The following are the key provisions of the CMIA:

1. Federal agencies must make timely grant awards and fund disbursements to states;
2. States must draw federal funds in amounts necessary to fund only “actual immediate cash needs;”
3. Federal cash which is transferred by the Federal Government to state primary government agencies (i.e., not public authorities or local governments) will be subject to CMIA interest calculations if the total annual expenditures for any federal program, as recorded in a given Single Audit, exceed the CMIA program threshold calculated for the upcoming state fiscal year (SFY); certain state funding in support of covered federal programs may also be subject to CMIA; and
4. Federal agencies and states must minimize the time from:
   1. the date on which funds are transferred between the Federal Government and the states to
   2. the date such funds are paid out for federal program purposes through either presentment of checks or settlement of electronic fund transfers (EFT).

Guide to Financial Operations

REV. 03/19/2012