Common use of CLEARANCE PATTERNS Clause in Contracts

CLEARANCE PATTERNS. 7.1 The State shall develop separate clearance patterns for each of the following: Payroll Expenses, Contingent Expenses, and Direct Benefits. 7.2 The following shall develop the State's clearance patterns: The State Treasurer's Office Cash Management, Information Technology, Accounting and Financial Reporting divisions have developed the State's clearance patterns in section 7.1. 7.3 The sources of data the State shall use when developing its clearance patterns are as follows: Financial information from the South Carolina Enterprise Information System (SCEIS) and actual bank data shall be used for payroll, contingent and direct benefit expenditures. The South Carolina Department of Employment and Workforce shall provide information/develop clearance patterns for the Unemployment Insurance programs. The South Carolina Department of Health and Human Services shall provide information for the Medical Assistance Program, (CFDA 93.778). The state excludes transfers between funds (Journal Vouchers and Cash Transfers) and transfers between agencies in the same fund (Inter Departmental Transfers). These transfers occur on the same 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 exceptions. The State shall also adjust each clearance pattern to reflect: No exceptions. 7.8 Each of the State's clearance patterns is calculated in 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: Payroll Expenses, Contingent Expenses, and Direct BenefitsThere are currently no program components listed in Section 7.1. 7.2 The following shall develop the State's clearance patterns: The State Treasurer's Office Cash Management, Information Technology, Accounting Tennessee Department of Treasury Tennessee Department of Finance and Financial Reporting divisions have developed the State's clearance patterns in section 7.1.Administration 7.3 The sources of data the State shall use when developing its clearance patterns are as follows: Financial information from the South Carolina Enterprise Information System State Treasurer's Accounts Reconciliation Package (SCEISARP) and actual bank data shall be used for payroll, contingent and direct benefit expenditures. The South Carolina Department of Employment and Workforce shall provide information/develop clearance patterns for the Unemployment Insurance programs. The South Carolina Department of Health and Human Services shall provide information for the Medical Assistance Program, system State's central accounting system (CFDA 93.778Edison). The state excludes transfers between funds (Journal Vouchers and Cash Transfers) and transfers between agencies in the same fund (Inter Departmental Transfers). These transfers occur on the same 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. 7.4.1 Under this agreement, in Section 7.4, "99% of the funds disbursed, from issuance to clearance" refers to and is equal to "99% of the funds clearing and net of cancellations". The tracking period shall be at least three consecutive 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. 7.5.1 In Section 7.5 (1) "the date the check was released" refers to and is equal to "the date the check was issued". 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 exceptionsNot applicable. 7.8 Each of the State's clearance patterns is calculated in Calendar 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: Payroll Expenses, Contingent Expenses, and Direct Benefits. 7.2 The following shall develop the State's clearance patterns: The State Treasurer's Office Cash Management, Information Technology, Accounting and Financial Reporting divisions have developed the State's clearance patterns in section 7.1. 7.3 The sources of data the State shall use when developing its clearance patterns are as follows: Financial information from the South Carolina Enterprise Information System (SCEIS) and actual bank data shall be used for payroll, contingent and direct benefit expenditures. The South Carolina Department of Employment and Workforce shall provide information/develop clearance patterns for the Unemployment Insurance programs. The South Carolina Department of Health and Human Services shall provide information information/develop clearance patterns for the Medical Assistance Program, (CFDA 93.778). The state excludes transfers between funds (Journal Vouchers and Cash Transfers) and transfers between agencies in the same fund (Inter Departmental Transfers). These transfers occur on the same 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 exceptions. The State shall also adjust each clearance pattern to reflect: No exceptions. 7.8 Each of the State's clearance patterns is calculated in Calendar 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: Payroll Expenses, Contingent Expenses, and Direct Benefits. 7.2 The following shall develop the State's clearance patterns: The State Treasurer's Office Cash Management, Information Technology, Accounting and Financial Reporting divisions have developed the State's clearance patterns in section 7.1. 7.3 The sources of data the State shall use when developing its clearance patterns are as follows: Financial information from the South Carolina Enterprise Information System (SCEIS) and actual bank data shall be used for payroll, contingent and direct benefit expenditures. The South Carolina Department of Employment and Workforce shall provide information/develop clearance patterns for the Unemployment Insurance programs. The South Carolina Department of Health and Human Services shall provide information information/develop clearance patterns for the Medical Assistance Program, (CFDA 93.778). The state excludes transfers between funds (Journal Vouchers and Cash Transfers) and transfers between agencies in the same fund (Inter Departmental Transfers). These transfers occur on the same 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 exceptions. The State shall also adjust each clearance pattern to reflect: No exceptionsthe contingent checks issued to the Department of Health and Human Services to fund the checks/EFTs issued to recipients on the Medicaid Bank Account. The State will pay one day of interest on the average daily cash balance of CFDA 93.778, as determined by SCEIS, for the one day that the contingent checks used to fund the Medicaid Bank Account are actually outstanding. The State will calculate the interest liability for CFDA 93.778 using the actual check clearing patterns of the checks issued on the Medicaid Bank Account. 7.8 Each of the State's clearance patterns is calculated in Calendar 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.