Cash Flow

This option allows the user to manually input ending balances by month. The calculation method then calculates outstanding new volume balances, based on the difference between the projected ending balance and the current portfolio ending balance.

This option allows the user to input the target year-end balance and the calculation method linearly interpolates each month’s end balances. The calculation method then calculates new volume based on the difference between the projected ending balance and the current portfolio ending balance.

The budget administrator sets growth rates for all balance sheet ACCTS in the Acct Growth Drivers. The rates, which are applied globally across all plan files, can be adjusted by the user. In the Acct Growth Drivers the administrator also selects, by account, which method to use for calculating balance growth over the remainder of the base year. For more information, see Methods for calculating balance sheet growth.

This option allows users to input projected new volume production each month. Monthly ending balances are then calculated as remaining current portfolio ending balance plus the sum of monthly new volume amounts less projected new volume repayments.

This hybrid method is available for multi-year planning. The user will input new volume production in the initial plan years, and then project the remaining years by entering year-end target balances.

NOTE: Your administrator indicates the number of years that they want you to enter new volumes in the Interest Bearing Maps driver.

When you enter month-end or year-end balances that are less than the sum of the current portfolio and new volume portfolio ending balances, the calculation method generates negative new volume. Negative new volume is treated as a reduction of projected portfolio balances with the interest and FTP from those negative balances calculated using the average rates from the portfolio balances.

NOTE: Planning for seasonality on ending balances of the Cash Flow calculation method is not recommended. Swings in target ending balances may result in negative new volumes. The Cash Flow calculation method is best used for planning growth in the ending balance, holding balances flat or allowing the portfolio to runoff. Seasonality can be modeled in new volume.

The variable rate ITYPE includes instruments with ambiguous principal balances like savings accounts or lines of credit. ITYPE V. Current Position balances for these instruments are queried from the cash flow table but no runoff is assumed because they do not have scheduled payments. In addition, a portion of new volumes can be allocated to variable rate balances by the administrator in the Interest Bearing Map driver, thus adding to the Current Position balance. The user has the option of making adjustments to the variable portfolio, either up or down, to reflect seasonality and anticipated changes to outstanding balances.

NOTE: Any difference between the base period's Current Position instrument ending balance and the GL ending Balance is treated as a permanent variance that is added to, or subtracted from, the Current Position. It has the same interest rate and FTP rate as the outstanding current position and is assumed to runoff at the same rate as the current position.

This contains interest bearing map assumptions for term, fixed-rate new volume balances. This section also contains a line for users to adjust the global spread on fixed-rate new volume. User access to this global spread adjustment line is managed through the Allow users to adjust spread over interest index setting on the Interest Bearing Map driver.