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Cash Management Improvement Act Agreement

between

The State of Oklahoma

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 Oklahoma (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 Oklahoma shall be the State Comptroller of the Office of Management and Enterprise 

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, 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 07/01/2021 and shall remain in effect until 06/30/2022.

3.2 This Agreement may be amended at any time by written, mutual consent of the State and the Fiscal Service. This Agreement shall 

be amended annually to incorporate new programs that qualify as major Federal assistance programs and remove programs that no

longer qualify as major Federal assistance programs. A State must notify the Fiscal Service in writing within 30 days of the time the

State becomes aware of a change that involves additions or deletions of programs subject to Subpart A, changes in funding 

techniques, and/or changes in clearance patterns. The notification must include a proposed amendment for review by the Fiscal 

Service.

3.3 Notwithstanding section 3.2, in the event of Federal or State non-compliance with Subpart B of 31 CFR, Part 205, the Fiscal 

Service may amend this Agreement at any time to incorporate additional programs and the entities that administer those programs.

3.4 This Agreement may be terminated by either party with 30 days written notice. If this Agreement is terminated, the Fiscal 

Service will prescribe the funding techniques, clearance patterns, and methods for calculating interest liabilities to be used by the

State.

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4.0 PROGRAMS COVERED

4.1 The State's threshold and its major Federal assistance programs shall be determined based on the State's Schedule of 

Expenditures of Federal Awards for fiscal year ending 06/30/2020.

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

Agreement.

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

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

CFDA Program Name

10.551 Supplemental Nutrition Assistance Program

10.553 School Breakfast Program

10.555 National School Lunch Program

10.557 Special Supplemental Nutrition Program for Women, Infants, and 

Children

10.558 Child and Adult Care Food Program

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

17.225S Unemployment Insurance -- State Benefit Account

20.205 Highway Planning and Construction

64.015 Veterans State Nursing Home Care

84.010 Title I Grants to Local Educational Agencies

84.027 Special Education -- Grants to States

93.575 Child Care and Development Block Grant

93.658 Foster Care -- Title IV-E

93.659 Adoption Assistance

93.767 Children's Health Insurance Program

93.778 Medical Assistance Program

4.3 The following programs fall below the State's threshold but have been required to be covered by Fiscal Service in 

accordance with the non-compliance provisions of Subpart B of 31 CFR Part 205:

There are currently no programs listed for Section 4.3.

4.4 The following programs exceed the State's threshold but have been excluded from coverage for the reason indicated:

CFDA Program Name Exclusion Reason

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93.268 Immunization Grants Non-Cash

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 Health

Department of Human Services

Department of Transportation

Department of Veterans Affairs

Employment Security Commission

Health Care Authority

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

Xerox 10.551 Supplemental Nutrition Assistance 

Program

Xerox 10.557 Special Supplemental Nutrition Program 

for Women, Infants, and Children

Xerox 93.575 Child Care and Development Block Grant

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.

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6.1.5 Supplemental Funding:

Unless otherwise defined by program rules, Supplemental Funding is the award of additional funds to provide for an increase in 

costs due to unforeseen circumstances.

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

The State will comply with the following guidelines when requesting supplemental funding for the Medical Assistance Program 

and associated administrative payments (CFDA 93.778):

The State must submit a revised Medicaid Program Budget Report (CMS-37) to request supplemental funding. The CMS guidelines 

and instructions for completing the CMS-37 are provided in Section 2600F of the State Medicaid Manual (SMM). The CMS/CO must 

receive the revised Form CMS-37 through the Medicaid Budget Expenditure System/Children's Budget Expenditure System 

(MBES/CBES) no later than 10 calendar days before the end of the quarter for which the supplemental grant award is being 

requested.

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

Services.

The State will comply with the following guidelines when requesting supplemental funding for TANF (CFDA 93.558), CCDF 

(CFDA 93.575), CSE (93.563), and the FC/AA (CFDA 93.658 and CFDA 93.659) programs administered by the

U.S. Department of Human Services, Administration for Children and Families (HHS/ACF):

a. Timing of the Request

A State should initiate its request for supplemental funding during a quarter as soon as it becomes aware of the fact that a shortfall 

does/will exist. For the TANF and CCDF grants, supplemental funding requests (estimates) may be submitted by a State, for 

consideration by ACF, up through and including the 15th day of the third month of the first, second or third quarter of any fiscal year. 

Since TANF and CCDF are block grant programs, all unawarded portions of the annual allotment will automatically be issued at the 

beginning of the fourth quarter. Therefore, supplemental funding requests will not be available during the fourth quarter for these 

programs. For the CSE and FC/AA programs, supplemental funding requests may be submitted by a state, for consideration by ACF, 

up through and including the 15th day of the third month of any quarter of a fiscal year.

b. Justification for the Request

The request for a supplemental funding for any of the above-mentioned programs should contain a justification clearly documenting 

the need for the additional funding authority during the current quarter. This documentation should be in the form of State accounting 

records or similar documents that will show the actual expenditures through the most recent month for which such data are available, 

as well as the State's most accurate projection of its anticipated expenditures during the remaining month(s) of the quarter. For either 

the TANF or the CCDF program, the State's justification should also include an explanation of the activities requiring the obligation 

and/or expenditure of amounts that exceed the normal quarterly grant award restrictions and why these activities could not have been 

delayed until the next quarter.

c. Form Submittal

Supplemental funding requests should be made by completing the appropriate ACF quarterly report of expenditures and estimates

applicable to the particular program for which the grant award request is being made.

d. Approval Process

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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Additional guidance on this policy is provided in the U.S. Department of Health & Human Services, Administration for Children 

and Families, letter (May 19, 2004) to State Administrators from the Deputy Assistant Secretary for Administration.

6.2 Description of Funding Techniques

6.2.1 The following are terms under which standard funding techniques shall be implemented for all transfers of funds to which the 

funding technique is applied in section 6.3.2 of this Agreement.

Funding Technique Name Description

Actual Clearance, ZBA - ACH The State shall request funds such that they are deposited by ACH in a State account 

on the settlement date of payments issued by the State. The request shall be made in 

accordance with the appropriate Federal agency cut-off time specified in Exhibit I. 

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

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

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

appropriate Federal agency cut-off time specified in Exhibit I. A Federal agency will 

deposit funds in a State account the same day as requested. The amount of the request 

shall be for the amount of funds that clear the State's account that day. This funding 

technique is interest neutral.

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

clearance pattern specified in Exhibit II. The request shall be made in accordance with 

the appropriate Federal agency cut-off time specified in Exhibit I. The amount of the 

request shall be for the exact amount of that disbursement. This funding technique is 

interest neutral.

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

Cost Allocation - Actual - Biweekly Actual Allocation, Biweekly: The State shall request funds every two weeks, such 

that they are deposited during the first and third weeks of the month, to fund activity 

of the prior two weeks. The request shall be made in accordance with the appropriate 

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

given two week's activity shall be based on actual costs distributed in accordance with 

the State's approved cost allocation plan. This funding technique is interest neutral.

Cost Allocation - Actual - Quarterly Actual Allocation, Quarterly: The State shall request funds every quarter, such that 

they are deposited 45 days after the end of the quarter, to fund activity of the prior 

quarter. The request shall be made in accordance with the appropriate Federal agency 

cut-off time specified in Exhibit I. The amount of the request for a given quarter's 

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activity shall be based on actual costs distributed in accordance with the State's 

approved cost allocation plan. This funding technique is interest neutral.

Cost Allocation - Weekly - Variation #1 Weekly Allocation, Variation 1: The State shall request funds weekly to fund costs 

incurred. The request shall be made in accordance with the appropriate Federal 

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

actual Federal administrative costs incurred, based on expenditures of the prior week. 

The percentage of administrative costs for each week are attributable to each grant. 

Actual Clearance (0 Days). This funding technique is interest neutral.

Payment Schedule - Monthly - Variation #1 The State shall request funds such that they are deposited in a State account on the (A) 

to fund the costs incurred during that period. 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 (B) and adjusted to actual on a (C) basis.

A - 15th (or closest working day prior to the 15th)

B - an estimate based on the actual allocation of costs to the program for the 

preceding six months, or one-third the quarterly grant award

C - quarterly. This funding technique is interest neutral.

Payment Schedule - Monthly - Variation #5 The State shall request funds such that they are deposited in a State account (A) to 

provide per diem for the total days of care provided during that period. 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 (B) and adjusted to actual on 

a (C) basis.

A - no later than the last day of the current month following submission of the prior 

month's State Homes Report

B - the applicable per diem rate times the actual prior month's total days of care

C - not applicable. This funding technique is interest neutral.

Payment Schedule - Weekly - Variation #4 The State shall request funds such that they are deposited in a State account on the (A) 

to fund the costs incurred during that period. 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 (B) and adjusted to actual on a (C) basis.

A - a weekly basis such that they are deposited midweek

B - an estimate for the week

C - to reflect actual expenditures of the prior week. This funding technique is interest 

neutral.

Payment Schedule - Weekly - Variation #7 The State shall request funds such that they are deposited in a State account on the (A) 

to fund the costs incurred during that period. 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 (B) and adjusted to actual on a (C) basis.

A - midweek

B - prior week's costs

C - not applicable. 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

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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

Component: Program, EBT Component

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

10.553 School Breakfast Program

Recipient: Department of Education

% of Funds Agency Receives: 100

Component: Program

Technique: Average Clearance

Average Day of Clearance: 0 Days

10.555 National School Lunch Program

Recipient: Department of Education

% of Funds Agency Receives: 100

Component: Program

Technique: Average Clearance

Average Day of Clearance: 0 Days

10.557 Special Supplemental Nutrition Program for Women, Infants, 

and Children

Recipient: Department of Health

% of Funds Agency Receives: 77

Component: Program

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

10.557 Special Supplemental Nutrition Program for Women, Infants, 

and Children

Recipient: Department of Health

% of Funds Agency Receives: 12

Component: Payroll

Technique: Average Clearance

Average Day of Clearance: 1 Day

10.557 Special Supplemental Nutrition Program for Women, Infants, 

and Children

Recipient: Department of Health

% of Funds Agency Receives: 11

Component: Administrative, Nonpayroll

Technique: Payment Schedule - Weekly - Variation #4

Average Day of Clearance: 0 Days

10.558 Child and Adult Care Food Program

Recipient: Department of Education

% of Funds Agency Receives: 100

Component: Program

Technique: Average Clearance

Average Day of Clearance: 0 Days

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Employment Security Commission

% of Funds Agency Receives: 97

Component: Federal Benefits

Technique: Actual Clearance, ZBA - Same Day Payment

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Average Day of Clearance: 0 Days

17.225F Unemployment Insurance -- Federal Benefit Account and 

Administrative Costs

Recipient: Employment Security Commission

% of Funds Agency Receives: 3

Component: Administrative

Technique: Cost Allocation - Weekly - Variation #1

Average Day of Clearance: 0 Days

17.225S Unemployment Insurance -- State Benefit Account

Recipient: Employment Security Commission

% 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: Department of Transportation

% of Funds Agency Receives: 3

Component: Payroll

Technique: Cost Allocation - Actual - Biweekly

Average Day of Clearance: N/A

20.205 Highway Planning and Construction

Recipient: Department of Transportation

% of Funds Agency Receives: 5

Component: Debt Service

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

20.205 Highway Planning and Construction

Recipient: Department of Transportation

% of Funds Agency Receives: 92

Component: Contractor and Right of Way Payments

Technique: Payment Schedule - Weekly - Variation #7

Average Day of Clearance: 0 Days

64.015 Veterans State Nursing Home Care

Recipient: Department of Veterans Affairs

% of Funds Agency Receives: 91

Component: Program - Payroll

Technique: Payment Schedule - Monthly - Variation #5

Average Day of Clearance: N/A

64.015 Veterans State Nursing Home Care

Recipient: Department of Veterans Affairs

% of Funds Agency Receives: 9

Component: Program - Warrants

Technique: Payment Schedule - Monthly - Variation #5

Average Day of Clearance: N/A

84.010 Title I Grants to Local Educational Agencies

Recipient: Department of Education

% of Funds Agency Receives: 99

Component: Program

Technique: Average Clearance

Average Day of Clearance: 0 Days

84.010 Title I Grants to Local Educational Agencies

Recipient: Department of Education

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% of Funds Agency Receives: 1

Component: Payroll

Technique: Average Clearance

Average Day of Clearance: 0 Days

84.027 Special Education -- Grants to States

Recipient: Department of Education

% of Funds Agency Receives: 98

Component: Program

Technique: Average Clearance

Average Day of Clearance: 0 Days

84.027 Special Education -- Grants to States

Recipient: Department of Education

% of Funds Agency Receives: 2

Component: Payroll

Technique: Average Clearance

Average Day of Clearance: 0 Days

93.575 Child Care and Development Block Grant

Recipient: Department of Human Services

% of Funds Agency Receives: 100

Component: Daycare Payments, EBT Component

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

93.658 Foster Care -- Title IV-E

Recipient: Department of Human Services

% of Funds Agency Receives: 48

Component: Program

Technique: Payment Schedule - Monthly - Variation #1

Average Day of Clearance: 0 Days

93.658 Foster Care -- Title IV-E

Recipient: Department of Human Services

% of Funds Agency Receives: 52

Component: Administrative, Nonpayroll

Technique: Payment Schedule - Monthly - Variation #1

Average Day of Clearance: 0 Days

93.659 Adoption Assistance

Recipient: Department of Human Services

% of Funds Agency Receives: 37

Component: Program

Technique: Payment Schedule - Monthly - Variation #1

Average Day of Clearance: 0 Days

93.659 Adoption Assistance

Recipient: Department of Human Services

% of Funds Agency Receives: 63

Component: Administrative, Nonpayroll

Technique: Payment Schedule - Monthly - Variation #1

Average Day of Clearance: 0 Days

93.767 Children's Health Insurance Program

Recipient: Health Care Authority

% of Funds Agency Receives: 100

Component: Program - ACH Payments

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

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93.778 Medical Assistance Program

Recipient: Health Care Authority

% of Funds Agency Receives: 89

Component: Program - ACH Payments

Technique: Actual Clearance, ZBA - ACH

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Health Care Authority

% of Funds Agency Receives: 5

Component: Program - Warrants

Technique: Average Clearance

Average Day of Clearance: 4 Days

93.778 Medical Assistance Program

Recipient: Health Care Authority

% of Funds Agency Receives: .2

Component: Administrative, Payroll and Nonpayroll

Technique: Cost Allocation - Actual - Quarterly

Average Day of Clearance: 0 Days

93.778 Medical Assistance Program

Recipient: Health Care Authority

% of Funds Agency Receives: 5.8

Component: Administrative, Payroll and Nonpayroll

Technique: Payment Schedule - Monthly - Variation #1

Average Day of Clearance: 0 Days

6.3.3 Materiality Exemptions

Agencies exempt from coverage on the basis of materiality:

Office of Juvenile Affairs' portions of 84.010, 84.027, 93.658 and 93.778 were less than 5% of State's threshold.

Department of Health's portion of 93.767 was less than 5% of State's threshold.

Mental Health and Substance Abuse Services' portions of 93.767 and 93.778 were less than 5% of State's threshold.

6.4.0 In instances where a change in policy of the federal grantor agency may result in the state's inability to follow the 

stated funding techniques, the state may adjust the funding techniques as necessary to maintain the interest neutral 

status provided by the stated funding techniques.

7.0 CLEARANCE PATTERNS

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

The State may develop a separate clearance pattern for an individual program, or develop a composite clearance pattern for a logical 

group of programs, or develop a clearance pattern on another basis acceptable to the Bureau of the Fiscal Service. The State shall 

ensure that a clearance pattern accurately represents the flow of Federal funds and that a clearance pattern reflects seasonal or other 

periodic variations in clearance activity.

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

The State will develop the State's clearance patterns. The records of the Office of Management and Enterprise Services will serve as the 

system of record for sampling data. Supplemental data from the Oklahoma State Treasurer and the recipient agency will be utilized.

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

Development of clearance patterns will be based on data from at least 3 consecutive months; based on 100 percent of the data, or on a 

sample size sufficient to ensure, at a minimum, a 96 percent confidence interval for a plus or minus .25% weighted-day level of 

precision; and truncated at no less than 99 percent of disbursement dollars.

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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:

None

The State shall also adjust each clearance pattern to reflect:

Not Applicable

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

7.9 An authorized State official shall certify that each clearance pattern developed by the State accurately corresponds to the 

clearance activity of the programs to which it is applied. This certification shall be provided to the Fiscal Service prior to the 

effective date of the Agreement. The State shall recertify its clearance patterns at least every five years.

7.10 The State shall follow the procedures of 31 CFR 205 if it has actual or constructive knowledge, at any time, that a clearance 

pattern does not correspond to a program's clearance activity.

8.0 INTEREST CALCULATION METHODOLOGY

8.1 General Terms

8.1.1 The State and the Secretary agree that no interest liabilities will be incurred for transfers of funds made in accordance 

with the procedures specified in section 6 of this Agreement where the following funding techniques are applied:

Actual Clearance, ZBA - ACH

Actual Clearance, ZBA - Same Day Payment

Average Clearance

Cost Allocation - Actual - Biweekly

Cost Allocation - Actual - Quarterly

Cost Allocation - Weekly - Variation #1

Payment Schedule - Monthly - Variation #1

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Payment Schedule - Monthly - Variation #5

Payment Schedule - Weekly - Variation #4

Payment Schedule - Weekly - Variation #7

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:

The State shall track the actual cash activity for each Federal program by its own account. A negative cash balance at the close of 

business indicates the State paid out its own funds for program purposes in the absence of supporting Federal funds. The Federal 

interest liability shall be calculated by applying the daily interest to a program's negative cash balance.

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:

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 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 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. If bank charges exceed interest earned, the state will 

incur no liability.

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 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 

fiscal year.

8.4 Refund Liabilities

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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 Non-Interest Neutral Programs - Liability Captured Manually by Each Agency:

For programs to which applicable non-interest neutral funding techniques are applied, each State agency shall maintain records 

identifying:

(1) the date of the refund

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

(3) the check issue date for the disbursement related to the subsequent deposit of Federal funds

(4) the amount of the refund

Interest shall be calculated based on the difference in whole days between the date the refund is deposited in a State account and the 

date the refund is paid out for program purposes. The State shall measure this period by dividing it into three periods: the pre-offset 

period, the pre-disbursement period, and the clearance period.

The pre-offset period is from deposit of the refund to the subsequent deposit of Federal funds against which the refund is offset. The 

pre-disbursement period is from the deposit of Federal funds against which the refund is offset to the issuance of checks, as measured 

by period one calculations. The clearance period is from the issuance of checks to the clearance of checks.

8.5 Exemptions

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

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

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

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

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

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

8.6 State Interest Liabilities

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

date those funds are paid out for program purposes.

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

8.6.2.1 Measuring Time Funds Are Held

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

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

8.6.2.2 Source of Data

The time period from deposit to clearance shall be determined from information captured by each state agency.

8.6.2.3 Standards Applied

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For interest calculation the average daily balance of Federal funds in the program's account reflects balances created from the date of 

deposit to the date funds are paid out when procedures listed in section 6 are not applied and/or when the preissuance funding technique 

is applied. The State interest liability shall begin on the day Federal funds are deposited as stated in section 6.3 and the State does not 

pay out as stated in section 6.3.

8.6.2.4 Calculation Procedure

I = ADB x R, where

I = State's total interest liability

ADB = Average Daily Balance of cash in a program's account, measured from deposit to clearance

R = Annualized rate equal to the average equivalent yields of 13-week Treasury bills auctioned during a State's fiscal year

8.7.0 The State will not incur an interest liability to the Federal Government on WIC rebate funds provided that all interest 

earned by the State on these funds is used for program purposes.

9.0 REVERSE FLOW PROGRAMS

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

the State's threshold.

10.0 INTEREST CALCULATION COSTS

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

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

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

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

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

the annual report.

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

Average Daily Balance Software (including computer programming, data entry of interest events, and machine usage), Review of 

interest calculation, and Preparation of Annual Report.

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

CFR 205.

11.0 NON-COMPLIANCE

11.1 The provisions of 31 CFR Part 205.29 and 31 CFR Part 205.30 shall apply in cases of non-compliance with the terms of 

this Agreement.

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12.0 AUTHORIZED SIGNATURES

Lynne Bajema

State Comptroller, Office of Management and Enterprise Services

Signature: Date Signed:

Date Submitted 6/17/2021

Sandra R. Paylor

Acting Assistant Commissioner

Revenue Collections Management

Bureau of the Fiscal Service

U.S. Department of the Treasury

Signature: Date Signed:

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6/25/2021

6/28/2021
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Exhibit I - Funds Request and Receipt Times Schedule

State of Oklahoma

Federal Agency Payment Type Request Cut-Off Time Receipt Window

Agriculture-FNS ACH 11:59 PM 1 day

Agriculture-FNS Fedwire 5:45 PM 0 day

Agriculture-FS ACH 3:00 PM 1 day

Air National Guard ACH 12:00 PM 15 days

Army National Guard ACH 12:00 PM 15 days

Commerce-NOAA ACH 2:00 PM 1 day

Dept of Homeland Security (FEMA) Fedwire 2:00 PM 2 days

Dept of Homeland Security (ODP) ACH 2:00 PM 2 days

Dept of Homeland Security (ODP) Fedwire 2:00 PM 2 days

EPA ACH 2:00 PM 2 days

EPA Fedwire 2:00 PM 0 day

Education ACH 3:00 PM 1 day

Education Fedwire 2:00 PM 0 day

Energy ACH 4:00 PM 1 day

Energy Fedwire 3:00 PM 0 day

HHS ACH 5:00 PM 1 day

HHS Fedwire 3:00 PM 0 day

HUD ACH 5:30 PM 2 days

HUD Fedwire 3:00 PM 0 day

Interior-FWS ACH 11:59 PM 1 day

Interior-FWS Fedwire 5:45 PM 0 day

Interior-OSM ACH 3:00 PM 1 day

Interior-OSM Fedwire 1:00 PM 0 day

Justice ACH 11:00 PM 6 days

Justice Fedwire 2:00 PM 2 days

Labor-Non-UTF ACH 3:00 PM 1 day

Labor-UTF ACH 3:00 PM 1 day

Labor-UTF Fedwire 3:00 PM 0 day

National Science Foundation (NSF) ACH 8:00 PM 1 day

National Science Foundation (NSF) Fedwire 5:45 PM 0 day

Social Security Administration ACH 11:59 PM 1 day

Social Security Administration Fedwire 5:45 PM 0 day

Transportation (FAA) ACH 2:00 PM 1 day

Transportation (FHWA) ACH 12:00 PM 3 days

Transportation (FHWA) Fedwire 12:00 PM 0 day

Transportation (FTA) ACH 2:00 PM 1 day

Veterans Administration ACH 12:00 PM 3 days

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Exhibit II - State of Oklahoma

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 

Nutrition 

Assistance 

Program

Department of 

Human Services

100.0 Program, EBT 

Component

Actual Clearance, 

ZBA - ACH

N/A

10.553 School Breakfast 

Program

Department of 

Education

100.0 Program Average Clearance N/A

10.555 National School 

Lunch Program

Department of 

Education

100.0 Program Average Clearance N/A

10.557 Special 

Supplemental 

Nutrition Program 

for Women, 

Infants, and 

Children

Department of 

Health

77.0 Program Actual Clearance, 

ZBA - ACH

N/A

Special 

Supplemental 

Nutrition Program 

for Women, 

Infants, and 

Children

Department of 

Health

12.0 Payroll Average Clearance N/A

Special 

Supplemental 

Nutrition Program 

for Women, 

Infants, and 

Children

Department of 

Health

11.0 Administrative, 

Nonpayroll

Payment Schedule -

Weekly - Variation 

#4

N/A

10.558 Child and Adult 

Care Food 

Program

Department of 

Education

100.0 Program Average Clearance N/A

17.225

F

Unemployment 

Insurance --

Federal Benefit 

Account and 

Administrative 

Costs

Employment 

Security 

Commission

97.0 Federal Benefits Actual Clearance, 

ZBA - Same Day 

Payment

N/A

Unemployment 

Insurance --

Federal Benefit 

Account and 

Administrative 

Costs

Employment 

Security 

Commission

3.0 Administrative Cost Allocation -

Weekly - Variation 

#1

N/A

17.225

S

Unemployment 

Insurance -- State 

Benefit Account

Employment 

Security 

Commission

100.0 State Benefits Actual Clearance, 

ZBA - Same Day 

Payment

N/A

20.205 Highway Planning 

and Construction

Department of 

Transportation

3.0 Payroll Cost Allocation -

Actual - Biweekly

N/A

Highway Planning 

and Construction

Department of 

Transportation

5.0 Debt Service Actual Clearance, 

ZBA - ACH

N/A

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Highway Planning 

and Construction

Department of 

Transportation

92.0 Contractor and Right 

of Way Payments

Payment Schedule -

Weekly - Variation 

#7

N/A

64.015 Veterans State 

Nursing Home 

Care

Department of 

Veterans Affairs

91.0 Program - Payroll Payment Schedule -

Monthly - Variation 

#5

N/A

Veterans State 

Nursing Home 

Care

Department of 

Veterans Affairs

9.0 Program - Warrants Payment Schedule -

Monthly - Variation 

#5

N/A

84.010 Title I Grants to 

Local Educational 

Agencies

Department of 

Education

99.0 Program Average Clearance N/A

Title I Grants to 

Local Educational 

Agencies

Department of 

Education

1.0 Payroll Average Clearance N/A

84.027 Special Education 

-- Grants to States

Department of 

Education

98.0 Program Average Clearance N/A

Special Education 

-- Grants to States

Department of 

Education

2.0 Payroll Average Clearance N/A

93.575 Child Care and 

Development 

Block Grant

Department of 

Human Services

100.0 Daycare Payments, 

EBT Component

Actual Clearance, 

ZBA - ACH

N/A

93.658 Foster Care --

Title IV-E

Department of 

Human Services

48.0 Program Payment Schedule -

Monthly - Variation 

#1

N/A

Foster Care --

Title IV-E

Department of 

Human Services

52.0 Administrative, 

Nonpayroll

Payment Schedule -

Monthly - Variation 

#1

N/A

93.659 Adoption 

Assistance

Department of 

Human Services

37.0 Program Payment Schedule -

Monthly - Variation 

#1

N/A

Adoption 

Assistance

Department of 

Human Services

63.0 Administrative, 

Nonpayroll

Payment Schedule -

Monthly - Variation 

#1

N/A

93.767 Children's Health 

Insurance 

Program

Health Care 

Authority

100.0 Program - ACH 

Payments

Actual Clearance, 

ZBA - ACH

N/A

93.778 Medical 

Assistance 

Program

Health Care 

Authority

89.0 Program - ACH 

Payments

Actual Clearance, 

ZBA - ACH

N/A

Medical 

Assistance 

Program

Health Care 

Authority

5.0 Program - Warrants Average Clearance 4 Days

Medical 

Assistance 

Program

Health Care 

Authority

0.2 Administrative, 

Payroll and 

Nonpayroll

Cost Allocation -

Actual - Quarterly

N/A

Medical 

Assistance 

Program

Health Care 

Authority

5.8 Administrative, 

Payroll and 

Nonpayroll

Payment Schedule -

Monthly - Variation 

#1

N/A

Certification

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

in Exhibit 2 of this Treasury-State Agreement:

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

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

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

4. Are auditable.

Date: 

Printed Name: 

Certifying Signature: 

Title: 

DocuSign Envelope ID: 30653E19-AA92-4C30-AFAA-12643538C872

Lynne Bajema

6/25/2021

State Comptroller
Page 20 of 20

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