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Cash Management Improvement Act

The State of Maine Office of the State Treasurer is assigned the responsibility of administering the Cash Management Improvement Act of 1990 (CMIA). In FY 2006, the State of Maine received more than $2.8 billion dollars in federal assistance. CMIA governs the manner (e.g. timing, amount) in which agencies draw down federal funds. Each federal assistance program is required to operate within the boundaries of CMIA, and depending on the size of the program, different CMIA rules apply.

This web site is primarily intended for State of Maine Agencies who administer Federal Programs. Program administrators will find useful guidelines, cash management regulations, and MFASIS data on this site.

PURPOSE

CMIA was enacted to regulate the way State agencies request federal funds. Prior to its passage, there were two main issues that needed attention.

1. The Federal Treasury was losing significant assets as States were permitted under the Intergovernmental Cooperation Act to retain interest earned on the early drawdown of federal financial assistance.
2. The Federal Program agencies were frequently late in their payment of grant awards which resulted in a loss of assets for the States.

Therefore, CMIA was enacted to achieve a specific objective:

To "ensure greater efficiency, effectiveness, and equity in the exchange of funds between the Federal Government and the States."

Efficiency — minimizing the time between the transfer of funds to the State and the payout of those funds for program purposes.

Effectiveness — ensuring funds will be available when requested. The Treasury-State agreement (TSA), also called the CMIA contract, specifies how and when funds will be transferred under major Federal assistance programs.

Equity — compensating the party that is "out-of-pocket" when funding a Federal program. In general, interest is due to the State if it must use its own funds for program purposes when there is valid obligational authority. Interest is due from the State for the time the State holds Federal funds in its account prior to its disbursement for program purposes.

WHAT PROGRAMS ARE REGULATED BY CMIA?

Any program listed in the Catalog of Federal Domestic Assistance (assigned a CFDA #) falls under the rules of CMIA. CMIA does not, however, apply the same rules to all programs. The CMIA rules have two parts, with each application depending on how programs are categorized.

Programs are categorized in two ways: 1) Major; or 2) Non-major.

1. For the State of Maine FY 2008, Major programs are programs that exceeded $17,137,044 in FY06 expenditures (Draft SEFA 1/24/07). Major programs are governed by Subpart A of the CMIA regulations. These programs must be included in the TSA, must use approved funding techniques, and are subject to interest liabilities.

Below are the State of Maine Programs Considered as Major programs for FY 2008:

CFDA	Program
10.551	Food Stamps
10.555	National School Lunch Program
14.228	Community Development Block Grants/State's Program
17.225	Unemployment Insurance - Administration
20.205	Highway Planning & Construction
84.010	Title I Grants to LEA's
84.027	Special Education - Grants to States
93.558	Temporary Assistance for Needy Families
93.575	Child Care & Development Block Grant
93.767	Child Health Insurance Program
93.778	Medical Assistance Program
97.004	State Domestic Preparedness Equipment Support Program

For guidance on CMIA's relevance to your Major Federal program, see Major Programs.

2. Non-Major programs are programs that fall below that threshold. These programs are subject to the rules in Subpart B of 31 CFR 205. These programs are not required to be covered in the TSA and no interest liabilities are calculated, but States and Federal program agencies are responsible for minimizing the time between the transfer and payout of funds. The State of Maine administers more than 290 Non-major federal programs. For guidance on CMIA's relevance to your Non-Major federal program, please see Non-Major Programs.

For more information on the background of CMIA, please visit the Federal Management Service of the Federal U.S Treasury web site at http://fms.treas.gov/cmia/

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