As noted above, state interest liabilities will be calculated during the time the state holds federal funds in its accounts pending payment to a payee. This includes the time that checks are issued from appropriated federal funds until such checks clear the state's bank account or EFT settlement occurs.

To calculate CMIA interest liabilities, it is necessary for OSC to develop functional clearance patterns. This is done by compiling data from the SFS and reports received from the state’s bank. The state then uses this information to calculate dollar-weighted clearance patterns for all payments made from federal funds.

Guide to Financial Operations

REV. 03/19/2012