Balance Sheet Projection Drivers

The Balance Sheet Projection Drivers page controls calculation settings for balance sheet accounts that are assigned to the Cash Flow, Non-Interest, and Simple Interest calculation methods. By default, the page displays the Simple Interest tab.

IMPORTANT: Before configuring the drivers on this page, you must first configure the Interest Rate and New Volume Amortization Patterns drivers.

To configure the Balance Sheet Projection drivers:

1. From the Command Center home page, click Financial Planning.
2. Open the budget, scenario, or forecast for which to edit the driver.
3.  Click the Drivers & Assumptions tab.

4. Click the Balance Sheet Projection Drivers link, which opens the FTP Assigned Rate Budget Utility.

5. Select one of the following tabs:

   • Simple Interest - for balance sheet accounts assigned to the Simple Interest calculation method

   • Cash Flow - for balance sheet accounts assigned to the Cash Flow calculation method

   • Non-Interest - for balance sheet accounts assigned to the Non-Interest calculation method

   • Unassigned - for balance sheet accounts not yet assigned to a calculation method

   On the selected tab, complete the settings as described in the tables below.

   TIP: For more information about these calculation methods, see Balance Sheet tab calculation method library.

6. To save all changes, click Save.

Simple Interest Tab

The Simple Interest tab of the Balance Sheet Projection Drivers page lists accounts associated with the Simple Interest calculation method.

TIP: To search for specific accounts, enter text in the Search for accounts or descriptions field.

To edit driver settings for an account on the Simple Interest tab:

1. Select an account by checking the check box in the far left column, then click Edit.

   NOTE: When accounts are selected, the button displays the number of accounts currently selected (for example, Edit 2 when two accounts are selected).

2. In the Edit dialog, complete the settings listed in the following table.

3. To save all changes, click Edit.

   To exit the dialog without saving changes, click Cancel.

Input	Description
Interest index	Select an interest index from the drop-down list. NOTE: The Interest Rate Drivers file must be configured and saved to the database in order to populate this column.
Use calculated spread	Select the check box to apply the rate spread from the base period to the index rate (historical spread). Deselect (uncheck) the check box to use the spread entered in the next field. NOTE: The historical spread is calculated by subtracting the actual index rate from the weighted average interest rate in the base period. Actual index rates for the base period are selected from the Interest Rate Drivers file.
Simple interest floor rate	If the Use calculated spread check box is checked, enter the simple interest index percentage as an integer value (for example, 2.5 for a 2.5% interest rate).
Interest index spread	If the Use calculated spread check box is not checked, enter a spread over the interest index percentage. The simple interest calculation method interest rate for the projected balance is calculated as the interest index rate plus the spread over the interest index.
FTP rate	Select a Funds Transfer Pricing (FTP) rate from the drop-down list. NOTE: The Interest Rate Drivers document must be configured and saved to the database in order to populate this column.

Cash Flow Tab

The Cash Flow tab of the Balance Sheet Projection Drivers page lists accounts associated with the Simple Interest calculation method.

TIP: To search for specific accounts, enter text in the Search for accounts or descriptions field.

To edit driver settings for an account on the Cash Flow tab:

1. Select an account by checking the check box in the far left column.

2. In the table row for the selected account, complete the settings listed in the following table

3. To save all changes, click Save.

   If you select a different tab without clicking Save, do one of the following in the Save before leaving dialog:

   • Click Stay to return to the editing table.
   • Click Discard and Leave to exit the Cash Flow tab without saving any changes.

Input	Description
Allocation	Enter percentages to be allocated to each of the following rate types, with each type as an integer value with two decimal places (for example, 30.00 for a 30% allocation). Adjustable rate allocation Fixed rate allocation Variable rate allocation TIP: The sum of percentages in each row of the table must equal 100.
Interest index	Select an interest index from the drop-down list. This value will determine the base interest rate for projected new volume. NOTE: The Interest Rate Drivers file must be configured and saved to the database in order to populate this column.
Interest index spread	Enter a spread percentage over the interest index. Enter the spread as an integer value with two decimal places (for example, 10.00 for a 10% spread). The new volume interest rate is calculated as the interest index rate plus the spread over the interest index.
Payment schedule	Select a payment schedule from the drop-down list. NOTE: The Interest Rate Drivers file must be configured and saved to the database in order to populate this column.
Rate reset frequency	Enter the number of months to set the term for when the rate will change on projected new volumes (balances). NOTE: This column applies to instruments with an ITYPE of A (adjustable).
FTP rate	Select an FTP rate from the drop-down list. NOTE: The Interest Rate Drivers document must be configured and saved to the database in order to populate this column.

Non-Interest Tab

The Non-Interest tab of the Balance Sheet Projection Drivers page lists accounts associated with the Non-Interest calculation method.

TIP: To search for specific accounts, enter text in the Search for accounts or descriptions field.

To edit driver settings for an account on the Simple Interest tab:

1. Select an account by checking the check box in the far left column.

2. In the table row for the selected account, in the FTP rate column, select an FTP rate from the drop-down list.

   NOTE: The Interest Rate Drivers document must be configured and saved to the database in order to populate this column.

3. To save all changes, click Save.

Unassigned Tab

The Unassigned tab of the Balance Sheet Projection Drivers page lists accounts not yet associated with any calculation method.

TIP: To search for specific accounts, enter text in the Search for accounts or descriptions field.