Common use of CLEARANCE PATTERNS Clause in Contracts

CLEARANCE PATTERNS. 7.1 The State shall develop separate clearance patterns for each of the following: CFDA #20.205, Highway Planning and Construction. CFDA #84.010, Educationally Deprived Children, CFDA #84.027, Handicapped, State Grants, CFDA #93.563, Child Support Enforcement, CFDA #93.767, Children's Insurance Program, and CFDA #93.778, Medical Assistance - Administrative Cost Component. 7.2 The following shall develop the State's clearance patterns: CFDA #20.205, Highway Planning and Construction developed by the State Department of Treasury, Office of Management and Budget as part of our FY'22 TSA. CFDA #84.010 Educationally Deprived Children, CFDA #84.027, Handicapped, State Grants, CFDA #93.563, Child Support Enforcement, CFDA #93.767, Children's Insurance Program, and CFDA #93.778, Medical Assistance - Administrative Cost Component clearance pattern related to payroll developed by the State Department of Treasury, Office of Management and Budget as part of our FY'22 TSA. 7.3 The sources of data the State shall use when developing its clearance patterns are as follows: CFDA #20.205, Highway Planning and Construction based on a random sampling of disbursements from issuance to clearance date. CFDA #84.010, Educationally Deprived Children, CFDA #84.027, Handicapped, State Grants, CFDA #93.563, Child Support Enforcement, CFDA #93.767, Children's Insurance Program, and CFDA #93.778, Medical Assistance - Administrative Cost Component clearance pattern related to payroll based on a random sampling of disbursements from issuance to clearance date. The actual source of the data are the checks, ACH and wires issued by the State's system that are than reconciled against the bank records. The average of the actual clearance date becomes our estimated clearance pattern. 7.4 The State shall use the following methodology when developing its clearance patterns: For all clearance patterns developed by statistical sampling, the State shall randomly sample checks to ensure, at a minimum, a 95% confidence interval for a .25 weighted-day level of precision for the checks in the sample. The State shall track at least 99% of the funds disbursed, from issuance to clearance, in the sample period. 7.5 The State shall identify for each check or warrant (hereafter, check) in the population: (1) the date the check was released for payment; (2) the date the check was debited from the State's account, and, (3) the amount of the check. 7.6 The State shall use the following method to calculate the dollar-weighted average day of clearance: To determine the number of days each check was outstanding (clearance time), the issue date shall be subtracted from the date the check cleared the State's account. To determine the percentage of the disbursement paid out each day following issuance, the amount of the checks that clear the State's account each day shall be summed and then divided by the amount of the total disbursement. For each day following issuance, the clearance time of the checks paid out that day shall be multiplied by the percentage of the total disbursement those checks represent. This product is the clearance factor. The dollar-weighted average day of clearance for the disbursement shall be determined by summing the clearance factor of each day following the disbursement. 7.7 The State shall adjust each clearance pattern to reflect the dollar-weighted proportion of funds paid out by EFT/Direct payroll, with the following exceptions: CFDA #20.205, Highway Planning and Construction. The State shall also adjust each clearance pattern to reflect: Program changes that might significantly alter clearance patterns. 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: CFDA #10.557, Supplemental Food Program (WIC). CFDA #20.205, Highway Planning and Construction. CFDA #10.557, Supplemental Food Program (WIC), CFDA #84.010, Educationally Deprived Children, CFDA #84.027, Handicapped, State Grants, CFDA #93.563, Child Support Enforcement, CFDA #93.767, Children's Insurance Program, and CFDA #93.778, Medical Assistance - Administrative Cost Component. 7.2 The following shall develop the State's clearance patterns: CFDA #10.557, Supplemental Food Program (WIC) developed by the State Department of Treasury, Office of Management and Budget as part of our FY'17 TSA. CFDA #20.205, Highway Planning and Construction developed by the State Department of Treasury, Office of Management and Budget as part of our FY'22 FY'17 TSA. CFDA #10.557, Supplemental Food Program (WIC), CFDA #84.010 Educationally Deprived Children, CFDA #84.027, Handicapped, State Grants, CFDA #93.563, Child Support Enforcement, CFDA #93.767, Children's Insurance Program, and CFDA #93.778, Medical Assistance - Administrative Cost Component clearance pattern related to payroll developed by the State Department of Treasury, Office of Management and Budget as part of our FY'22 FY'17 TSA. 7.3 The sources of data the State shall use when developing its clearance patterns are as follows: CFDA #10.557, Supplemental Food Program (WIC) based on a random sampling of disbursements from issuance to clearance date. CFDA #20.205, Highway Planning and Construction based on a random sampling of disbursements from issuance to clearance date. CFDA #10.557, Supplemental Food Program (WIC), CFDA #84.010, Educationally Deprived Children, CFDA #84.027, Handicapped, State Grants, CFDA #93.563, Child Support Enforcement, CFDA #93.767, Children's Insurance Program, and CFDA #93.778, Medical Assistance - Administrative Cost Component clearance pattern related to payroll based on a random sampling of disbursements from issuance to clearance date. The actual source of the data are the checks, ACH and wires issued by the State's system that are than reconciled against the bank records. The average of the actual clearance date becomes our estimated clearance pattern. 7.4 The State shall use the following methodology when developing its clearance patterns: For all clearance patterns developed by statistical sampling, the State shall randomly sample checks to ensure, at a minimum, a 95% confidence interval for a .25 weighted-day level of precision for the checks in the sample. The State shall track at least 99% of the funds disbursed, from issuance to clearance, in the sample period. 7.5 The State shall identify for each check or warrant (hereafter, check) in the population: (1) the date the check was released for payment; (2) the date the check was debited from the State's account, and, (3) the amount of the check. 7.6 The State shall use the following method to calculate the dollar-weighted average day of clearance: To determine the number of days each check was outstanding (clearance time), the issue date shall be subtracted from the date the check cleared the State's account. To determine the percentage of the disbursement paid out each day following issuance, the amount of the checks that clear the State's account each day shall be summed and then divided by the amount of the total disbursement. For each day following issuance, the clearance time of the checks paid out that day shall be multiplied by the percentage of the total disbursement those checks represent. This product is the clearance factor. The dollar-weighted average day of clearance for the disbursement shall be determined by summing the clearance factor of each day following the disbursement. 7.7 The State shall adjust each clearance pattern to reflect the dollar-weighted proportion of funds paid out by EFT/Direct payroll, with the following exceptions: CFDA #10.557, Supplemental Food Program (WIC) and CFDA #20.205, Highway Planning and Construction. The State shall also adjust each clearance pattern to reflect: Program changes that might significantly alter clearance patterns. 7.8 Each of the State's clearance patterns is calculated in Business business days. 7.9 An authorized State official shall certify that each clearance pattern developed by the State accurately corresponds to the clearance activity of the programs to which it is applied. This certification shall be provided to the Fiscal Service prior to the effective date of the Agreement. The State shall recertify its clearance patterns at least every five years. 7.10 The State shall follow the procedures of 31 CFR 205 if it has actual or constructive knowledge, at any time, that a clearance pattern does not correspond to a program's clearance activity.