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50.40 Cash Management Improvement Act |
50.40.10July 1, 2005 |
Purpose of the Cash Management Improvement Act |
The Cash Management Improvement Act of 1990 (CMIA) provides rules and procedures for the efficient transfer of federal financial assistance between the federal agencies and the state. The implementing regulations are in 31 CFR Part 205. The general provisions of the Act are as follows:
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50.40.20November 15, 2000 |
The Treasury-State Agreement defines the drawdown methods to be used by agencies |
The Office of Financial Management (OFM), with the assistance of all affected state agencies, negotiates the TSA with FMS. The TSA outlines by program, the funding technique and the clearance pattern the state will use to draw down funds from the federal government. Generally, conformance with the TSA assures that the state does not owe the federal government, or is not due from the federal government, interest liability on its drawdowns. |
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Amendments to the TSA may be proposed by either the state or the federal government at any time during the duration of the contract. |
50.40.30
July 1, 2016 |
Federal assistance programs and state agencies subject to the CMIA |
The programs listed in the Assistance Listings are subject to CMIA regulations. Currently, programs with $75 million or more in federal expenditures, as determined from the state’s most recent Single Audit Report, are required to be covered under the TSA (CMIA agreement). The list of federal assistance programs impacted by CMIA may be revised annually, depending on the total amount of federal expenditures as reported in the state’s Single Audit Report. State agencies that administer CMIA programs are subject to CMIA regulations. |
50.40.40July 1, 2005 |
Responsibilities of the Office of Financial Management |
The responsibilities of the Office of Financial Management are to:
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50.40.50July 1, 2002 |
Responsibilities of agencies that administer CMIA programs |
The responsibilities of the state agencies that administer CMIA programs are:
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50.40.60July 1, 2005 |
How to calculate interest owed or due |
In cases where interest is owed to the federal government or due from the federal government, under the TSA, agencies should calculate and document interest owed or due. The interest rate to be used is the annualized rate equal to the average equivalent yield of 13-week Treasury Bills auctioned during the state’s fiscal year. The interest rate is provided to the state by FMS. Agencies should ensure that interest calculations are auditable. |
50.40.70July 1, 2003 |
Interest calculation costs of implementing the TSA are reimbursable |
Interest calculation costs related to implementing the TSA are reimbursable by the federal government and are claimed on the Annual Report of interest liabilities that is submitted by OFM to FMS in December each year. Interest calculation costs are those costs an agency incurs in performing the actual calculation of interest liabilities, including those costs an agency incurs in developing and maintaining clearance patterns in support of interest calculations. Costs associated with expenses for normal disbursing services, such as processing checks or maintaining records for accounting and reconciliation of cash accounts, or expenses for upgrading or modernizing accounting systems are not reimbursable. Agencies must maintain documentation to substantiate claims for interest calculation costs. Interest calculation costs in excess of $50,000 are not eligible for reimbursement, unless the agency can justify that without incurring such costs, it would not be able to develop clearance patterns or calculate interest. |
50.40.80November 15, 2000 |
Responsibilities of agencies receiving federal funds, but not designated as CMIA programs |
The principal responsibilities of other state agencies receiving federal funds not designated as CMIA programs are:
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