States use clearance patterns to project when funds are paid out, given a known dollar
amount and a known date of disbursement. A State must ensure that clearance patterns meet the following standards:
(a) A clearance pattern must be auditable.
(b) A clearance pattern must accurately represent the flow of Federal funds under the
Federal assistance programs to which it is applied.
(c) A clearance pattern must include seasonal or other periodic variations in clearance
(d) A clearance pattern must be based on at least three consecutive months of disbursement
data, unless additional data is required to accurately represent the flow of Federal
(e) If a State uses statistical sampling to develop a clearance pattern, the sample size
must be sufficient to ensure a 96 percent confidence interval no more than plus or
minus 0.25 weighted days above or below the estimated mean.
(f) A clearance pattern must extend, at a minimum, until 99 percent of the dollars in
a disbursement have been paid out for Federal assistance program purposes.
(g) We and a State may agree to other procedures, such as estimates to project when funds
are paid out when the dollar amount and/or the timing of disbursements are not known.
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