While CMIA applies to federal program funding, all aspects of implementation – program coverage, implementation agreement, interest calculations – are keyed to a state’s fiscal year. Annually OSC, DOB, and lead state agencies responsible for administration of covered programs must prepare two major documents for review and approval by the U.S. Treasury:

• Annual Treasury-State Agreement (TSA): Details the terms of implementation of CMIA in the state for each SFY. The TSA includes the list of Subpart A federal programs subject to CMIA, funding techniques the state will use to draw federal funds for each payment type under each covered program, types of payments expected to be made for each covered program (e.g., payroll, and non-payroll), and methodologies for both development of required check clearance patterns and interest calculations. The TSA must be updated and fully executed (i.e., approved and signed by authorized officials of OSC, DOB, and the U.S. Treasury) by the first day of the SFY (April 1).
• Annual Report: Details CMIA interest liabilities owed by either the state or Federal Government to the other level of government for a given SFY. The state prepares the report for the most recently concluded SFY and submits this to the U.S. Treasury by the following December 31. Actual payment of interest liabilities, once approved by the U.S. Treasury, is made on or before the following March 31. Along with each Annual Report, the state may submit an Interest Calculation Cost Claim requesting federal reimbursement of certain CMIA costs incurred by the state for the actual calculation of interest.

Guide to Financial Operations

REV. 03/19/2012