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6500 - Consumer Financial Protection Bureau


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

Single-item
Taxes School taxes
pmt disb bal pmt disb bal
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

[Codified to 12 C.F.R. Part 1024, Appendix E]

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Last updated September 16, 2013 regs@fdic.gov