Calculation Methodology
Monthly calculation, annual schedule
Example 1 - Single Certification Point
In the single certification point calculation, the annual budgeted value for receipts and disbursements or the beginning balance value for balance sheet items is used to project monthly cash flows for the fiscal year. The annual budgeted value may be an LEA's estimate or the certified amount, whichever value is displayed in the multiyear projection.
The formula to estimate cash activity with a single certificatin point is the simplest of cash flow calculations. It is applied to all disbursements, all balance sheet items and select revenues. To determine the cash activity in a given month, the annual budget is multiplied by the month's estimated activity schedule.
For example, if the annual budget for a program is budgeted at $500.00 and it is estimated that 100% of funding will be received in November, the calculation is as follows:
| Description | July | ... | November | ... | June | Accrual | Adjustment | Total | Variance | |
|---|---|---|---|---|---|---|---|---|---|---|
| 1. | Retrieve the Budget from the MYP | $500.00 | ← | ← | ← | ← | ← | — | — | — |
| 2. | Multiply by the activity schedule | x 0.0000% | x 0.0000% | x 100.0000% | x 0.0000% | x 0.0000% | x 0.0000% | — | 100.0000% | 0.0000% |
| 3. | Determine the monthly cash flow | $0.00 | $0.00 | $500.00 | $0.00 | $0.00 | $0.00 | $0.00 | $500.00 | $0.00 |