Cash Management Improvement Act Agreement
between
The Commonwealth of Virginia
and
The Secretary of the Treasury,
United States Department of the Treasury
DocuSign Envelope ID: B2916582-760E-4A18-8DD7-E4B1458547BB
The Secretary of the Treasury, United States Department of the Treasury (hereafter 'Secretary'), and Commonwealth of Virginia
(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 Commonwealth of Virginia shall be the Comptroller of Virginia 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 07/01/2024 and shall remain in effect until 06/30/2025.
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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3.5.0
Virginia monitors check clearance patterns monthly and calculates a dollar weighted average for the latest 3-month
and 12-month periods to accommodate seasonal variation. Clearance patterns often fluctuate by one or more days
(rounded) during the year. To avoid having to submit unnecessary formal TSA amendments, Virginia agrees to
submit a formal TSA amendment to address clearance pattern changes as follows:
Whenever the latest clearance pattern analysis indicates that the current federal drawdown is one or more days less
than the scheduled days shown in the Exhibit II of the approved TSA, Virginia will continue to monitor the
clearance pattern to determine if the change is due to a seasonal variation. Only when it has been determined that
the change is not a result of a seasonable variation and is one or more days less than the scheduled days shown in
the approved TSA will Virginia submit a formal amendment because only more frequent federal drawdowns
change cash availability at the Federal Grantor Agency.
Virginia will notify affected state agencies to adjust the timing of Federal fund transfers to be as close as
administratively feasible to the State's actual cash outlay for direct program costs. Such notifications shall be made
by the Virginia Department of Accounts (DOA) based on not less than the most recent three consecutive months of
disbursement data provided by the bank.
3.6.0
Significant delays in the receipt of federal funds, reported to DOA, that are not otherwise captured by the annual
modified pre- issuance funding random sampling process will be included separately in the State's Annual Report
to the Fiscal Service. The interest costs associated with these delays will be included for consideration by the
Secretary as an offset to the State's overall annual interest liability.
3.7.0
Payments of federal funds to vendor State entities for goods or services rendered, including payments into Internal
Service Funds or Enterprise Funds within the State's Annual Comprehensive Financial Report, are considered to be
paid out for federal assistance program purposes pursuant to the definitions in 31 CFR 205.2.
3.8.0
This writing, along with the attachments referenced herein, constitutes the entire Agreement between the parties,
supersedes any existing agreement between the parties hereto relative to the matters contained herein, and may be
modified only by written amendment executed by the parties hereto. The parties hereto agree that if one party
proposes an amendment, the other party shall respond in writing within 30 days of its receipt of the proposed
amendment.
3.9.0
The laws of the Commonwealth of Virginia will govern this Agreement whenever State law is to be applied.
4.0 PROGRAMS COVERED
4.1 The State's threshold and its major Federal assistance programs shall be determined based on the Commonwealth's Single
Audit Report for fiscal year ending 06/30/2023.
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 $84,299,977.
The following programs meet or exceed the threshold and are not excluded in Section 4.4:
CFDA
Program Name
10.542
Pandemic EBT Food Benefits
10.551
Supplemental Nutrition Assistance Program
10.553
School Breakfast Program
10.555
National School Lunch Program
10.557
Special Supplemental Nutrition Program for Women, Infants, and
Children
10.561
State Administrative Matching Grants for the Supplemental
Nutrition Assistance Program
17.225F
Unemployment Insurance -- Federal Benefit Account and
Administrative Costs
17.225S
Unemployment Insurance -- State Benefit Account
20.205
Highway Planning and Construction
84.010
Title I Grants to Local Educational Agencies
84.027
Special Education -- Grants to States
84.425
Education Stabilization Fund
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93.323
Epidemiology and Laboratory Capacity for Infectious Diseases
(ELC)
93.558
Temporary Assistance for Needy Families
93.568
Low-Income Home Energy Assistance
93.575
Child Care and Development Block Grant
93.659
Adoption Assistance
93.767
Children's Health Insurance Program
93.778
Medical Assistance Program
97.036
Disaster Grants - Public Assistance (Presidentially Declared
Disasters)
4.3 The following programs fall below the State's threshold but have been required to be covered by Fiscal Service in
accordance with the non-compliance provisions of Subpart B of 31 CFR Part 205:
There are currently no programs listed for Section 4.3.
4.4 The following programs exceed the State's threshold but have been excluded from coverage for the reason indicated:
CFDA
Program Name
Exclusion Reason
84.063
Federal Pell Grant Program
Non-State
84.268
Federal Direct Student Loan
Non-State
93.268
Immunization Cooperative Agreements
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 Behavioral Health and Developmental Services (DBHDS)
Department of Education (DOE)
Department of Emergency Management (DEM)
Department of General Services (DGS)
Department of Health (VDH)
Department of Housing and Community Development (DHCD)
Department of Medical Assistance Services (DMAS)
Department of Rail and Public Transportation (DRPT)
Department of Social Services (DSS)
Department of Transportation (VDOT)
Virginia Employment Commission (VEC)
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
Conduent
10.551
Supplemental Nutrition Assistance
Program
Conduent State Healthcare, LLC
93.767
Children's Health Insurance Program
Conduent State Healthcare, LLC
93.778
Medical Assistance Program
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.
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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.
DocuSign Envelope ID: B2916582-760E-4A18-8DD7-E4B1458547BB
6.1.3 In instances where the receipt of funds is scheduled for a Saturday, the State shall request funds for deposit on Friday. In
instances where the receipt of funds is scheduled for a Sunday, the State shall request funds for deposit on Monday. In instances
where the receipt of Federal funds is scheduled for deposit on a day when the State is not open for business, the State shall request
funds for deposit the day following the scheduled day; in instances where the receipt of Federal funds is scheduled for deposit on a
day when the Federal Government is not open for business, the State shall request funds for deposit the day prior to the scheduled
day.
6.1.4 Estimates and Reconciliation of Estimates:
Where estimated expenditures are used to determine the amount of the drawdown, the State will indicate in the terms of the State
unique funding technique how the estimated amount is determined and when and how the State will reconcile the difference
between the estimate and the State's actual expenditures.
6.1.5 Supplemental Funding:
Unless otherwise defined by program rules, Supplemental Funding is the award of additional funds to provide for an increase in
costs due to unforeseen circumstances.
The State will comply with all Federal program agency policies and procedures for requesting supplemental grant funding.
The State will comply with the following guidelines when requesting supplemental funding for the Medical Assistance Program
and associated administrative payments (CFDA 93.778):
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
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records or similar documents that will show the actual expenditures through the most recent month for which such data are available,
as well as the State's most accurate projection of its anticipated expenditures during the remaining month(s) of the quarter. For either
the TANF or the CCDF program, the State's justification should also include an explanation of the activities requiring the obligation
and/or expenditure of amounts that exceed the normal quarterly grant award restrictions and why these activities could not have been
delayed until the next quarter.
c. Form Submittal
Supplemental funding requests should be made by completing the appropriate ACF quarterly report of expenditures and estimates
applicable to the particular program for which the grant award request is being made.
d. Approval Process
Upon receipt of the state's request for additional funding authority for a quarter, the ACF Regional Office will promptly review the
supporting documentation. If the request is properly justified, so long as ACF has adequate funding availability, the State's request
will be expedited and supplemental funding will be issued within 5 days of ACF receiving the request. The State will be notified by
the Regional Office when the supplemental award has been transmitted to the Payment Management System (PMS) and when it
may initiate drawdowns against the supplemental funding.
Additional guidance on this policy is provided in the U.S. Department of Health & Human Services, Administration for Children
and Families, letter (May 19, 2004) to State Administrators from the Deputy Assistant Secretary for Administration.
6.2 Description of Funding Techniques
6.2.1 The following are terms under which standard funding techniques shall be implemented for all transfers of funds to which the
funding technique is applied in section 6.3.2 of this Agreement.
There are currently no funding techniques listed in Section 6.2.1.
6.2.2 The following are terms under which funding techniques for administrative costs shall be implemented for all transfers
of funds to which the funding technique is applied in section 6.3.2 of this Agreement.
There are currently no funding techniques listed in Section 6.2.2.
6.2.3 The following are terms under which miscellaneous funding techniques shall be implemented for all transfers of funds to
which the funding technique is applied in section 6.3.2 of this Agreement.
There are currently no funding techniques listed in Section 6.2.3.
6.2.4 The following are terms under which State unique funding techniques shall be implemented for all transfers of funds to which
the funding technique is applied in section 6.3.2 of this Agreement.
Funding Technique Name
Description
Actual Base Modified Monthly
(DOE 84.010, 84.027, 84.425, and 93.575), (VDH 10.557) The State shall request
funds once each month, such that they are deposited not earlier than the 25th of the
month, and not later than the end of the month. The request shall be made in
accordance with the appropriate Federal agency cut-off time specified in Exhibit I and
the State clearance days shown in Exhibit II. The amount of the request shall be
determined by applying the indirect cost rate to the total prior month cost of salaries,
fringe benefits, travel, materials, supplies, freight and express services, postal services,
printing and reproduction, organization memberships, and convention and education
services. This funding technique is interest neutral.
Actual Clearance: CDA for EFT Payments
by the Fiscal Agent
(DMAS 93.767, 93.778) In a Controlled Disbursement Account (CDA) for EFT
Payments by the Fiscal Agent, the State shall request funds the same day that it pays
out funds in accordance with the cut-off time specified in Exhibit I and the State
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clearance days shown in Exhibit II. HHS will deposit the 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 bank by EFT that day. This funding technique is interest neutral.
Actual Clearance: ZBA
(DOE 10.553, 10.555, 84.010, 84.027, 84.425, and 93.575) For the program
components called Weekly EDI Payments to Local Governments, the Virginia
Department of Education (DOE) shall request funds such that they are deposited in a
State account on the settlement date of the EDI payments issued by the State to local
governments. The request shall be made in accordance with the appropriate Federal
agency cut-off time specified in Exhibit I and the State clearance days shown in
Exhibit II. The amount of the request shall be for the amount of the EDI payments that
clear the State's account on the settlement date. DOE shall maintain an audit trail of
the request dates and the amounts requested and deposit dates and the amounts
deposited. If it is determined that the Federal government is the cause of a late
payment, the State is owed interest from the day the State pays out its own funds until
the day Federal funds are deposited in a State account. This funding technique is
interest neutral.
Actual Costs - Estimated Allocation (Semi-
Monthly)
(DSS 10.561, 93.558, 93.568, and 93.659) The State shall request funds at semi-
monthly intervals, such that funds are deposited on or about the 1st and the 16th of the
month. The request shall be made in accordance with the appropriate Federal agency
cut-off time specified in Exhibit I and the State clearance days shown in Exhibit II.
The amount of the request shall be an estimated allocation derived from prior quarter
data as allocated based on the Cost Allocation Plan. Each quarter, after actual costs
have been determined, the State shall adjust the estimated allocations to actual
allocations based on an approved cost allocation plan. This funding technique is
interest neutral.
Actual Costs - Estimated Allocation Monthly
(DSS 10.561, 93.558, 93.568, and 93.659), (DBHDS, DSS 93.778) The State shall
request funds once a month such that the funds are deposited on the fifth business day
before the end of the month to fund the activities of the prior month for Local
Department of Social Services (LDSS) expenditures. The request shall be made in
accordance with the appropriate Federal agency cut-off time specified in Exhibit I and
the State clearance days shown in Exhibit II. The amount of each monthly request
shall be an estimated allocation derived from prior quarter data as allocated based on
the Cost Allocation Plan. Each quarter, after actual costs have been determined, the
State shall adjust the estimated allocations to actual allocations based on an approved
cost allocation plan. This funding technique is interest neutral.
Annually
(DMAS 93.767, 93.778) The Commonwealth shall draw down statewide indirect costs
once a year, upon receipt of the federally approved amount from DOA. The request
shall be made in accordance with the appropriate agency cut-off time specified in
Exhibit I and the State clearance days shown in Exhibit II. This funding technique is
interest neutral.
Average Clearance Funding Technique for
(DMAS 93.767, 93.778) The Medicaid/ Children's Health Insurance Program (CHIP)
the Medicaid/CHIP Combined Account
programs use a combined bank account for weekly remittance checks issued on a
fixed weekly schedule by the Department of Medical Assistance Services (DMAS)
Fiscal Agent. Checks issued by the DMAS Fiscal Agent exclude DMAS Fiscal Agent
manual remittance check payments and EFT transfers.
For weekly remittance checks issued each Friday by the DMAS Fiscal Agent, the
State shall request funds as a single weekly drawdown request for deposit on the
dollar-weighted average day of check clearance. The request for Federal funds shall be
made in accordance with the appropriate agency cut-off time specified in Exhibit I and
the State clearance days shown in Exhibit II. In the event that the check clearance
pattern should change to a day less than that shown in Exhibit II, DMAS will notify
the Department of Accounts (DOA) that it needs to adjust the drawdown to one day
less than that shown in Exhibit II to avoid having the account go negative. The
clearance pattern calculation will be based upon the latest 3 months. DOA will review
the new check clearance pattern calculation and confirm to DMAS that it can begin
drawing down funds on the lower day. DOA will notify the Bureau of the Fiscal
Service of any changes. Any said clearance pattern changes by DMAS and confirmed
by DOA will not require the submission of a formal amendment to the TSA. Per
§205.12 (3) of the Federal CMIA regulations, the dollar-weighted average day of
clearance is the day when, on a cumulative basis, 50 percent of the funds have been
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paid out. To comply with §205.12 (3), DMAS shall determine the dollar-weighted
average day of check clearance, Department of Accounts (DOA) concurring, from the
latest three consecutive months of bank float reports for the Combined
Medicaid/CHIP bank account. The bank provides monthly float reports to the DMAS
Fiscal Agent who forwards them to DMAS and DOA. This funding technique is
interest neutral.
Average Clearance Technique for
(DSS 93.558, 93.568) For the direct cost components in the Temporary Assistance for
Maintenance Payments to Beneficiaries
Needy Families (TANF) and Low-Income Home Energy Assistance Program
(LIHEAP) programs (CFDA #'s 93.558 and 93.568), the State shall request funds for
deposit on the dollar weighted average number of days required for related funds to
clear the bank. The request shall be made in accordance with the appropriate agency
cut-off time specified in Exhibit I and the State clearance days shown in Exhibit II.
The check issuance dates are set by DSS. The monthly dollar weighted average
number of days from the check issuance date to the bank clearance date for social
service benefits is calculated by the bank, and distributed to DOA. DOA shall prepare
and advise DSS of the dollar weighted average clearance days to be used for timing
the drawdown of Federal TANF and LIHEAP funds. This estimate shall be based on
not less than three consecutive months of disbursement data provided by the bank.
This funding technique is interest neutral.
Fixed Administrative Allowance (Semi-
monthly Payroll)
(VEC 17.225F) The State shall make semi-monthly requests for payroll funds such
that they are deposited by ACH on the average day of clearance for the payroll in
accordance with the statewide payroll check clearance pattern, modified by the
percentage of payroll direct deposits for VEC. The request for funds shall be made in
accordance with the appropriate Federal agency cut-off time specified in Exhibit I and
the State clearance days shown in Exhibit II. The amount of the request for funds shall
be the estimated payroll portion of the annual grant award. The estimate of the payroll
portion shall be based upon the actual proportion of payroll costs to total grant costs in
the previous quarter. After reconciling the difference between the estimate and the
State's actual expenditures, at the end of each quarter, the agency recalculates its
quarterly drawdown schedule. This schedule compares the cumulative year to date and
quarterly expenditures. Any overage/shortage is taken into consideration during the
recalculation for future payrolls. VEC submits electronic reports to the U. S.
Department of Labor quarterly that include cash receipts and expenditure data that is
reconciled to VEC's internal records. This funding technique is interest neutral.
Modified Pre-Issuance Funding
(DMAS 93.767, 93.778), (VDH 10.557) The Commonwealth shall request Federal
funds so that they are deposited not more than three business days prior to the day on
which the related expenditure is recorded in the Commonwealth's Accounting System
(Cardinal), and not later than the day the related payment is issued by the
Commonwealth. The request shall be made in accordance with the appropriate agency
cut-off time specified in Exhibit I and the State clearance days shown in Exhibit II.
The amount of the request should be the amount that the State expects to disburse.
Under this modified pre-issuance funding technique, Federal funds may be deposited
after the related expenditure recording date in Cardinal, provided sufficient Federal
cash was on hand at the time the related expenditure was released into Cardinal. This
funding technique is not interest neutral.
Payment Schedule (Semi-monthly
Nonpersonal Services)
(VEC 17.225F) The State shall request funds such that they are deposited in a State
account on semimonthly paydays. The request shall be made in accordance with the
appropriate Federal agency cut-off time specified in Exhibit I and the State clearance
days shown in Exhibit II. The amount of the request for funds shall be the estimated
nonpersonal services portion of the obligated expenditures applied to the annual grant
award with the exception of large invoices being submitted (such as automation
money) which will be requested when expended. The estimate of the nonpersonal
services portion shall be based upon the actual proportion of nonpersonal service costs
to total grant costs. The VEC will reconcile the difference between the estimate and
the State's actual expenditures, at the end of each month. Any overage/shortage is
taken into consideration during the calculation on the first drawdown of the month.
VEC submits electronic reports to the U.S. Department of Labor quarterly that include
cash receipts and expenditure data that is reconciled to VEC's internal records.
An interest liability will not be incurred by using this technique. This funding
technique is interest neutral.
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Payment Schedule Two-Week Intervals
(DOE 93.575) The State shall draw down 1/6th of the quarterly award at two-week
intervals at the midpoint of interval, which is on or about the 1st and the 16th of the
month. The request shall be made in accordance with the appropriate cutoff time
specified in Exhibit I and the State clearance days shown in Exhibit II. The
semimonthly amount drawn will be 1/6th of the quarterly award. This funding
technique is interest neutral.
Post Expenditure Funding
(DOE 10.555, 84.010, 84.027, 84.425, and 93.575), (DSS 10.561, 93.558, 93.568, and
93.659),(VDOT, DRPT 20.205),(DEM, VDH 97.036),(DGS, VDH 93.323), (VDH
10.557) The State shall request Federal funds only after related expenditures have
been recorded in the Commonwealth's Accounting System (Cardinal). The request
shall be made in accordance with the appropriate agency cut-off time specified in
Exhibit I and the State clearance days shown in Exhibit II. When using this funding
technique, neither the State nor the Federal government shall be required to calculate
or incur an interest liability. The State voluntarily waives Federal interest liabilities
resulting from the post expenditure funding technique. This funding technique is
interest neutral.
Proportionate Share
(VEC 17.225F) The State shall include a proportionate share of the indirect cost
allowance in each request for funds by applying the indirect cost rate to the
appropriate direct cost base (usually salaries and wages) of each drawdown. The
request shall be made in accordance with the appropriate agency cut-off time specified
in Exhibit I and the State clearance days shown in Exhibit II. Indirect Costs are
excluded from interest liabilities per Section 3.5 of this Agreement. This funding
technique is interest neutral.
ZBA - SNAP Benefits
(DSS 10.542, 10.551) Electronic Benefit Transfer (EBT) Funding: Conduent will
draw down federal funds from the Supplemental Nutrition Assistance Program
(SNAP) letter of credit through ASAP to cover the amount of EBT transactions being
settled that day. The request shall be made in accordance with the appropriate agency
cut-off time specified in Exhibit I and the State clearance days shown in Exhibit II.
Funds from the ASAP payment request are wired by Federal Reserve Bank of
Richmond (FRB Richmond) to the VA EBT Clearing account. EDS provides an auto-
reconciliation file to Conduent on a daily basis that is used to reconcile the draw down
against the amount of the ACH debit, and adjustments are netted against the next
subsequent payment request. This funding technique is interest neutral.
ZBA - UI Benefits-ACH
(VEC 17.225F, 17.225S) EFT payments are estimated at more than 99.56% of total
Unemployment Insurance benefits. For payments to recipients in the Unemployment
Insurance (UI) Benefits Program by electronic funds transfer (EFT) that are received
by the Trust Fund accountant by 12 noon each business day, VEC shall request State
and Federal Funds such that they are deposited in the benefit account on the respective
settlement date(s) of the EFT payments to recipients. The request shall be made in
accordance with the appropriate agency cut-off time specified in Exhibit I and the
State clearance days shown in Exhibit II. The amount of the request for Federal and
State unemployment benefits shall be based on the amount of payments presented for
payment that day as reported by the bank. The Bureau of the Fiscal Service will
deposit the funds in the State account the same day as requested. The drawdown
request shall be adjusted by any refunds in accordance with Section 8.8.4 of the TSA.
Federal expenditures are reconciled quarterly through the federal ETA 191 report
which shows benefit expenditures for each federal agency. The total for each type of
federal agency is compared to the agency's internal Trust Fund records, and any
overage/shortage is adjusted to regular UI expenditures funded from Virginia's Trust
Fund. Benefit expenditures, both regular UI and federal benefits, occur daily, and the
assurance that drawdowns of federal funds do not exceed federal expenditures lies in
our maintaining a negative book balance insofar as there are outstanding checks in the
Fund. At Virginia's fiscal year end the state-mandated positive book balance will be
maintained. This funding technique is interest neutral.
ZBA - TANF and LIHEAP Benefits by EFT
(DSS, VDH 93.558),(DHCD, DSS 93.568) For Maintenance payments to
beneficiaries in the TANF and LIHEAP Programs by electronic means, including
electronic funds transfer (EFT) and debit card transactions that are received by the
Grants Administrative Supervisor by 12 noon each business day, DSS and DHCD
shall request Federal Funds such that they are deposited in a State account on the
respective settlement date(s) of the EFT payments to beneficiaries. The request shall
be made in accordance with the appropriate agency cut-off time specified in Exhibit I
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and the State clearance days shown in Exhibit II. The amount of the request(s) shall be
the amount of related EFT funds clearing the bank on the respective settlement
date(s). This funding technique is interest neutral.
6.3 Application of Funding Techniques to Programs
6.3.1 The State shall apply the following funding techniques when requesting Federal funds for the component cash flows of the
programs listed in sections 4.2 and 4.3 of this Agreement.
6.3.2 Programs
Below are programs listed in Section 4.2 and Section 4.3.
10.542 Pandemic EBT Food Benefits
Recipient: Department of Social Services (DSS)
% of Funds Agency Receives: 100
Component: EBT Benefits to Recipients
Technique: ZBA - SNAP Benefits
Average Day of Clearance: 0 Days
10.551 Supplemental Nutrition Assistance Program
Recipient: Department of Social Services (DSS)
% of Funds Agency Receives: 100
Component: EBT Benefits to Recipients
Technique: ZBA - SNAP Benefits
Average Day of Clearance: 0 Days
10.553 School Breakfast Program
Recipient: Department of Education (DOE)
% of Funds Agency Receives: 100
Component: Weekly EDI Payments to Local Governments
Technique: Actual Clearance: ZBA
Average Day of Clearance: 0 Days
10.555 National School Lunch Program
Recipient: Department of Education (DOE)
% of Funds Agency Receives: 99.77
Component: Weekly EDI Payments to Local Governments
Technique: Actual Clearance: ZBA
Average Day of Clearance: 0 Days
10.555 National School Lunch Program
Recipient: Department of Education (DOE)
% of Funds Agency Receives: .23
Component: Direct Costs
Technique: Post Expenditure Funding
Average Day of Clearance: N/A
10.557 Special Supplemental Nutrition Program for Women, Infants,
and Children
Recipient: Department of Health (VDH)
% of Funds Agency Receives: 46
Component: Direct Costs (WIC Administration)
Technique: Modified Pre-Issuance Funding
Average Day of Clearance: N/A
10.557 Special Supplemental Nutrition Program for Women, Infants,
and Children
Recipient: Department of Health (VDH)
% of Funds Agency Receives: 2
Page 9 of 30
Component: Indirect Costs
Technique: Actual Base Modified Monthly
Average Day of Clearance: N/A
DocuSign Envelope ID: B2916582-760E-4A18-8DD7-E4B1458547BB
10.557 Special Supplemental Nutrition Program for Women, Infants,
and Children
Recipient: Department of Health (VDH)
% of Funds Agency Receives: 52
Component: Direct Costs (WIC Food)
Technique: Post Expenditure Funding
Average Day of Clearance: N/A
10.561 State Administrative Matching Grants for the Supplemental
Nutrition Assistance Program
Recipient: Department of Social Services (DSS)
% of Funds Agency Receives: 12
Component: State Indirect Costs
Technique: Actual Costs - Estimated Allocation (Semi-Monthly)
Average Day of Clearance: N/A
10.561 State Administrative Matching Grants for the Supplemental
Nutrition Assistance Program
Recipient: Department of Social Services (DSS)
% of Funds Agency Receives: 82
Component: Administrative Costs (Local)
Technique: Actual Costs - Estimated Allocation Monthly
Average Day of Clearance: N/A
10.561 State Administrative Matching Grants for the Supplemental
Nutrition Assistance Program
Recipient: Department of Social Services (DSS)
% of Funds Agency Receives: 6
Component: Other Direct Costs---Other Than Administrative Costs
(Local)
Technique: Post Expenditure Funding
Average Day of Clearance: N/A
17.225F Unemployment Insurance -- Federal Benefit Account and
Administrative Costs
Recipient: Virginia Employment Commission (VEC)
% of Funds Agency Receives: 1.4
Component: Unemployment Insurance Administration (Nonpersonal
Services)
Technique: Payment Schedule (Semi-monthly Nonpersonal Services)
Average Day of Clearance: N/A
17.225F Unemployment Insurance -- Federal Benefit Account and
Administrative Costs
Recipient: Virginia Employment Commission (VEC)
% of Funds Agency Receives: 82.4
Component: Unemployment Insurance Benefits by EFT (Federal)
Technique: ZBA - UI Benefits-ACH
Average Day of Clearance: 0 Days
17.225F Unemployment Insurance -- Federal Benefit Account and
Administrative Costs
Recipient: Virginia Employment Commission (VEC)
% of Funds Agency Receives: 7.9
Component: Indirect Costs
Technique: Proportionate Share
Page 10 of 30
Average Day of Clearance: N/A
DocuSign Envelope ID: B2916582-760E-4A18-8DD7-E4B1458547BB
17.225F Unemployment Insurance -- Federal Benefit Account and
Administrative Costs
Recipient: Virginia Employment Commission (VEC)
% of Funds Agency Receives: 8.3
Component: Unemployment Insurance Administration (Payroll)
Technique: Fixed Administrative Allowance (Semi-monthly Payroll)
Average Day of Clearance: N/A
17.225S Unemployment Insurance -- State Benefit Account
Recipient: Virginia Employment Commission (VEC)
% of Funds Agency Receives: 100
Component: Unemployment Insurance Benefits by EFT (State)
Technique: ZBA - UI Benefits-ACH
Average Day of Clearance: 0 Days
20.205 Highway Planning and Construction
Recipient: Department of Transportation (VDOT)
% of Funds Agency Receives: 99.05
Component: Direct Costs for Current and Previously Capped Projects
Technique: Post Expenditure Funding
Average Day of Clearance: N/A
20.205 Highway Planning and Construction
Recipient: Department of Rail and Public Transportation (DRPT)
% of Funds Agency Receives: .95
Component: Direct Costs
Technique: Post Expenditure Funding
Average Day of Clearance: N/A
84.010 Title I Grants to Local Educational Agencies
Recipient: Department of Education (DOE)
% of Funds Agency Receives: .05
Component: Indirect Costs
Technique: Actual Base Modified Monthly
Average Day of Clearance: N/A
84.010 Title I Grants to Local Educational Agencies
Recipient: Department of Education (DOE)
% of Funds Agency Receives: 99.62
Component: Weekly EDI Payments to Local Governments
Technique: Actual Clearance: ZBA
Average Day of Clearance: 0 Days
84.010 Title I Grants to Local Educational Agencies
Recipient: Department of Education (DOE)
% of Funds Agency Receives: .33
Component: Other Directs Costs
Technique: Post Expenditure Funding
Average Day of Clearance: N/A
84.027 Special Education -- Grants to States
Recipient: Department of Education (DOE)
% of Funds Agency Receives: .1
Component: Indirect Costs
Technique: Actual Base Modified Monthly
Average Day of Clearance: N/A
84.027 Special Education -- Grants to States
Recipient: Department of Education (DOE)
Page 11 of 30
% of Funds Agency Receives: 96.02
Component: Weekly EDI Payments to Local Governments
Technique: Actual Clearance: ZBA
Average Day of Clearance: 0 Days
DocuSign Envelope ID: B2916582-760E-4A18-8DD7-E4B1458547BB
84.027 Special Education -- Grants to States
Recipient: Department of Education (DOE)
% of Funds Agency Receives: 3.88
Component: Other Directs Costs
Technique: Post Expenditure Funding
Average Day of Clearance: N/A
84.425 Education Stabilization Fund
Recipient: Department of Education (DOE)
% of Funds Agency Receives: .03
Component: Indirect Costs
Technique: Actual Base Modified Monthly
Average Day of Clearance: N/A
84.425 Education Stabilization Fund
Recipient: Department of Education (DOE)
% of Funds Agency Receives: 96.5
Component: Weekly EDI Payments to Local Governments
Technique: Actual Clearance: ZBA
Average Day of Clearance: 0 Days
84.425 Education Stabilization Fund
Recipient: Department of Education (DOE)
% of Funds Agency Receives: 3.47
Component: Other Direct Costs
Technique: Post Expenditure Funding
Average Day of Clearance: N/A
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases
(ELC)
Recipient: Department of Health (VDH)
% of Funds Agency Receives: 99.5
Component: Direct Costs
Technique: Post Expenditure Funding
Average Day of Clearance: N/A
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases
(ELC)
Recipient: Department of General Services (DGS)
% of Funds Agency Receives: .5
Component: Direct Costs
Technique: Post Expenditure Funding
Average Day of Clearance: N/A
93.558 Temporary Assistance for Needy Families
Recipient: Department of Social Services (DSS)
% of Funds Agency Receives: 31
Component: Direct Costs for Maintenance Payments to Beneficiaries --
EFT
Technique: ZBA - TANF and LIHEAP Benefits by EFT
Average Day of Clearance: 0 Days
93.558 Temporary Assistance for Needy Families
Recipient: Department of Social Services (DSS)
% of Funds Agency Receives: 2
Component: Direct Costs for Maintenance Payments to Beneficiaries -
Page 12 of 30
Checks
Technique: Average Clearance Technique for Maintenance Payments
to Beneficiaries
Average Day of Clearance: 10 Days
DocuSign Envelope ID: B2916582-760E-4A18-8DD7-E4B1458547BB
93.558 Temporary Assistance for Needy Families
Recipient: Department of Health (VDH)
% of Funds Agency Receives: 4
Component: Direct Costs of providing program and administration
Technique: ZBA - TANF and LIHEAP Benefits by EFT
Average Day of Clearance: 0 Days
93.558 Temporary Assistance for Needy Families
Recipient: Department of Social Services (DSS)
% of Funds Agency Receives: 22
Component: Other Direct Costs (Other than Maintenance Payments,
and Admin Local)
Technique: Post Expenditure Funding
Average Day of Clearance: N/A
93.558 Temporary Assistance for Needy Families
Recipient: Department of Social Services (DSS)
% of Funds Agency Receives: 7
Component: Indirect Costs
Technique: Actual Costs - Estimated Allocation (Semi-Monthly)
Average Day of Clearance: N/A
93.558 Temporary Assistance for Needy Families
Recipient: Department of Social Services (DSS)
% of Funds Agency Receives: 34
Component: Administrative Costs (Local)
Technique: Actual Costs - Estimated Allocation Monthly
Average Day of Clearance: N/A
93.568 Low-Income Home Energy Assistance
Recipient: Department of Social Services (DSS)
% of Funds Agency Receives: 73
Component: Direct Costs for Maintenance Payments to Beneficiaries -
EFT
Technique: ZBA - TANF and LIHEAP Benefits by EFT
Average Day of Clearance: 0 Days
93.568 Low-Income Home Energy Assistance
Recipient: Department of Social Services (DSS)
% of Funds Agency Receives: 1
Component: Maintenance Payments to Beneficiaries - Checks
Technique: Average Clearance Technique for Maintenance Payments
to Beneficiaries
Average Day of Clearance: 10 Days
93.568 Low-Income Home Energy Assistance
Recipient: Department of Housing and Community Development
(DHCD)
% of Funds Agency Receives: 15
Component: Direct Costs for Maintenance Payments to Beneficiaries -
EFT
Technique: ZBA - TANF and LIHEAP Benefits by EFT
Average Day of Clearance: 0 Days
93.568 Low-Income Home Energy Assistance
Recipient: Department of Social Services (DSS)
Page 13 of 30
% of Funds Agency Receives: 8
Component: Administrative Costs (Local)
Technique: Actual Costs - Estimated Allocation Monthly
Average Day of Clearance: N/A
DocuSign Envelope ID: B2916582-760E-4A18-8DD7-E4B1458547BB
93.568 Low-Income Home Energy Assistance
Recipient: Department of Social Services (DSS)
% of Funds Agency Receives: 2
Component: Indirect Costs
Technique: Actual Costs - Estimated Allocation (Semi-Monthly)
Average Day of Clearance: N/A
93.568 Low-Income Home Energy Assistance
Recipient: Department of Social Services (DSS)
% of Funds Agency Receives: 1
Component: Other Direct Costs (Other than Maintenance Payments and
Admin Local)
Technique: Post Expenditure Funding
Average Day of Clearance: N/A
93.575 Child Care and Development Block Grant
Recipient: Department of Education (DOE)
% of Funds Agency Receives: .17
Component: Indirect Costs
Technique: Actual Base Modified Monthly
Average Day of Clearance: N/A
93.575 Child Care and Development Block Grant
Recipient: Department of Social Services (DSS)
% of Funds Agency Receives: 66.48
Component: All Program Costs
Technique: Payment Schedule Two-Week Intervals
Average Day of Clearance: N/A
93.575 Child Care and Development Block Grant
Recipient: Department of Education (DOE)
% of Funds Agency Receives: 17.46
Component: Other Direct Costs
Technique: Post Expenditure Funding
Average Day of Clearance: N/A
93.575 Child Care and Development Block Grant
Recipient: Department of Education (DOE)
% of Funds Agency Receives: 15.89
Component: Weekly EDI Payments to Local Governments Technique
Technique: Actual Clearance: ZBA
Average Day of Clearance: 0 Days
93.659 Adoption Assistance
Recipient: Department of Social Services (DSS)
% of Funds Agency Receives: 5
Component: State Indirect Costs
Technique: Actual Costs - Estimated Allocation (Semi-Monthly)
Average Day of Clearance: N/A
93.659 Adoption Assistance
Recipient: Department of Social Services (DSS)
% of Funds Agency Receives: 94
Component: Administrative Costs (Local)
Technique: Actual Costs - Estimated Allocation Monthly
Page 14 of 30
Average Day of Clearance: N/A
DocuSign Envelope ID: B2916582-760E-4A18-8DD7-E4B1458547BB
93.659 Adoption Assistance
Recipient: Department of Social Services (DSS)
% of Funds Agency Receives: 1
Component: Direct Costs Other Than Administrative Costs (Local)
Technique: Post Expenditure Funding
Average Day of Clearance: N/A
93.767 Children's Health Insurance Program
Recipient: Department of Medical Assistance Services (DMAS)
% of Funds Agency Receives: 3.9
Component: Manual Payments: Provider Payments Not Processed by
the Fiscal Agent, and Direct Administrative Costs
Technique: Modified Pre-Issuance Funding
Average Day of Clearance: N/A
93.767 Children's Health Insurance Program
Recipient: Department of Medical Assistance Services (DMAS)
% of Funds Agency Receives: 95.99
Component: Provider Payment by EFT (Fiscal Agent)
Technique: Actual Clearance: CDA for EFT Payments by the Fiscal
Agent
Average Day of Clearance: N/A
93.767 Children's Health Insurance Program
Recipient: Department of Medical Assistance Services (DMAS)
% of Funds Agency Receives: .1
Component: Provider Payments by Check (Fiscal Agent)
Technique: Average Clearance Funding Technique for the
Medicaid/CHIP Combined Account
Average Day of Clearance: 6 Days
93.767 Children's Health Insurance Program
Recipient: Department of Medical Assistance Services (DMAS)
% of Funds Agency Receives: .01
Component: Indirect Costs
Technique: Annually
Average Day of Clearance: N/A
93.778 Medical Assistance Program
Recipient: Department of Medical Assistance Services (DMAS)
% of Funds Agency Receives: 96.94
Component: Provider Payments by EFT (Fiscal Agent)
Technique: Actual Clearance: CDA for EFT Payments by the Fiscal
Agent
Average Day of Clearance: N/A
93.778 Medical Assistance Program
Recipient: Department of Medical Assistance Services (DMAS)
% of Funds Agency Receives: 2.54
Component: Manual Payments Not Processed by the Fiscal Agent, and
Direct Administrative Costs (Excluding DSS/DBHDS ATAs)
Technique: Modified Pre-Issuance Funding
Average Day of Clearance: N/A
93.778 Medical Assistance Program
Recipient: Department of Medical Assistance Services (DMAS)
% of Funds Agency Receives: .15
Component: Provider Payments by Check (Fiscal Agent)
Technique: Average Clearance Funding Technique for the
Page 15 of 30
Medicaid/CHIP Combined Account
DocuSign Envelope ID: B2916582-760E-4A18-8DD7-E4B1458547BB
Average Day of Clearance: 6 Days
93.778 Medical Assistance Program
Recipient: Department of Medical Assistance Services (DMAS)
% of Funds Agency Receives: .01
Component: Indirect Costs
Technique: Annually
Average Day of Clearance: N/A
93.778 Medical Assistance Program
Recipient: Department of Social Services (DSS)
% of Funds Agency Receives: .36
Component: Manual Payments (Including DSS/DBHDS ATAs Only)
Technique: Actual Costs - Estimated Allocation Monthly
Average Day of Clearance: N/A
97.036 Disaster Grants - Public Assistance (Presidentially Declared
Disasters)
Recipient: Department of Emergency Management (DEM)
% of Funds Agency Receives: 95.05
Component: Disaster Payments for Presidentially Declared Events
Technique: Post Expenditure Funding
Average Day of Clearance: N/A
97.036 Disaster Grants - Public Assistance (Presidentially Declared
Disasters)
Recipient: Department of Health (VDH)
% of Funds Agency Receives: 4.95
Component: Direct Costs
Technique: Post Expenditure Funding
Average Day of Clearance: N/A
6.3.3 Materiality Exemptions
Agencies exempt from coverage on the basis of materiality:
None
6.4.0
There is no additional language listed for Section 6.1.6.
6.4.1
For DMAS: In instances where the receipt of funds is scheduled for a Saturday or 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 before 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.
In addition, the State will comply with the protocols and processes specified by the Centers for Medicare and
Medicaid Services (CMS) guidelines when requesting Federal funds from the Division of Payment Management
and reporting Federal expenditures within the associated quarterly reporting periods during the Federal fiscal year.
In instances where the disbursement/expenditure has already been realized and posted to the State's accounting
system but the receipt of the Federal funds is scheduled for deposit on a day beyond the end of a quarterly
reporting period, the State shall request funds for deposit on the last business day of the associated quarterly
reporting period. Adhering to this matching principle of accounting will allow the State to efficiently and
accurately reconcile quarterly cash receipts reported on the quarterly Federal Financial Reports (FFR's) - Standard
Form 425, and quarterly certified expenditures reported on the quarterly Federal CMS 21 and 64 Reports within
the respective quarterly reporting period.
7.0 CLEARANCE PATTERNS
7.1 The State shall develop separate clearance patterns for each of the following:
Page 16 of 30
Medicaid/CHIP Combined Account checks to 3rd Party Providers by Conduent State Healthcare, LLC
Social Service Program Benefits
Payroll checks
General Warrants (Vendor Payments)
DocuSign Envelope ID: B2916582-760E-4A18-8DD7-E4B1458547BB
7.2 The following shall develop the State's clearance patterns:
The banks under contract with the Virginia Department of Treasury.
The bank under contract with Conduent.
7.3 The sources of data the State shall use when developing its clearance patterns are as follows:
General warrants, payroll checks, social service payments, and checks issued by the Fiscal Agent for Medical Assistance Services
Program (CFDA #93.778) and the Children's Health Insurance Program (93.767).
7.4 The State shall use the following methodology when developing its clearance patterns:
When developing each clearance pattern, the State shall track at least 99% of the funds disbursed, from issuance to clearance, for a
period of at least three months.
7.5 The State shall identify for each check or warrant (hereafter, check) in the population: (1) the date the check was released
for payment; (2) the date the check was debited from the State's account, and, (3) the amount of the check.
7.6 The State shall use the following method to calculate the dollar-weighted average day of clearance:
To determine the number of days each check was outstanding (clearance time), the issue date shall be subtracted from the date the
check cleared the State's account.
To determine the percentage of the disbursement paid out each day following issuance, the amount of the checks that clear the
State's account each day shall be summed and then divided by the amount of the total disbursement.
For each day following issuance, the clearance time of the checks paid out that day shall be multiplied by the percentage of the total
disbursement those checks represent. This product is the clearance factor.
The dollar-weighted average day of clearance for the disbursement shall be determined by summing the clearance factor of each day
following the disbursement.
7.7 The State shall adjust each clearance pattern to reflect the dollar-weighted proportion of funds paid out by EFT/Direct payroll,
with the following exceptions:
No exceptions. See Section 7.13.0
The State shall also adjust each clearance pattern to reflect:
See Section 7.13.0
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 17 of 30
7.11.0
For the general warrants, social services, and payroll accounts, the respective banks track all checks issued until
payment, or until payment is stopped on the individual checks because of theft, loss, or other reasons. In all
cases, the Commonwealth's banks produce check clearance patterns for over 99% of the checks issued. For all
checks paid during each month, the program calculates the number of business and/or calendar days outstanding
by subtracting the issue date from the paid date, and then calculates a dollar weighted average number of days
that the checks paid during the month were outstanding.
DocuSign Envelope ID: B2916582-760E-4A18-8DD7-E4B1458547BB
7.12.0
For CMIA interest calculations, the Virginia Department of Accounts (DOA) prepares an annualized dollar
weighted average number of calendar days for the most recently completed SFY that cleared checks were
outstanding each month in the general warrant, and payroll accounts.
7.12.1
Where functional or other clearance pattern data is available that is suitable for estimating the programmatic
flow of federal funds, DOA shall estimate a program's clearance pattern based upon the expenditure
characteristics of the respective program. In estimating a program's clearance pattern for interest calculations,
DOA shall use program expenditure data from not less than 3 months, and not more than 12 months, of the fiscal
year, including, at a minimum, the last three months of the fiscal year. The State agencies responsible for the
respective programs shall provide the required program expenditure data to DOA upon request. For example, if
it is determined that a major federal assistance program covered by the Agreement has $1 million in
expenditures in the following proportions: 20% payroll by check, 15% payroll by direct deposit, 5% ATA
payments to other State agencies, 50% EDI payments and 10% general warrants, then the program's overall
clearance pattern would be estimated as follows:
Type of Program Expenditure $ Amount Days Dollar Weighted
Payroll payments by check $ 200,000 4.61 0.922
Payroll direct deposits $ 150,000 0.00 0.000
ATA payments $ 50,000 0.00 0.000
EDI payments $ 500,000 0.00 0.000
General warrants $ 100,000 10.24 1.024
Total/Overall Clearance Pattern $ 1,000,000 N/A 1.946 Days
7.13.0
The State adjusts each program's check clearance pattern(s) to reflect, where applicable, the dollar-weighted
proportion of funds paid out by either wire transfer or ACH; for example, Electronic Data Interchange (EDI)
payments and payroll direct deposits.
The State shall also adjust each program's check clearance pattern to reflect, where applicable, simultaneous
internal transfer payments, such as book entry transfers, or internal electronic transfers (ATA's).
7.14.0
Each of the State's monthly check clearance patterns is calculated in business and/or calendar days as applicable.
Calendar day patterns are used for the calculation of interest. When necessary, available and appropriate,
business day clearance patterns may be used for estimating the timing of drawdowns instead of calendar days.
When necessary and appropriate, monthly business day check clearance patterns may be converted to calendar
days by multiplying the average business day clearance pattern for the respective months by a factor of
approximately 1.4. The conversion factor is obtained by dividing the number of calendar days in the month by
the number of business days in the month.
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 Base Modified Monthly
Actual Clearance: CDA for EFT Payments by the Fiscal Agent
Actual Clearance: ZBA
Actual Costs - Estimated Allocation (Semi-Monthly)
Actual Costs - Estimated Allocation Monthly
Annually
Average Clearance Funding Technique for the Medicaid/CHIP Combined Account
Average Clearance Technique for Maintenance Payments to Beneficiaries
Fixed Administrative Allowance (Semi-monthly Payroll)
Payment Schedule (Semi-monthly Nonpersonal Services)
Payment Schedule Two-Week Intervals
Post Expenditure Funding
Page 18 of 30
Proportionate Share
DocuSign Envelope ID: B2916582-760E-4A18-8DD7-E4B1458547BB
ZBA - SNAP Benefits
ZBA - UI Benefits-ACH
ZBA - TANF and LIHEAP Benefits by EFT
8.1.2 The State shall maintain information on disbursements and receipts of funds to verify the implementation of any funding
technique and document interest liabilities.
For each disbursement, the State shall be able to identify:
(1) amount of the issuance
(2) date of issuance
(3) date Federal funds are received and credited to a State account
(4) amount of Federal funds received
(5) date funds were requested
8.2 Federal Interest Liabilities
8.2.1 A Federal interest liability shall accrue from the day the State pays out its own funds for program purposes to the day Federal
funds are credited to a State account. With regard to funds transferred out of the Federal Highway Trust Fund, if a State does not bill
at least weekly for current project costs, the Federal interest liability shall not accrue prior to the day the State submits a request for
funds.
8.2.2 The State shall use the following method to calculate Federal interest liabilities:
For all transactions where the State pays out its own funds for program purposes prior to receiving Federal funds, the State shall track
each payment from the date it is paid out of a State account to the date Federal funds are subsequently credited to a State account to
cover that outlay. The Federal interest liability on each payment shall be based on the difference in whole days between the two events.
With Federal-State matching programs, interest shall be calculated on the Federal percentage of the disbursement.
8.3 The Unemployment Trust Fund
8.3.1 The State shall use the following method to calculate State interest liabilities on funds withdrawn from the several accounts
in the Unemployment Trust Fund:
There are no interest earnings on funds withdrawn from the State account, as the State has implemented ZBA, an interest-neutral
funding technique, for such transfers. For transfers from the UTF that do not follow the technique specified in section 6.2 and result in a
positive balance of funds in a State account, the State's liability for interest on funds withdrawn from its account in the UTF shall
consist of the actual interest earnings of the benefit payment account on the pro-rata share less the related banking costs attributed to
such funds.
8.4 Refund Liabilities
8.4.1 The State shall be liable for interest on refunds from the date the refund is credited to a State account until the date the refund
is debited from the State account for program purposes. The State shall apply a $50,000 refund transaction threshold below which
the State shall not incur or calculate interest liabilities on refunds. A transaction is defined as a single deposit.
8.4.2 For each refund, the State shall maintain information identifying:
(1) date a refund is credited to a State account
(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.
Page 19 of 30
8.5 Exemptions
DocuSign Envelope ID: B2916582-760E-4A18-8DD7-E4B1458547BB
8.5.1 Where more than one State agency is a recipient of Federal funds under a program, a particular State agency's funding may be
excluded from interest calculation procedures if the State agency receives an amount of funds less than 5
% of the State's threshold for major Federal assistance programs. Notwithstanding this potential exemption, however, in no case
shall less than 90% of a program's total funding be subject to interest calculation procedures.
Proration of calculations: If less than total program funding is subject to interest calculation procedures, the resulting interest
liability calculations shall be prorated to 100% of program funding.
8.6 State Interest Liabilities
8.6.1 The State shall be liable for interest on Federal funds from the date Federal funds are credited to a State account until the
date those funds are paid out for program purposes.
8.6.2 The State shall use the following method to calculate State interest liabilities on Federal funds:
8.6.2.1 Measuring Time Funds Are Held
To determine the total time Federal funds are held, the State shall measure the time between the date Federal funds are received and
credited to a State's account and the date those funds are debited from the State's account.
8.6.2.2 Source of Data
The time period from the Cardinal expenditure recording date to the payment issue date shall be determined from
information captured by Cardinal (Commonwealth's Accounting System). See complete explanation in Section 8.7.1
through 8.7.6.
8.6.2.3 Standards Applied
Statistical Sampling (Pre-Issuance):
To measure the time Federal funds are held in a State account prior to being disbursed, the State shall use statistical sampling. The
sample shall be randomly selected, and shall be of sufficient size to ensure a 96 percent confidence interval no more than plus or minus
0.25 weighted days above or below 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:
I = P x r x {PI + CT}, where
I = State's total interest liability
P = Total annual expenditures of Federal funds for program or component cash flow 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
Page 20 of 30
PI = Dollar-weighted average number of days Federal funds are held by State prior to issuance
DocuSign Envelope ID: B2916582-760E-4A18-8DD7-E4B1458547BB
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
8.7.0
Notwithstanding the explanation in Section 8.3.1, there are no interest earnings on funds withdrawn from the State
account in the UTF, as the State has implemented an interest Zero Balance Account for EFT payments.
8.8.0
The manual payments component of the Medicaid program, which includes Medicaid provider payments not
processed by the fiscal agent and administrative costs, uses the Modified Pre-Issuance Funding technique defined
in §6.2.4. The actual Federal share of Medicaid refunds are Fedwired and these Fedwire transfers are performed as
soon as administratively feasible, after the Federal share of each refund is determined. Interest owed is calculated
by the State on the Federal share of each refund for the actual time each refund is held in a State account.
8.8.1
With programs to which modified pre-issuance funding will be applied, the State interest liability will be based on
two periods: 1) the difference in whole days between the date the refund is deposited to a State account and the
date the refund is offset against a subsequent deposit of Federal funds, and 2) the difference in whole days between
the date the refund is offset against a subsequent deposit of Federal funds and the date the refund is paid out for
program purposes.
8.8.2
Refunds of unemployment insurance benefits will be deposited directly to the State's unemployment insurance
payment account on the same day that they are received. Since these refunds are used to offset daily drawdowns
made by the VEC for Unemployment Insurance benefits as described in §6.2.4 of the TSA, they will not incur an
interest liability for the State or the Federal government.
8.9.0
Notwithstanding Section 8.6.6, under Virginia's modified pre-issuance funding technique, where federal funds are
transferred to the State before payments are issued, the State shall use the following method(s) to calculate and
document State and Federal interest liabilities. The current State internal control system requires cash to be in the
bank in order to pay expenditures. Modified pre-issuance funding interest calculations require the measurement of
the time elapsed from the date of a program deposit to the date that related payments clear the bank.
Since the State does not have a single system capability to track a specific federal program deposit all the way
through until this money is paid out, the State combines data recorded in the Commonwealth's Accounting System
(Cardinal) with bank float data, dividing the time that the federal money is held into three separately measured
time periods. The three periods are dollar weighted separately before combining them to determine the total time
that federal money is held.
The three time periods are described below:
First Time Period (1) = Deposit Date (DD) to Cardinal Expenditure
Recording (ER) Date
Second Time Period (2) = ER Date to Payment Issue (PI) (\"System Float\")
Third Time Period (3) = PI Date until Bank Clearance (BC) (\"Bank Float\")
Total Time (1+2+3) = Total Days From Deposit(DD) To Bank Clearance (BC).
8.9.1
The first time period is from a program deposit date to the related expenditure recording date(s) in Cardinal, and is
sampled by the State agency or institution receiving the federal program funds. First, the overall sample size
needed to ensure a 96 percent confidence interval no more than plus or minus 0.25 weighted days above or below
the estimated mean is determined from the dollar weighted standard deviation of a randomly selected pilot sample
of thirty samples using a formula provided by the Fiscal Service. Because the pilot sample is randomly selected it
may be included as a part of the overall sample which is also randomly selected. Second, for the overall sample,
the recipient dollar weights the days that it takes for all expenditures related to a particular sample to be recorded.
A sample will include expenditures related to money received from refunds where federal drawdowns have been
adjusted for refunds received since the last draw. Third, the results of all the samples are dollar weighted. These
results are indicated in terms of positive days when the federal funds are deposited before the related expenditures
are recorded, and as negative days when expenditures are recorded before the related federal funds are deposited.
Notwithstanding these sampling requirements, a State agency has the option of examining ALL (100%) of its
federal deposits for the year in order to determine the dollar weighted average days from the deposit date to the
Cardinal expenditure recording date.
8.9.2
The second time period (expenditure recording date to payment issue date) is known as the System Float and is
measured by DOA from internal Cardinal records on an agency by agency basis. Since the data is available on an
agency by agency basis, and not a program by program basis, an assumption is made that agency specific results
can be applied at the program level. To determine the "System Float," expenditure recording dates of all Federal
fund payments on the Cardinal history file are linked to their related payment issue dates on the vendor payment
Page 21 of 30
file by the expenditure journal identifier, and the time between the two is measured and dollar weighted. The
overall agency results for each month of the most recently completed SFY are dollar weighted to arrive at the
estimated annual "System Float" for the respective federal programs administered by those agencies.
DocuSign Envelope ID: B2916582-760E-4A18-8DD7-E4B1458547BB
8.9.3
The third time period (payment issue date to bank clearance date), known as Bank Float is measured by DOA
using the clearance patterns, and other clearance pattern data, as described in §7.0 (Clearance Pattern Method) of
this
Agreement.
8.9.4
The results of the three time periods are added together to obtain the estimated total time that federal program
money is held, or State money advanced on behalf of the federal program. Using the following formula, the
interest liability to the State (or federal government) is calculated on a program by program basis, as shown in the
example below. Interest will be calculated based on the amount of expenditures relating to the sampled
drawdowns, then prorated to the total applicable revenue for the year. The State and federal interest liabilities are
calculated separately.
Formula: I = R x T x $, Where I = the Annual Program Interest Payable or Receivable,
R = the Daily Interest Rate
T= the Weighted Average Days that the Federal Money is Held or State Money Advanced
$ = Dollar Amount of Yearly Expenditures
For Example, Given That:
Yearly Expenditures = $13,509,943
Annual Interest Rate = 3.65% (0.0365)
Daily Interest Rate = 0.0001
Net $ Weighted Days Held = 5.60 Days
The following interest liabilities are calculated:
State Interest Liability = $8,767
Federal Interest Liability = $1,202
Net State Interest Liability = $7,565.
In the above example, all 28 drawdowns for the year were tested. Of these, 24 (amounting to a total of $11,196,859
or 83% of the federal program funds) were deposited 7.83 dollar weighted average days before the estimated check
clearance date, for a State interest liability of $8,767. The other 4 drawdowns (amounting to a total of $2,313,084
or 17% of the federal program funds) were deposited 5.20 dollar-weighted average days after the estimated check
clearance date, for a federal interest liability of $1,202.
9.0 REVERSE FLOW PROGRAMS
The State is not required to cover any reverse flow programs under the terms of this Agreement because the State does not
participate in the program.
10.0 INTEREST CALCULATION COSTS
10.1 As set forth in 31 CFR 205.27, interest calculation costs are defined as those costs necessary for the actual calculation of
interest, including the cost of developing and maintaining clearance patterns in support of the interest calculations. Interest
calculation costs do not include expenses for normal disbursing services, such as processing of checks or maintaining records for
accounting and reconciliation of cash balances, or expenses for upgrading or modernizing accounting systems. Interest
calculation costs in excess of $50,000 in any year are not eligible for reimbursement, unless the State provides justification with
the annual report.
10.2 The State expects to incur the following types of interest calculation costs:
Personal services and related fringe benefit costs of staff conducting and reviewing CMIA interest calculations, and check clearance
pattern maintenance.
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
Page 22 of 30
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.
DocuSign Envelope ID: B2916582-760E-4A18-8DD7-E4B1458547BB
Page 23 of 30
DocuSign Envelope ID: B2916582-760E-4A18-8DD7-E4B1458547BB
7/1/2024
7/2/2024
12.0 AUTHORIZED SIGNATURES
Sharon Lawrence
Acting Comptroller of Virginia
Signature:
Date Submitted 7/1/2024
D. Michael Linder
Assistant Commissioner
Revenue Collections Management
Bureau of the Fiscal Service
U.S. Department of the Treasury
Date Signed:
Signature: Date Signed:
Page 24 of 30
DocuSign Envelope ID: B2916582-760E-4A18-8DD7-E4B1458547BB
Exhibit I - Funds Request and Receipt Times Schedule
Commonwealth of Virginia
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
Page 25 of 30
DocuSign Envelope ID: B2916582-760E-4A18-8DD7-E4B1458547BB
Exhibit II - Commonwealth of Virginia
LIST OF STATE CLEARANCE TIMES
(Rounded Dollar-Weighted Average Day of Clearance)
Clearance Times Where the Timing of A Draw Down Is Based on A Clearance Pattern
CFDA
Program Name
Recipient
%
Component
Technique
Rounded
days
10.542
Pandemic EBT
Food Benefits
Department of
Social Services
(DSS)
100.0
EBT Benefits to
Recipients
ZBA - SNAP
Benefits
0 Days
10.551
Supplemental
Nutrition
Assistance
Program
Department of
Social Services
(DSS)
100.0
EBT Benefits to
Recipients
ZBA - SNAP
Benefits
0 Days
10.553
School Breakfast
Program
Department of
Education (DOE)
100.0
Weekly EDI
Payments to Local
Governments
Actual Clearance:
ZBA
0 Days
10.555
National School
Lunch Program
Department of
Education (DOE)
99.77
Weekly EDI
Payments to Local
Governments
Actual Clearance:
ZBA
0 Days
National School
Lunch Program
Department of
Education (DOE)
0.23
Direct Costs
Post Expenditure
Funding
N/A
10.557
Special
Supplemental
Nutrition Program
for Women,
Infants, and
Children
Department of
Health (VDH)
46.0
Direct Costs (WIC
Administration)
Modified Pre-
Issuance Funding
N/A
Special
Supplemental
Nutrition Program
for Women,
Infants, and
Children
Department of
Health (VDH)
2.0
Indirect Costs
Actual Base
Modified Monthly
N/A
Special
Supplemental
Nutrition Program
for Women,
Infants, and
Children
Department of
Health (VDH)
52.0
Direct Costs (WIC
Food)
Post Expenditure
Funding
N/A
10.561
State
Administrative
Matching Grants
for the
Supplemental
Nutrition
Assistance
Program
Department of
Social Services
(DSS)
12.0
State Indirect Costs
Actual Costs -
Estimated
Allocation (Semi-
Monthly)
N/A
State
Administrative
Matching Grants
for the
Supplemental
Nutrition
Assistance
Program
Department of
Social Services
(DSS)
82.0
Administrative Costs
(Local)
Actual Costs -
Estimated
Allocation Monthly
N/A
State
Administrative
Matching Grants
Department of
Social Services
(DSS)
6.0
Other Direct Costs---
Other Than
Post Expenditure
Funding
N/A
Page 26 of 30
DocuSign Envelope ID: B2916582-760E-4A18-8DD7-E4B1458547BB
for the
Supplemental
Nutrition
Assistance
Program
Administrative Costs
(Local)
17.225
F
Unemployment
Insurance --
Federal Benefit
Account and
Administrative
Costs
Virginia
Employment
Commission
(VEC)
1.4
Unemployment
Insurance
Administration
(Nonpersonal
Services)
Payment Schedule
(Semi-monthly
Nonpersonal
Services)
N/A
Unemployment
Insurance --
Federal Benefit
Account and
Administrative
Costs
Virginia
Employment
Commission
(VEC)
82.4
Unemployment
Insurance Benefits by
EFT (Federal)
ZBA - UI Benefits-
ACH
0 Days
Unemployment
Insurance --
Federal Benefit
Account and
Administrative
Costs
Virginia
Employment
Commission
(VEC)
7.9
Indirect Costs
Proportionate Share
N/A
Unemployment
Insurance --
Federal Benefit
Account and
Administrative
Costs
Virginia
Employment
Commission
(VEC)
8.3
Unemployment
Insurance
Administration
(Payroll)
Fixed
Administrative
Allowance (Semi-
monthly Payroll)
N/A
17.225
S
Unemployment
Insurance -- State
Benefit Account
Virginia
Employment
Commission
(VEC)
100.0
Unemployment
Insurance Benefits by
EFT (State)
ZBA - UI Benefits-
ACH
0 Days
20.205
Highway Planning
and Construction
Department of
Transportation
(VDOT)
99.05
Direct Costs for
Current and
Previously Capped
Projects
Post Expenditure
Funding
N/A
Highway Planning
and Construction
Department of
Rail and Public
Transportation
(DRPT)
0.95
Direct Costs
Post Expenditure
Funding
N/A
84.010
Title I Grants to
Local Educational
Agencies
Department of
Education (DOE)
0.05
Indirect Costs
Actual Base
Modified Monthly
N/A
Title I Grants to
Local Educational
Agencies
Department of
Education (DOE)
99.62
Weekly EDI
Payments to Local
Governments
Actual Clearance:
ZBA
0 Days
Title I Grants to
Local Educational
Agencies
Department of
Education (DOE)
0.33
Other Directs Costs
Post Expenditure
Funding
N/A
84.027
Special Education
-- Grants to States
Department of
Education (DOE)
0.1
Indirect Costs
Actual Base
Modified Monthly
N/A
Special Education
-- Grants to States
Department of
Education (DOE)
96.02
Weekly EDI
Payments to Local
Governments
Actual Clearance:
ZBA
0 Days
Special Education
-- Grants to States
Department of
Education (DOE)
3.88
Other Directs Costs
Post Expenditure
Funding
N/A
84.425
Education
Stabilization Fund
Department of
Education (DOE)
0.03
Indirect Costs
Actual Base
Modified Monthly
N/A
Page 27 of 30
DocuSign Envelope ID: B2916582-760E-4A18-8DD7-E4B1458547BB
Education
Stabilization Fund
Department of
Education (DOE)
96.5
Weekly EDI
Payments to Local
Governments
Actual Clearance:
ZBA
0 Days
Education
Stabilization Fund
Department of
Education (DOE)
3.47
Other Direct Costs
Post Expenditure
Funding
N/A
93.323
Epidemiology and
Laboratory
Capacity for
Infectious
Diseases (ELC)
Department of
Health (VDH)
99.5
Direct Costs
Post Expenditure
Funding
N/A
Epidemiology and
Laboratory
Capacity for
Infectious
Diseases (ELC)
Department of
General Services
(DGS)
0.5
Direct Costs
Post Expenditure
Funding
N/A
93.558
Temporary
Assistance for
Needy Families
Department of
Social Services
(DSS)
31.0
Direct Costs for
Maintenance
Payments to
Beneficiaries -- EFT
ZBA - TANF and
LIHEAP Benefits
by EFT
0 Days
Temporary
Assistance for
Needy Families
Department of
Social Services
(DSS)
2.0
Direct Costs for
Maintenance
Payments to
Beneficiaries -
Checks
Average Clearance
Technique for
Maintenance
Payments to
Beneficiaries
10 Days
Temporary
Assistance for
Needy Families
Department of
Health (VDH)
4.0
Direct Costs of
providing program
and administration
ZBA - TANF and
LIHEAP Benefits
by EFT
0 Days
Temporary
Assistance for
Needy Families
Department of
Social Services
(DSS)
22.0
Other Direct Costs
(Other than
Maintenance
Payments, and
Admin Local)
Post Expenditure
Funding
N/A
Temporary
Assistance for
Needy Families
Department of
Social Services
(DSS)
7.0
Indirect Costs
Actual Costs -
Estimated
Allocation (Semi-
Monthly)
N/A
Temporary
Assistance for
Needy Families
Department of
Social Services
(DSS)
34.0
Administrative Costs
(Local)
Actual Costs -
Estimated
Allocation Monthly
N/A
93.568
Low-Income
Home Energy
Assistance
Department of
Social Services
(DSS)
73.0
Direct Costs for
Maintenance
Payments to
Beneficiaries - EFT
ZBA - TANF and
LIHEAP Benefits
by EFT
0 Days
Low-Income
Home Energy
Assistance
Department of
Social Services
(DSS)
1.0
Maintenance
Payments to
Beneficiaries -
Checks
Average Clearance
Technique for
Maintenance
Payments to
Beneficiaries
10 Days
Low-Income
Home Energy
Assistance
Department of
Housing and
Community
Development
(DHCD)
15.0
Direct Costs for
Maintenance
Payments to
Beneficiaries -EFT
ZBA - TANF and
LIHEAP Benefits
by EFT
0 Days
Low-Income
Home Energy
Assistance
Department of
Social Services
(DSS)
8.0
Administrative Costs
(Local)
Actual Costs -
Estimated
Allocation Monthly
N/A
Low-Income
Home Energy
Assistance
Department of
Social Services
(DSS)
2.0
Indirect Costs
Actual Costs -
Estimated
N/A
Page 28 of 30
DocuSign Envelope ID: B2916582-760E-4A18-8DD7-E4B1458547BB
Allocation (Semi-
Monthly)
Low-Income
Home Energy
Assistance
Department of
Social Services
(DSS)
1.0
Other Direct Costs
(Other than
Maintenance
Payments and Admin
Local)
Post Expenditure
Funding
N/A
93.575
Child Care and
Development
Block Grant
Department of
Education (DOE)
0.17
Indirect Costs
Actual Base
Modified Monthly
N/A
Child Care and
Development
Block Grant
Department of
Social Services
(DSS)
66.48
All Program Costs
Payment Schedule
Two-Week Intervals
N/A
Child Care and
Development
Block Grant
Department of
Education (DOE)
17.46
Other Direct Costs
Post Expenditure
Funding
N/A
Child Care and
Development
Block Grant
Department of
Education (DOE)
15.89
Weekly EDI
Payments to Local
Governments
Technique
Actual Clearance:
ZBA
0 Days
93.659
Adoption
Assistance
Department of
Social Services
(DSS)
5.0
State Indirect Costs
Actual Costs -
Estimated
Allocation (Semi-
Monthly)
N/A
Adoption
Assistance
Department of
Social Services
(DSS)
94.0
Administrative Costs
(Local)
Actual Costs -
Estimated
Allocation Monthly
N/A
Adoption
Assistance
Department of
Social Services
(DSS)
1.0
Direct Costs Other
Than Administrative
Costs (Local)
Post Expenditure
Funding
N/A
93.767
Children's Health
Insurance
Program
Department of
Medical
Assistance
Services (DMAS)
3.9
Manual Payments:
Provider Payments
Not Processed by the
Fiscal Agent, and
Direct Administrative
Costs
Modified Pre-
Issuance Funding
N/A
Children's Health
Insurance
Program
Department of
Medical
Assistance
Services (DMAS)
95.99
Provider Payment by
EFT (Fiscal Agent)
Actual Clearance:
CDA for EFT
Payments by the
Fiscal Agent
N/A
Children's Health
Insurance
Program
Department of
Medical
Assistance
Services (DMAS)
0.1
Provider Payments
by Check (Fiscal
Agent)
Average Clearance
Funding Technique
for the
Medicaid/CHIP
Combined Account
6 Days
Children's Health
Insurance
Program
Department of
Medical
Assistance
Services (DMAS)
0.01
Indirect Costs
Annually
N/A
93.778
Medical
Assistance
Program
Department of
Medical
Assistance
Services (DMAS)
96.94
Provider Payments
by EFT (Fiscal
Agent)
Actual Clearance:
CDA for EFT
Payments by the
Fiscal Agent
N/A
Medical
Assistance
Program
Department of
Medical
Assistance
Services (DMAS)
2.54
Manual Payments
Not Processed by the
Fiscal Agent, and
Direct Administrative
Modified Pre-
Issuance Funding
N/A
Page 29 of 30
DocuSign Envelope ID: B2916582-760E-4A18-8DD7-E4B1458547BB
7/1/2024
Sharon Lawrence
Acting State Comptroller
Costs (Excluding
DSS/DBHDS ATAs)
Medical
Assistance
Program
Department of
Medical
Assistance
Services (DMAS)
0.15
Provider Payments
by Check (Fiscal
Agent)
Average Clearance
Funding Technique
for the
Medicaid/CHIP
Combined Account
6 Days
Medical
Assistance
Program
Department of
Medical
Assistance
Services (DMAS)
0.01
Indirect Costs
Annually
N/A
Medical
Assistance
Program
Department of
Social Services
(DSS)
0.36
Manual Payments
(Including
DSS/DBHDS ATAs
Only)
Actual Costs -
Estimated
Allocation Monthly
N/A
97.036
Disaster Grants -
Public Assistance
(Presidentially
Declared
Disasters)
Department of
Emergency
Management
(DEM)
95.05
Disaster Payments
for Presidentially
Declared Events
Post Expenditure
Funding
N/A
Disaster Grants -
Public Assistance
(Presidentially
Declared
Disasters)
Department of
Health (VDH)
4.95
Direct Costs
Post Expenditure
Funding
N/A
Certification
I hereby certify that an authorized State official has certified at least every five years that the "Rounded Days of Clearance" listed
in Exhibit 2 of this Treasury-State Agreement:
1. Have been prepared in accordance with the standards provided in 31 CFR 205.20;
2. Accurately represent the flow of Federal funds under the Federal assistance programs to which they apply;
3. Reflect seasonal or other periodic variations in the clearance activities; and,
4. Are auditable.
Date:
Printed Name:
Certifying Signature:
Title:
Page 30 of 30
