Common use of CLEARANCE PATTERNS Clause in Contracts

CLEARANCE PATTERNS. 7.1 The State shall develop separate clearance patterns for each of the following: The programs as described in section 4.2 that meet or exceed the threshold. 7.2 The following shall develop the State's clearance patterns: Department of Child Safety Department of Health Services Department of Economic Security Department of Transportation Department of Education 7.3 The sources of data the State shall use when developing its clearance patterns are as follows: The average clearance days are derived from the verification of clearance patterns done in May 2025 (20.205 Highway Planning and Construction ), April 2021 (93.558 Temporary Assistance for Needy Families) and June 2021 (93.658 ▇▇▇▇▇▇ Care-Title IV-E and 93.659 Adoption Assistance) using an AZ360 report and sampling transactions. The State has documented that over 99% of all current payrolls are paid by direct deposit. Bank of America is paid via wire on Wednesday of pay week for payroll. Therefore, when applying funding techniques that require Federal funds to be deposited in a State account on the average clearance day of payroll, Wednesday of the pay week has been established as the date to receive Federal funds. 7.4 The State shall use the following methodology when developing its clearance patterns: When developing each clearance pattern, the State shall track at least 99% of the funds disbursed, from issuance to clearance, for a period of at least three months. 7.5 The State shall identify for each check or warrant (hereafter, check) in the population: (1) the date the check was released for payment; (2) the date the check was debited from the State's account, and, (3) the amount of the check. 7.6 The State shall use the following method to calculate the dollar-weighted average day of clearance: To determine the number of days each check was outstanding (clearance time), the issue date shall be subtracted from the date the check cleared the State's account. To determine the percentage of the disbursement paid out each day following issuance, the amount of the checks that clear the State's account each day shall be summed and then divided by the amount of the total disbursement. For each day following issuance, the clearance time of the checks paid out that day shall be multiplied by the percentage of the total disbursement those checks represent. This product is the clearance factor. The dollar-weighted average day of clearance for the disbursement shall be determined by summing the clearance factor of each day following the disbursement. 7.7 The State shall adjust each clearance pattern to reflect the dollar-weighted proportion of funds paid out by EFT/Direct payroll, with the following exceptions: No exceptions. The State shall also adjust each clearance pattern to reflect: No additional adjustments. 7.8 Each of the State's clearance patterns is calculated in Business days. 7.9 An authorized State official shall certify that each clearance pattern developed by the State accurately corresponds to the clearance activity of the programs to which it is applied. This certification shall be provided to the Fiscal Service prior to the effective date of the Agreement. The State shall recertify its clearance patterns at least every five years. 7.10 The State shall follow the procedures of 31 CFR 205 if it has actual or constructive knowledge, at any time, that a clearance pattern does not correspond to a program's clearance activity.

CLEARANCE PATTERNS. 7.1 The State shall develop separate clearance patterns for each of the following: The Separate clearance patterns will be developed for the following programs as described in section 4.2 that meet or exceed by the threshold.following responsible State Agencies: N/A 7.2 The following shall develop the State's clearance patterns: Department The ND Office of Child Safety Department Management and Budget shall develop all of Health Services Department of Economic Security Department of Transportation Department of Educationthe State's clearance patterns for all major Federal Programs. 7.3 The sources of data the State shall use when developing its clearance patterns are as follows: The average clearance days are derived from sources of data the verification of State shall use when developing its clearance patterns done in May 2025 (20.205 Highway Planning for payments made by the Statewide Accounting System are the PeopleSoft transaction history file, and Construction ), April 2021 (93.558 Temporary Assistance for Needy Families) and June 2021 (93.658 ▇▇▇▇▇▇ Care-Title IV-E and 93.659 Adoption Assistance) using an AZ360 report and sampling transactionsthe Bank of North Dakota cleared check file. The State has documented that over 99% months of all current payrolls are paid by direct depositJune through November 2018 were used to calculate the clearance pattern for CFDA #20.205. Bank The months of America is paid via wire on Wednesday June thru August 2018 were used to calculate clearance patterns for CFDA #84.010, #84.027, and #97.039. The months July thru September 2019 were used to calculate the clearance pattern for #12.401. The months August thru October 2018 were used to calculate the clearance pattern for #97.036. The months of pay week for payroll. Therefore, when applying funding techniques that require Federal funds September thru November of 2018 were used to be deposited in a State account on calculate the average other clearance day of payroll, Wednesday of the pay week has been established as the date to receive Federal fundspatterns. 7.4 The State shall use the following methodology when developing its clearance patterns: When developing each clearance pattern, the State shall track at least 99% of the funds disbursed, from issuance to clearance, for a period of at least three months. 7.5 The State shall identify for each check or warrant (hereafter, check) in the population: (1) the date the check was released for payment; (2) the date the check was debited from the State's account, and, (3) the amount of the check. 7.6 The State shall use the following method to calculate the dollar-weighted average day of clearance: To determine the number of days each check was outstanding (clearance time), the issue date shall be subtracted from the date the check cleared the State's account. To determine the percentage of the disbursement paid out each day following issuance, the amount of the checks that clear the State's account each day shall be summed and then divided by the amount of the total disbursement. For each day following issuance, the clearance time of the checks paid out that day shall be multiplied by the percentage of the total disbursement those checks represent. This product is the clearance factor. The dollar-weighted average day of clearance for the disbursement shall be determined by summing the clearance factor of each day following the disbursement. 7.6.1 The issue date shall be the day following the date on the check, to allow for one day processing time before checks are mailed. 7.7 The State shall adjust each clearance pattern to reflect the dollar-weighted proportion of funds paid out by EFT/Direct payroll, with the following exceptions: No exceptionsInterdepartmental ▇▇▇▇▇▇▇▇ are not included for the programs that have a separate component for those ▇▇▇▇▇▇▇▇. The State shall also adjust each clearance pattern to reflect: No additional adjustments.N/A 7.8 Each of the State's clearance patterns is calculated in Business calendar days. 7.9 An authorized State official shall certify that each clearance pattern developed by the State accurately corresponds to the clearance activity of the programs to which it is applied. This certification shall be provided to the Fiscal Service prior to the effective date of the Agreement. The State shall recertify its clearance patterns at least every five years. 7.10 The State shall follow the procedures of 31 CFR 205 if it has actual or constructive knowledge, at any time, that a clearance pattern does not correspond to a program's clearance activity. 7.11 Estimated clearance activity is based on a sample of checks over a three to six month period. The system, knowing when the checks were written, determines if they are outstanding or have been cashed. The estimated clearance pattern is then based on this information. The information is kept in a spreadsheet by the agency responsible for it and is reconciled daily.

CLEARANCE PATTERNS. 7.1 The State shall develop separate clearance patterns for each of the following: The Separate clearance patterns will be developed for the following programs as described in section 4.2 that meet or exceed by the threshold.following responsible State Agencies: N/A 7.2 The following shall develop the State's clearance patterns: Department The ND Office of Child Safety Department Management and Budget shall develop all of Health Services Department of Economic Security Department of Transportation Department of Educationthe State's clearance patterns for all major Federal Programs. 7.3 The sources of data the State shall use when developing its clearance patterns are as follows: The average clearance days are derived from sources of data the verification of State shall use when developing its clearance patterns done in May 2025 (20.205 Highway Planning for payments made by the Statewide Accounting System are the PeopleSoft transaction history file, and Construction ), April 2021 (93.558 Temporary Assistance for Needy Families) and June 2021 (93.658 ▇▇▇▇▇▇ Care-Title IV-E and 93.659 Adoption Assistance) using an AZ360 report and sampling transactionsthe Bank of North Dakota cleared check file. The State has documented that over 99% months of all current payrolls are paid by direct depositJune through November 2020 were used to calculate the clearance pattern for CFDA #20.205. Bank The months of America is paid via wire on Wednesday June thru August 2020 were used to calculate clearance patterns for CFDA #84.010 and#84.027. The months July thru September 2020 were used to calculate the clearance pattern for #10.559. The months of pay week September thru November of 2020 were used to calculate the clearance pattern for payroll. Therefore, when applying funding techniques that require Federal funds to be deposited in a State account on the average clearance day of payroll, Wednesday of the pay week has been established as the date to receive Federal funds#10.555. 7.4 The State shall use the following methodology when developing its clearance patterns: When developing each clearance pattern, the State shall track at least 99% of the funds disbursed, from issuance to clearance, for a period of at least three months. 7.5 The State shall identify for each check or warrant (hereafter, check) in the population: (1) the date the check was released for payment; (2) the date the check was debited from the State's account, and, (3) the amount of the check. 7.6 The State shall use the following method to calculate the dollar-weighted average day of clearance: To determine the number of days each check was outstanding (clearance time), the issue date shall be subtracted from the date the check cleared the State's account. To determine the percentage of the disbursement paid out each day following issuance, the amount of the checks that clear the State's account each day shall be summed and then divided by the amount of the total disbursement. For each day following issuance, the clearance time of the checks paid out that day shall be multiplied by the percentage of the total disbursement those checks represent. This product is the clearance factor. The dollar-weighted average day of clearance for the disbursement shall be determined by summing the clearance factor of each day following the disbursement. 7.7 The State shall adjust each clearance pattern to reflect the dollar-weighted proportion of funds paid out by EFT/Direct payroll, with the following exceptions: No exceptionsInterdepartmental ▇▇▇▇▇▇▇▇ are not included for the programs that have a separate component for those ▇▇▇▇▇▇▇▇. The State shall also adjust each clearance pattern to reflect: No additional adjustments.N/A 7.8 Each of the State's clearance patterns is calculated in Business Calendar days. 7.9 An authorized State official shall certify that each clearance pattern developed by the State accurately corresponds to the clearance activity of the programs to which it is applied. This certification shall be provided to the Fiscal Service prior to the effective date of the Agreement. The State shall recertify its clearance patterns at least every five years. 7.10 The State shall follow the procedures of 31 CFR 205 if it has actual or constructive knowledge, at any time, that a clearance pattern does not correspond to a program's clearance activity.

CLEARANCE PATTERNS. 7.1 The State shall develop separate clearance patterns for each of the following: For each program or logical group of programs subject to the provisions of Subpart A of 31 CFR 205, except for those programs that utilize Electronic Benefit Transfers (EBT). The State will also develop functional clearance patterns for those programs as described in section 4.2 that meet or exceed the thresholdwhere applicable. 7.2 The following shall develop the State's clearance patterns: Department State agencies will calculate clearance patterns for period 1 (from deposit date to issuance date, where issuance means the actual release of Child Safety Department payments). The Comptroller of Health Services Department of Economic Security Department of Transportation Department of EducationPublic Accounts will calculate clearance patterns for period 2 from issuance to clearance. 7.3 The sources of data the State shall use when developing its clearance patterns are as follows: The average clearance days are derived from An agency's internal accounting system, the verification of clearance patterns done in May 2025 (20.205 Highway Planning Uniform Statewide Accounting System, the Treasury Warrants System, and Construction ), April 2021 (93.558 Temporary Assistance for Needy Families) and June 2021 (93.658 ▇▇▇▇▇▇ Care-Title IV-E and 93.659 Adoption Assistance) using an AZ360 report and sampling transactions. The State has documented that over 99% of all current payrolls are paid by direct deposit. Bank of America is paid via wire on Wednesday of pay week for payroll. Therefore, when applying funding techniques that require Federal funds to be deposited in a State account on the average clearance day of payroll, Wednesday of the pay week has been established as the date to receive Federal fundsStandardized Payroll/Personnel Reporting System. 7.4 The State shall use the following methodology when developing its clearance patterns: When developing each clearance pattern, the State shall track at least 99% of the funds disbursed, from issuance to clearance, for a period of at least three months. 7.5 The State shall identify for each check or warrant (hereafter, check) in the population: (1) the date the check was released for payment; (2) the date the check was debited from the State's account, and, (3) the amount of the check. 7.6 The State shall use the following method to calculate the dollar-weighted average day of clearance: To determine the number of days each check was outstanding (clearance time), the issue date shall be subtracted from the date the check cleared the State's account. To determine the percentage of the disbursement paid out each day following issuance, the amount of the checks that clear the State's account each day shall be summed and then divided by the amount of the total disbursement. For each day following issuance, the clearance time of the checks paid out that day shall be multiplied by the percentage of the total disbursement those checks represent. This product is the clearance factor. The dollar-weighted average day of clearance for the disbursement shall be determined by summing the clearance factor of each day following the disbursement. 7.7 The State shall adjust each clearance pattern to reflect the dollar-weighted proportion of funds paid out by EFT/Direct payroll, with the following exceptions: No exceptions. None The State shall also adjust each clearance pattern to reflect: No additional adjustments.Not Applicable 7.8 Each of the State's clearance patterns is calculated in Business Calendar days. 7.9 An authorized State official shall certify that each clearance pattern developed by the State accurately corresponds to the clearance activity of the programs to which it is applied. This certification shall be provided to the Fiscal Service prior to the effective date of the Agreement. The State shall recertify its clearance patterns at least every five years. 7.10 The State shall follow the procedures of 31 CFR 205 if it has actual or constructive knowledge, at any time, that a clearance pattern does not correspond to a program's clearance activity.

CLEARANCE PATTERNS. 7.1 The State shall develop separate clearance patterns for each of the following: The Separate clearance patterns will be developed for the following programs as described in section 4.2 that meet or exceed by the threshold.following responsible State Agencies: N/A 7.2 The following shall develop the State's clearance patterns: Department The ND Office of Child Safety Department Management and Budget shall develop all of Health Services Department of Economic Security Department of Transportation Department of Educationthe State's clearance patterns for all major Federal Programs. 7.3 The sources of data the State shall use when developing its clearance patterns are as follows: The average clearance days are derived from sources of data the verification of State shall use when developing its clearance patterns done in May 2025 (20.205 Highway Planning for payments made by the Statewide Accounting System are the PeopleSoft transaction history file, and Construction ), April 2021 (93.558 Temporary Assistance for Needy Families) and June 2021 (93.658 ▇▇▇▇▇▇ Care-Title IV-E and 93.659 Adoption Assistance) using an AZ360 report and sampling transactionsthe Bank of North Dakota cleared check file. The State has documented that over 99% months of all current payrolls are paid by direct depositJune through November 2022 were used to calculate the clearance pattern for CFDA #20.205. Bank The months of America is paid via wire on Wednesday June thru August 2022 were used to calculate clearance patterns for CFDA #84.010, #84.027 and #84.425. The months of pay week September thru November of 2022 were used to calculate the clearance pattern for payroll#10.555. Therefore, when applying funding techniques that require Federal funds The months of December thru February 2023 were used to be deposited in a State account on the average calculate clearance day of payroll, Wednesday of the pay week has been established as the date to receive Federal fundspatterns for CFDA #97.036. 7.4 The State shall use the following methodology when developing its clearance patterns: When developing each clearance pattern, the State shall track at least 99% of the funds disbursed, from issuance to clearance, for a period of at least three months. 7.5 The State shall identify for each check or warrant (hereafter, check) in the population: (1) the date the check was released for payment; (2) the date the check was debited from the State's account, and, (3) the amount of the check. 7.6 The State shall use the following method to calculate the dollar-weighted average day of clearance: To determine the number of days each check was outstanding (clearance time), the issue date shall be subtracted from the date the check cleared the State's account. To determine the percentage of the disbursement paid out each day following issuance, the amount of the checks that clear the State's account each day shall be summed and then divided by the amount of the total disbursement. For each day following issuance, the clearance time of the checks paid out that day shall be multiplied by the percentage of the total disbursement those checks represent. This product is the clearance factor. The dollar-weighted average day of clearance for the disbursement shall be determined by summing the clearance factor of each day following the disbursement. 7.7 The State shall adjust each clearance pattern to reflect the dollar-weighted proportion of funds paid out by EFT/Direct payroll, with the following exceptions: No exceptionsInterdepartmental Billings are not included for the programs that have a separate component for those billings. The State shall also adjust each clearance pattern to reflect: No additional adjustments.N/A 7.8 Each of the State's clearance patterns is calculated in Business Calendar days. 7.9 An authorized State official shall certify that each clearance pattern developed by the State accurately corresponds to the clearance activity of the programs to which it is applied. This certification shall be provided to the Fiscal Service prior to the effective date of the Agreement. The State shall recertify its clearance patterns at least every five years. 7.10 The State shall follow the procedures of 31 CFR 205 if it has actual or constructive knowledge, at any time, that a clearance pattern does not correspond to a program's clearance activity.

CLEARANCE PATTERNS. 7.1 The State shall develop separate clearance patterns for each of the following: The Separate clearance patterns will be developed for the following programs as described in section 4.2 that meet or exceed by the threshold.following responsible State Agencies: N/A 7.2 The following shall develop the State's clearance patterns: Department The ND Office of Child Safety Department Management and Budget shall develop all of Health Services Department of Economic Security Department of Transportation Department of Educationthe State's clearance patterns for all major Federal Programs. 7.3 The sources of data the State shall use when developing its clearance patterns are as follows: The average clearance days are derived from sources of data the verification of State shall use when developing its clearance patterns done in May 2025 (20.205 Highway Planning for payments made by the Statewide Accounting System are the PeopleSoft transaction history file, and Construction ), April 2021 (93.558 Temporary Assistance for Needy Families) and June 2021 (93.658 ▇▇▇▇▇▇ Care-Title IV-E and 93.659 Adoption Assistance) using an AZ360 report and sampling transactionsthe Bank of North Dakota cleared check file. The State has documented that over 99% months of all current payrolls are paid by direct depositJune through November 2024 were used to calculate the clearance pattern for ALN #20.205. Bank The months of America is paid via wire on Wednesday June thru August 2024 were used to calculate clearance patterns for ALN #84.010, #84.027 and #84.425. The months of pay week September thru November of 2024 were used to calculate the clearance pattern for payrollALN #10.555. Therefore, when applying funding techniques that require Federal funds The months of June through August 2024 were used to be deposited in a State account on calculate the average clearance day of payroll, Wednesday of the pay week has been established as the date to receive Federal fundspattern for ALN #97.036. 7.4 The State shall use the following methodology when developing its clearance patterns: When developing each clearance pattern, the State shall track at least 99% of the funds disbursed, from issuance to clearance, for a period of at least three months. 7.5 The State shall identify for each check or warrant (hereafter, check) in the population: (1) the date the check was released for payment; (2) the date the check was debited from the State's account, and, (3) the amount of the check. 7.6 The State shall use the following method to calculate the dollar-weighted average day of clearance: To determine the number of days each check was outstanding (clearance time), the issue date shall be subtracted from the date the check cleared the State's account. To determine the percentage of the disbursement paid out each day following issuance, the amount of the checks that clear the State's account each day shall be summed and then divided by the amount of the total disbursement. For each day following issuance, the clearance time of the checks paid out that day shall be multiplied by the percentage of the total disbursement those checks represent. This product is the clearance factor. The dollar-weighted average day of clearance for the disbursement shall be determined by summing the clearance factor of each day following the disbursement. 7.7 The State shall adjust each clearance pattern to reflect the dollar-weighted proportion of funds paid out by EFT/Direct payroll, with the following exceptions: No exceptionsInterdepartmental ▇▇▇▇▇▇▇▇ are not included for the programs that have a separate component for those ▇▇▇▇▇▇▇▇. The State shall also adjust each clearance pattern to reflect: No additional adjustments.N/A 7.8 Each of the State's clearance patterns is calculated in Business Calendar days. 7.9 An authorized State official shall certify that each clearance pattern developed by the State accurately corresponds to the clearance activity of the programs to which it is applied. This certification shall be provided to the Fiscal Service prior to the effective date of the Agreement. The State shall recertify its clearance patterns at least every five years. 7.10 The State shall follow the procedures of 31 CFR 205 if it has actual or constructive knowledge, at any time, that a clearance pattern does not correspond to a program's clearance activity.

CLEARANCE PATTERNS. 7.1 The State shall develop separate clearance patterns for each of the following: The Separate clearance patterns will be developed for the following programs as described in section 4.2 that meet or exceed by the threshold.following responsible State Agencies: N/A 7.2 The following shall develop the State's clearance patterns: Department The ND Office of Child Safety Department Management and Budget shall develop all of Health Services Department of Economic Security Department of Transportation Department of Educationthe State's clearance patterns for all major Federal Programs. 7.3 The sources of data the State shall use when developing its clearance patterns are as follows: The average clearance days are derived from sources of data the verification of State shall use when developing its clearance patterns done in May 2025 (20.205 Highway Planning for payments made by the Statewide Accounting System are the PeopleSoft transaction history file, and Construction ), April 2021 (93.558 Temporary Assistance for Needy Families) and June 2021 (93.658 ▇▇▇▇▇▇ Care-Title IV-E and 93.659 Adoption Assistance) using an AZ360 report and sampling transactionsthe Bank of North Dakota cleared check file. The State has documented that over 99% months of all current payrolls are paid by direct depositJune through November 2020 were used to calculate the clearance pattern for CFDA #20.205. Bank The months of America is paid via wire on Wednesday June thru August 2020 were used to calculate clearance patterns for CFDA #84.010 and#84.027. The months July thru September 2020 were used to calculate the clearance pattern for #10.559. The months of pay week September thru November of 2020 were used to calculate the clearance pattern for payroll#10.555. Therefore, when applying funding techniques that require Federal funds The months of June thru August 2021 were used to be deposited in a State account on the average calculate clearance day of payroll, Wednesday of the pay week has been established as the date to receive Federal fundspatterns for CFDA #84.425 and #97.036. 7.4 The State shall use the following methodology when developing its clearance patterns: When developing each clearance pattern, the State shall track at least 99% of the funds disbursed, from issuance to clearance, for a period of at least three months. 7.5 The State shall identify for each check or warrant (hereafter, check) in the population: (1) the date the check was released for payment; (2) the date the check was debited from the State's account, and, (3) the amount of the check. 7.6 The State shall use the following method to calculate the dollar-weighted average day of clearance: To determine the number of days each check was outstanding (clearance time), the issue date shall be subtracted from the date the check cleared the State's account. To determine the percentage of the disbursement paid out each day following issuance, the amount of the checks that clear the State's account each day shall be summed and then divided by the amount of the total disbursement. For each day following issuance, the clearance time of the checks paid out that day shall be multiplied by the percentage of the total disbursement those checks represent. This product is the clearance factor. The dollar-weighted average day of clearance for the disbursement shall be determined by summing the clearance factor of each day following the disbursement. 7.7 The State shall adjust each clearance pattern to reflect the dollar-weighted proportion of funds paid out by EFT/Direct payroll, with the following exceptions: No exceptionsInterdepartmental Billings are not included for the programs that have a separate component for those ▇▇▇▇▇▇▇▇. The State shall also adjust each clearance pattern to reflect: No additional adjustments.N/A 7.8 Each of the State's clearance patterns is calculated in Business Calendar days. 7.9 An authorized State official shall certify that each clearance pattern developed by the State accurately corresponds to the clearance activity of the programs to which it is applied. This certification shall be provided to the Fiscal Service prior to the effective date of the Agreement. The State shall recertify its clearance patterns at least every five years. 7.10 The State shall follow the procedures of 31 CFR 205 if it has actual or constructive knowledge, at any time, that a clearance pattern does not correspond to a program's clearance activity.

CLEARANCE PATTERNS. 7.1 The State shall develop separate clearance patterns for each of the following: The Separate clearance patterns will be developed for the following programs as described in section 4.2 that meet or exceed by the threshold.following responsible State Agencies: N/A 7.2 The following shall develop the State's clearance patterns: Department The ND Office of Child Safety Department Management and Budget shall develop all of Health Services Department of Economic Security Department of Transportation Department of Educationthe State's clearance patterns for all major Federal Programs. 7.3 The sources of data the State shall use when developing its clearance patterns are as follows: The average clearance days are derived from sources of data the verification of State shall use when developing its clearance patterns done in May 2025 (20.205 Highway Planning for payments made by the Statewide Accounting System are the PeopleSoft transaction history file, and Construction ), April 2021 (93.558 Temporary Assistance for Needy Families) and June 2021 (93.658 ▇▇▇▇▇▇ Care-Title IV-E and 93.659 Adoption Assistance) using an AZ360 report and sampling transactionsthe Bank of North Dakota cleared check file. The State has documented that over 99% months of all current payrolls are paid by direct depositJune through November 2018 were used to calculate the clearance pattern for CFDA #20.205. Bank The months of America is paid via wire on Wednesday June thru August 2018 were used to calculate clearance patterns for CFDA #84.010, #84.027, and #97.039. The months July thru September 2018 were used to calculate the clearance pattern for #12.401. The months August thru October 2018 were used to calculate the clearance pattern for #97.036. The months of pay week for payroll. Therefore, when applying funding techniques that require Federal funds September thru November of 2018 were used to be deposited in a State account on calculate the average other clearance day of payroll, Wednesday of the pay week has been established as the date to receive Federal fundspatterns. 7.4 The State shall use the following methodology when developing its clearance patterns: When developing each clearance pattern, the State shall track at least 99% of the funds disbursed, from issuance to clearance, for a period of at least three months. 7.5 The State shall identify for each check or warrant (hereafter, check) in the population: (1) the date the check was released for payment; (2) the date the check was debited from the State's account, and, (3) the amount of the check. 7.6 The State shall use the following method to calculate the dollar-weighted average day of clearance: To determine the number of days each check was outstanding (clearance time), the issue date shall be subtracted from the date the check cleared the State's account. To determine the percentage of the disbursement paid out each day following issuance, the amount of the checks that clear the State's account each day shall be summed and then divided by the amount of the total disbursement. For each day following issuance, the clearance time of the checks paid out that day shall be multiplied by the percentage of the total disbursement those checks represent. This product is the clearance factor. The dollar-weighted average day of clearance for the disbursement shall be determined by summing the clearance factor of each day following the disbursement. 7.6.1 The issue date shall be the day following the date on the check, to allow for one day processing time before checks are mailed. 7.7 The State shall adjust each clearance pattern to reflect the dollar-weighted proportion of funds paid out by EFT/Direct payroll, with the following exceptions: No exceptionsInterdepartmental ▇▇▇▇▇▇▇▇ are not included for the programs that have a separate component for those ▇▇▇▇▇▇▇▇. The State shall also adjust each clearance pattern to reflect: No additional adjustments.N/A 7.8 Each of the State's clearance patterns is calculated in Business calendar days. 7.9 An authorized State official shall certify that each clearance pattern developed by the State accurately corresponds to the clearance activity of the programs to which it is applied. This certification shall be provided to the Fiscal Service prior to the effective date of the Agreement. The State shall recertify its clearance patterns at least every five years. 7.10 The State shall follow the procedures of 31 CFR 205 if it has actual or constructive knowledge, at any time, that a clearance pattern does not correspond to a program's clearance activity. 7.11 Estimated clearance activity is based on a sample of checks over a three to six month period. The system, knowing when the checks were written, determines if they are outstanding or have been cashed. The estimated clearance pattern is then based on this information. The information is kept in a spreadsheet by the agency responsible for it and is reconciled daily.

CLEARANCE PATTERNS. 7.1 The State shall develop separate clearance patterns for each of the following: The Separate clearance patterns will be developed for the following programs as described in section 4.2 that meet or exceed by the threshold.following responsible State Agencies: N/A 7.2 The following shall develop the State's clearance patterns: Department The ND Office of Child Safety Department Management and Budget shall develop all of Health Services Department of Economic Security Department of Transportation Department of Educationthe State's clearance patterns for all major Federal Programs. 7.3 The sources of data the State shall use when developing its clearance patterns are as follows: The average clearance days are derived from sources of data the verification of State shall use when developing its clearance patterns done in May 2025 (20.205 Highway Planning for payments made by the Statewide Accounting System are the PeopleSoft transaction history file, and Construction ), April 2021 (93.558 Temporary Assistance for Needy Families) and June 2021 (93.658 ▇▇▇▇▇▇ Care-Title IV-E and 93.659 Adoption Assistance) using an AZ360 report and sampling transactionsthe Bank of North Dakota cleared check file. The State has documented months of June through November 2022 were used to calculate the clearance pattern for ALN #20.205. The months of June thru August 2022 were used to calculate clearance patterns for ALN #84.010, #84.027 and #84.425. The months of September thru November of 2022 were used to calculate the clearance pattern for ALN #10.555. After reviewing expenditures in ALN #97.036 it was found that over 99% the highest levels of all current payrolls are paid by direct deposit. Bank of America is paid via wire on Wednesday of pay week for payroll. Therefore, when applying funding techniques that require Federal funds activity were found to be deposited in a State account on June, July and August for 2023, therefore causing the average clearance day of payroll, Wednesday of the pay week has been established as the date pattern to receive Federal fundschange from 0 to 1 day. 7.4 The State shall use the following methodology when developing its clearance patterns: When developing each clearance pattern, the State shall track at least 99% of the funds disbursed, from issuance to clearance, for a period of at least three months. 7.5 The State shall identify for each check or warrant (hereafter, check) in the population: (1) the date the check was released for payment; (2) the date the check was debited from the State's account, and, (3) the amount of the check. 7.6 The State shall use the following method to calculate the dollar-weighted average day of clearance: To determine the number of days each check was outstanding (clearance time), the issue date shall be subtracted from the date the check cleared the State's account. To determine the percentage of the disbursement paid out each day following issuance, the amount of the checks that clear the State's account each day shall be summed and then divided by the amount of the total disbursement. For each day following issuance, the clearance time of the checks paid out that day shall be multiplied by the percentage of the total disbursement those checks represent. This product is the clearance factor. The dollar-weighted average day of clearance for the disbursement shall be determined by summing the clearance factor of each day following the disbursement. 7.7 The State shall adjust each clearance pattern to reflect the dollar-weighted proportion of funds paid out by EFT/Direct payroll, with the following exceptions: No exceptionsInterdepartmental ▇▇▇▇▇▇▇▇ are not included for the programs that have a separate component for those ▇▇▇▇▇▇▇▇. The State shall also adjust each clearance pattern to reflect: No additional adjustments.N/A 7.8 Each of the State's clearance patterns is calculated in Business Calendar days. 7.9 An authorized State official shall certify that each clearance pattern developed by the State accurately corresponds to the clearance activity of the programs to which it is applied. This certification shall be provided to the Fiscal Service prior to the effective date of the Agreement. The State shall recertify its clearance patterns at least every five years. 7.10 The State shall follow the procedures of 31 CFR 205 if it has actual or constructive knowledge, at any time, that a clearance pattern does not correspond to a program's clearance activity.