12 C.F.R. § 1024 app E to Part 1024

Current through August 31, 2022
Appendix E to Part 1024 - Arithmetic Steps

I. Example Illustrating Aggregate Analysis

Assumptions

Disbursements:

$360 for school taxes disbursed on September 20

$1,200 for county property taxes:

$500 disbursed on July 25

$700 disbursed on December 10

Cushion: One-sixth of estimated annual disbursements

Settlement: May 15

First Payment: July 1

Step 1-Initial Trial Balance

Aggregate
pmtdisbbal
Jun000
Jul130500-370
Aug1300-240
Sep130360-470
Oct1300-340
Nov1300-210
Dec130700-780
Jan1300-650
Feb1300-520
Mar1300-390
Apr1300-260
May1300-130
Jun13000

Step 2-Adjusted Trial Balance

[Increase monthly balances to eliminate negative balances]

Aggregate
pmtdisbbal
Jun00780
Jul130500410
Aug1300540
Sep130360310
Oct1300440
Nov1300570
Dec1307000
Jan1300130
Feb1300260
Mar1300390
Apr1300520
May1300650
Jun1300780

Step 3-Trial Balance With Cushion

Aggregate
pmtdisbbal
Jun001040
Jul130500670
Aug1300800
Sep130360570
Oct1300700
Nov1300830
Dec130700260
Jan1300390
Feb1300520
Mar1300650
Apr1300780
May1300910
Jun13001040

II. Example Illustrating Single-Item Analysis

Assumptions

Disbursements:

$360 for school taxes disbursed on September 20

$1,200 for county property taxes:

$500 disbursed on July 25

$700 disbursed on December 10

Cushion: One-sixth of estimated annual disbursements

Settlement: May 15

First Payment: July 1

Step 1-Initial Trial Balance

Single-item
TaxesSchool taxes
pmtdisbbalpmtdisbbal
June000000
July100500-40030030
August1000-30030060
September1000-20030360-270
October1000-100300-240
November10000300-210
December100700-600300-180
January1000-500300-150
February1000-400300-120
March1000-300300-90
April1000-200300-60
May1000-100300-30
June100003000

Step 2-Adjusted Trial Balance

[Increase monthly balances to eliminate negative balances]

Single-item
TaxesSchool taxes
pmtdisbbalpmtdisbbal
Jun0060000270
Jul100500200300300
Aug1000300300330
Sep1000400303600
Oct100050030030
Nov100060030060
Dec100700030090
Jan1000100300120
Feb1000200300150
Mar1000300300180
Apr1000400300210
May1000500300240
Jun1000600300270

Step 3-Trial Balance With Cushion

Single-item
TaxesSchool taxes
pmtdisbbalpmtdisbbal
Jun0080000330
Jul100500400300360
Aug1000500300390
Sep10006003036060
Oct100070030090
Nov1000800300120
Dec100700200300150
Jan1000300300180
Feb1000400300210
Mar1000500300240
Apr1000600300270
May1000700300300
Jun1000800300330

12C.F.R. 1024 app E to Part 1024