of 

Health

1.0 Indirect Costs Actual Clearance, 

ZBA - ACH

1 Day

HIV Care Formula 

Grants

Department of 

Health

4.0 Payroll Actual Clearance, 

ZBA - ACH

1 Day

HIV Care Formula 

Grants

Department of 

Health

83.0 Direct Services Actual Clearance, 

ZBA - ACH

1 Day

93.959 Block Grants for 

Prevention and 

Treatment of 

Substance Abuse

Administration of 

Mental Health 

and Addiction 

Services

38.0 Payroll Actual Clearance, 

ZBA - ACH

1 Day

Block Grants for 

Prevention and 

Treatment of 

Substance Abuse

Administration of 

Mental Health 

and Addiction 

Services

21.0 Operational Costs Actual Clearance, 

ZBA - ACH

1 Day

DocuSign Envelope ID: A42D6289-1105-4392-85C9-F3D0DDB0A13D
Page 33 of 34

Block Grants for 

Prevention and 

Treatment of 

Substance Abuse

Administration of 

Mental Health 

and Addiction 

Services

2.0 Administrative Costs Actual Clearance, 

ZBA - ACH

1 Day

Block Grants for 

Prevention and 

Treatment of 

Substance Abuse

Administration of 

Mental Health 

and Addiction 

Services

39.0 Payment to Service 

Providers

Average Clearance 1 Day

93.994 Maternal and 

Child Health 

Services Block 

Grant to the States

Department of 

Health

5.0 Administrative Costs Actual Clearance, 

ZBA - ACH

1 Day

Maternal and 

Child Health 

Services Block 

Grant to the States

Department of 

Health

17.0 Other Direct Costs Actual Clearance, 

ZBA - ACH

1 Day

Maternal and 

Child Health 

Services Block 

Grant to the States

Department of 

Health

1.0 Payment to Service 

Providers

Actual Clearance, 

ZBA - ACH

1 Day

Maternal and 

Child Health 

Services Block 

Grant to the States

Department of 

Health

77.0 Payroll Actual Clearance, 

ZBA - ACH

1 Day

Certification

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

in Exhibit 2 of this Treasury-State Agreement:

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

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

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

4. Are auditable.

Date: 

Printed Name: 

Certifying Signature: 

Title: 

DocuSign Envelope ID: A42D6289-1105-4392-85C9-F3D0DDB0A13D

11/15/2021

Francisco Parés Alicea

Secretary
Page 34 of 34

DocuSign Envelope ID: A42D6289-1105-4392-85C9-F3D0DDB0A13D