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

Agriculture-FNS.

41:59 PM

ACH 4 day
Agriculture-FNS Fedwire 5:45 PM Q day
Agriculture-FS ACH 3:00 PM 1 day
Air National Guard ACH 12:00 PM 15 days
Army National Guard ‘ ACH 12:00 PM 15 days
Commerce-NOAA ACH 2:00 PM. 1 day
Dept of Homeland Security (FEMA) Fedwire 2:00 PM. 2 days
Dept of Homeland Security (ODP) ACH 2:00 PM 2 days
Dept of Homeland Security (ODP) Fedwire 2:00 PM. 2 days
EPA ACH 2:00 PM. 2 days
EPA Fedwire 2:00 PM 0 day
Education ACH 3:00 PM 1 day
Education Fedwire 2:00 PM 0 day
Energy ACH 4:00 PM. 4 day
Energy Fedwire 3:00 PM 0 day
HHS. ACH 6:30 PM. 4 day
HHS. Fedwire 3:00 PM. ‘0 day
HUD ACH 5:30 PM 2 days
HUD Fedwire 3:00 PM 0 day
Interior-FWS ACH 14:59 PM 1 day
Interior-FWS: Fedwire 5:45 PM 0 day
Interior-OSM ACH 3:00 PM. tiday
interior-OSM Fedwire 1:00 PM 0 day
Justice ACH 14:00 PM 6 days
Justice Fedwire 2:00 PM 2 days
Labor-Non-UTF ACH 3:00 PM 1 day
Labor-UTE ACH 3:00 PM iday
Labor-UTF Fedwire 3:00 PM 10 day
National Science Foundation (NSF) ACH 8:00 PM 1 day
National Science Foundation (NSF) Fedwire 5:45 PM. QO day
Social Security Administration ACH 11:59 PM 1 day
Social Security Administration Fedwire 5:45 PM 0 day
Transportation (FAA) ACH 2:00 PM 4. day
‘Transportation (FHWA) ACH 12:00 PM 3 days
Transportation (FHWA) Fedwire 12:00 PM. 0 day
Transportation (FTA) ACH 2:00 PM. 4 day
Veterans Administration [ACH 12:00 PM 3 days

Page 20 of 23



8.0 INTEREST CALCULATION METHODOLOGY
8.1 General Terms

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

Actual Clearance, ZBA - ACH

Cost Allocation Plans - Administrative Costs- Bi-weekly
Cost Allocation Plans - Indirect Costs - Bi-weekly
Indirect Cost Rates - Actual Base - Monthly

Indirect Cost Rates - Actual Base - Quarterly

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 shail 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 shail 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 fiabilities on funds withdrawn from the several
accounts in the Unemployment Trust Fund:

The State shall use the following methodology to calculate State interest liabilities on funds withdrawn from the several
accounts in the UTF under the Unemployment insurance program.

Based on statements provided by its financial institution, or other appropriate source, the State shall determine the actual
interest earnings and the related banking costs attributable to funds withdrawn from its account in the UTF.

At the end of the State's fiscal year, the State shall calculate the percentage of its total unemployment compensation

Page 14 of 23



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 shail be implemented for all transfers of funds to
which the funding technique is applied in section 6.3.2 of this Agreement.

Actual Clearance, ZBA - ACH

The State shall request funds such that they are deposited by ACH in a State account on the settlement date of payments
issued by the State. The request shall be made in accordance with the appropriate Federal agency cut-off time specified
in Exhibit |. The amount of the request shall be for the amount of funds that clear the State's account on the settlement
date. This funding technique is interest neutral.

Post-lssuance

The State shall request funds such that they are deposited in a 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 |. The amount of the request shall be the amount of the disbursement. This funding technique is not interest
neutral.

Pre-Issuance

The State shall request funds such that they are deposited in a State account not more than three business days prior to
the day the State makes a disbursement. The request shall be made in accordance with the appropriate Federal agency
cut-off time specified in Exhibit |. The amount of the request shall be the amount the State expects to disburse. This
funding technique is not interest neutral.

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

Indirect Cost Rates - Actual Base - Monthly

The State shall request funds once a month, such that they are deposited on the median day of the month. The request
shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit |. The amount of the
request shail be determined by applying the indirect cost rate to the appropriate cost base of the prior month. This funding

technique is interest neutral.
Indirect Cost Rates - Actual Base - Quarterly

The State shall request funds once a quarter, such that they are deposited on the median day of the quarter. The request
shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit |. The amount of the
request shall be determined by applying the indirect cost rate to the appropriate cost base of the quarter. This funding
technique is interest neutral.

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

Page 5 of 23



Exhibit Il - State of lowa
LIST OF STATE CLEARANCE TIMES
(Rounded Dollar-Weighted Average Day of Clearance)
Clearance Times Where the Timing of A Draw Down Is Based on A Clearance

Pattern
-{10.551 |Suppiemental Nutrition | Department of Human 100. }Program Costs Actual Clearance, ZBA- |N/A

Assistance Program Services 00 ACH

10.555 {National School Lunch — | Department of Education |100. |Program Costs Pre-Issuance NIA
Program 00.

10.557 |Special Supplemental Department of Public 5.00 |Administrative Costs Pre-Issuance NIA
Nutrition Program for Health .
‘Women, Infants, and
Children

10.557 |Special Supplemental Department of Public 94.0 |Program Costs Pre-Issuance N/A
Nutrition Program for Health 0
Women, infants, and
Children.

10.557 |Special Supplemental Department of Public 1.00 |indirect Costs Indirect Cost Rates - NIA
Nutrition Program for Health Actual Base - Quarterly
Women, Infants, and
Children :

44.228 |Community Development | Department of Natural 2.00 }Program Costs Post-Issuance N/A
Block Grants/State's Resources
Program

14.228 |Community Development |lowa Economic 2.00 |Administrative Costs Pre-lssuance NIA
Block Grants/State’s Development Authority
Program

14.228 |Community Development |lowa Economic 95.0 {Program Costs /Pre-Issuance NIA
Block Grants/State's Development Authority {0
Program: .

-|14.228 {Community Development |lowa Economic 1.00 {Indirect Costs Indirect Cost Rates - NIA

Block Grants/State's Development Authority - |Actual Base - Quarterly
Program

17.225F |Unempioyment Insurance | Department of 3.00 |Administrative Costs Pre-Issuance NIA |
— Federal Benefit Inspections and Appeals
Account and
Administrative Costs

17.225F {Unemployment Insurance |lowa Workforce 71.0 jAdministrative Costs Pre-Issuance N/A
-- Federal Benefit Development 0
Account and
Administrative Costs

17.225F |Unemployment insurance | lowa Workforce 16.0 |Program Costs Pre-Issuance NIA
-- Federal Benefit Development 0
Account and
Administrative Costs

47.225F {Unemployment Insurance |lowa Workforce 10.0 {Indirect Costs Indirect Cost Rates - N/A
-- Federal Benefit Development [a Indirect Costs - Bi-weekly
Account and
Administrative Costs

17.2258 |Unemployment Insurance |lowa Workforce 100. {Program Costs Post-Issuance N/A
-- State Benefit Account_|Development, 00

20.205 | Highway Planning and ‘Department of 400. {Program Costs Pre-lssuance N/A
Construction. Transportation 00

Page 21 of 23



‘CFDA|

Disaster Grants - Public |Homeland Security and [97.0 |Program Costs
Assistance (Presidentially |Emergency Management |0
Declared Disasters) Division

97.036 Pre-Issuance

| 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:

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

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

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

4, Are auditable.

Date: lo 27 -\ ml

Printed Name: C isu Wa.

Certifying Signature:

Title: ick Opecko, OfEnee Siecle, hee hing Ectergrive,

Page 23 of 23



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:

Treasurer of State---System Analysis, programming and testing

Administrative Services-System analysis, programming, report testing and validation, redemption
pattern reporting, validation and testing, annual report preparation.

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 18 of 23



Camponent: Administrative Costs
Technique: Post-lssuance
Average Day of Clearance: N/A

Recipient: lowa Workforce Development
% of Funds Agency Receives: 2.00
Component: Program Costs

Technique: Post-Issuance

Average Day of Clearance: N/A

Recipient: Department of Human Rights
% of Funds Agency Receives: 3.00
Component: Program Costs
Technique: Post-Issuance

Average Day of Clearance: N/A

Recipient: Department of Human Services
% of Funds Agency Receives: 51.00
Component: Program Costs

Technique: Post-lssuance

Average Day of Clearance: N/A

93.563 Child Support Enforcement

Recipient: Department of Human Services

% of Funds Agency Receives: 95.00

Component: Administrative Costs

Technique: Cost Allocation Plans - Administrative Costs- Bi-weekly
Average Day of Clearance: N/A

Recipient: Department of Human Services

% of Funds Agency Receives: 5.00

Component: Indirect Costs

Technique: Cost Allocation Plans - Indirect Costs - Bi-weekly
Average Day of Clearance: N/A

93.568 Low-Income Home Energy Assistance
Recipient: Department of Human Rights

% of Funds Agency Receives: 1.00
Component: Administrative Costs

Technique: Pre-Issuance

Average Day of Clearance: N/A

Recipient: Department of Human Rights
% of Funds Agency Receives: 1.00
Component: Indirect Costs

Technique: Pre-lssuance

Page 10 of 23



Technique: Pre-lssuance
Average Day of Clearance: N/A

10.557 Special Supplemental Nutrition Program for Women, Infants, and Children
Recipient: Department of Public Health

% of Funds Agency Receives: 1.00

Component: Indirect Costs

Technique: indirect Cost Rates - Actua) Base - Quarterly

Average Day of Clearance: N/A

Recipient: Department of Public Health
% of Funds Agency Receives: 5.00
Component: Administrative Costs
Technique: Pre-Issuance

Average Day of Clearance: N/A

Recipient: Department of Public Health
% of Funds Agency Receives: 94.00
Component: Program Costs
Technique: Pre-issuance

Average Day of Clearance: N/A

14.228 Community Development Block Grants/State's Program
Recipient: lowa Economic Development Authority

% of Funds Agency Receives: 1.00

Component: Indirect Costs

Technique: Indirect Cost Rates - Actual Base - Quarterly
Average Day of Clearance: N/A

Recipient: Department of Natural Resources
% of Funds Agency Receives: 2.00
Component: Program Costs

Technique: Post-lssuance

Average Day of Clearance: N/A

Recipient: lowa Economic Development Authority
% of Funds Agency Receives: 2.00

Component: Administrative Costs

Technique: Pre-Issuance

Average Day of Clearance: N/A

Recipient: lowa Economic Development Authority
% of Funds Agency Receives: 95.00

Component: Program Costs

Technique: Pre-lssuance

Average Day of Clearance: N/A

Page 7 of 23



There are no funding techniques listed in Section 6.2.3

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

Cost Allocation Plans - Administrative Costs- Bi-weekly

The State shall request funds bi-weekly, such that they are deposited on the day of the State's payday. The request shall
be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit 1. The amount of the request
shall be the prorated amount of administrative costs base on the most recent, certified, quarterly cost allocation, with
adjustments made to subsequent draws based on actual labor distributions and recoveries, when applicable. This
funding technique is interest neutral.

Cost Allocation Plans - Indirect Costs - Bi-weekly

The State shall request funds bi-weekly, such that they are deposited on the day of the State’s payday. The request shail
be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit |. The amount of the request
shall be the prorated amount of indirect costs based on the most recent, certified, quarterly cost allocation, with
adjustments made to subsequent draws based on actual labor distributions and recoveries, when applicable. This
funding technique is interest neutral.

Indirect Cost Rates - Indirect Costs - Bi-weekly

The State shall request funds bi-weekly, such that they are deposited in a State account not more than three business
days prior to the day the State makes a payroll disbursement. The request shall be made in accordance with the
appropriate Federal agency cut-off time specified in Exhibit |. The amount of the request shail be determined by applying
the indirect cost rate to the appropriate cost base occurring 4 weeks prior with adjustments made to subsequent draws
based on actual labor distributions and recoveries, when applicable. This funding technique is not interest neutral.

6.3 Application of Funding Techniques to Programs

6.3.1 The State shall apply the following funding techniques when requesting Federal funds for the component cash flows
of the programs listed in sections 4.2 and 4.3 of this Agreement.

6.3.2 Programs
Below are programs listed in Section 4.2 and Section 4.3.

10.551 Supplemental Nutrition Assistance Program
Recipient: Department of Human Services

% of Funds Agency Receives: 100.00

Component: Program Costs

‘Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: N/A

10.555 National School Lunch Program
Recipient: Department of Education

% of Funds Agency Receives: 100.00
Component: Program Costs

Page 6 of 23



12.0 AUTHORIZED SIGNATURES

Calvin Mckelvogue

Chief Operating Officer

State Accounting Enterprise
Department of Administrative Services

Signature: Date Signed: & “1 ATV

Date Submitted 06/27/2017

Corvelli A. McDaniel

Assistant Commissioner
Revenue Collections Management
Bureau of the Fiscal Service
U.S, Department of the Treasury

A. tate Date Signed: Yo. 12

Signature:

Page 19 of 23



Recipient: Department of Education
% of Funds Agency Receives: 1.00
Component: Administrative Costs
Technique: Pre-Issuance

Average Day of Clearance: N/A

Recipient: Department of Education
% of Funds Agency Receives: 98,00
Component: Program Costs
Technique: Pre-lssuance

Average Day of Clearance: N/A

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

% of Funds Agency Receives: 1.00

Component: Indirect Costs

Technique: Indirect Cost Rates - Actual Base - Monthly
Average Day of Clearance: N/A

Recipient: Department of Education
% of Funds Agency Receives: 3.00
Component: Administrative Costs
Technique: Pre-Issuance

Average Day of Clearance: N/A

Recipient: Department of Education
% of Funds Agency Receives: 96.00
Component: Program Costs
Technique: Pre-lssuance

Average Day of Clearance: N/A

93.558 Temporary Assistance for Needy Families

Recipient: Department of Human Services

% of Funds Agency Receives: 35.00

Component: Administrative Cosis

Technique: Cost Allocation Plans - Administrative Costs- Bi-weekly
Average Day of Clearance: N/A

Recipient: Department of Human Services

% of Funds Agency Receives: 5.00

Component: Indirect Costs.

Technique: Cost Allocation Plans - Indirect Costs - Bi-weekly
Average Day of Clearance: N/A

Recipient: lowa Workforce Development
% of Funds Agency Receives: 4.00

Page 9 of 23



Cash Management Improvement Act Agreement
between
The State of lowa
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 Jjowa
(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 lowa shall be the Administrator of the State Accounting Enterprise, lowa
Department of Administrative Services 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, shail 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 shail govern.

3.0 DURATION, AMENDING, TERMINATING, AND MISCELLANEOUS: PROVISIONS
3.1 This Agreement shall take effect on 07/01/2017 and shall remain in effect until 06/30/2018.

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

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

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

be used by the State,

Page 1 of 23



93.778 Medical Assistance Program

Recipient: Department of Human Services

% of Funds Agency Receives: 3.00

Component: Administrative Costs

Technique: Cost Allocation Plans - Administrative Costs- Bi-weekly
Average Day of Clearance: N/A

Recipient: Department of Human Services

% of Funds Agency Receives: 1.00

Component: Indirect Costs

Technique: Cost Allocation Plans - indirect Costs - Bi-weekly
Average Day of Clearance: N/A

Recipient: Department of Human Services
% of Funds Agency Receives: 96.00
Component: Program Casts

Technique: Post-Issuance

Average Day of Clearance: N/A

97.036 Disaster Grants - Public Assistance (Presidentially Declared Disasters)
Recipient: Homeland Security and Emergency Management Division

% of Funds Agency Receives: 3.00

Component: Administrative Costs

Technique: Pre-Issuance

Average Day of Clearance: N/A

Recipient: Homeland Security and Emergency Management Division
% of Funds Agency Receives: 97.00

Component: Program Costs

Technique: Pre-Issuance

Average Day of Clearance: N/A

6.3.3 Materiality Exemptions

Agencies exempt from coverage on the basis of materiality:

The Department of Human Services transfers administrative funds to the Department of Inspections and Appeals (DIA)
through the Department of Human Services Cost Allocation Plan. The administrative expense reimbursement transfer is
less than 1% of the program costs and will not be tracked. This is applicable for CFDA's, 93.558, 93.563, 93.575, 93.767,
and 93.778,

The lowa Economic Development Authority passes through funds pertaining to program and administrative expenses for
CFDA 14.228 to the Department of Natural Resources. The portion of funds passed through for the purpose of
Department of Natural Resources administrative expense reimbursement is less than 1% of the program costs and will
not be tracked.

7.0 CLEARANCE PATTERNS

Page 12 of 23



Average Day of Clearance: N/A

Recipient: Department of Human Rights
% of Funds Agency Receives: 98.00
Component: Program Costs

Technique: Pre-lssuance

Average Day of Clearance: N/A

93.575 Child Care and Development Block Grant

Recipient: Department of Human Services

% of Funds Agency Receives: 7.00

Component: Administrative Costs

Technique: Cost Allocation Plans - Administrative Costs- Bi-weekly
Average Day of Clearance: N/A

Recipient: Department of Human Services

% of Funds Agency Receives: 2.00

Component: Indirect Costs.

Technique: Cost Allocation Plans - Indirect Costs - Bi-weekly
Average Day of Clearance: N/A

Recipient: Department of Human Services
% of Funds Agency Receives: 91.00
Component: Program

Technique: Post-Issuance

Average Day of Clearance: N/A.

93.767 Children's Health Insurance Program

Recipient: Department of Human Services

% of Funds Agency Receives: 3.00

Component: Administrative Costs

Technique: Cost Allocation Plans - Administrative Costs- Bi-weekly
Average Day of Clearance: N/A

Recipient: Department of Human Services

% of Funds Agency Receives: 1.00

Component: Indirect Costs

Technique: Cost Allocation Plans - Indirect Costs - Bi-weekly
Average Day of Clearance: N/A .

Recipient: Department of Human Services
% of Funds Agency Receives: 96.00
Component: Program Costs

Technique: Post-Issuance

Average Day of Clearance: N/A

Page 11 of 23



47.225F Unemployment Insurance -- Federal Benefit Account and Administrative Costs
Recipient: lowa Workforce Development

% of Funds Agency Receives: 10.00

Component: indirect Costs

Technique: Indirect Cost Rates - Indirect Costs - Bi-weekly

Average Day of Clearance: N/A

Recipient: Department of Inspections and Appeals
% of Funds Agency Receives: 3.00

Component: Administrative Costs

Technique: Pre-Issuance

Average Day of Clearance: N/A

Recipient: lowa Workforce Development
% of Funds Agency Receives: 71.00
Component: Administrative Costs
Technique: Pre-lssuance

Average Day of Clearance: N/A

Recipient: lowa Workforce Development
% of Funds Agency Receives: 16.00
Component: Program Costs

Technique: Pre-Issuance

Average Day of Clearance: N/A

17.225S Unemployment Insurance -- State Benefit Account
Recipient: lowa Workforce Development

% of Funds Agency Receives: 100.00

Component: Program Costs.

Technique: Post-lssuance

Average Day of Clearance: N/A

20.205 Highway Planning and Construction
Recipient: Department of Transportation

% of Funds Agency Receives: 100.00
Component: Program Costs

Technique: Pre-issuance

Average Day of Clearance: N/A

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

% of Funds Agency Receives: 1.00

Component: Indirect Costs

Technique: Indirect Cost Rates - Actual Base - Monthly
Average Day of Clearance: N/A

Page 8 of 23



84.010

Title 1 Grants to Local

Department of Education

Administrative Costs

Pre-Issuance

Assistance (Presidentially
Declared Disasters)

Emergency Management
Division

1.00 N/A
Educational Agencies
84.010 | Title 1 Grants to Local Department of Education |98.0 | Program Costs Pre-lssuance N/A
Educational Agencies. 0
84.010 [Title 1 Grants to Local Department of Education | 1.00 | Indirect Costs Indirect Cost Rates - N/A
Educational Agencies Actual Base - Monthly
84.027 |Special Education -- Department of Education |3.00 |Administrative Costs Pre-issuance NIA
Grants to States
84.027 |Special Education ~ Department of Education |96.0 |Program Costs Pre-issuance NIA
Grants to States 0
84.027 |Special Education -- Department of Education |1.00 |Indirect Costs indirect Cost Rates - N/A
Grants to States Actual Base - Monthly
93.558 |Temporary Assistance for |Department of Human 3.00 |Program Costs Post-Issuance N/A
Needy Families Rights
93.558 |Temporary Assistance for | Department of Human 51,0 |Program Costs Post-issuance NIA
Needy Families Services 0
93.558 |Temporary Assistance for Department of Human 35.0 |Administrative Costs Cost Allocation Plans- |N/A
Needy Families Services 0 Administrative Costs- Bi-
weekly
93.558 | Temporary Assistance for|Department of Human 5.00 Indirect Costs Cost Allocation Plans- |N/A
Needy Families Services Indirect Costs - Bi-weekly
93.558 |Temporary Assistance for |lowa Workforce 4.00 |Administrative Costs Post-Issuance- N/A
Needy Families Development
93.558 | Temporary Assistance for|lowa Workforce 2.00 |Program Costs Post-issuance NIA
Needy Families Development
93.563  |Child Support Department of Human 95.0 | Administrative Costs ‘Cost Allocation Plans - N/A
Enforcement Services 0 Administrative Costs- Bi-
weekly
93.563 | Child Support Department of Human 5.00 | indirect Costs ‘Cost Allocation Plans - N/A
Enforcement Services Indirect Costs - Bi-weekly
93.568 {Low-Income Home Department of Human 1.00 |Administrative Costs /Pre-Issuance NIA
Energy Assistance Rights
93,568 —|Low-Income Home Department of Human 98.0 |Program Costs /Pre-issuance N/A
Energy Assistance Rights 0
93.568 |Low-income Home Department of Human 1.00 jindirect Costs Pre-issuance NIA
Energy Assistance Rights
93.575 |Child Care and Department of Human 91.0 |Program Post-Issuance NIA
Development Block Grant] Services (4)
93.575 |Child Care and Department of Human 7.00 | Administrative Costs Cost Allocation Plans- |N/A
Development Block Grant| Services Administrative Costs- Bi-
weekly
93.575 |Child Care and Department of Human 2.00 jIndirect Costs Cost Allocation Plans- |N/A
Development Block Grant| Services Indirect Costs - Bi-weekly
93.767 | Children's Health Department of Human ‘96.0 | Program Costs Post-Issuance N/A
Insurance Program Services. i}
193.767 |Children’s Health Department of Human —- {3.00 | Administrative Costs Cost Allocation Plans- |N/A
Insurance Program Services Administrative Costs- Bi-
lweekly
93.767 {Children's Health Department of Human 1.00 {Indirect Costs Cost Allocation Plans - |N/A.
Insurance Program Services Indirect Costs - Bi-weekly
93.778 |Medical Assistance Department of Human 96.0 }|Program Costs. Post-Issuance N/A
Program Services it}
93.778 |Medical Assistance Department of Human 3.00 |Administrative Costs Cost Allocation Plans - |N/A
Program Services Administrative Costs- Bi-
weekly
93.778 |Medical Assistance Department of Human 4.00 Indirect Costs Cost Allocation Plans - — |N/A
Program Services Indirect Costs - Bi-weekly
97.036 |Disaster Grants - Public |Homeland Security and {3.00 | Administrative Costs Pre-Issuance NIA

Page 22 of 23



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.

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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 (FUCA)
and any other accounts of Federal funds in the UTF, or the Federal %.

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

single deposit.

8.4.2 For each refund, the State shail 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:

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 Jess 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 fo interest calculation procedures, the resulting
interest liability calculations shall’be prorated to 100% of program funding.

8.5.2 In accordance with 31 CFR Section 205.10(b), the Secretary and the State agree that no interest liabilities will be
incurred or calculated for indirect costs and administrative costs grants. Due to the relatively minor nature of this
component and for the administrative convenience of the State, the Secretary and the State agree that interest shall not

Page 15 of 23



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

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

CT = Dollar-weighted average number of days Federal funds are held by State between. issuance and clearance of
checks, as determined by the appropriate clearance pattern in Exhibit II

8.7 Calculation Procedure - State Payroll Costs

The State is on a bi-weekly payroll system of payday being every other Friday. Consistent with the State's pre-issuance
requirements, the departments must have funds on hand by Tuesday to cover net pay, employer contributions, and
employee deductions.

Due to these administrative constraints, the State shall pay interest on direct cost payrolls for 4 days, The dollar-weighted
average clearance time for payroll clearance is calculated to be 3.50 calendar days. This calculation is

based on an analysis of the period of time from fund drawdown to warrant redemption or EFT payment and the period of
time the mandatory and discretionary deductions are held by a Centralized Payroll Trustee.

The State's interest liability for the payroll portion of all applicable administrative costs noted in 4.2 and 4.3 shall be
calculated by applying the following formula:

Pre-Issuance Time + Clearance Time in

P XrX (PI + CT) where

State's total interest liability for payroll portion —_ of administrative component of program

P = Total annual expenditures of Federal funds for payroll portion of administrative component of program

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

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

CT = Dollar-weighted average number of days Federal funds _ are held by State between issuance and clearance of
checks, as determined by the appropriate clearance _ pattern in Exhibit 1

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

40.1 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

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Department of Public Health

Department of Transportation

Homeland Security and Emergency Management Division
lowa Economic Development Authority

lowa Workforce Development

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: :

Bank of America 17.225F Unemployment Insurance -- Federal Benefit Account and Administrative Costs
_ Bank of America 17.225S Unemployment Insurance -- State Benefit Account
Conduent State & Local Solutions, Inc (formerly known as Xerox State & Local Solutions, Inc.) 10.551 Supplemental

Nutrition Assistance Program
Conduent State & Local Solutions, Inc (formerly known as Xerox State & Local Solutions, Inc.) 93.558 Temporary

Assistance for Needy Families
Solutran 10.557 Special Supplemental Nutrition Program for Women, Infants, and Children
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 shail request Federal funds in accordance with the appropriate cut-off times shown in Exhibit | to ensure
funds will be received and credited to a State account by the times specified in the funding techniques. Exhibit | is

incorporated by reference herein.

6.1.2 The State shall schedule the receipt of Federal funds such that the funds are received and credited to a State
account in accordance with the clearance patterns specified in Exhibit I - List of State Clearance Patterns. Exhibit il is

incorporated by reference herein.

6.1.3 In instances where the receipt of funds is scheduled for a Saturday, the State shall request funds for deposit on
Friday. In instances where the receipt of funds is scheduled for a Sunday, the State shall request funds for deposit on
Monday. In instances where the receipt of Federal funds is scheduled for deposit on a day when the State is not open for
business, the State shall request funds for deposit the day following the scheduled day; in instances where the receipt of
Federal funds is scheduled for deposit on a day when the Federal Government is not open for business, the State shall

request funds for deposit the day prior to the scheduled day.

6.1.4 Estimates and Reconciliation of Estimates:

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

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

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

Page 3 of 23



4.0 PROGRAMS COVERED

4.1 The State's threshold and its major Federal assistance programs shall be determined based on Single Audit for fiscal
year ending 06/30/2016.

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

4,2 The State's threshold for major Federal assistance programs is $38,302,031.
The following programs meet or exceed the threshold and are not excluded in Section 4.4:

10.551 Supplemental Nutrition Assistance Program

40.555 National School Lunch Program

10.557 Special Supplemental Nutrition Program for Women, Infants, and Children
14.228 Community Development Block Grants/State's Program

17.225F Unemployment Insurance -- Federal Benefit Account and Administrative Costs
17.225S Unemployment Insurance —- State Benefit Account

20.205 Highway Planning and Construction

84,010 Title | Grants to Local Educational Agencies

84.027 Special Education -- Grants to States

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

93.767 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:
There are currently no programs listed for Section 4.4.

5.0 ENTITIES COVERED

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

Department of Education

Department of Human Rights
Department of Human Services
Department of Inspections and Appeals
Department of Natural Resources

Page 2 of 23



7.1 The State shall develop separate clearance patterns for each of the following:
for the payroll portion of the administrative costs listed in Sections 4.2 and 4.3 of this Agreement.
7.2 The following shall develop the State's clearance patterns:

The Department of Administrative Services shal} develop the State's clearance pattems in accordance with 31 CFR
205.22.

7.3 The sources of data the State shall use when developing its clearance patterns are as follows:
Actual warrant redemption from the records of the State Treasurer as well as the State's accounting system.
7.4 The State shail 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 shail be subtracted from
the date the check cleared the State's account.

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

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

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

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

NONE

The State shall also adjust each clearance pattern to reflect:

NONE

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

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

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

Page 13 of 23



be incurred or calculated with regard to administrative costs other than payroll.

8.5.3 The State and the Secretary agree that WIC rebates are excluded from the interest provisions of this agreement if
they are retained and used for program purposes. In the event that the rebates are not used for program purposes, then
the provisions of Section 8.4 apply.

8.6 State Interest Liabilities

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

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

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

8.6.2.2 Source of Data

Central Accounting System:

The time period from receipt of Federal funds to the date of debit, shall be determined from information captured in the
State's centralized accounting system administered by the Department of Administrative Services and the State's warrant
redemption administered by the State Treasurer.

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 shail be randomly selected, and shall be of sufficient size to ensure, at a minimum, a 95%
confidence interval no wider than + 0.3 dollar-weighted days about the estimated mean. :

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

1 subtract the deposit date from the issuance date

2 multiply the difference of step 1 by the check amount

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

The State shall then sum the dollar-weighted pre-issuance time for each check to arrive at the total dollar-weighted
average pre-issuance time to be used for calculating State interest liabilities.

8.6.2.4 Calculation Procedure

Pre-Issuance Time + Clearance Time:
|=Pxrx {Pl + CT}, where

| = State's total interest liability
P = Total annual expenditures of Federal funds for program or component cash flow of program

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