---
kind: "section"
citation: "31 C.F.R. § 205.20"
title: "31"
number: "205.20"
heading: "What is a clearance pattern?"
url: "https://uscodex.org/cfr/31/205.20"
---

# §205.20. What is a clearance pattern?


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 activity.
- (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 funds.
- (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.

## Notes

### Authority

Authority: 5 U.S.C. 301; 31 U.S.C. 321, 3332, 3335, 6501, 6503.

### Source

Source: 67 FR 31885, May 10, 2002, unless otherwise noted.