DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

Exhibit I - Funds Request and Receipt Times Schedule

State of Idaho
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 I day
Energy Fedwire 3:00 PM 0 day
HHS ‘ACH 3:00 PM I day
HHS Fedwire 3:00 PM Oday
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 I day
Labor-UTF ‘ACH 3:00 PM I day
Labor-UTF Fedwire 3:00 PM Oday
National Science Foundation (NSF) ACH 8:00 PM T 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 0 day
Transportation (FTA) ‘ACH 2:00 PM T day
Veterans Administration ACH 12:00 PM 3 days

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DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

State and Federal benefit payments pay out in one of three ways (bank card payments, EFT/Direct Deposit, or manual check). 99.9% of
payments are issued electronically via bank card or EFT and are funded via zero balance account resulting in zero clearance days. Due
to the low volume of payments issued on paper checks, these manual checks are cleared through the benefit payment account which
nets against overpayment collections for the day. This funding technique is interest neutral.

Payroll Clearance Pattern Methodology The average date of clearance for payroll is 1 -calendar days. Funds shall be drawn on
Thursday to be received and available on Friday, payday.

7.2 The following shall develop the State's clearance patterns:
The Division of Financial Management, Executive Office of the Governor; Department of Health and Welfare; Department of Labor.
7.3 The sources of data the State shall use when developing its clearance patterns are as follows:

State Controller's Office STARS accounting system: State Department of Health and Welfare's internal accounting system (FISCAL);
State Department of Labor's Unemployment Insurance Benefit Payment System.

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

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

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

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

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

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:

no exceptions

The State shall also adjust each clearance pattern to reflect:

No adjustments are made to the clearance patterns

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

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

Page 14 of 27


DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

97.036 Disaster Grants - Division of 5.6 Payroll and Benefit Biweekly Actual 0 Days
Public Assistance Military Costs
(Presidentially _
eclared
BS sasters)
14 Operating Costs Biweekly Actual 0 Days
nce
paid
eclared
Disasters)
Disaster Grants : Division of 93.0 | Trustee and Benefit Weekly Actual 0 Days
ublic Assistance ilitar sts/ a
(Presidentially y Costs/Subrecipient
eclared Costs
Disasters)

Certification

T 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.

5/3/2023
Date: 13/

David Fulkerson

Printed Name:

Docusigned by:

David Fullerton

Certifying Signature:

TAD3465F54 15409.

Title:

DFM Deputy Administrator/State Financial officer

Page 24 of 27


DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

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.

‘Average Clearance

The State shall request funds such that they are deposited by ACH on the dollar-
weighted average day of clearance for the disbursement, in accordance with the
clearance pattern specified in Exhibit 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.

Estimated Clearance

The State shall request funds such that they are deposited in a State account in
accordance with the clearance pattern specified in Exhibit IT - EC (Estimated
Clearance). The request shall be made in accordance with the appropriate Federal
agency cut-off time specified in Exhibit I. The amount of each request will be a
percentage of the disbursement, according to the State's clearance pattern specified in
Exhibit IT - EC. 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

Actual Allocation (Labor Agreement)

The State shall request funds such that they are deposited bi-weekly by ACH on the
average day of clearance for payroll. The request for funds shall be made in
accordance with the appropriate Federal agency cut-off time specified in Exhibit I.
The amount of the request shall equal the indirect costs allocated for the bi-weekly
period in accordance with the indirect cost agreement approved by the U.S.
Department of Labor. This funding technique is interest neutral.

Actual Allocation (Statewide Plan)

The State shall request funds such that they are deposited by ACH monthly on the last
average day of clearance for payroll during the month. The request for funds shall be
made in accordance with the appropriate Federal agency cut-off time specified in
Exhibit I. The amount of the request shall be 1/12 of the indirect cost allocation in
accordance with the statewide cost allocation plan. This funding technique is interest
neutral.

Biweekly Actual

The State will request funds biweekly based on the actual expenditures incurred
during the biweekly period. The request shall be made in accordance with the
appropriate Federal agency cut-off time specified in Exhibit I. The amount of each
request shall equal the total actual expenditures posted during the biweekly period.
The State will not apply a clearance pattern to this funding technique and agrees that
no federal interest liability will result, providing those federal funds are available and

Page 5 of 27


DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

Exhibit II - State of Idaho
LIST OF STATE CLEARANCE TIMES
(Rounded Dollar-Weighted Average Day of Clearance)

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

CFDA Program Name Recipient % Component Technique Rounded
days
10.551 Supplemental Department of 100.0 | Benefits Actual Clearance, 0 Days
Nutrition Health and ZBA - Same Da
Assistance Welfare y
Program Payment
10.553 School Breakfast Superintendent of 100.0 | School Districts, Average Clearance | 3 Days
Program Public Instruction Non-profit
Organizations
10.555 National School Superintendent of 100.0 | School Districts, Average Clearance | 3 Days
Lunch Program Public Instruction Non-profit
Organizations
10.557 Special tal Department of 100.0 | Indirect Costs, Direct | Weekly Actual N/A
upplemental lealth an inistrati sts
Nutrition Program Welfare Administrative Costs,
for Women, Benefits, and Payroll
Infants, and
Children
12.400 Military fi Division of 100.0 | Construction, Design, | Biweekly Actual N/A
onstruction, ilita
National Guard ry and Development
12.401 National Guard Division of 15.0 | Payroll - current Biweekly Actual N/A
ilitar ilita:
Oj erations and " grant year
laintenance
(O&M) Projects
National Guard Division of 64.0 Operating Costs - Biweekly Actual N/A
6 perations and uatary previous grant year
faintenance
(O&M) Projects
National Guard Pivision of 11.0 | Payroll - previous Biweekly Actual N/A
ilitar ilita: 4 z
oO erations and " grant year
laintenance
(O&M) Projects
National Guard Division of 10.0 | Operating costs - Biweekly Actual N/A
Operations and mitary current grant year
laintenance
(O&M) Projects
15.611 Wildlife. Department of 50.0 Payroll Monthly Actual - N/A
Restoration Fish and Game F&G
Wildlife, Department of 50.0 | Vendor Payments Monthly Actual - N/A
Restoration Fish and Game F&G
17.225 [nemployment Department of 83.0 Federal Benefits Actual Clearance, 0 Days
insurance -~ abor
F Federal Benefit ZBA - Same Day
Account and Payment
Administrative
Costs

Page 21 of 27


DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

4. Is auditable; and,

5. Has been certified as accurate by an authorized State Official.

5/3/2023

Date: 13/

Printed Name: PaVid Fulkerson
DocuSigned by:
David Fullerton

Certifying Signature:

TADS465FS4TSA09,

Title: DFM Deputy Administrator/State Financial officer

Page 27 of 27


DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

Rehabilitation Idaho Division of 28.0 | Vendor Payments, Biweekly Actual 0 Days
Services -- Vocational Benefits
Vocational Rehabilitation
Rehabilitation
Grants to States
Rehabilitation {daho Division of 28.0 | Indirect Costs Biweekly Actual N/A
ervices -- ‘ocational
Vocational Rehabilitation
Rehabilitation
Grants to States
Rehabilitation Vdaho Division of 28.0 | Payroll Biweekly Actual 0 Days
ervices -- ‘ocational
Vocational Rehabilitation
Rehabilitation
Grants to States
84.425 Education Superintendent of 97.84 | School Districts Average Clearance | 3 Days
Stabilization Fund Public Instruction
Education Superintendent of 0.67 Non-Public Schools Average Clearance 3 Days
Stabilization Fund Public Instruction
Education Superintendent of — [0.11 | Payroll Average Clearance | 0 Days
Stabilization Fund Public Instruction
Education Superintendent of 1.38 | Direct & Indirect Average Clearance | 3 Days
Stabilization Fund Public Instruction Costs
93.323 Epidemiology and Department of 100.0 | Indirect Costs, Direct | Weekly Actual N/A
ao oreo rae at Administrative Costs.
it % fare °
fapaci for Welfare Benefits, and Payroll
Diseases (ELC)
93.558 Remporary | Aepariment of 86.21 | Indirect Costs, Direct | Weekly Actual N/A
ssistance for lealth an inistrati
Needy Families Welfare Administrative Costs,
Benefits, and Payroll
Temporary Pepartment of 13.79 | Benefits (EBT) Actual Clearance, 0 Days
ssistance for lealth an
Needy Families Welfare ZBA - Same Day
Payment
93.568 Low-Income Pipartment of 100.0 | Indirect Costs, Direct | Weekly Actual NA
lome Energ ealth an inistrati
Assistance Welfare Administrative Costs,
Benefits, and Payroll
93.575 Child Care and Pgpartment of 100.0 | Indirect Costs, Direct | Weekly Actual N/A
evelopment ealth an sinistrati
Block Grant Welfare Administrative Costs,
Benefits, and Payroll
93.596 Child Care d Department of 100.0 | Direct Administrative | Weekly Actual N/A
landatory anc lealth an
Matching Funds Welfare Costs and benefits
of the Child Care
and Development
Fund
93.767 | Children's Health Pepartment of 3.14 | Indirect Costs, Direct | Weekly Actual N/A
insurance lealth an inistrati
Program Welfare Administrative Costs,
Children's Health Pepartment of 96.86 | Benefits Estimated Clearance | N/A
insurance lealth an
Program Welfare
93.778 Medical Department of 3.79 | Indirect Costs, Direct | Weekly Actual N/A
prow’ Health and Administrative Costs,
and Payroll
Medical Department of 96.21 | Benefits Estimated Clearance | N/A
ssistance lealth an
Program Welfare

Page 23 of 27


DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

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 18 of 27


DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

Technique: Average Clearance
Average Day of Clearance: 0 Days

84.027 Special Education -- Grants to States
Recipient: Superintendent of Public Instruction
% of Funds Agency Receives: 2

Component: Direct & Indirect Costs
Technique: Average Clearance

Average Day of Clearance: 3 Days

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to
States

Recipient: Commission for the Blind and Visually Impaired

% of Funds Agency Receives: 7

Component: Vendor payments

Technique: Average Clearance

Average Day of Clearance: 7 Days

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to
States

Recipient: Commission for the Blind and Visually Impaired

% of Funds Agency Receives: 9

Component: Payroll

Technique: Average Clearance

Average Day of Clearance: 0 Days

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to
States

Recipient: Idaho Division of Vocational Rehabilitation

% of Funds Agency Receives: 28

Component: Vendor Payments, Benefits

Technique: Biweekly Actual

Average Day of Clearance: 0 Days

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to
States

Recipient: Idaho Division of Vocational Rehabilitation

% of Funds Agency Receives: 28

Component: Indirect Costs

Technique: Biweekly Actual

Average Day of Clearance: N/A

84.126 Rehabilitation Services -- Vocational Rehabilitation Grants to
States

Recipient: Idaho Division of Vocational Rehabilitation

% of Funds Agency Receives: 28

Component: Payroll

Technique: Biweekly Actual

Average Day of Clearance: 0 Days

84.425 Education Stabilization Fund
Recipient: Superintendent of Public Instruction
% of Funds Agency Receives: 97.84
Component: School Districts

Technique: Average Clearance

Average Day of Clearance: 3 Days

84.425 Education Stabilization Fund
Recipient: Superintendent of Public Instruction
% of Funds Agency Receives: .67

Component: Non-Public Schools

Page 10 of 27


DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

Average Day of Clearance: 3 Days

10.555 National School Lunch Program

Recipient: Superintendent of Public Instruction

% of Funds Agency Receives: 100

Component: School Districts, Non-profit Organizations
Technique: Average Clearance

Average Day of Clearance: 3 Days

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

Recipient: Department of Health and Welfare

% of Funds Agency Receives: 100

Component: Indirect Costs, Direct Administrative Costs, Benefits, and
Payroll

Technique: Weekly Actual

Average Day of Clearance: N/A

12.400 Military Construction, National Guard
Recipient: Division of Military

% of Funds Agency Receives: 100

Component: Construction, Design, and Development
Technique: Biweekly Actual

Average Day of Clearance: N/A

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

Recipient: Division of Military

% of Funds Agency Receives: 15

Component: Payroll - current grant year

Technique: Biweekly Actual

Average Day of Clearance: N/A

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

Recipient: Division of Military

% of Funds Agency Receives: 64

Component: Operating Costs - previous grant year

Technique: Biweekly Actual

Average Day of Clearance: N/A

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

Recipient: Division of Military

% of Funds Agency Receives: 11

Component: Payroll - previous grant year

Technique: Biweekly Actual

Average Day of Clearance: N/A

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

Recipient: Division of Military

% of Funds Agency Receives: 10

Component: Operating costs - current grant year

Technique: Biweekly Actual

Average Day of Clearance: N/A

Page 7 of 27


DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

deposited in accordance with the cutoff times specified in Exhibit I. This funding
technique is interest neutral.

Drawdowns on Payroll Cycle

The State shall request funds such that they are deposited by ACH on the average day
of clearance for payroll. The request for funds shall be made in accordance with the
appropriate Federal agency cut-off time specified in Exhibit I. The amount of the
request shall be estimated by annual administrative costs divided by the number of
payrolls in a year. After each monthly financial report is available the next request
shall be adjusted to reflect the difference between the estimated and actual
administrative costs paid out for the prior month. This funding technique is interest
neutral.

Monthly Actual - F&G

The State will request funds monthly based on the actual expenditures incurred during
the month. The request shall be made in accordance with the appropriate Federal
agency cut-off time specified in Exhibit I. The amount of each request shall equal the
total actual expenditures posted during the State's monthly billing cycle. The State
will not apply a clearance pattern to this funding technique and agrees that no federal
interest liability will result, provided that federal funds are available and deposited in
accordance with the cutoff times specified in Exhibit I. This funding technique is
interest neutral.

Pre-Issuance - Grant Anticipation Revenue
Vehicle (GARVEE) Debt Service Payments

The State will request funds two weeks in advance of the bond payment. This early
drawdown has been approved by the Federal Highway Administration (FHWA). The
request of funds 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 debt service
payments of GARVEE bonds issued by the Idaho Housing and Finance Association.
This funding technique is interest neutral.

Weekly Actual

The State will request funds weekly based on the actual expenditures incurred during
the weekly period. The request shall be made in accordance with the appropriate
Federal agency cut-off specified in Exhibit I. The amount of each request shall equal
the total actual expenditures posted during the weekly period. The State will not apply
a clearance pattern to this funding technique and agrees that no federal interest
liability will result, providing those federal funds are available and deposited in
accordance with the cutoff times specified in Exhibit I. This funding technique is
interest neutral.

Weekly Billing - ITD

The State shall request funds once a week at the same time funds are requested for
composite clearance pattern. The request for funds shall be made in accordance with
the appropriate Federal agency cut-off time specified in Exhibit 1. The amount of the
request shall be the amount of actual costs recorded since the last request for funds as
the components become billable. This funding technique is interest neutral.

6.3 Application of Funding Techniques to Programs

6.3.1 The State shall apply the following funding techniques when requesting Federal funds for the component cash flows of the

programs listed in sections 4.2 and 4.3 of this Agreement.

6.3.2 Programs

Below are programs listed in Section 4.2 and Section 4.3.

10.551 Supplemental Nutrition Assistance Program
Recipient: Department of Health and Welfare

% of Funds Agency Receives: 100
Component: Benefits

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: School Districts, Non-profit Organizations

Technique: Average Clearance

Page 6 of 27


DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

12.0 © AUTHORIZED SIGNATURES

David Fulkerson
DFM Deputy Administrator/State Financial Officer

Docusigned by:
Ce Fulkerson
Signature:

Date Submitted 5/3/2023

Sandra R. Paylor
Assistant Commissioner

5/3/2023
Date Signed: 13
Revenue Collections Management
Bureau of the Fiscal Service
U.S. Department of the Treasury
DocuSigned by:
Signature: [ sandr  Pawlor Date Signed;_5/4/2023

Page 19 of 27


DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

20.205 Highway Planning and Construction
Recipient: Idaho Transportation Department

% of Funds Agency Receives: 16.34

Component: Debt Service

Technique: Pre-Issuance - Grant Anticipation Revenue Vehicle
(GARVEE) Debt Service Payments

Average Day of Clearance: 0 Days

20.205 Highway Planning and Construction
Recipient: Idaho Transportation Department
% of Funds Agency Receives: 3.66
Component: Payroll Costs

Technique: Average Clearance

Average Day of Clearance: 0 Days

20.205 Highway Planning and Construction
Recipient: Idaho Transportation Department
% of Funds Agency Receives: 1.57
Component: Adjustments, Internal Services
Technique: Weekly Billing - ITD

Average Day of Clearance: 0 Days

64.005 Grants to States for Construction of State Home Facilities
Recipient: Division of Veterans Services

% of Funds Agency Receives: 100

Component: Construction costs

Technique: Actual Allocation (Statewide Plan)

Average Day of Clearance: 0 Days

84.010 Title I Grants to Local Educational Agencies
Recipient: Superintendent of Public Instruction

% of Funds Agency Receives: 1

Component: Payroll

Technique: Average Clearance

Average Day of Clearance: 0 Days

84.010 Title I Grants to Local Educational Agencies
Recipient: Superintendent of Public Instruction

% of Funds Agency Receives: 98

Component: School Districts

Technique: Average Clearance

Average Day of Clearance: 3 Days

84.010 Title I Grants to Local Educational Agencies
Recipient: Superintendent of Public Instruction

% of Funds Agency Receives: 1

Component: Direct & Indirect Costs

Technique: Average Clearance

Average Day of Clearance: 3 Days

84.027 Special Education -- Grants to States
Recipient: Superintendent of Public Instruction
% of Funds Agency Receives: 97

Component: School Districts

Technique: Average Clearance

Average Day of Clearance: 3 Days

84.027 Special Education -- Grants to States
Recipient: Superintendent of Public Instruction
% of Funds Agency Receives: 1

Component: Payroll

Page 9 of 27


DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

Cash Management Improvement Act - 2024 Treasury State Agreement

State of Idaho
Exhibit II Estimated Clearance

93.767 Children's Health Insurance Program

Day % Cleared
Day 1 0.0
Day 2 95.52
Day 3 0.02
Day 4 0.61
Day 5 0.62
Day 6 3.23
Day7 0.0
Day 8 0.0
Day 9 0.0
Day 10 0.0
Day 11 0.0
Day 12 0.0
Day 13 0.0
Day 14 0.0
Day 15 0.0
Day 16 0.0
Day 17 0.0
Day 18 0.0
Day 19 0.0
Day 20 0.0
Day 21 0.0
Day 22 0.0
Day 23 0.0
Day 24 0.0
Day 25 0.0
Day 26 0.0
Day 27 0.0
Day 28 0.0
Day 29 0.0
Day 30 0.0
Day 31 0.0
Total 100.0

Effective 07/01/2023 until 06/30/2024

Page 25 of 27


DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

Cash Management Improvement Act Agreement
between
The State of Idaho
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 Idaho (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 Idaho shall be the Governor designee, the Deputy Administrator/State Financial
Officer of the Division of Financial Management, Executive Office of the Governor, 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 27


DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

Component: Direct Administrative Costs and benefits
Technique: Weekly Actual
Average Day of Clearance: N/A

93.767 Children's Health Insurance Program

Recipient: Department of Health and Welfare

% of Funds Agency Receives: 3.14

Component: Indirect Costs, Direct Administrative Costs,
Technique: Weekly Actual

Average Day of Clearance: N/A

93.767 Children's Health Insurance Program
Recipient: Department of Health and Welfare
% of Funds Agency Receives: 96.86
Component: Benefits

Technique: Estimated Clearance

Average Day of Clearance: N/A

93.778 Medical Assistance Program

Recipient: Department of Health and Welfare

% of Funds Agency Receives: 3.79

Component: Indirect Costs, Direct Administrative Costs, and Payroll
Technique: Weekly Actual

Average Day of Clearance: N/A

93.778 Medical Assistance Program
Recipient: Department of Health and Welfare
% of Funds Agency Receives: 96.21
Component: Benefits

Technique: Estimated Clearance

Average Day of Clearance: N/A

97.036 Disaster Grants - Public Assistance (Presidentially Declared
Disasters)

Recipient: Division of Military

% of Funds Agency Receives: 5.6

Component: Payroll and Benefit Costs

Technique: Biweekly Actual

Average Day of Clearance: 0 Days

97.036 Disaster Grants - Public Assistance (Presidentially Declared
Disasters)

Recipient: Division of Military

% of Funds Agency Receives: 1.4

Component: Operating Costs

Technique: Biweekly Actual

Average Day of Clearance: 0 Days

97.036 Disaster Grants - Public Assistance (Presidentially Declared
Disasters)

Recipient: Division of Military

% of Funds Agency Receives: 93

Component: Trustee and Benefit Costs/Subrecipient Costs
Technique: Weekly Actual

Average Day of Clearance: 0 Days

6.3.3 Materiality Exemptions

Agencies exempt from coverage on the basis of materiality:

Page 12 of 27


DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

Technique: Average Clearance
Average Day of Clearance: 3 Days

84.425 Education Stabilization Fund
Recipient: Superintendent of Public Instruction
% of Funds Agency Receives: .11

Component: Payroll

Technique: Average Clearance

Average Day of Clearance: 0 Days

84.425 Education Stabilization Fund
Recipient: Superintendent of Public Instruction
% of Funds Agency Receives: 1.38
Component: Direct & Indirect Costs
Technique: Average Clearance

Average Day of Clearance: 3 Days

93.323 Epidemiology and Laboratory Capacity for Infectious Diseases
(ELC)

Recipient: Department of Health and Welfare

% of Funds Agency Receives: 100

Component: Indirect Costs, Direct Administrative Costs, Benefits, and
Payroll

Technique: Weekly Actual

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families

Recipient: Department of Health and Welfare

% of Funds Agency Receives: 86.21

Component: Indirect Costs, Direct Administrative Costs, Benefits, and
Payroll

Technique: Weekly Actual

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families
Recipient: Department of Health and Welfare

% of Funds Agency Receives: 13.79

Component: Benefits (EBT)

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

93.568 Low-Income Home Energy Assistance

Recipient: Department of Health and Welfare

% of Funds Agency Receives: 100

Component: Indirect Costs, Direct Administrative Costs, Benefits, and
Payroll

Technique: Weekly Actual

Average Day of Clearance: N/A

93.575 Child Care and Development Block Grant

Recipient: Department of Health and Welfare

% of Funds Agency Receives: 100

Component: Indirect Costs, Direct Administrative Costs, Benefits, and
Payroll

Technique: Weekly Actual

Average Day of Clearance: N/A

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

Recipient: Department of Health and Welfare

% of Funds Agency Receives: 100

Page 11 of 27


DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

15.611 Wildlife Restoration
Recipient: Department of Fish and Game
% of Funds Agency Receives: 50
Component: Payroll

Technique: Monthly Actual - F&G
Average Day of Clearance: N/A

15.611 Wildlife Restoration

Recipient: Department of Fish and Game
% of Funds Agency Receives: 50
Component: Vendor Payments
Technique: Monthly Actual - F&G
Average Day of Clearance: N/A

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

Recipient: Department of Labor

% of Funds Agency Receives: 83

Component: Federal Benefits

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

% of Funds Agency Receives: 11

Component: Payroll

Technique: Average Clearance

Average Day of Clearance: N/A

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

Recipient: Department of Labor

% of Funds Agency Receives: 2

Component: Indirect Costs

Technique: Actual Allocation (Labor Agreement)

Average Day of Clearance: 0 Days

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

Recipient: Department of Labor

% of Funds Agency Receives: 4

Component: Non-Payroll Administrative Costs

Technique: Drawdowns on Payroll Cycle

Average Day of Clearance: 0 Days

17.225S Unemployment Insurance -- State Benefit Account
Recipient: Department of Labor

% of Funds Agency Receives: 100

Component: State Benefits

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

20.205 Highway Planning and Construction
Recipient: Idaho Transportation Department
% of Funds Agency Receives: 78.43
Component: Construction, Consultant Costs
Technique: Average Clearance

Average Day of Clearance: 3 Days

Page 8 of 27


DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

Unemployment Department of 11.0 Payroll Average Clearance N/A
Insurance -- abor
Federal Benefit
Account and
Administrative
Costs
[nemployment Department of 2.0 Indirect Costs Actual Allocation 0 Days
insurance -- abor
Federal Benefit (Labor Agreement)
Account and
Administrative
Costs
Unemployment Department of 40 Non-Payroll Drawdowns on 0 Days
insurance -- abor inistrative
Federal Benefit Administrative Costs | Payroll Cycle
Account and
Administrative
Costs
17.225 [nemployment Department of 100.0 | State Benefits Actual Clearance, 0 Days
nsuranceé -- State abor 2 ,
8 Benefit Account ZBA - Same Day
Payment
20.205 Highway Planning Idaho . 78.43 | Construction, Average Clearance 3 Days
and Construction Transportation Consultant Costs
Department
Highway Planning Idaho . 16.34 | Debt Service Pre-Issuance - Grant | 0 Days
and Construction Transportation Anticipation
Department P: .
Revenue Vehicle
(GARVEE) Debt
Service Payments
Highway Planning Tdaho . 3.66 Payroll Costs Average Clearance 0 Days
and Construction Transportation
Department
Highway Planning Idaho . 1.57 Adjustments, Internal | Weekly Billing - 0 Days
and Construction Transportation Services ITD
Department
64.005 Grants to States Division ov . 100.0 | Construction costs Actual Allocation 0 Days
‘or Construction ‘eterans Services ewi
of State Home (Statewide Plan)
Facilities
84.010 Title 1 Grants to Superintendent of 1.0 Payroll Average Clearance | 0 Days
Local Educational Public Instruction
Agencies
Title 1 Grants to Superintendent of 98.0 School Districts Average Clearance | 3 Days
Local Educational Public Instruction
Agencies
Title I Grants to Superintendent of 1.0 Direct & Indirect Average Clearance | 3 Days
Local Educational Public Instruction Costs
Agencies
84.027 Special Education Superintendent of 97.0 School Districts Average Clearance 3 Days
-- Grants to States Public Instruction
Special Education Superintendent of 1.0 Payroll Average Clearance | 0 Days
-- Grants to States Public Instruction
Special Education Superintendent of 2.0 Direct & Indirect Average Clearance | 3 Days
-- Grants to States Public Instruction Costs
84.126 Rehabilitation Commission for 7.0 Vendor payments Average Clearance 7 Days
Services -- the Blind and |
Vocational Visually Impaired
Rehabilitation
Grants to States
Rehabilitation Commission for 9.0 Payroll Average Clearance | 0 Days
Services -- the Blind and _
Vocational Visually Impaired
Rehabilitation
Grants to States

Page 22 of 27


DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

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

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.

Page 4 of 27


DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

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 Allocation (Labor Agreement)

Actual Allocation (Statewide Plan)

Actual Clearance, ZBA - Same Day Payment
Average Clearance

Biweekly Actual

Drawdowns on Payroll Cycle

Estimated Clearance

Monthly Actual - F&G

Pre-Issuance - Grant Anticipation Revenue Vehicle (GARVEE) Debt Service Payments
Weekly Actual

Weekly Billing - ITD

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

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

(1) amount of the issuance

(2) date of issuance

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

(4) amount of Federal funds received

(5) date funds were requested

8.2 Federal Interest Liabilities

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

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

Actual Activity:

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

8.3 The Unemployment Trust Fund

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

Federal and State Funds are Not Interest Neutral:
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

Page 15 of 27


DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

Deposit to Clearance:
To determine the total time Federal funds are held, the State shall measure the time between the date Federal funds are received and
credit to a State's account and the date those funds are debited from the State's account.

8.6.2.2, Source of Data
Data is collected for actual dates of receipts compared to requested for dates.
8.6.2.3. Standards Applied

Statistical Sampling (Pre-Issuance):

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 a
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-
time to be used for calculating State interest liabi

uance time for each check to arrive at the total dollar-weighted average pre-issuance
ies.

8.6.2.4 Calculation Procedure

Average Daily Balance:
I= ADB xR, 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 proc

ssing 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:

The State may incur personnel and operating costs to retrieve data and calculate interest on programs included in the annual treasury
state agreement.

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

Page 17 of 27


DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

97.050 Presidential Declared Disaster Assistance | Discontinued
to Individuals and Households - Other
Needs

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:

Commission for the Blind and Visually Impaired
Department of Fish and Game

Department of Health and Welfare

Department of Labor

Division of Military

Division of Veterans Services

Idaho Division of Vocational Rehabilitation
Idaho Transportation 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

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

FIS 93.558 Temporary Assistance for Needy Families

6.0 FUNDING TECHNIQUES
6.1 General Terms

6.1.1 The State shall request Federal funds in accordance with the appropriate cut-off times shown in Exhibit 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.
Page 3 of 27


DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

93.778 Medical Assistance Program

Da) % Cleared
Day | 0.0
Day 2 95.52
Day 3 0.02
Day 4 0.61
Day 5 0.62
Day 6 3.23
Day 7 0.0
Day 8 0.0
Day 9 0.0
Day 10 0.0
Day 11 0.0
Day 12 0.0
Day 13 0.0
Day 14 0.0
Day 15 0.0
Day 16 0.0
Day 17 0.0
Day 18 0.0
Day 19 0.0
Day 20 0.0
Day 21 0.0
Day 22 0.0
Day 23 0.0
Day 24 0.0
Day 25 0.0
Day 26 0.0
Day 27 0.0
Day 28 0.0
Day 29 0.0
Day 30 0.0
Day 31 0.0
Total 100.0

Certification

I hereby certify that the % Cleared listed in Exhibit II Estimated Clearance of this Treasury State Agreement:

1. Has been prepared in accordance with the standards provided in 31 CFR 205.20;
2. Accurately represents the flow of federal funds under the federal assistance programs to which they apply;

3. Reflects seasonal or other periodic variations in the clearance activities;

Page 26 of 27


DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

4.0 PROGRAMS COVERED

4.1 The State's threshold and its major Federal assistance programs shall be determined based on the Single Audit Report 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 $14,606,016.

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

CFDA Program Name

10.551 Supplemental Nutrition Assistance Program

10.553 School Breakfast Program

10.555 National School Lunch Program

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

12.400 Military Construction, National Guard

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

15.611 Wildlife Restoration

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

17.2258 Unemployment Insurance -- State Benefit Account

20.205 Highway Planning and Construction

64.005 Grants to States for Construction of State Home Facilities

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

84.425 Education Stabilization Fund

93.323 Epidemiology and Laboratory Capacity for Infectious Diseases
(ELC)

93.558 Temporary Assistance for Needy Families

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

93.767 Children's Health Insurance Program

93.778 Medical Assistance Program

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

93.268 Immunization Cooperative Agreements Non-Cash

Page 2 of 27



DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

none
7.0 CLEARANCE PATTERNS
7.1 The State shall develop separate clearance patterns for each of the following:
Basis for Development/Sources of Data Program Specific

Program:

10.555 National School Lunch for Children

15.611 Wildlife Restoration and Basic Hunter Education
20.205 Highway Planning & Construction
84.010 Title I Grants to Local Educational Agencies
84.027 Special Education Grants to States
84.126 Rehabilitation Services Basic Grants to States

The information necessary to create clearance patterns for these programs was extracted from the State Controller's Office STARS
accounting system. The Controller's Office developed a program from the warrant control, warrant detail and grant files that allows the
Division of Financial Management (DFM) to initiated jobs when needed on an individual agency basis.

The data elements included in Clear pat are agency code, transaction T.D., warrant number, amount, CFDA # (when available), warrant
issue date, warrant status date, warrant redemption date, fund/detail, document number/suffix, grant/phase, revenue sub-object/detail,
expenditure sub-object/detail, vendor number, vendor name.

DFM initiates the job to extract data by agency for a three-month time period and downloads the information into its pe database
program. The program excludes all nonfederal funds, payroll transactions, and receipts. The program includes fields for agency name,
warrant number, amount, CFDA #, warrant issue date, warrant redemption date, warrant status date, document number, and number of
days for warrant clearance.

The Department of Labor does not identify transactions by CDFA number; therefore, their clearance patterns are developed excluding
all non-payroll and Unemployment Insurance Benefits transactions for the agency.

Program:

10.557 Special Supplemental Nutrition Program for Women, Infants, and Children
10.561 Administrative Matching Grants for SNAP

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

93.658 Foster Care - Title 1V-E

93.767 State Children's Insurance Program

93.778 Medical Assistance Program

The State Department of Health and Welfare (H&W) uses an internal accounting system (FISCAL) to record accounting data to the
federal grant files and the State Controller's Office (STARS) system to issue warrants.

The H&W accounting system records the expenditures by grant and allows for identification of warrant numbers for associated
payments. There is a software program in the FISCAL system that H&W uses when they need to determine or verify clearance patterns.

Once H&W has the redeemed warrant report from the FISCAL system, a clearance pattern is created on a FISCAL spreadsheet that
includes the warrant issue date, warrant redemption date, number of workdays for warrant clearance and the amount. Clearance patterns
are based on three months of data.

Except for the Medical Assistance Program and SCHIP, all the dollar-weighted average days for the above CFDA programs have been
used to arrive at a Composite dollar-weighted average that is used in the Composite Clearance - (Health & Welfare) clearance pattern.
The average days were four(4).

Program: 17.225 Unemployment Insurance

Page 13 of 27


DocuSign Envelope ID: 676918BD-031C-40F4-BD5B-3E2E677DE3B6

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

8.4.3 The State shall use the following methodology to calculate interest liabilities on refunds:
Refunds Deposited to Interest Neutral Programs:
With programs to which applicable interest neutral funding techniques are applied, the State interest liability shall be based on the

difference in whole days between the date the refund is deposited in a State account and the date the refund is offset against a
subsequent deposit of Federal funds.

8.5 Exemptions

8.5.1 Where more than one State agency is a recipient of Federal funds under a program, a particular State agency's funding may be
excluded from interest calculation procedures if the State agency receives an amount of funds less than 5

% of the State's threshold for major Federal assistance programs. Notwithstanding this potential exemption, however, in no case
shall less than 90% of a program's total funding be subject to interest calculation procedures.

Proration of calculations: If less than total program funding is subject to interest calculation procedures, the resulting interest
liability calculations shall be prorated to 100% of program funding.

8.6 State Interest Liabilities

8.6.1 The State 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

Page 16 of 27