FIACCT 14-06_15 Grant Accounting – CMIA – Check Clearance Patterns

Effective: July 1, 1994
Revised: 

Purpose

This policy defines the standards necessary for use and development of clearance patterns, when required by a funding technique, to schedule funds transfers between the State and the federal government, and to support the calculation of interest liabilities.

---

Policy

A. A separate clearance pattern must be developed for each individual major federal assistance program, or for a logical group of programs that have the same disbursement method and that can reasonably be expected to have comparable clearance activity.

B. A clearance pattern must accurately represent the flow of federal funds and must reflect seasonal or other periodic variations in clearance activity. Data used must come from at least three separate months.

C. Statistical sampling. If statistical sampling is used to develop clearance patterns or calculate interest, transactions must be randomly sampled for each program or group of related programs to ensure, at a minimum, a 95 percent confidence interval subject to a .3 dollar-weighted day bound of error estimate. (These requirements are achievable if the sample is truly random and if the sample size is large enough.) Clearance patterns must be carried out until 99% of the sampled funds have cleared.

D. The director of the Division of Finance shall certify to the Financial Management Service of the U.S. Treasury that a clearance pattern accurately corresponds to a program’s clearance activity. Clearance patterns need to be re-certified at least every five years, or more often if it becomes apparent to the State that the clearance patterns may have changed.

E. The actual clearance pattern methodology and the current program clearance patterns are listed in detail in the treasury-state agreement.