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. Funding Technique Name Description Actual Clearance, 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. This funding technique is interest neutral. Actual Clearance, 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. This funding technique is interest neutral. 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. 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 exact amount of that disbursement. This funding technique is interest neutral. Pre-Issuance The State shall request funds such that they are deposited in a State account not more than three business days prior to the day the State makes a disbursement. 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 the amount the State expects to disburse. This funding technique is not interest neutral.
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. Funding Technique Name Description Cost Allocation Plans - Monthly The State shall request funds once a month, such that they are deposited on the median day of the month, to fund activity of the prior 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 for a given month's activity shall be based on actual costs distributed in accordance with the State's approved cost allocation plan. This funding technique is interest neutral.
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 Drawdown - Weekly The State shall request funds on a weekly basis. 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 actual expenditures which occurred in the past weekly period. This funding technique is interest neutral. Average Clearance - Modified 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 Average Clearance Payroll specified in Exhibit II. The Payroll clearance pattern will be applied to an estimate of the actual payroll cost based on the most recent cost allocation distribution. This estimate will be reconciled to actual costs approximately 30-50 days after the end of the quarter. 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. Bi-Weekly Actual - Payroll The State will request funds bi-weekly based on the actual expenditures incurred during the biweekly payroll cycle. The request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit I. The amount of each request shall equal the total actual expenditures posted during the State's bi-weekly payroll cycle. This funding technique is interest neutral. Drawdowns at Fixed Intervals - Monthly (modified) The State shall request funds once a month, such that they are deposited on the day of the month specified for each component. 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 on the most recent monthly expenditure data available based on either actual or estimated costs, whichever is applicable to the component. If necessary, adjustments will be made when actual grant costs are known, approximately 30-50 days after the end of each quarter. This funding technique is interest neutral. Drawdowns at Fixed Intervals - Quarterly The State shall request funds once a quarter, such that they are deposited on the 30th day of the month following the end of the quarter. 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 on the actual costs allocated to the program for the quarter. This funding technique is interest neutral. Fixed Administrative Allowances-BI- Weekly Payroll (modified)-Dollar Weighted The request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit I. Reconciliation will occur within 60 days of the end of each quarter. The State shall request 1/6 or 1/7 of the quarterly award, based on the number of pay periods within the quarter. This funding technique is interest neutral. Payment Schedule The request shall be made in accordance with the appropriate Federal agency cut-off time specified in Exhibit I. The State shall draw down 1/12 of the total annual expected expenditures (based on actual expenditures of the prior fiscal year or the current budget) on the median day of the month. An adjusting draw will be made when actual expenditures are known, approximately 30-50 days after the end of the quarter. For Demonstration Projects, where actual expenditures are not available until 30 days after the end of the quarter, an adjusting draw will occur within 45 days after the quarter's end. This funding technique is interest neutral. Post Expenditure Funding The State shall request Federal funds only after related expenditures have been warranted for payment in the State’ s Accounting System. 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. Federal funds are requested to be received by the next business day. As long as the State does not draw funds prior to the warrant date for the related disbursement, and as long as the State receives the Federal funds no later than two business days after warranted, neither the State nor the Federal Government shall incur an interest liability. The amount of the request shall be for the amount of that disbursement in whole dollars. This funding technique is interest neutral. Weekly Billing The State shall request funds weekly for the program. The amount shall be for all eligible costs that have been recorded since the last request for funds. 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. Weekly Draws The State shall request funds once a week. The Voucher Only amount requested will be based on expenditures incurred and recorded in the State of Maryland's Medicaid Management Information System (MMIS). The Disproportionate Share amount will be based on the amount calculated as due by the Program, since the last request for such funds. The Provider Payments (Non-Voucher only, not processed through MMIS) will be based on cash expenditures reflected in the State of Maryland's Financial Management Information System (FMIS), since the last request for such funds. This technique is considered to be interest neutral and, based on the information available, matches as closely as possible the draw of Federal funds with the time they are paid out for program purposes, in accordance with the clearance pattern specified in Exhibit II (MMIS). 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.
