Major Programs

THRESHOLD

Based on the FY 2010 Schedule of Expenditures of Federal Awards (SEFA), any program which exceeded $23,010,840 in expenditures is considered a Major federal program during FY 2012.

Here is how the threshold for a major federal program is calculated:

(Based on most recent single audit data available at the time of TSA creation
SEFA 2010 - 1/25/11)

Total federal assistance expenses State of Maine FY 2010: $3,835,139,989.

Percentage assigned by FMS (found at 31 CFR 205.5 Table A): .6 percent

State of Maine Threshold FY 2010 =$3,835,139,989 x .006 = $23,010,840

CONTRACT

Major federal programs enter into an agreement with the Federal Treasury which outlines the frequency and method of drawing funds for program purposes. This agreement is called the Treasury-State Agreement (TSA) or the CMIA agreement.

The methods programs utilize to draw federal funds are called funding techniques. Funding techniques specify the timing of draws in relation to check/EFT disbursement. The majority of the funding techniques used by the State of Maine are interest neutral funding techniques. That means that if carried out properly, no interest liability will be accrued by the State or the Federal Government.

INTEREST LIABILITY

Interest liabilities occur when federal funds are drawn down early or when federal funds arrive late. Interest liability ensures that interest opportunity lost by the Federal or State government is returned.

To reduce interest liabilities, CMIA encourages funding techniques that are considered interest neutral. Since interest accrues when States draw down funds before the day those funds are paid to the program recipient, interest neutral techniques involve check clearance patterns.

CHECK CLEARANCE PATTERNS

Check clearance patterns are a statistical representation showing the proportion of a total amount issued that is debited against the payer's bank account each day after the issuance. By using clearance patterns, the State of Maine can accurately determine when its vendors cash their checks, and time their federal drawdown to arrive at State Treasury as close as possible to that date.

Here are the clearance patterns for the 3 State of Maine accounts:

(All in calendar days)

  • Bank #335 (General Disbursement) - 2 days
  • Bank #343 (State Payroll Checks) - 0 days (EFT Disbursement)
  • Bank #369 (Unemployment Insurance) - 4 days

e.g. Checks mailed on Monday from Bank 335, the general disbursement account, would be drawn down so that they arrive on Wednesday; the second day of clearance.

DOCUMENTS

Treasury-State Agreements

The files below are either in PDF format, which requires the free Adobe Reader, or in Rich Text Format (RTF), which can be opened by most word processing applications.

 

Fiscal Year 2012 (PDF) (Effective 7/1/11-6/30/12)

Fiscal Year 2011 (PDF) (Effective 7/1/10-6/30/11)

Fiscal Year 2010 (PDF) (Effective 7/1/09-6/30/10)

Fiscal Year 2009 (PDF) (Effective 7/1/08-6/30/09)

Fiscal Year 2008 (PDF) (Effective 7/1/07-6/30/08)

Fiscal Year 2007 (PDF) (Effective 7/1/06-6/30/07)