Department of Labor And Industry Financial-Compliance Audit for the Two Fiscal Years Ended June 30,... 1994

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Secretary of the Treasury sets forth the terms and conditions agreed upon to implement the requirements of the federal Cash Management Improvement Act of 1990 (CMIA). The agreement took effect on July 1, 1993. Funds withdrawn from the Department of Labor and Industry's Unemployment Insurance Trust Fund (CFDA #17.225) are subject to the specific requirements of the agreement. The agreement notes the state shall transfer funds to the state benefit payment account based on an estimated check clear
...ance pattern calculated by the department. We noted the department is not using the clearance pattern as outlined in the agreement, as shown below in table 4.
Table 4 Estinated Check Clearance Pattern Days After Percent of Check Issuance Funds Requested 0.0 1 0.0 2 0.0 3 27.6 4 40.7 5 14.3 6 15.1 7 3.3 Source: Cash Management Iiproveaient Act Agreement .
The clearance pattern is an estimate of the time it takes after issuance date for benefit checks to clear the state bank. This estimate is used because it identifies when the benefit payment account must have adequate cash to pay the cashed checks.


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