12 C.F.R. § 1024 app E to Part 1024

Current through October 31, 2024

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
	pmt	disb	bal
Jun	0	0	0
Jul	130	500	-370
Aug	130	0	-240
Sep	130	360	-470
Oct	130	0	-340
Nov	130	0	-210
Dec	130	700	-780
Jan	130	0	-650
Feb	130	0	-520
Mar	130	0	-390
Apr	130	0	-260
May	130	0	-130
Jun	130	0	0

Step 2-Adjusted Trial Balance

[Increase monthly balances to eliminate negative balances]

	Aggregate
	pmt	disb	bal
Jun	0	0	780
Jul	130	500	410
Aug	130	0	540
Sep	130	360	310
Oct	130	0	440
Nov	130	0	570
Dec	130	700	0
Jan	130	0	130
Feb	130	0	260
Mar	130	0	390
Apr	130	0	520
May	130	0	650
Jun	130	0	780

Step 3-Trial Balance With Cushion

	Aggregate
	pmt	disb	bal
Jun	0	0	1040
Jul	130	500	670
Aug	130	0	800
Sep	130	360	570
Oct	130	0	700
Nov	130	0	830
Dec	130	700	260
Jan	130	0	390
Feb	130	0	520
Mar	130	0	650
Apr	130	0	780
May	130	0	910
Jun	130	0	1040

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
	Taxes			School taxes
	pmt	disb	bal	pmt	disb	bal
June	0	0	0	0	0	0
July	100	500	-400	30	0	30
August	100	0	-300	30	0	60
September	100	0	-200	30	360	-270
October	100	0	-100	30	0	-240
November	100	0	0	30	0	-210
December	100	700	-600	30	0	-180
January	100	0	-500	30	0	-150
February	100	0	-400	30	0	-120
March	100	0	-300	30	0	-90
April	100	0	-200	30	0	-60
May	100	0	-100	30	0	-30
June	100	0	0	30	0	0

Step 2-Adjusted Trial Balance

[Increase monthly balances to eliminate negative balances]

	Single-item
	Taxes			School taxes
	pmt	disb	bal	pmt	disb	bal
Jun	0	0	600	0	0	270
Jul	100	500	200	30	0	300
Aug	100	0	300	30	0	330
Sep	100	0	400	30	360	0
Oct	100	0	500	30	0	30
Nov	100	0	600	30	0	60
Dec	100	700	0	30	0	90
Jan	100	0	100	30	0	120
Feb	100	0	200	30	0	150
Mar	100	0	300	30	0	180
Apr	100	0	400	30	0	210
May	100	0	500	30	0	240
Jun	100	0	600	30	0	270

Step 3-Trial Balance With Cushion

	Single-item
	Taxes			School taxes
	pmt	disb	bal	pmt	disb	bal
Jun	0	0	800	0	0	330
Jul	100	500	400	30	0	360
Aug	100	0	500	30	0	390
Sep	100	0	600	30	360	60
Oct	100	0	700	30	0	90
Nov	100	0	800	30	0	120
Dec	100	700	200	30	0	150
Jan	100	0	300	30	0	180
Feb	100	0	400	30	0	210
Mar	100	0	500	30	0	240
Apr	100	0	600	30	0	270
May	100	0	700	30	0	300
Jun	100	0	800	30	0	330

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