Common use of Description of Funding Techniques Clause in Contracts

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 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 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 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. Actual Base Modified Monthly (DOE 84.010, 84.027) 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 Base Monthly (DARS, DBVI 84.126) The State shall request funds once each month, such that they are deposited at 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 appropriate direct cost base (usually salaries and wages) of the prior month. This funding technique is interest neutral. Actual Base Quarterly (VDH 10.557) The State shall request funds once a quarter, such that they are deposited on or about the middle of the first month, following the quarter and not later than the end of the same 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 appropriate direct cost base (usually salaries and wages) of the quarter. 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 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) 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, 93.563, 93.568, 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, 93.658, 93.659, 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 the Medicaid/CHIP Combined Account (DMAS 93.767, 93.778) The Medicaid/ Children's Health Insurance Program (CHIP) 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 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 Maintenance Payments to Beneficiaries (DSS 93.558, 93.568) For the direct cost components in the Temporary Assistance for 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 weighed 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 divided by 24. 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 of the schedule and is adjusted on the first drawdown of the quarter. VEC submits electronic reports to the U. S. Department of Labor quarterly that include cash receipts and expenditure data that is reconciled to ▇▇▇'s internal records. This funding technique is interest neutral. Modified Pre-Issuance Funding (VDH 10.557, DARS, DBVI 84.126, DMAS 93.767, 93.778) 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 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 ▇▇▇'s internal records. An interest liability will not be incurred by using this technique. This funding technique is interest neutral. Payment Schedule Two-Week Intervals (DSS 93.575, 93.596, 93.667) 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 10.553, 10.555, 84.010, 84.027),(DSS 10.561, 93.558, 93.568, 93.658),(VDOT, DRPT 20.205) 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. Post Expenditure Funding Technique for the WIC Program (VDH 10.557) Every State business day, the State shall draw down and deposit federal funds to the State's bank clearance account for the WIC program. The fiscal agent Conduent request daily wire transfers from the State's clearance account in amounts equal to WIC drafts approved for payment each 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. The State uses a Post Expenditure Funding Technique for the WIC program because the Virginia Department of Health (VDH) draws an amount equal to the prior day's expenditure. This requires the State to maintain an estimated amount in the Bank Clearance Account to avoid a negative balance due to fluctuations in the Fiscal Agent's daily requests for payment vouchers. Each day, the previous day's expenditures are reconciled against the current day's deposit. 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. Post Expenditure Funding for the Department of Military Affairs (DMA 12.401) The Department of Military Affairs has cooperative funding agreements with the National Guard Bureau (NGB). We are on a reimbursable program, where DMA expends the funds on their (NGB's) behalf, submits monthly invoices to the Defense Finance and Accounting Services (DFAS) and is reimbursed by DFAS within a 45 to 60 day period. The agency utilizes a $21M Line of Credit (LOC) as needed to cover any shortfalls or timing differences with incoming funds from NGB. If our cash balances are excessive, the agency repays our LOC to reduce the outstanding balance and to meet the required repayment date. The billing process to NGB starts when CARDINAL closes for the month. 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 inte

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 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 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 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. Actual Base Modified Monthly (DOE 84.010, 84.027) 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 Base Monthly (DARS, DBVI 84.126) The State shall request funds once each month, such that they are deposited at 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 appropriate direct cost base (usually salaries and wages) of the prior month. This funding technique is interest neutral. Actual Base Quarterly (VDH 10.557) The State shall request funds once a quarter, such that they are deposited on or about the middle of the first month, following the quarter and not later than the end of the same 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 appropriate direct cost base (usually salaries and wages) of the quarter. 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 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) 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, 93.563, 93.568, 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, 93.658, 93.659, 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 the Medicaid/CHIP Combined Account (DMAS 93.767, 93.778) The Medicaid/ Children's Health Insurance Program (CHIP) 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 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 Maintenance Payments to Beneficiaries (DSS 93.558, 93.568) For the direct cost components in the Temporary Assistance for 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 weighed 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 divided by 24. 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 of the schedule and is adjusted on the first drawdown of the quarter. 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 (VDH 10.557, DARS, DBVI 84.126, DMAS 93.767, 93.778) 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 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. Payment Schedule Two-Week Intervals (DSS 93.575, 93.596, 93.667) 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 10.553, 10.555, 84.010, 84.027),(DSS 10.561, 93.558, 93.568, 93.658),(VDOT, DRPT 20.205) 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. Post Expenditure Funding Technique for the WIC Program (VDH 10.557) Every State business day, the State shall draw down and deposit federal funds to the State's bank clearance account for the WIC program. The fiscal agent Conduent request daily wire transfers from the State's clearance account in amounts equal to WIC drafts approved for payment each 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. The State uses a Post Expenditure Funding Technique for the WIC program because the Virginia Department of Health (VDH) draws an amount equal to the prior day's expenditure. This requires the State to maintain an estimated amount in the Bank Clearance Account to avoid a negative balance due to fluctuations in the Fiscal Agent's daily requests for payment vouchers. Each day, the previous day's expenditures are reconciled against the current day's deposit. 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. Post Expenditure Funding for the Department of Military Affairs (DMA 12.401) The Department of Military Affairs has cooperative funding agreements with the National Guard Bureau (NGB). We are on a reimbursable program, where DMA expends the funds on their (NGB's) behalf, submits monthly invoices to the Defense Finance and Accounting Services (DFAS) and is reimbursed by DFAS within a 45 to 60 day period. The agency utilizes a $21M Line of Credit (LOC) as needed to cover any shortfalls or timing differences with incoming funds from NGB. If our cash balances are excessive, the agency repays our LOC to reduce the outstanding balance and to meet the required repayment date. The billing process to NGB starts when CARDINAL closes for the month. 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 inte

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 Base Monthly (DARS, DBVI 84.126) The State shall request funds once each month, such that they are deposited at 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 appropriate direct cost base (usually salaries and wages) of the prior month. This funding technique is interest neutral. Actual Base Quarterly (VDH 10.557) The State shall request funds once a quarter, such that they are deposited on or about the middle of the first month, following the quarter and not later than the end of the same 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 appropriate direct cost base (usually salaries and wages) of the quarter. 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 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-Semi- Monthly) (DSS 10.561, 93.558, 93.563, 93.568, and 93.659) The State shall request funds at semi-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, 93.658, 93.659, and 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 the Medicaid/CHIP Combined Account (DMAS 93.767, 93.778) The Medicaid/ Children's Health Insurance Program (CHIP) 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 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 Maintenance Payments to Beneficiaries (DSS 93.558, 93.568) For the direct cost components in the Temporary Assistance for Needy Families (TANF) and Low- 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 weighed 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-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 divided by 24award. 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 of the schedule and is adjusted on the first drawdown of the quarterfor 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 ▇▇▇'s internal records. This funding technique is interest neutral. Modified Pre-Issuance Funding (VDH 10.557, DARS, DBVI 84.126, 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 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 ▇▇▇'s internal records. An interest liability will not be incurred by using this technique. This funding technique is interest neutral. Payment Schedule Two-Week Intervals (DSS DOE 93.575, 93.596, 93.667) 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 10.553, 10.555, 84.010, 84.027),(DSS 84.027, and 84.425), (DSS, VDH 93.558),(DSS 10.561, 93.558, 93.568, 93.658),(VDOTand 93.659), (DOE, DSS 93.575),(VDOT, DRPT 20.20520.205),(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. Post Expenditure Funding Technique 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 WIC 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 (VDH 10.557SNAP) Every State business day, letter of credit through ASAP to cover the State shall draw down and deposit federal funds to the State's bank clearance account for the WIC program. The fiscal agent Conduent request daily wire transfers from the State's clearance account in amounts equal to WIC drafts approved for payment each 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. The State uses a Post Expenditure Funding Technique for Funds from the WIC program because the Virginia Department ASAP payment request are wired by Federal Reserve Bank of Health Richmond (VDHFRB Richmond) draws an amount equal to the prior day's expenditureVA EBT Clearing account. This requires EDS provides an auto- reconciliation file to Conduent on a daily basis that is used to reconcile the State to maintain an estimated amount in the Bank Clearance Account to avoid a negative balance due to fluctuations in the Fiscal Agent's daily requests for payment vouchers. Each day, the previous day's expenditures are reconciled draw down against the current day's deposit. When using this funding techniqueamount of the ACH debit, neither and adjustments are netted against 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 Techniquenext subsequent payment request. This funding technique is interest neutral. Post Expenditure Funding for ZBA - UI Benefits-ACH (VEC 17.225F, 17.225S) EFT payments are estimated at more than 99.29% of total Unemployment Insurance benefits. For payments to recipients in the Department 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 Military Affairs (DMA 12.401) the EFT payments to recipients. The Department of Military Affairs has cooperative funding agreements request shall be made in accordance with the National Guard 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 (NGB). We are on a reimbursable program, where DMA expends of the Fiscal Service will deposit the funds on their (NGB's) behalf, submits monthly invoices 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 Defense Finance agency's internal Trust Fund records, and Accounting Services (DFAS) 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 reimbursed interest neutral. ZBA - TANF and LIHEAP Benefits by DFAS within a 45 to 60 day period. The agency utilizes a $21M Line of Credit (LOC) as needed to cover any shortfalls or timing differences with incoming funds from NGB. If our cash balances are excessive, the agency repays our LOC to reduce the outstanding balance and to meet the required repayment date. The billing process to NGB starts when CARDINAL closes for the month. 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 inteEFT

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 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 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 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. Actual Base Modified Monthly (DOE 84.010, 84.027) 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 Base Monthly (DARS, DBVI 84.126) The State shall request funds once each month, such that they are deposited at 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 appropriate direct cost base (usually salaries and wages) of the prior month. This funding technique is interest neutral. Actual Base Quarterly (VDH 10.557) The State shall request funds once a quarter, such that they are deposited on or about the middle of the first month, following the quarter and not later than the end of the same 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 appropriate direct cost base (usually salaries and wages) of the quarter. 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 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) 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, 93.563, 93.568, 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, 93.658, 93.659, 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 the Medicaid/CHIP Combined Account (DMAS 93.767, 93.778) The Medicaid/ Children's Health Insurance Program (CHIP) 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 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 Maintenance Payments to Beneficiaries (DSS 93.558, 93.568) For the direct cost components in the Temporary Assistance for 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 weighed 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 divided by 24. 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 of the schedule and is adjusted on the first drawdown of the quarter. VEC submits electronic reports to the U. S. Department of Labor quarterly that include cash receipts and expenditure data that is reconciled to ▇▇▇'s internal records. This funding technique is interest neutral. Modified Pre-Issuance Funding (VDH 10.557, DARS, DBVI 84.126, DMAS 93.767, 93.778) 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 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 ▇▇▇'s internal records. An interest liability will not be incurred by using this technique. This funding technique is interest neutral. Payment Schedule Two-Week Intervals (DSS 93.575, 93.596, 93.667) 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 10.553, 10.555, 84.010, 84.027),(DSS 10.561, 93.558, 93.568, 93.658),(VDOT, DRPT 20.205) 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. Post Expenditure Funding Technique for the WIC Program (VDH 10.557) Every State business day, the State shall draw down and deposit federal funds to the State's bank clearance account for the WIC program. The fiscal agent Conduent request daily wire transfers from the State's clearance account in amounts equal to WIC drafts approved for payment each 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. The State uses a Post Expenditure Funding Technique for the WIC program because the Virginia Department of Health (VDH) draws an amount equal to the prior day's expenditure. This requires the State to maintain an estimated amount in the Bank Clearance Account to avoid a negative balance due to fluctuations in the Fiscal Agent's daily requests for payment vouchers. Each day, the previous day's expenditures are reconciled against the current day's deposit. 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. Post Expenditure Funding for the Department of Military Affairs Proportionate Share (DMA 12.401VEC 17.225F) The Department State shall include a proportionate share of Military Affairs has cooperative funding agreements 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 National Guard Bureau appropriate agency cut-off time specified in Exhibit I and the State clearance days shown in Exhibit II. This funding technique is interest neutral. ZBA - SNAP Benefits (NGB). We are on a reimbursable program, where DMA expends DSS 10.551) Electronic Benefit Transfer (EBT) Funding: Conduent will draw down federal funds from the funds on their Supplemental Nutrition Assistance Program (NGB'sSNAP) behalf, submits monthly invoices letter of credit through ASAP to cover the Defense Finance and Accounting Services (DFAS) and is reimbursed by DFAS within a 45 to 60 day periodamount of EBT transactions being settled that day. The request shall be made in accordance with the appropriate agency utilizes a $21M Line of Credit (LOC) as needed to cover any shortfalls or timing differences with incoming funds from NGB. If our cash balances are excessive, the agency repays our LOC to reduce the outstanding balance cut-off time specified in Exhibit I and to meet the required repayment date. The billing process to NGB starts when CARDINAL closes for the month. When using this funding technique, neither the State nor clearance days shown in Exhibit II. Funds from the ASAP payment request are wired by Federal Government shall be required to calculate or incur an interest liability. The State voluntarily waives Federal inteReserve Bank of Richmond (FRB Rich

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 (DARS, DBVI 84.126), (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 Base Monthly (DARS, DBVI 84.126) The State shall request funds once each month, such that they are deposited at 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 appropriate direct cost base (usually salaries and wages) of the prior month. This funding technique is interest neutral. Actual Base Quarterly (VDH 10.557) The State shall request funds once a quarter, such that they are deposited on or about the middle of the first month, following the quarter and not later than the end of the same 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 appropriate direct cost base (usually salaries and wages) of the quarter. 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 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-Semi- Monthly) (DSS 10.561, 93.558, 93.563, 93.568, and 93.659) The State shall request funds at semi-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, 93.658and 93.659), 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 the Medicaid/CHIP Combined Account (DMAS 93.767, 93.778) The Medicaid/ Children's Health Insurance Program (CHIP) 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 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 Maintenance Payments to Beneficiaries (DSS 93.558, 93.568) For the direct cost components in the Temporary Assistance for Needy Families (TANF) and Low- 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 weighed 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-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 divided by 24award. The estimate of the payroll portion shall be based upon the actual proportion of payroll costs to total grant costs in the previous quarterpayroll. After reconciling That State shall reconcile the difference between the estimate and the State's actual expenditures, at the end of expenditures 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 of the schedule and is adjusted on the first drawdown of the quartermonth. VEC submits electronic reports to the U. S. Department of Labor quarterly that include cash receipts and expenditure data that is reconciled to ▇▇▇'s internal records. This funding technique is interest neutral. Modified Pre-Issuance Funding (VDH 10.557, DARS, DBVI DBVI, WWRC, VRCBVI 84.126), (DMAS 93.767, 93.778), (VDH 10.557), (VDH, DGS 93.323) 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 paydayswithin three (3) days of expenditure. 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 based on actual invoices submitted for payment as they will be applied to the annual grant award with the exception of automation money which will be requested when expended. The estimate of the nonpersonal services portion shall be and are not 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 monthestimates or projections. VEC submits electronic reports to the U.S. Department of Labor quarterly that include cash receipts and expenditure data that is reconciled to ▇▇▇'s internal records. An interest liability will not be incurred by using this technique. This funding technique is interest neutral. Payment Schedule Two-Week Intervals (DSS 93.575), (DSS 93.596, 93.667) 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 10.553, 10.555, 84.010, 84.027),(DSS 84.027, 84.425, and 93.575), (DSS, VCCS-CO 93.558), (DSS 10.561, 93.558, 93.568, 93.658),(VDOTand 93.659), (VDOT, DRPT 20.205), (DEM, VDOT 97.036) 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. Post Expenditure Funding Technique for the - WIC Program (VDH 10.557) Every State business day, the State shall draw down and deposit federal funds to the State's ’s bank clearance account for the WIC program. The fiscal agent agent, Conduent (formerly Xerox Services) request daily wire transfers from the State's ’s clearance account in amounts equal to WIC drafts approved for payment each 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. The State uses a Post Expenditure Funding Technique for the WIC program because the Virginia Department of Health (VDH) draws an amount equal to the prior day's ’s expenditure. This requires the State to maintain an estimated amount in the Bank Clearance Account to avoid a negative balance due to fluctuations in the Fiscal Agent's ’s daily requests for payment vouchers. Each day, the previous day's ’s expenditures are reconciled against the current day's ’s deposit. When using this funding techniquefunding, 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. Post Expenditure Funding Proportionate Share (VEC 17.225F) The State shall accumulate indirect costs throughout each month and allocate these costs by an approved negotiated cost allocation plan to the annual grant award. The State shall request funds from the grant in the amount of indirect costs allocated using the approved plan/methodology, when the actual allocation amount is determined, thus reimbursing the State for the Department annual grant award share of Military Affairs (DMA 12.401) The Department of Military Affairs has cooperative funding agreements with the National Guard Bureau (NGB). We are on a reimbursable program, where DMA expends the funds on their (NGB's) behalf, submits monthly invoices to the Defense Finance and Accounting Services (DFAS) and is reimbursed by DFAS within a 45 to 60 day period. The agency utilizes a $21M Line of Credit (LOC) as needed to cover any shortfalls or timing differences with incoming funds from NGB. If our cash balances are excessive, the agency repays our LOC to reduce the outstanding balance and to meet the required repayment date. The billing process to NGB starts when CARDINAL closes indirect costs for the month. When using this funding technique, neither The request shall be made in accordance with the appropriate agency cut-off time specified in Exhibit I and the State nor 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 Federal Government 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 required 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 calculate or incur 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 liabilityneutral. 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 voluntarily waives clearance days shown in Exhibit II. The amount of the request for Federal inteand 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

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 6.3 of this Agreement. There are 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 6.3 of this Agreement. There are 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 6.3 of this Agreement. There are no funding techniques listed in Section 6.2.3 6.2.4 The following are terms under which State unique funding techniques shall be implemented for all transfers of funds to which the funding technique is applied in section 6.3.2 6.3 of this Agreement. Modified Pre-Issuance Funding (DOE, VDH, DRS, DBVI, DMAS) 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 and Reporting System (CARS), 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. 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 CARS, provided sufficient Federal cash was on hand at the time the related expenditure was released into CARS. This funding technique is not interest neutral. Actual Base Monthly (DRS, DBVI) The State shall request funds once each month, such that they are deposited at the end of the month. The request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit I. The amount of the request shall be determined by applying the indirect cost rate to the appropriate direct cost base (usually salaries and wages) of the prior month. Indirect costs are excluded from interest liabilities and calculations per Section 3.5 of this Agreement. This funding technique is interest neutral. Actual Base Modified Monthly (DOE 84.010, 84.027DOE) 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. I. 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. Indirect costs are excluded from interest liabilities and calculations per Section 3.5 of this Agreement. This funding technique is interest neutral. Post Expenditure Funding (DSS, VDOT, DRPT) The State shall request Federal funds only after related expenditures have been recorded in the Commonwealth's Accounting and Reporting System (CARS). The request shall be made in accordance with the appropriate agency cut-off time specified in Exhibit I. 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. Actual Base Monthly Costs - Estimated Allocation (DARS, DBVI 84.126Semi-Monthly) (DSS) The State shall request funds once each monthat semi-monthly intervals, such that they funds are deposited at on or about the end 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. I. The amount of the request shall be determined by applying 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. Indirect costs are excluded from interest liabilities and calculations per Section 3.5 of this Agreement. This funding technique is interest neutral. Annually (DMAS) The Commonwealth shall draw down statewide indirect cost rate to costs once a year, upon receipt of the federally approved amount from DOA. The request shall be made in accordance with the appropriate direct cost base (usually salaries and wages) agency cut-off time specified in Exhibit I. An interest liability shall not be incurred per Section 3.5 of the prior monththis agreement. This funding technique is interest neutral. Actual Base Quarterly (VDH 10.557VDH) The State shall request funds once a quarter, such that they are deposited on or about the middle of the first month, following the quarter and not later than the end of the same 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. I. The amount of the request shall be determined by applying the indirect cost rate to the appropriate direct cost base (usually salaries and wages) of the quarter. This funding technique is Indirect costs are excluded from 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 liabilities and the State clearance days shown in Exhibit II. HHS will deposit the funds in a State account the same day as requested. The amount calculations per Section 3.5 of the request shall be for the amount of funds that clear the bank by EFT that daythis Agreement. This funding technique is interest neutral. Actual Clearance: ZBA Proportionate Share (DOE 10.553, 10.555, 84.010, 84.027VEC) For The State shall include a proportionate share of the program components called Weekly EDI Payments indirect cost allowance in each request for funds by applying the indirect cost rate to Local Governments, the Virginia Department appropriate direct cost base (usually salaries and wages) of Education each drawdown. The request shall be made in accordance with the appropriate agency cut-off time specified in Exhibit I. Indirect costs are excluded from interest liabilities per Section 3.5 of this Agreement. This funding technique is interest neutral. Payment Schedule (DOESemimonthly Nonpersonal Services) (VEC) The State 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 governmentsmedian business day between 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. I. The amount of the request for funds shall be for the estimated nonpersonal services portion of the annual grant award divided by 24 with the exception of 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 in the previous quarter. 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 of the schedule and is adjusted on the first drawdown of the quarter. The Federal Cash Transaction Report PSC 272-E Report is reconciled to the VEC's internal reports and submitted electronically to the Department of Labor. This report contains the amount of the EDI payments that clear the State's account on the settlement advanced by transaction, date, and grant identification number. 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 An interest from the day the State pays out its own funds until the day Federal funds are deposited in a State accountliability will not be incurred by using this technique. This funding technique is interest neutral. Actual Costs - Estimated Allocation ZBA (Semi-MonthlyEBT IN VIRGINIA) (DSS 10.561DSS) Electronic Benefit Transfer (EBT) Funding: Affiliated Computer Services, 93.558, 93.563, 93.568, 93.659Inc. will draw down federal funds from the food stamp letter of credit through ASAP to cover the amount of EBT transactions being settled that day. Funds from the ASAP payment request are wired by Federal Reserve Bank of Richmond (FRB Richmond) The State shall request funds at semi-monthly intervals, such that funds are deposited on or about to the 1st and the 16th of the monthVA EBT Clearing account. The request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit I and I. EDS provides an auto-reconciliation file to Affiliated Computer Services, Inc. on a daily basis that is used to reconcile the State clearance days shown in Exhibit II. 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. Average Clearance Technique for Current Projects (VDOT) The State shall request funds for deposit on the dollar weighted average number of days required for funds to be paid out after each daily disbursement. The request shall be an made in accordance with the appropriate agency cut-off time specified in Exhibit I. This drawdown deposit date is: (1) the average number of days, if any, from the expenditure voucher submission date to CARS to the CARS expenditure posting date, plus (2) the dollar weighted average number of days from the CARS expenditure posting date to the related check clearance date. VDOT shall calculate time period (1), and add it to time period (2), which will be periodically, estimated allocation derived from prior quarter data as allocated based on and transmitted to VDOT by DOA using the Cost Allocation Planmost recent 12-month average monthly statewide general warrants and payroll check clearance patterns adjusted by the latest 12-month average system float, and by the most recent 12-month average estimated proportion of funds paid out by EDI and direct deposit. Each quarter, after actual costs have been determinedThis funding technique is interest neutral. Average Clearance Technique for Maintenance Payments to Beneficiaries (DSS – TANF & LIHEAP) For the direct cost components in the TANF and LIHEAP programs (CFDA #'s 93.558 & 93.568), the State shall adjust request funds for deposit on the estimated allocations dollar weighted average number of days required for related funds to actual allocations clear the bank. The request shall be made in accordance with the appropriate agency cut-off time specified in Exhibit I. 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 an approved cost allocation plannot less than three consecutive months of disbursement data provided by the bank. This funding technique is interest neutral. Actual Costs - Costs-Estimated Allocation Monthly (DSS 10.561, 93.558, 93.568, 93.658, 93.659, 93.778DSS) 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) expendituresmonth. 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. I. 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 Fixed Administrative Allowance (DMAS 93.767, 93.778Semi-monthly Payroll)(VEC) The Commonwealth State shall draw down 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 indirect costs once a yearpayroll check clearance pattern, upon receipt modified by the percentage of payroll direct deposits for the federally approved amount from DOAVEC. The request for funds shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit I I. The amount of the request for funds shall be the estimated payroll portion of the annual grant award divided by 24. The estimate of the payroll portion shall be based upon the actual proportion of payroll costs to total grant costs in the previous quarter. 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 State clearance days shown in Exhibit IIrecalculation of the schedule and is adjusted on the first drawdown of the quarter. The Federal Cash Transaction Report PSC 272-E Report is reconciled to the VEC's internal reports and submitted electronically to the Department of Labor. This report contains the amount advanced by transaction, date, and grant identification number. This funding technique is interest neutral. Average Clearance Funding Technique for the Medicaid/CHIP Combined Account (DMAS 93.767, 93.778DMAS) The Medicaid/ Children's ’s Health Insurance Program (CHIP) programs use a combined bank account for weekly remittance checks issued on a fixed weekly schedule by the Department of Medical Assistance Services 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. I. 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 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 Maintenance Payments to Beneficiaries (DSS 93.558, 93.568) For the direct cost components in the Temporary Assistance for 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 weighed 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 divided by 24. 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 of the schedule and is adjusted on the first drawdown of the quarter. VEC submits electronic reports to the U. S. Department of Labor quarterly that include cash receipts and expenditure data that is reconciled to ▇▇▇'s internal records. This funding technique is interest neutral. Modified Pre-Issuance Funding (VDH 10.557, DARS, DBVI 84.126, DMAS 93.767, 93.778) 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 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 ▇▇▇'s internal records. An interest liability will not be incurred by using this technique. This funding technique is interest neutral. Payment Schedule Two-Week Intervals (DSS 93.575, 93.596, 93.667) 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 10.553, 10.555, 84.010, 84.027),(DSS 10.561, 93.558, 93.568, 93.658),(VDOT, DRPT 20.205) 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. Post Expenditure Funding Technique for the WIC Program (VDH 10.557) Every State business day, the State shall draw down and deposit federal funds to the State's bank clearance account for the WIC program. The fiscal agent Conduent request daily wire transfers from the State's clearance account in amounts equal to WIC drafts approved for payment each 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. The State uses a Post Expenditure Funding Technique for the WIC program because the Virginia Department of Health (VDH) draws an amount equal to the prior day's expenditure. This requires the State to maintain an estimated amount in the Bank Clearance Account to avoid a negative balance due to fluctuations in the Fiscal Agent's daily requests for payment vouchers. Each day, the previous day's expenditures are reconciled against the current day's deposit. 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. Post Expenditure Funding for the Department of Military Affairs (DMA 12.401) The Department of Military Affairs has cooperative funding agreements with the National Guard Bureau (NGB). We are on a reimbursable program, where DMA expends the funds on their (NGB's) behalf, submits monthly invoices to the Defense Finance and Accounting Services (DFAS) and is reimbursed by DFAS within a 45 to 60 day period. The agency utilizes a $21M Line of Credit (LOC) as needed to cover any shortfalls or timing differences with incoming funds from NGB. If our cash balances are excessive, the agency repays our LOC to reduce the outstanding balance and to meet the required repayment date. The billing process to NGB starts when CARDINAL closes for the month. 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 inte.

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 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 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 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. Actual Base Modified Monthly (DOE 84.010, 84.027) 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. Indirect costs are excluded from interest liabilities and calculations per Section 3.5 of this Agreement. This funding technique is interest neutral. Actual Base Monthly (DARS, DBVI 84.126) The State shall request funds once each month, such that they are deposited at 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 appropriate direct cost base (usually salaries and wages) of the prior month. Indirect costs are excluded from interest liabilities and calculations per Section 3.5 of this Agreement. This funding technique is interest neutral. Actual Base Quarterly (VDH 10.557) The State shall request funds once a quarter, such that they are deposited on or about the middle of the first month, following the quarter and not later than the end of the same 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 appropriate direct cost base (usually salaries and wages) of the quarter. 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 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) For the program components called Weekly EDI Payments to Local Governments, the Virginia Department of Education (DOE) shall request funds such that they Indirect costs 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 excluded 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, 93.563, 93.568, 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, 93.658, 93.659, 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 the Medicaid/CHIP Combined Account (DMAS 93.767, 93.778) The Medicaid/ Children's Health Insurance Program (CHIP) 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 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 Maintenance Payments to Beneficiaries (DSS 93.558, 93.568) For the direct cost components in the Temporary Assistance for 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 weighed 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 divided by 24. 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 of the schedule and is adjusted on the first drawdown of the quarter. VEC submits electronic reports to the U. S. Department of Labor quarterly that include cash receipts and expenditure data that is reconciled to ▇▇▇'s internal records. This funding technique is interest neutral. Modified Pre-Issuance Funding (VDH 10.557, DARS, DBVI 84.126, DMAS 93.767, 93.778) 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 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 ▇▇▇'s internal records. An interest liability will not be incurred by using this technique. This funding technique is interest neutral. Payment Schedule Two-Week Intervals (DSS 93.575, 93.596, 93.667) 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 10.553, 10.555, 84.010, 84.027),(DSS 10.561, 93.558, 93.568, 93.658),(VDOT, DRPT 20.205) 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. Post Expenditure Funding Technique for the WIC Program (VDH 10.557) Every State business day, the State shall draw down and deposit federal funds to the State's bank clearance account for the WIC program. The fiscal agent Conduent request daily wire transfers from the State's clearance account in amounts equal to WIC drafts approved for payment each 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. The State uses a Post Expenditure Funding Technique for the WIC program because the Virginia Department of Health (VDH) draws an amount equal to the prior day's expenditure. This requires the State to maintain an estimated amount in the Bank Clearance Account to avoid a negative balance due to fluctuations in the Fiscal Agent's daily requests for payment vouchers. Each day, the previous day's expenditures are reconciled against the current day's deposit. 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. Post Expenditure Funding for the Department of Military Affairs (DMA 12.401) The Department of Military Affairs has cooperative funding agreements with the National Guard Bureau (NGB). We are on a reimbursable program, where DMA expends the funds on their (NGB's) behalf, submits monthly invoices to the Defense Finance and Accounting Services (DFAS) and is reimbursed by DFAS within a 45 to 60 day period. The agency utilizes a $21M Line of Credit (LOC) as needed to cover any shortfalls or timing differences with incoming funds from NGB. If our cash balances are excessive, the agency repays our LOC to reduce the outstanding balance and to meet the required repayment date. The billing process to NGB starts when CARDINAL closes for the month. 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 intecalculations per Section

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 Base Monthly (DARS, DBVI 84.126) The State shall request funds once each month, such that they are deposited at 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 appropriate direct cost base (usually salaries and wages) of the prior month. This funding technique is interest neutral. Actual Base Quarterly (VDH 10.557) The State shall request funds once a quarter, such that they are deposited on or about the middle of the first month, following the quarter and not later than the end of the same 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 appropriate direct cost base (usually salaries and wages) of the quarter. 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 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-Semi- Monthly) (DSS 10.561, 93.558, 93.563, 93.568, and 93.659) The State shall request funds at semi-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, 93.658and 93.659), 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 the Medicaid/CHIP Combined Account (DMAS 93.767, 93.778) The Medicaid/ Children's Health Insurance Program (CHIP) 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 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 Maintenance Payments to Beneficiaries (DSS 93.558, 93.568) For the direct cost components in the Temporary Assistance for Needy Families (TANF) and Low- 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 weighed 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-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 divided by 24award. 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 of the schedule and is adjusted on the first drawdown of the quarterfor 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 ▇▇▇'s internal records. This funding technique is interest neutral. Modified Pre-Issuance Funding (VDH 10.557, DARS, DBVI 84.126, 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 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 ▇▇▇'s internal records. An interest liability will not be incurred by using this technique. This funding technique is interest neutral. Payment Schedule Two-Week Intervals (DSS DOE 93.575, 93.596, 93.667) 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 10.553, 10.555, 84.010, 84.027),(DSS 84.027, 84.425, and 93.575), (DSS 10.561, 93.558, 93.568, 93.658),(VDOTand 93.659),(VDOT, DRPT 20.20520.205),(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. Post Expenditure Funding Technique 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 WIC 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 (VDH 10.557SNAP) Every State business day, letter of credit through ASAP to cover the State shall draw down and deposit federal funds to the State's bank clearance account for the WIC program. The fiscal agent Conduent request daily wire transfers from the State's clearance account in amounts equal to WIC drafts approved for payment each 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. The State uses a Post Expenditure Funding Technique for Funds from the WIC program because the Virginia Department ASAP payment request are wired by Federal Reserve Bank of Health Richmond (VDHFRB Richmond) draws an amount equal to the prior day's expenditureVA EBT Clearing account. This requires EDS provides an auto- reconciliation file to Conduent on a daily basis that is used to reconcile the State to maintain an estimated amount in the Bank Clearance Account to avoid a negative balance due to fluctuations in the Fiscal Agent's daily requests for payment vouchers. Each day, the previous day's expenditures are reconciled draw down against the current day's deposit. When using this funding techniqueamount of the ACH debit, neither and adjustments are netted against 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 Techniquenext subsequent payment request. This funding technique is interest neutral. Post Expenditure Funding for 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 Department 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 Military Affairs (DMA 12.401) the EFT payments to recipients. The Department of Military Affairs has cooperative funding agreements request shall be made in accordance with the National Guard 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 (NGB). We are on a reimbursable program, where DMA expends of the Fiscal Service will deposit the funds on their (NGB's) behalf, submits monthly invoices 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 Defense Finance agency's internal Trust Fund records, and Accounting Services 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 (DFAS) and is reimbursed by DFAS within a 45 to 60 day period. The agency utilizes a $21M Line of Credit (LOC) as needed to cover any shortfalls or timing differences with incoming funds from NGB. If our cash balances are excessiveDSS, the agency repays our LOC to reduce the outstanding balance and to meet the required repayment date. The billing process to NGB starts when CARDINAL closes for the month. 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 inteVDH 93.55