12 CFR Appendix E to Part 1024: 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