6-1439

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

Example Illustrating Aggregate Analysis
Aggregate
	Pmt.	Disb.	Bal.
Step 1—Initial Trial Balance
June	0	0	0
July	130	500	−370
August	130	0	−240
September	130	360	−470
October	130	0	−340
November	130	0	−210
December	130	700	−780
January	130	0	−650
February	130	0	−520
March	130	0	−390
April	130	0	−260
May	130	0	−130
June	130	0	0
Step 2—Adjusted Trial Balance (Increase monthly balances to eliminate negative balances)

June	0	0	780
July	130	500	410
August	130	0	540
September	130	360	310
October	130	0	440
November	130	0	570
December	130	700	0
January	130	0	130
February	130	0	260
March	130	0	390
April	130	0	520
May	130	0	650
June	130	0	780
Step 3—Trial Balance with Cushion
June	0	0	1040
July	130	500	670
August	130	0	800
September	130	360	570
October	130	0	700
November	130	0	830
December	130	700	260
January	130	0	390
February	130	0	520
March	130	0	650
April	130	0	780
May	130	0	910
June	130	0	1040

II. Example Illustrating Single-item Analysis Assumptions