PRINCIPAL RESPONSIBILITIES - 8013

To ensure the state complies with the provisions of the Cash Management Improvement Act of 1990 (CMIA) and to minimize the interest liability for the state, the Department of Finance (Finance), the state agencies/departments that administer CMIA programs, and the State Controller’s Office (SCO) must perform their respective principal responsibilities as follows:

Finance:

• Establish the annual CMIA threshold amount. Identify the state agencies/ departments and federal assistance programs that will be impacted by CMIA.
• Notify CMIA participating agencies/departments of their roles and responsibilities.
• Negotiate with the U.S. Department of the Treasury (USDT), Bureau of the Fiscal Service (BFS) on the new Treasury-State Agreement (TSA) and amendments to the existing TSA.
• With the assistance of the SCO, develop patterns by programs for the average number of days from warrant issuance to redemption.
• Compute the state and federal interest liabilities by programs and Finance’s interest calculation costs.
• Prepare the CMIA Annual Report and Interest Calculation Cost Report for submittal to BFS.
• Budget funds from the General Fund and special funds for the payment of the state interest liability to the federal government.
• Process the interest payment to the USDT.

State agencies/departments that administer CMIA programs:

• Request federal funds in accordance with the approved funding technique described in the TSA and only in amounts needed for immediate payments.
• For specific CMIA programs identified in the TSA, document the amount of federal funds requested, when federal funds are deposited in the state's account, and when warrants are issued. This information is provided to Finance, Fiscal Systems and Consulting Unit (FSCU) quarterly.
• Notify FSCU of any changes to the funding technique for CMIA programs. A state agency/department shall not make a change until it is reviewed and approved by FSCU and BFS.
• Minimize the time between the deposit of federal funds in the state’s account and the disbursement of funds for federal assistance program purposes.

SCO:

• Develop and provide the clearance/redemption pattern reports to Finance to assist in calculating the state and federal interest liability for programs listed in the TSA.