Calculation Procedure. (a) The State's interest liability for each program shall be calculated by applying the following formula: I=[Pxrx(CT-A]; where, I=State's total interest liability for program (or component cash flow of program). P=Total annual receipts of Federal funds for program (or Component cash flow of program). r=Annualized rate equal to the average bond equivalent yield of 13-week Treasury bills auctioned during a State's fiscal year divided by the number of days in the State's fiscal year. CT=Dollar-weighted average number of days between the date that the warrant and EFT transaction request vouchers are submitted to voucher audit and the date the funds are paid out for program purposes and debited from a State account, as determined by the appropriate clearance pattern. A=Based upon request of Federal funds in accordance with Exhibit I, number of days Federal funds are expected to be received into a State account after the day that warrant and EFT transaction request vouchers were submitted to voucher audit. (b) The State's interest liability for the balance in the WIC bank account (CFDA 10.557) shall be calculated by the following formula: I = ADB x R, where I = State's total interest liability ADB = Average Daily Balance of cash in a program's account R = Annualized rate equal to the average equivalent yields of 13-week Treasury bills auctioned during a State's fiscal year (c) The State's interest liability for CFDA 93.778 is calculated in two parts. The interest liability associated with the funds deposited in the State Treasury shall be calculated according to Part (a) above. After the funds have been credited to the MAP bank account, the State's interest liability for the balance in the MAP bank account and for the Special Purpose Investment Account shall be calculated by the following formula: I = ADB x R; where, I = State's total interest liability ADB = Average Daily Balance of cash in a program's account R = Annualized rate equal to the average equivalent yields of 13-week Treasury bills auctioned during a State's fiscal year
Appears in 3 contracts
Sources: Cash Management Improvement Act Agreement, Cash Management Improvement Act Agreement, Cash Management Improvement Act Agreement