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 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. Funding Technique Name Description Capitalization Grants for State Revolving Funds The State shall request funds to minimize the time between the drawdown of funds from Treasury and their deposit into the revolving fund. The timing of the drawdown of Federal funds for deposit to the revolving fund is subject to the interest provisions of 31 CFR Part 205, however there is an interest exemption for the interest the State earns once the funds are deposited into the revolving fund. The request for funds shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit I. The amount of the request shall be for the amount of the funds to be used for immediate program purposes. The State will not incur an interest liability for interest earned on revolving fund loans. This funding technique is interest neutral. 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 Admin/Tech Grants for State Revolving Funds The State shall request funds such that they are deposited by electronic payment to the State Revolving Fund Trustee, which in turn deposits the funds by electronic payment in a State account. 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 based upon expenditure reports from State's accounting system and the State Revolving Fund grants. This funding technique is interest neutral. Allocated Administrative Costs - Weekly The State, for the Department of Labor, shall request funds on Tuesdays for expenditures posted the previous Friday, and shall request funds on Fridays for expenditures posted the previous Tuesday. The request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit I. The State, for the Department of Social Services, shall request funds on the first business day of the week, such that they are deposited ACH in a State account on the second business day of the week, to fund the allocated costs charged to the program during the prior week. 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 1/13 of the actual cost allocation of the prior quarter(s). If necessary, the State shall adjust the drawdown to the actual allocation at the end of the quarter. This funding technique is interest neutral. Direct Costs - Weekly The State shall request funds on the first business day of the week, such that they are deposited ACH in a State account on the second business day of the week, to fund the actual direct costs charged to the program during the prior week. The request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit I. This funding technique is interest neutral. Modified ACH The State shall request funds such that they are deposited by ACH in a State account. The State shall request funds on the second business day of the week such that funds are deposited on the third business day of the week to fund all non-cash transactions with a settlement date the prior week. The State shall request Administrative ACH transactions on Tuesdays and Fridays such that they are deposited the following business day. The request shall be based on payment reports issued by the State's accounting system. The request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit I. The amount of the request shall be for the amount of funds that clear the State's account on the settlement date. The settlement date of payments issued by the State is the effective date of interagency transfers, journal vouchers, or other accounting system transactions made by the State to pay out funds for program purposes. This funding technique is interest neutral. Modified Average Clearance The State shall request funds such that they are deposited by ACH on: * The dollar-weighted average day of clearance for the disbursement, in accordance with the clearance pattern specified in Exhibit II; or, * The effective date of interagency transfers, journal vouchers, or other accounting system transactions made by the State to pay out funds for program purposes. The request for funds shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit I. The amount of the request shall be rounded to the nearest dollar or the exact amount of the disbursement. This funding technique is interest neutral. Modified Electronic Benefit Transfer eFunds, under a contractual agreement with the Department of Social Service, shall request funds via Fedwire as a same day, cash drawdown for Electronic Benefit Transfers. The funds will be deposited directly to the account of eFunds. The drawdown of funds shall be the same day that retailers are paid for transactions made at electronic point of sale machines. The funds shall always be drawn on the same day that settlement funds are paid out. This funding technique is interest neutral. Modified Weekly Costs CFDA 17.225 The State, for the Department of Labor, shall request funds on Fridays to be received on the following Monday to cover expenditures from the prior week. Draws will only be made when the expenditures from the week are over $5,000. This funding technique is interest neutral. Modified ZBA - ACH The State shall request funds such that they are deposited by ACH in a State account on the settlement date of payments issued by the State. The request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit I. The amount of the request shall be for the amount of funds that clear the State's account on the settlement date. The settlement date of payments issued by the State is: * The settlement date of ACH payments (also called Direct Deposit payments) made by the State to pay out funds for program purposes; or, * The effective date of interagency transfers, journal vouchers, or other accounting system transactions made by the State to pay out funds for program purposes. The State shall request funds on the first business day of the week, such that they are deposited on the second day of the week, to fund all non-cash transactions with a settlement date during the prior week. This funding technique is interest neutral. Modified ZBA - Same Day Payment The State shall request funds the same day it pays out funds, in accordance with the appropriate Federal agency cut-off time specified in Exhibit I. A Federal agency will deposit funds in a State account the same day as requested. The amount of the request shall be for the amount of funds that clear the State's account that day, less the amount of returns received on the prior banking day. This funding technique is interest neutral. National Guard Reimbursable Costs The State shall request funds such that they are deposited by electronic payment. The request shall be made in accordance with the appropriate Federal agency cut off time specified in Exhibit I. The request for reimbursable expenses shall be based off the monthly expenditure report and shall not be requested prior to the issuance of the monthly expenditure report. The request for reimbursable expenses shall be based on the expenditure report issued by the State's accounting system and shall be made on a monthly basis. This funding technique is interest neutral.