DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14

Exhibit II - State of Washington
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
10.542 Pandemic EBT Department of 100.0 | Direct Wire Actual Clearance, 0 Days
Food Benefits Social & Health Settlement to ZBA - Same Da
Services 5 y
Electronic Benefit Payment
(EBT)
10.551 Supplemental Repartment of 100.0 | Direct Wire Actual Clearance, 0 Days
lutrition ocial eal
‘Assistance Services Settlement to ZBA - Same Day
Program Electronic Benefit Payment
(EBT) system
contractor or by
Electronic Funds
Transfer (EFT)
10.553 School Breakfast Superintendent of 100.0 | Payments - Modified Direct 0 Days
Program Public Instruction reimbursements to Program/Benefit
school districts, Costs - (ACH
private schools, and | Drawdowns at Fixed
child & adult care Intervals - SPI)
programs
10.555 National School Superintendent of 100.0 | Payments - Modified Direct 0 Days
Lunch Program Public Instruction reimbursements to Program/Benefit
school districts, Costs - (ACH
private schools, and Drawdowns at Fixed
child & adult care Intervals - SPI)
programs
10.557 Special tal Department of 34.0 Administrative costs | Modified Direct 0 Days
Nutition Pro; ram ea including payroll - Program Costs -
for Women, salary, benefits, Admin, Payroll,
Infants, and contractual and Payments to
Children related expenditures _| Providers
Special j Department of 66.0 | Direct Modified Direct 0 Days
Ree py ram eal program/benefit Program Costs
for Women, payments for food
Infants, and voucher redemption.
Children Rebates offset the
direct
program/benefit
payments. This is a
zero balance account.
10.561 State. istrat Repartment of 100.0 | Direct Wire Actual Clearance, 0 Days
ministrative ocial eal
Matching Grants Services Settlement to ZBA - Same Day
for the Electronic Benefit Payment
Supplemental (EBT) system
Nutrition contractor or by
Program

Page 20 of 25


DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14

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:

For most programs, the State distinguishes the payroll clearance from the recipient/benefit payments as a separate cash flow. However,
in Agency 300, composite rate payroll clearance patterns are included in the agency's composite rate. Both the warrant clearance and
the EFT payroll are considered in calculating the composite rate.

The State shall also adjust each clearance pattern to reflect:
None. Not applicable.
7.8 Each of the State's clearance patterns is calculated in Calendar days.

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

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

7.11.0 Program Specific- The State shall develop program-specific clearance patterns for each of the following
programs: 10.559, Summer Food Service Program for Children; 84.027, Special Education Grants to States;
84.425, Education Stabilization Fund; 93.767, Children's health Insurance Program; 97.036, Disaster Grants -
Public Assistance (Presidentially Declared Disasters).

7.12.0 Actual Activity - Non-Payroll. The State shall track 100 percent of the funds disbursed during a time period of
at least three consecutive months. The State shall carry out the clearance pattern until at least 99 percent of the
funds have cleared. This methodology shall be applied for all clearance patterns except payroll.

TAZA Actual Activity - Payroll. The State shall track the payroll funds disbursed by warrant during the time period of
at least three consecutive months. The State shall adjust the warrant clearance pattern to reflect the percentage
of payroll direct deposits applicable to each federal program. The composite clearance pattern for payroll
warrants and direct deposit shall be carried out until at least 99 percent of payroll funds have cleared. The
clearance pattern shall be based on 100% of the data, or on a sample size sufficient to ensure, at a minimum, a
95% confidence interval no wider than + or - 0.25 weighted-days about the estimated mean.

7.13.0 Clearance patterns were completed for Payroll (Average Clearance = 0 days), CFDA 10.559, Summer Food
Service Program for Children (Average Clearance = 0 days); 84.027, Special Education Grants to States
(Average Clearance = 0); 84.425, Education Stabilization Fund (Average Clearance = 0); 93.767, Children's
Health Insurance Program (Average Clearance = 0); 97.036, Disaster Grants - Presidentially Declared Disasters)
(Average Clearance = N/A) and submitted with the 2023 amendment. The clearance patterns were certified as to
accuracy by the State of Washington, in compliance with Fiscal Services CMIA.

8.0 INTEREST CALCULATION METHODOLOGY
8.1 General Terms

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

Actual Clearance, ZBA - Same Day Payment

Direct Funding WSDOT

Modified Administrative Costs - Annual

Modified Direct Program and Admin Costs - Monthly

Modified Direct Program Costs

Modified Direct Program Costs - Admin, Payroll, Payments to Providers

Modified Direct Program/Benefit Costs - (ACH Drawdowns at Fixed Intervals - SPI)
Modified Pre-Issuance (Post-Issuance) (Fedwire Same Day Payment)

Pre-Issuance Grant Anticipation Revenue Vehicle (GARVEE) Bond Repayment

UI Admin - Modified Payment Schedule (Fedwire Semi-Monthly Drawdown on Payday)
UI Federal (Fedwire Same Day Payment Modified Actual Clearance ZBA)

Page 14 of 25


DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14

Medical Healthcare 1.82 Administrative costs | Modified Direct 0 Days
pasisiance Authority including payroll Program Costs -

Admin, Payroll,

Payments to

Providers
Medical Department of 2.64 Administrative costs | Modified Direct 0 Days
prowanee Social & Health including payroll Program Costs -

Admin, Payroll,

Payments to

Providers:
Medical Department of 0.23 | Direct payments to Modified Direct 0 Days
Pawan Children, Youth, providers for EFT Program Costs

and non-EFT
payments

Medical Cancion of 0.04 Admin and payroll Modified Direct 0 Days
Program and Families Costs Program Costs -

Admin, Payroll,

Payments to

Providers

93.959 Block Grants for Healthcare 100.0 | Admin, payroll and Modified Direct 0 Days

Frevention and Authority payments to Program Costs -
Substance Abuse providers Admin, Payroll,

Payments to

Providers

97.036 Disaster Grants - Military 93.0 Direct program costs | Modified Direct N/A
(frestdentally Department Program and Admin
GFres Jared lly Costs - Monthly
Disasters)
Disaster Grants - Military tl 7.0 Admin costs Modified N/A
( Pr eee ddentially epartmen Administrative
Declared Costs - Annual
Disasters)
Certification

L 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.

3/28/2024

Date:

Printed Name:

Brian Tinney

Docusigned by:

Certifying Signature: [ triaw. Tinney

ADE

SCSTZTEAST.

Page 24 of 25


DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14

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

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

6.2 Description of Funding Techniques

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

Funding Technique Name Description

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

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

There are currently no funding techniques listed in Section 6.2.2.

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

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

Direct Funding WSDOT The State shall request funds only after related cash expenditures have been recorded
in TRAINS. Because the process is an automatic one, we expect reimbursement the
same day wire requests are made. The amount of the request shall be the actual sum of
cash expenditures that have been incurred, recorded, identified, and reconciled as
billable from the preceding week. This funding technique is interest neutral.

Modified Administrative Costs - Annual Administrative costs will be drawn on an annual basis for disaster recovery projects
administered by the Washington Military Department. The draw request will be made
in accordance with the cut-off times shown in Exhibit I. Funds requested will be an
accumulation of the administrative costs since the last draw. This funding technique is
interest neutral.

Modified Direct Program and Admin Costs - | The state draws funds after the close of the fiscal month for direct program and
Monthly indirect administrative costs. The draw request will be made in accordance with the
cut-off time in Exhibit I. The funds drawn will be the accumulation of costs since the
last draw. This funding technique is interest neutral.

Modified Direct Program Costs Except for managed care payments, the State shall request funds for direct program
costs to providers and clients. The draw will occur on fixed intervals. Managed care
payments will have a separate draw. The request shall be made in accordance with the
appropriate Federal agency cut-off time specified in Exhibit I. Managed care
payments will be drawn the day before the payment to providers, so funds are received
on date of managed care payments. The amount of the draw will be an accumulation
of program costs since the last draw. This funding technique is interest neutral.

Page 5 of 25



DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14

Electronic Funds
Transfer (EFT)
17.225 Unemployment Employment 76.0 Benefit Payments - UI Federal (Fedwire | 0 Days
insurance -- ecurity :
F Federal Benefit Department Federal Same Day Payment
Account and Modified Actual
Administrative Clearance ZBA)
Costs
[nemployment Employment 24.0 Unemployment UI Admin - 0 Days
insurance -~ ecurit sura i 4
Federal Benefit Department Insu ance Modified Payment
Account and Administrative Schedule (Fedwire
Administrative Semi-Monthly
Costs Drawdown on
Payday)
17.225 Pnemployment Employment 100.0 | Benefit payments - Modified Pre- 0 Days
nsuranceé -- State ecurity .
8 Benefit Account Department State Issuance (Post .
Issuance) (Fedwire
Same Day Payment)
20.205 Highway Planning Department of 86.01 | Contractor payments, | Direct Funding 1 Day
and Construction Transportation payroll WSDOT
administrative and
other program costs
Highway Planning Bond Retirement 13.99 | Debt service Pre-Issuance Grant | N/A
and Construction Interest Anticipation
Revenue Vehicle
(GARVEE) Bond
Repayment
20.509 | Public Department of 100.0 | Contractor payments, | Direct Funding 1 Day
Transportation for Transportation ayroll. WSDOT
Nonurbanized Payro
Areas administrative and
other program costs
84.010 Title I Grants to Superintendent of 95.0 | Direct Modified Direct 1 Day
peeaieateational Public Instruction program/benefit Program/Benefit
payments to school Costs - (ACH
districts, non-profits, | Drawdowns at Fixed
service providers, and | Intervals - SPI)
local educational
agencies (LEA)
Title I Grants to Superintendent of 5.0 Administrative costs | Modified Direct 1 Day
wemeraeteational Public Instruction including payroll Program Costs -
Admin, Payroll,
Payments to
Providers
84.027 Special Education Superintendent of 95.0 Direct Modified Direct N/A
-- Grants to States Public Instruction Program/Benefit Program/Benefit
payments to public or | Costs - (ACH
private schools and Drawdowns at Fixed
service providers Intervals - SPI)
Special Education Superintendent of 5.0 Administrative costs | Modified Direct 0 Days
-- Grants to States Public Instruction including payroll Program Costs -
Admin, Payroll,
Payments to
Providers

Page 21 of 25


DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14

Payments to
Providers.
93.575 Child Care and Department of 86.59 | Direct program costs, | Modified Direct N/A
Development Children, Youth, admin, and payroll Program Costs -
Block Grant and Families > payr' .
Admin, Payroll,
Payments to
Providers:
Child Care and Department of 13.41 | Direct payments to Modified Direct 0 Days
Development Social & Health roviders for EFT Program Costs
Block Grant Services p
and non-EFT
payments
93.596 Child Care Department of 47.8 | Direct program costs | Modified Direct 0 Days
Mandatory and Children, Youth, Program Costs -
Matching’ Funds and Families er
of the Child Care Admin, Payroll,
and Development Payments to
Fund Providers
Child Care Department of §2.2 Direct programs Modified Direct 0 Days
Mandatory and Children, Youth, costs, admin, and Program Costs -
Matching Funds and Families ° > .
of the Child Care payroll Admin, Payroll,
and Development Payments to
Fund Providers
93.658 Foster Care -- Department of 100.0 | Direct program costs, | Modified Direct N/A
Title IV-E Children, Youth, admin, and payroll Program Costs -
and Families ° .
Admin, Payroll,
Payments to
Providers
93.767 Children's Health Healthcare 45 Admin and Payroll Modified Direct 0 Days
Insurance Authority Program Costs -
Program Admin, Payroll,
Payments to
Providers
Children's Health Healthcare 94.46 | Direct payments to Modified Direct 0 Days
Insurance Authority roviders for EFT Program Costs
Program. P
and non-EFT
payments
Children's Health Department of 0.1 Administrative costs | Modified Direct 0 Days
Insurance Social & Health including payroll Program Costs -
Program Services
Admin, Payroll,
Payments to
Providers
Children's Health Department of 0.94 | Direct payments to Modified Direct 0 Days
Insurance Social & Health providers for EFT Program Costs
en ° and non-EFT
payments
93.778 Medical Healthcare 67.7 | Direct payments to Modified Direct 0 Days
Pawan Authority providers for EFT Program Costs
and non-EFT
payments
Medical Department of 27.57 | Direct payment to Modified Direct 0 Days
Assistance Social & Health roviders for EFT Program Costs
Program Services P
and non-EFT
payments

Page 23 of 25


DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14

12.0 | AUTHORIZED SIGNATURES

Brian Tinney
Assistant Director, Accounting Division Office of Financial Management State of Washington

Docusigned by:

i i 3/28/2024
Signature: Brian. Tiny (28/

Date Signed:
ADBSTICHTZTEAST.

Date Submitted 3/21/2024

D. Michael Linder

Assistant Commissioner

Revenue Collections Management
Bureau of the Fiscal Service

U.S. Department of the Treasury

DocuSigned by:
Signature: [0. Midaul (indur 4/15/2024

Date Signed:

Page 18 of 25


DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14

Average Day of Clearance: 0 Days

93.558 Temporary Assistance for Needy Families

Recipient: Department of Social & Health Services

% of Funds Agency Receives: 75.44

Component: Direct Assistance to clients via the Electronic Benefit
Transfer (EBT) system or by Electronic Funds Transfer (EFT) & One-
Time Benefit Payments

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 0 Days

93.558 Temporary Assistance for Needy Families

Recipient: Department of Social & Health Services

% of Funds Agency Receives: 24.56

Component: Administrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 0 Days

93.563 Child Support Enforcement

Recipient: Department of Social & Health Services

% of Funds Agency Receives: 100

Component: Administrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 0 Days

93.568 Low-Income Home Energy Assistance

Recipient: Department of Commerce

% of Funds Agency Receives: 10

Component: Admin and Payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 0 Days

93.568 Low-Income Home Energy Assistance

Recipient: Department of Commerce

% of Funds Agency Receives: 90

Component: Payments to providers

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 0 Days

93.575 Child Care and Development Block Grant

Recipient: Department of Children, Youth, and Families

% of Funds Agency Receives: 86.59

Component: Direct program costs, admin, and payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: N/A

93.575 Child Care and Development Block Grant

Recipient: Department of Social & Health Services

% of Funds Agency Receives: 13.41

Component: Direct payments to providers for EFT and non-EFT
payments

Technique: Modified Direct Program Costs

Average Day of Clearance: 0 Days

Page 10 of 25


DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14

Below are programs listed in Section 4.2 and Section 4.3.

10.542 Pandemic EBT Food Benefits

Recipient: Department of Social & Health Services

% of Funds Agency Receives: 100

Component: Direct Wire Settlement to Electronic Benefit (EBT)
Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: 0 Days

10.551 Supplemental Nutrition Assistance Program

Recipient: Department of Social & Health Services

% of Funds Agency Receives: 100

Component: Direct Wire Settlement to Electronic Benefit (EBT)
system contractor or by Electronic Funds Transfer (EFT)
Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: 0 Days

10.553 School Breakfast Program

Recipient: Superintendent of Public Instruction

% of Funds Agency Receives: 100

Component: Payments - reimbursements to school districts, private
schools, and child & adult care programs

Technique: Modified Direct Program/Benefit Costs - (ACH
Drawdowns at Fixed Intervals - SPI)

Average Day of Clearance: 0 Days

10.555 National School Lunch Program

Recipient: Superintendent of Public Instruction

% of Funds Agency Receives: 100

Component: Payments - reimbursements to school districts, private
schools, and child & adult care programs

Technique: Modified Direct Program/Benefit Costs - (ACH
Drawdowns at Fixed Intervals - SPI)

Average Day of Clearance: 0 Days

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

Recipient: Department of Health

% of Funds Agency Receives: 34

Component: Administrative costs including payroll - salary, benefits,
contractual and related expenditures

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 0 Days

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

Recipient: Department of Health

% of Funds Agency Receives: 66

Component: Direct program/benefit payments for food voucher
redemption. Rebates offset the direct program/benefit payments. This is
a zero balance account.

Technique: Modified Direct Program Costs

Average Day of Clearance: 0 Days

10.561 State Administrative Matching Grants for the Supplemental
Nutrition Assistance Program

Recipient: Department of Social & Health Services

% of Funds Agency Receives: 100

Component: Direct Wire Settlement to Electronic Benefit (EBT)

Page 7 of 25


DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14

Modified Direct Program Costs - Admin,
Payroll, Payments to Providers

The State shall request funds for all direct administrative costs and/or payroll costs,
and/or payments made to providers and to support providers. The request shall be
made in accordance with the appropriate Federal agency cut-off time specified in
Exhibit I. The amount of the funds requested shall be based on the amount of
expenditures recorded for direct administrative costs and/or payroll costs and/or
payments made to providers or to support providers since the last request for funds.
The State payroll cycle is payday twice a month. Draws made the day before payday
are for deposit on payday. The draw request will be made in accordance with the cut-
off time in Exhibit 1. The amount of the funds requested shall be based on the amount
of expenditures recorded for direct administrative costs and/or payroll costs and/or
payments made to providers or to support providers since the last request for funds.
This funding technique is interest neutral.

Modified Direct Program/Benefit Costs -
(ACH Drawdowns at Fixed Intervals - SPI)

The State shall request funds for all direct program/benefit payments to Providers. The
request shall be made such that the funds are deposited to the State's account on the
last working 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
funds requested shall be based on the amount of expenditures recorded for the direct
program/benefit payments to Providers since the last request for funds. This funding
technique is interest neutral.

Modified Pre-Issuance (Post-Issuance)
(Fedwire Same Day Payment)

The State shall request funds daily from the Unemployment Insurance Trust Fund to
pay for State unemployment insurance benefits. The State shall request funds such that
they are deposited into the state account after the state issues checks, but before the
checks clear. The request shall be made in accordance with the appropriate Federal
agency cut-off time specified in Exhibit I. A federal agency shall deposit funds in the
State account the same day as requested. The amount of the request shall be based on
the amount of the actual warrants disbursed except in the case of a holiday following a
day upon which checks are issued. This funding technique is interest neutral.

Pre-Issuance Grant Anticipation Revenue
Vehicle (GARVEE) Bond Repayment

The State of Washington Department of Transportation will request funds for the
repayment of GARVEE Bonds issued and paid by the Bond Retirement Interest
Agency. Funds will be requested for payments of principal and interest on bonds.
Funds may be requested at least seven business days in advance of the bond payment.
This early drawdown has been approved by the Federal Highway Administration
(FHWA) and Fiscal Service. This funding technique is interest neutral.

UI Admin - Modified Payment Schedule
(Fedwire Semi-Monthly Drawdown on
Payday)

The State shall request funds semi-monthly. It issues Electronic Funds Transfer (EFT)
payments and Voucher payments for Administrative and Reed Act costs including
payroll. The State shall request funds semi-monthly. Warrants for Administrative and
Reed Act Costs including payroll are disbursed from the State's account. The State's
request shall be made in accordance with the appropriate Federal agency cut-off time
specified in Exhibit I. A federal agency shall deposit funds in the State account the
same day as requested, if the request is made in accordance with the appropriate
Federal agency cut-off time specified in Exhibit 1. The amount of the request shall be
the amount of EFT payments and Journal Voucher payments for Administrative and
Reed Act costs including payroll that are issued from the State's account and the
amount of Warrants for Administrative and Reed Act costs including payroll that are
disbursed from the State's account. This funding technique is interest neutral.

UI Federal (Fedwire Same Day Payment
Modified Actual Clearance ZBA)

The State shall request funds daily from the Unemployment Insurance Trust Fund to
pay for Federal unemployment insurance benefits. The State shall request funds the
same day it pays out funds (based upon actual settlement from the bank for both
checks and warrants), in accordance with the appropriate Federal agency cut-off time
specified in Exhibit I. A federal agency shall deposit funds in the State account the
same day as requested. The amount of the request shall be based on the amount of the
actual warrants redeemed and checks cleared on that day in the State's account. 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

Page 6 of 25


DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14

Exhibit I - Funds Request and Receipt Times Schedule

State of Washington
Federal Agency Payment Type | Request Cut-Off Time Receipt Window
Agriculture-FNS ‘ACH 11:59 PM I day
Agriculture-FNS Fedwire 3:45 PM Oday
Agriculture-FS ‘ACH 3:00 PM T 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 Oday
Education ‘ACH 3:00 PM T day
Education Fedwire 2:00 PM Oday
Energy ACH 4:00 PM 1 day
Energy Fedwire 3:00 PM 0 day
HHS ‘ACH 3:00 PM I day
HHS Fedwire 3:00 PM 0 day
HUD ACH 3:30 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 T day
Labor-UTF ACH 3:00 PM I day
Labor-UTF Fedwire 3:00 PM Oday
National Science Foundation (NSF) ACH 8:00 PM I day
National Science Foundation (NSF) Fedwire 3:45 PM 0 day
Social Security Administration ACH 11:59 PM T day
Social Security Administration Fedwire 3:45 PM Oday
Transportation (FAA) ‘ACH 2:00 PM I day
Transportation (FHWA) ACH 12:00 PM 3 days
Transportation (FHWA) Fedwire 12:00 PM Oday
Transportation (FTA) ‘ACH 2:00 PM T day
Veterans Administration ACH 12:00 PM 3 days

Page 19 of 25


DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14

Average Day of Clearance: 1 Day

84.010 Title I Grants to Local Educational Agencies

Recipient: Superintendent of Public Instruction

% of Funds Agency Receives: 5

Component: Administrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 1 Day

84.027 Special Education -- Grants to States

Recipient: Superintendent of Public Instruction

% of Funds Agency Receives: 95

Component: Direct Program/Benefit payments to public or private
schools and service providers

Technique: Modified Direct Program/Benefit Costs - (ACH
Drawdowns at Fixed Intervals - SPI)

Average Day of Clearance: N/A

84.027 Special Education -- Grants to States

Recipient: Superintendent of Public Instruction

% of Funds Agency Receives: 5

Component: Administrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 0 Days

84.425 Education Stabilization Fund

Recipient: Superintendent of Public Instruction

% of Funds Agency Receives: 10

Component: SEA Reserve

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 0 Days

84.425 Education Stabilization Fund

Recipient: Superintendent of Public Instruction

% of Funds Agency Receives: 87.73

Component: Direct program/benefit payments to School Districts, Non-
profits, Service Providers, and Local Educational Agencies (LEA)
Technique: Modified Direct Program/Benefit Costs - (ACH
Drawdowns at Fixed Intervals - SPI)

Average Day of Clearance: 0 Days

84.425 Education Stabilization Fund

Recipient: Department of Children, Youth, and Families

% of Funds Agency Receives: 2.27

Component: Governor's Emergency Education Relief Fund 84.425C -
Direct program/benefit payments for early childhood education and
assistance program

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: N/A

93.323 Epidemiology and Laboratory Capacity for Infectious Diseases
(ELC)

Recipient: Department of Health

% of Funds Agency Receives: 100

Component: Admin, Payroll, Payments to Providers

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Page 9 of 25


DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14

Title: Assistant Director, Accounting

Page 25 of 25


DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14

Cash Management Improvement Act Agreement
between
The State of Washington
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 Washington
(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 Washington shall be the Assistant Director, Accounting Division, Office of Financial
Management 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 07/01/2023 and shall remain in effect until 06/30/2024.

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

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

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

Page | of 25


DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14

Component: Direct payments to providers for EFT and non-EFT
payments

Technique: Modified Direct Program Costs

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Department of Social & Health Services

% of Funds Agency Receives: 27.57

Component: Direct payment to providers for EFT and non-EFT
payments

Technique: Modified Direct Program Costs

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Healthcare Authority

% of Funds Agency Receives: 1.82

Component: Administrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Department of Social & Health Services

% of Funds Agency Receives: 2.64

Component: Administrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Department of Children, Youth, and Families

% of Funds Agency Receives: .23

Component: Direct payments to providers for EFT and non-EFT
payments

Technique: Modified Direct Program Costs

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Department of Children, Youth, and Families

% of Funds Agency Receives: .04

Component: Admin and payroll costs

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 0 Days

93.959 Block Grants for Prevention and Treatment of Substance Abuse
Recipient: Healthcare Authority

% of Funds Agency Receives: 100

Component: Admin, payroll and payments to providers

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 0 Days

97.036 Disaster Grants - Public Assistance (Presidentially Declared
Disasters)

Recipient: Military Department

% of Funds Agency Receives: 93

Component: Direct program costs

Technique: Modified Direct Program and Admin Costs - Monthly
Average Day of Clearance: N/A

Page 12 of 25


DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14

93.596 Child Care Mandatory and Matching Funds of the Child Care
and Development Fund

Recipient: Department of Children, Youth, and Families

% of Funds Agency Receives: 47.8

Component: Direct program costs

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 0 Days

93.596 Child Care Mandatory and Matching Funds of the Child Care
and Development Fund

Recipient: Department of Children, Youth, and Families

% of Funds Agency Receives: 52.2

Component: Direct programs costs, admin, and payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers.

Average Day of Clearance: 0 Days

93.658 Foster Care -- Title TV-E

Recipient: Department of Children, Youth, and Families

% of Funds Agency Receives: 100

Component: Direct program costs, admin, and payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: N/A

93.767 Children's Health Insurance Program

Recipient: Healthcare Authority

% of Funds Agency Receives: 4.5

Component: Admin and Payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 0 Days

93.767 Children's Health Insurance Program

Recipient: Healthcare Authority

% of Funds Agency Receives: 94.46

Component: Direct payments to providers for EFT and non-EFT
payments

Technique: Modified Direct Program Costs

Average Day of Clearance: 0 Days

93.767 Children's Health Insurance Program

Recipient: Department of Social & Health Services

% of Funds Agency Receives: .1

Component: Administrative costs including payroll

Technique: Modified Direct Program Costs - Admin, Payroll, Payments
to Providers

Average Day of Clearance: 0 Days

93.767 Children's Health Insurance Program

Recipient: Department of Social & Health Services

% of Funds Agency Receives: .94

Component: Direct payments to providers for EFT and non-EFT
payments

Technique: Modified Direct Program Costs

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program
Recipient: Healthcare Authority
% of Funds Agency Receives: 67.7

Page 11 of 25


DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14

system contractor or by Electronic Funds Transfer (EFT)
Technique: Actual Clearance, ZBA - Same Day Payment
Average Day of Clearance: 0 Days

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

Recipient: Employment Security Department

% of Funds Agency Receives: 76

Component: Benefit Payments - Federal

Technique: UI Federal (Fedwire Same Day Payment Modified Actual
Clearance ZBA)

Average Day of Clearance: 0 Days

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

Recipient: Employment Security Department

% of Funds Agency Receives: 24

Component: Unemployment Insurance Administrative

Technique: UI Admin - Modified Payment Schedule (Fedwire Semi-
Monthly Drawdown on Payday)

Average Day of Clearance: 0 Days

17.225S Unemployment Insurance -- State Benefit Account

Recipient: Employment Security Department

% of Funds Agency Receives: 100

Component: Benefit payments - State

Technique: Modified Pre-Issuance (Post-Issuance) (Fedwire Same Day
Payment)

Average Day of Clearance: 0 Days

20.205 Highway Planning and Construction

Recipient: Department of Transportation

% of Funds Agency Receives: 86.01

Component: Contractor payments, payroll, administrative and other
program costs

Technique: Direct Funding WSDOT

Average Day of Clearance: 1 Day

20.205 Highway Planning and Construction

Recipient: Bond Retirement Interest

% of Funds Agency Receives: 13.99

Component: Debt service

Technique: Pre-Issuance Grant Anticipation Revenue Vehicle
(GARVEE) Bond Repayment

Average Day of Clearance: N/A

20.509 Public Transportation for Nonurbanized Areas

Recipient: Department of Transportation

% of Funds Agency Receives: 100

Component: Contractor payments, payroll, administrative and other
program costs

Technique: Direct Funding WSDOT

Average Day of Clearance: 1 Day

84.010 Title I Grants to Local Educational Agencies

Recipient: Superintendent of Public Instruction

% of Funds Agency Receives: 95

Component: Direct program/benefit payments to school districts, non-
profits, service providers, and local educational agencies (LEA)
Technique: Modified Direct Program/Benefit Costs - (ACH
Drawdowns at Fixed Intervals - SPI)

Page 8 of 25


DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14

84.425 Education Superintendent of 10.0 | SEA Reserve Modified Direct 0 Days
Stabilization Fund Public Instruction Program Costs -
Admin, Payroll,
Payments to
Providers
Education Superintendent of 87.73 | Direct Modified Direct 0 Days
Stabilization Fund Public Instruction program/benefit Program/Benefit
payments to School Costs - (ACH
Districts, Non-profits, | Drawdowns at Fixed
Service Providers, Intervals - SPI)
and Local
Educational Agencies
(LEA)
Education Department of 2.27 | Governor's Modified Direct N/A
Stabilization Fund Children, Youth, Emergency Program Costs -
Education Relief Admin, Payroll,
Fund 84.425C - Payments to
Direct Providers
program/benefit
payments for early
childhood education
and assistance
program
93.323 Epidemiology and Department of 100.0 | Admin, Payroll, Modified Direct 0 Days
Laboratory Health Payments to Program Costs -
Tatbetions Providers Admin, Payroll,
Diseases (ELC) Payments to
Providers
93.558 Femporary for Department, of h 75.44 | Direct Assistance to | Modified Direct 0 Days
SSIS ‘0) a clients via the Program Costs -
Needy Families Services Electronic Benefit Admin, Payroll,
Transfer (EBT) Payments to
system or by Providers
Electronic Funds
Transfer (EFT) &
One-Time Benefit
Payments
Temporary Department of. 24.56 | Administrative costs | Modified Direct 0 Days
Neo rome 5 Social & Health including payroll Program Costs -
Admin, Payroll,
Payments to
Providers
93.563 Child Support Department of 100.0 | Administrative costs | Modified Direct 0 Days
Enforcement Social & Health including payroll Program Costs -
ervices
Admin, Payroll,
Payments to
Providers
93.568 Low-Income Department of 10.0 | Admin and Payroll Modified Direct 0 Days
Home Energy Commerce Program Costs -
Admin, Payroll,
Payments to
Providers
Low-Income Department of 90.0 Payments to Modified Direct 0 Days
Home Energy Commerce providers Program Costs -
ssistance .
Admin, Payroll,

Page 22 of 25


DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14

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

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

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

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

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

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

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

a. Timing of the Request

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

b. Justification for the Request

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

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

d. Approval Process

Page 4 of 25


DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14

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:

For all transactions where the State pays out its own funds for program purposes prior to receiving Federal funds, the State shall track
cach 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 State account in the
UTF under the Unemployment Insurance program.

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

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

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

8.4 Refund Liabilities

8.4.1 The State 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

Page 15 of 25


DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14

funds are credited to a State account to the day the State pays out the Federal funds for Federal assistance program
purposes. (31 CFR 205.15.(a)) The State does not incur an interest liability to the Federal government if a Federal
statute requires the State to retain or use for Federal assistance program purposes the interest earned on Federal
funds. (31 CFR 205.15.(c)) In programs utilizing mandatory matching of Federal funds with State funds, the State
must not arbitrarily assign its earliest costs to the Federal government. The State incurs interest liabilities if it
draws Federal funds in advance and/or in excess of the required proportion of agreed upon levels of State
contributions in programs utilizing mandatory matching of Federal funds with State funds. (31 CFR 205.15.(d))

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:

Interest calculation costs, Labor Costs and Data Processing costs related to developing warrant clearance patterns, and costs for
calculating interest, including preparation of the CMIA annual report.

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 17 of 25


DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14

93.067 Global AIDS Non-State

93.268 Immunization Cooperative Agreements Non-Cash

93.855 Allergy, Immunology and Transplantation | Non-State
Research

93.866 Aging Research Non-State

5.0 ENTITIES COVERED

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

Bond Retirement Interest

Department of Children, Youth, and Families
Department of Commerce

Department of Health

Department of Social & Health Services
Department of Transportation

Employment Security Department
Healthcare Authority

Military Department

Superintendent of Public Instruction

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

Federal Reserve Bank of Richmond 10.542 Pandemic EBT Food Benefits

FIS (Fidelity National Information Sves, 10.551 Supplemental Nutrition Assistance

LLC) Program

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

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 i

cheduled 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:

Page 3 of 25



DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14

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 06/30/2022.

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

Agreement.

4.2 The State's threshold for major Federal assistance programs is $60,000,000.

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

CFDA Program Name

10.542 Pandemic EBT Food Benefits

10.551 Supplemental Nutrition Assistance Program

10.553 School Breakfast Program

10.555 National School Lunch Program

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

10.561 State Administrative Matching Grants for the Supplemental
Nutrition Assistance Program

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

17.2258 Unemployment Insurance -- State Benefit Account

20.205 Highway Planning and Construction

20.509 Public Transportation for Nonurbanized Areas

84.010 Title I Grants to Local Educational Agencies

84.027 Special Education -- Grants to States

84.425 Education Stabilization Fund

93.323 Epidemiology and Laboratory Capacity for Infectious Diseases
(ELC)

93.558 Temporary Assistance for Needy Families

93.563 Child Support Enforcement

93.568 Low-Income Home Energy Assistance

93.575 Child Care and Development Block Grant

93.596 Child Care Mandatory and Matching Funds of the Child Care and
Development Fund

93.658 Foster Care -- Title [V-E

93.767 Children's Health Insurance Program

93.778 Medical Assistance Program

93.959 Block Grants for Prevention and Treatment of Substance Abuse

97.036 Disaster Grants - Public Assistance (Presidentially Declared
Disasters)

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:

CFDA Program Name

Exclusion Reason

21.019

Coronavirus Relief Fund

Federal Statute - Full Exemption

21.023 Emergency Rental Assistance Program

Federal Statute - Full Exemption

21.027 Coronavirus State and Local Fiscal Federal Statute - Full Exemption
Recovery Funds

84.063 Federal Pell Grant Program Non-State

84.268 Federal Direct Student Loan Non-State

Page 2 of 25



DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14

97.036 Disaster Grants - Public Assistance (Presidentially Declared
Disasters)

Recipient: Military Department

% of Funds Agency Receives: 7

Component: Admin costs

Technique: Modified Administrative Costs - Annual

Average Day of Clearance: N/A

6.3.3 Materiality Exemptions
Agencies exempt from coverage on the basis of materiality:
Department of Commerce - ALN 93.575
Health Care Authority - ALN 93.575
Office of Financial Management - ALN 93.778
7.0 CLEARANCE PATTERNS
7.1 The State shall develop separate clearance patterns for each of the following:
With the exception of programs administered by recipient Agency 350, Superintendent of Public Instruction, where all federal program
payroll charges are based on 100% EFT payroll, the State shall develop a clearance pattern for the payroll and administrative function.
This clearance pattern shall be applied to the payroll and administrative components of all programs.

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

The Office of Financial Management, in conjunction with the Office of the State Treasurer (OST) and the applicable agency, shall
develop all of the State's clearance patterns.

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

Type of Clearance Pattern: Payroll and Administrative; Source of Data: Human Resource Management System (HRMS) and OST's
EFT and warrant redemption records. Type of Clearance Pattern: Program specific; Source of Data: Agency warrant registers and
OST's warrant redemption records. For CFDA 20.205, the agency system is TRAINS.

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

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

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

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

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

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

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

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

Page 13 of 25


DocuSign Envelope ID: E9ABA47A-9A73-4D7C-80BA-FC2C7D0A4B14
(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.

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
credited to a State's account and the date those funds are debited from the State's account.

8.6.2.2 Source of Data

The time period from the date Federal funds are received and credited to the State's account and the date those funds are

debited from the State's account shall be determined from information captured by AFRS (Agency Financial Reporting

System).

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

I= ADB xR, where
1 = 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

8.7.0 State interest liabilities may accrue if Federal funds are received by the State prior to the day the State pays out the
funds for Federal ses, in those cases where the State has not followed the interest-neutral
funding techniques described in Section 6 of this Agreement. State interest liability accrues from the day Federal

Page 16 of 25