Refund Liabilities. 8.4.1 The State shall be liable for interest on refunds from the date the refund is credited to a State account until the date the refund is debited from the State account for program purposes. The State shall apply a $50,000 refund transaction threshold below which the State shall not incur or calculate interest liabilities on refunds. A transaction is defined as a single deposit.
8.4.2 For each refund, the State shall maintain information identifying:
(1) date a refund is credited to a State account (2) date of the subsequent deposit of Federal funds against which the refund is offset
Refund Liabilities. 8.4.1 The State shall be liable for interest on refunds from the date the refund is credited to a State account until the date the refund is debited from the State account for program purposes. The State shall apply a $50,000 refund transaction threshold below which the State shall not incur or calculate interest liabilities on refunds. A transaction is defined as a single deposit.
8.4.2 For each refund, the State shall maintain information identifying:
(1) date a refund is credited to a State account
(2) date of the subsequent deposit of Federal funds against which the refund is offset
(3) amount of the refund
8.4.3 The State shall use the following methodology to calculate interest liabilities on refunds: Refunds Deposited to Interest Neutral Programs: With programs to which applicable interest neutral funding techniques are applied, the State interest liability shall be based on the difference in whole days between the date the refund is deposited in a State account and the date the refund is offset against a subsequent deposit of Federal funds.
Refund Liabilities. 8.4.1 The State shall be liable for interest on refunds from the date the refund is credited to a State account until the date the refund is debited from the State account for program purposes. The State shall apply a $50,000 refund transaction threshold below which the State shall not incur or calculate interest liabilities on refunds. A transaction is defined as a single deposit.
8.4.2 For each refund, the State shall maintain information identifying:
(1) date a refund is credited to a State account
(2) date of the subsequent deposit of Federal funds against which the refund is offset
(3) amount of the refund
8.4.3 The State shall use the following methodology to calculate interest liabilities on refunds: With programs to which the following interest neutral funding techniques are applied, the State interest liability shall be based on the difference in whole days between the date the refund is deposited in a State account and the date the refund is offset against a subsequent deposit of Federal funds: Actual Clearance (ZBA-ACH), Modified Actual Clearance (ZBA-ACH), Estimated Clearance, Drawdowns on a Payroll Cycle, Drawdowns at Fixed Intervals - Weekly, and Specified Payment Schedules.
Refund Liabilities. 8.4.1 The State shall be liable for interest on refunds from the date the refund is credited to a State account until the date the refund is debited from the State account for program purposes. The State shall apply a $50,000 refund transaction threshold below which the State shall not incur or calculate interest liabilities on refunds. A transaction is defined as a single deposit.
8.4.2 For each refund, the State shall maintain information identifying:
(1) date a refund is credited to a State account
(2) date of the subsequent deposit of Federal funds against which the refund is offset
(3) amount of the refund
8.4.3 The State shall use the following methodology to calculate interest liabilities on refunds: With programs using the Reimbursement funding technique, the State interest liability shall be based on the difference in whole days between the date the refund is deposited in a State account and the date the refund is offset against a subsequent deposit of Federal funds, except for Highway Planning and Construction (CFDA No. 20.205), where interest will be calculated using the Composite Clearance technique.
Refund Liabilities. 8.4.1 The State shall be liable for interest on refunds from the date the refund is credited to a State account until the date the refund is debited from the State account for program purposes. The State shall apply a $50,000 refund transaction threshold below which the State shall not incur or calculate interest liabilities on refunds. A transaction is defined as a single deposit.
8.4.2 For each refund, the State shall maintain information identifying:
(1) date a refund is credited to a State account
(2) date of the subsequent deposit of Federal funds against which the refund is offset
(3) amount of the refund
8.4.3 The State shall use the following methodology to calculate interest liabilities on refunds: Interest shall be calculated from the time the refund is received until the refund is paid out for program purposes. Typically, the refunded amount shall be offset against a subsequent Federal drawdown. In these instances, interest shall continue accruing until that offset amount has been paid out. Each State agency shall manually track and document refunds, which shall be offset against subsequent draw downs of Federal funds, rather than returned to the Federal Government. Each State agency shall maintain a separate account identifying 1) the date the refund is credited to a State account, 2) the date of the subsequent deposit of Federal funds against which the refund is offset, and 3) the amount of the refund. With programs to which non-interest neutral or Pre-Issuance funding technique shall be applied, the State interest liability shall be based on three periods: 1) the difference in whole days between the date the refund is deposited to a State account and the date the refund is offset against a subsequent deposit of Federal funds; 2) the difference in whole days between the date the refund is offset against a subsequent deposit of Federal funds and the date the related payment is issued (Pre-Issuance Time); and 3) the difference in whole days between the date the related payment is issued and the date the payment is redeemed (Clearance Pattern). Interest on refunds during period 1 will be calculated using the information recorded in a separate account. Interest on refunds during period 2 and 3 will be captured under the State method for calculating interest under pre-issuance funding. Under this method, interest is calculated on totals disbursed, which includes refunds on hand as well as amounts drawn. The reported interest liability for refunds, ...
Refund Liabilities. 8.4.1 The State shall be liable for interest on refunds from the date the refund is credited to a State account until the date the refund is debited from the State account for program purposes. The State shall apply a $50,000 refund transaction threshold below which the State shall not incur or calculate interest liabilities on refunds. A transaction is defined as a single deposit.
8.4.2 For each refund, the State shall maintain information identifying:
(1) date a refund is credited to a State account
(2) date of the subsequent deposit of Federal funds against which the refund is offset
(3) amount of the refund
8.4.3 The State shall use the following methodology to calculate interest liabilities on refunds: The State shall apply refunds of Federal program funds to the next program disbursement and thus reduce the next Federal program drawdown by the amount of refunds received pertaining to that program. Refunds over $50,000.00 shall be tracked in the following manner: Average Clearance Pattern - Refunds shall be tracked from the date they are deposited to the State's account to the date they are paid out for program purposes for potential State interest liabilities.
Refund Liabilities. 8.4.1 The State shall be liable for interest on refunds from the date the refund is credited to a State account until the date the refund is debited from the State account for program purposes. The State shall apply a $50,000 refund transaction threshold below which the State shall not incur or calculate interest liabilities on refunds. A transaction is defined as a single deposit.
8.4.2 For each refund, the State shall maintain information identifying:
(1) date a refund is credited to a State account
(2) date of the subsequent deposit of Federal funds against which the refund is offset
(3) amount of the refund DocuSign Envelope ID: C9941766-1D84-47D2-A38B-4771733DBDED
8.4.3 The State shall use the following methodology to calculate interest liabilities on refunds: With programs to which applicable interest neutral funding techniques are applied, the State interest liability shall be based on the difference in whole days between the date the refund is deposited in a State account and the date the refund is offset against a subsequent deposit of Federal funds.
