Appendix E to 3500: Arithmetic Steps to Aggregate Analysis

Information by State  Print version

I. Example Illustrating Aggregate Analysis:

ASSUMPTIONS:

Disbursements:
$360 for school taxes disbursed on Sept. 20
$1,200 for county property taxes
$500 disbursed on July 25
$700 disbursed on Dec 10
Cushion: One-sixth of extimated annual disbursements
Settlement: May 15
First Payment: July 1

 

Step 1. - Initial Trial Balance 

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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

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Step 2. - Adjusted Trial Balance 

(increase mo. 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 

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Step 3. - Trial Balance with Cushion 

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      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 

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II. Example Illustrating Single-Item Analysis (Existing Accounts)

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 

Jun      0    0    0         0    0    0

Jul    100  500 -400        30    0   30 

Aug    100    0 -300        30    0   60 

Sep    100    0 -200        30  360 -270 

Oct    100    0 -100        30    0 -240 

Nov    100    0    0        30    0 -210 

Dec    100  700 -600        30    0 -180 

Jan    100    0 -500        30    0 -150 

Feb    100    0 -400        30    0 -120 

Mar    100    0 -300        30    0  -90 

Apr    100    0 -200        30    0  -60 

May    100    0 -100        30    0  -30 

Jun    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

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[59 FR 53908, Oct 26, 1994 as amended at 60 FR 8816, Feb 15, 1995. Redesignated at 61 FR 58479, Nov. 15, 1996]