Common use of CLEARANCE PATTERNS Clause in Contracts

CLEARANCE PATTERNS. 7.1 The State shall develop separate clearance patterns for each of the following: Each program covered by this agreement. 7.2 The following shall develop the State's clearance patterns: Minnesota Management and Budget. 7.3 The sources of data the State shall use when developing its clearance patterns are as follows: Financial information from the Statewide Integrated Financial Tools (SWIFT) and the State Treasurer's System shall be used for payroll and each program except for the Unemployment Insurance program. The Department of Employment and Economic Development shall provide information/develop clearance patterns for the Unemployment Insurance programs. The state excluded transfers between funds and transfers between agencies in the same fund. These transfers occur on the same day. Draws for these transfers will coincide with the date of transfer. If immaterial, or if the transfer cannot be anticipated, the check clearance pattern (Exhibit 2) may be used. Based on the prior fiscal year's financial information, the State shall calculate dollar-weighted average dates of clearance from the actual clearance times of each warrant compared to issue dates. Clearance patterns shall be reviewed annually. However, if the State has knowledge, at any time during the year, that a clearance pattern no longer reflects a Federal assistance program's actual clearance activity, or if a Federal assistance program undergoes operational changes that may affect clearance activity, the State must notify Fiscal Service and develop a new clearance pattern. Clearance patterns will remain in effect until a new clearance pattern is certified. 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 noted. The State shall also adjust each clearance pattern to reflect: The average clearance date with a fraction of .5 or more rounds up to the next whole number. The average clearance date with a fraction less than .5 truncates to the next whole number. With 99.6% EFT for direct deposit, payroll rounds to one. 7.8 Each of the State's clearance patterns is calculated in Business days. 7.9 An authorized State official shall certify that each clearance pattern developed by the State accurately corresponds to the clearance activity of the programs to which it is applied. This certification shall be provided to the Fiscal Service prior to the effective date of the Agreement. The State shall recertify its clearance patterns at least every five years. 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.

CLEARANCE PATTERNS. 7.1 The State shall develop separate clearance patterns for each of the following: Each program covered by this agreement. 7.2 The following shall develop the State's clearance patterns: Minnesota Management and Budget. 7.3 The sources of data the State shall use when developing its clearance patterns are as follows: Financial information from the Statewide Integrated Financial Tools (SWIFT) and the State Treasurer's System shall be used for payroll and each program except for the Unemployment Insurance program. The Department of Employment and Economic Development shall provide information/develop clearance patterns for the Unemployment Insurance programs. The state excluded transfers between funds and transfers between agencies in the same fund. These transfers occur on the same day. Draws for these transfers will coincide with the date of transfer. If immaterial, or if the transfer cannot be anticipated, the check clearance pattern (Exhibit 2) may be used. Based on the prior fiscal year's financial information, the State shall calculate dollar-weighted average dates of clearance from the actual clearance times of each warrant compared to issue dates. Clearance patterns shall be reviewed annually. However, if the State has knowledge, at any time during the year, that a clearance pattern no longer reflects a Federal assistance program's actual clearance activity, or if a Federal assistance program undergoes operational changes that may affect clearance activity, the State must notify Fiscal Service and develop a new clearance pattern. Clearance patterns will remain in effect until a new clearance pattern is certified. 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. 7.4.1 One hundred percent (100%) of the data will be used to develop clearance patterns, not sampling. 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 noted. The State shall also adjust each clearance pattern to reflect: The average clearance date with a fraction of .5 or more rounds up to the next whole number. The average clearance date with a fraction less than .5 truncates to the next whole number. With 99.6% EFT for direct deposit, payroll rounds to one. 7.8 Each of the State's clearance patterns is calculated in Business business days. 7.9 An authorized State official shall certify that each clearance pattern developed by the State accurately corresponds to the clearance activity of the programs to which it is applied. This certification shall be provided to the Fiscal Service prior to the effective date of the Agreement. The State shall recertify its clearance patterns at least every five years. 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.

CLEARANCE PATTERNS. 7.1 The State shall develop separate clearance patterns for each of the following: Each The State shall develop clearance patterns for accounts through which Federal funds are disbursed. For the major Federal program covered by expenditures which flow through more than one account (e.g., a program account and the State's payroll or vendor accounts), the State will use the clearance patterns for each expenditure component in calculating aggregate drawdowns of Federal funds. The State will develop separate check clearance patterns for the following accounts: Payroll, Department of Social Services (Medicaid and TANF account), and Vendor (beneficiary payments included). The State will use the "average daily balance" interest calculation technique in the UTF program, and thus will not develop clearance patterns for this agreementaccount. 7.2 The following shall develop the State's clearance patterns: Minnesota Management The Connecticut Office of the State Treasurer and BudgetBank of America will develop the State's clearance patterns. 7.3 The sources of data the State shall use when developing its clearance patterns are as follows: Financial information from For the Statewide Integrated Financial Tools (SWIFT) and the State Treasurer's System shall be used for payroll and each program except for the Unemployment Insurance program. The payroll, Department of Employment Social Services, and Economic Development shall provide information/develop clearance patterns for the Unemployment Insurance programs. The state excluded transfers between funds and transfers between agencies in the same fund. These transfers occur on the same day. Draws for these transfers will coincide with the date of transfer. If immaterial, or if the transfer cannot be anticipated, the check clearance pattern (Exhibit 2) may be used. Based on the prior fiscal year's financial informationvendor payments, the State shall provides its banks with a file of checks issued, with issue dates and dollar amounts. Our banks then compare our issue data with their data on clearances to determine the clearance time, or days outstanding, for each check. The banks produce check clearance reports for each account. The reports list the number of items and dollar amounts by days of float, for those checks that clear during the reporting period. The banks then calculate dollar-weighted average dates clearance days for each account according to the following formula: Dollar-weighted average clearance days = Sum (A x B) / C where: A = Days outstanding per item B = Item dollar amount C = Total dollar amount cleared in Statement period. The Department of Social Services account payroll account and vendor account clearance from the actual clearance times of each warrant compared to issue datespatterns are based on calendar days. Clearance patterns shall be reviewed annually. However, if the State has knowledge, at any time during the year, that a The vendor account clearance pattern no longer reflects may be adjusted to exclude certain types of payments, such as State education grants to municipalities and tax refund payments that do not include Federal funds. The State reserves the right to factor electronic funds transfers (EFT's) into a Federal assistance program's actual clearance activity, or if a Federal assistance program undergoes operational changes that may affect clearance activity, the State must notify Fiscal Service and develop a new clearance pattern. Clearance patterns will remain in effect until a new composite clearance pattern is certifiedfor accounts in which they occur. State accounts are not program specific. The State will use actual daily clearance patterns in the development of estimated clearance patterns. 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. For all clearance patterns developed by statistical sampling, the State shall randomly sample checks to ensure, at a minimum, a 95% confidence interval for a .25 weighted-day level of precision for the checks in the sample. The State shall track at least 99% of the funds disbursed, from issuance to clearance, in the sample period. 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 notedAll electronic funds transfers will be excluded from the banks' check clearance calculations. The State shall also adjust each clearance pattern to reflect: The average clearance date with a fraction of .5 or more rounds up to the next whole number. The average clearance date with a fraction less than .5 truncates to the next whole number. With 99.6% EFT for direct deposit, payroll rounds to one.NA 7.8 Each of the State's clearance patterns is calculated in Business 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.

CLEARANCE PATTERNS. 7.1 The State shall develop separate clearance patterns for each of the following: Each program covered All clearance patterns, except for the Unemployment Insurance Program (CFDA 17.225) and WYDOT (CFDA 20.205, 20.608) are developed by this agreementthe State of Wyoming's State Auditor's Office. The State chose to determine an overall State clearance pattern based on all warrants issued for the Fiscal Year 2015 (July 1, 2014-June 30, 2015). Extracts were performed against the Warrant Reconciliation Table (WREC Table) of the State's centralized accounting system (WOLFS) for each of these months. The extracted files included all instruments of issuance, except for those warrants issued by the State of Wyoming Unemployment Insurance State Benefit Account. The instruments of issuance are identified by the following: regular warrants (prefix of AD), payroll warrants whether issued through automatic deposit or hard copy (prefix of PY), manual (hand issued) warrants (prefix of MW) and electronic funds transfer (EFT) payments (prefix of EF). The result was a statewide clearance pattern of four (4) days. 7.2 The following shall develop the State's clearance patterns: Minnesota Management and Budget.The State will develop its own clearance patterns in compliance with 31 CFR 205.22 7.3 The sources of data the State shall use when developing its clearance patterns are as follows: Financial information from the Statewide Integrated Financial Tools (SWIFT) and the State Treasurer's System shall be The data used for payroll and each program except for the Unemployment Insurance program. The Department of Employment and Economic Development shall provide information/to develop clearance patterns for the Unemployment Insurance programs. The state excluded transfers between funds will come from State payment and transfers between agencies in the same fund. These transfers occur on the same day. Draws for these transfers will coincide with the date of transfer. If immaterial, or if the transfer cannot be anticipated, the check clearance pattern (Exhibit 2) may be used. Based on the prior fiscal year's financial information, the State shall calculate dollar-weighted average dates of clearance from the actual clearance times of each warrant compared to issue dates. Clearance patterns shall be reviewed annually. However, if the State has knowledge, at any time during the year, that a clearance pattern no longer reflects a Federal assistance program's actual clearance activity, or if a Federal assistance program undergoes operational changes that may affect clearance activity, the State must notify Fiscal Service and develop a new clearance pattern. Clearance patterns will remain in effect until a new clearance pattern is certifiedaccounting records. 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 notedNone. The State shall also adjust each clearance pattern to reflect: The average clearance date with a fraction of .5 or more rounds up to the next whole number. The average clearance date with a fraction less than .5 truncates to the next whole number. With 99.6% EFT for direct deposit, payroll rounds to oneNone. 7.8 Each of the State's clearance patterns is calculated in Business business days. 7.9 An authorized State official shall certify that each clearance pattern developed by the State accurately corresponds to the clearance activity of the programs to which it is applied. This certification shall be provided to the Fiscal Service prior to the effective date of the Agreement. The State shall recertify its clearance patterns at least every five years. 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.

CLEARANCE PATTERNS. 7.1 The State shall develop separate clearance patterns for each of the following: Each program covered by this agreement.NA 7.2 The following shall develop the State's clearance patterns: Minnesota Management The Connecticut Office of the State Treasurer and BudgetBank of America will develop the State's clearance patterns. 7.3 The sources of data the State shall use when developing its clearance patterns are as follows: Financial information from For the Statewide Integrated Financial Tools (SWIFT) and the State Treasurer's System shall be used for payroll and each program except for the Unemployment Insurance program. The payroll, Department of Employment Social Services, and Economic Development shall provide information/develop clearance patterns for the Unemployment Insurance programs. The state excluded transfers between funds and transfers between agencies in the same fund. These transfers occur on the same day. Draws for these transfers will coincide with the date of transfer. If immaterial, or if the transfer cannot be anticipated, the check clearance pattern (Exhibit 2) may be used. Based on the prior fiscal year's financial informationvendor payments, the State shall provides its banks with a file of checks issued, with issue dates and dollar amounts. Our banks then compare our issue data with their data on clearances to determine the clearance time, or days outstanding, for each check. The banks produce check clearance reports for each account. The reports list the number of items and dollar amounts by days of float, for those checks that clear during the reporting period. The banks then calculate dollar-weighted average dates clearance days for each account according to the following formula: Dollar-weighted average clearance days = Sum (A x B) / C where: A = Days outstanding per item B = Item dollar amount C = Total dollar amount cleared in Statement period. The Department of Social Services account payroll account and vendor account clearance from the actual clearance times of each warrant compared to issue datespatterns are based on calendar days. Clearance patterns shall be reviewed annually. However, if the State has knowledge, at any time during the year, that a The vendor account clearance pattern no longer reflects may be adjusted to exclude certain types of payments, such as State education grants to municipalities and tax refund payments that do not include Federal funds. The State reserves the right to factor electronic funds transfers (EFT's) into a Federal assistance program's actual clearance activity, or if a Federal assistance program undergoes operational changes that may affect clearance activity, the State must notify Fiscal Service and develop a new clearance pattern. Clearance patterns will remain in effect until a new composite clearance pattern is certifiedfor accounts in which they occur. State accounts are not program specific. The State will use actual daily clearance patterns in the development of estimated clearance patterns. 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 notedAll electronic funds transfers will be excluded from the banks' check clearance calculations. The State shall also adjust each clearance pattern to reflect: The average clearance date with a fraction of .5 or more rounds up to the next whole number. The average clearance date with a fraction less than .5 truncates to the next whole number. With 99.6% EFT for direct deposit, payroll rounds to one.NA 7.8 Each of the State's clearance patterns is calculated in Business 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.