Remainder of Fiscal Year Estimated Calculations

This estimate indicates what the KEMID is expected to receive through the end of the organizations fiscal year. The estimate depends, in part, on the frequency of the payments for the security and the next payment date (both of which are tied to the type of security). Some securities have no estimated income because the expected payout is unknown (e.g., alternative investments, real estate, receivables, liabilities, etc.). If the calculation cannot be performed because the rate is zero, the estimated income is also zero.

This calculation is made only for current holdings at the tax lot level and is based on the class code type (alternative investments, bonds, cash equivalents, etc.) of the security as follows:

For alternative investments, liabilities, and other investments not accounted for below, the estimated amount is zero.

For bonds, the system assumes a semi-annual payment.

o If the next payment is due after the fiscal year end date, the value is zero.

o If the number of months remaining in the fiscal year after the next income due date is less than six, Remainder of Fiscal Year Estimate = (Holding Units x Security Rate) 2.

o If the number of months remaining in the fiscal year after the next income due date is six or more, the Remainder of Fiscal Year Estimate = Holding Units x Security Rate

For cash equivalents, the system obtains the next income due date and the frequency of payments from the Security record. It then calculates an amount for the remainder of the fiscal year to be added to the tax lot accrued income due:

o If the next income due date is after the fiscal year end date, the value is zero.

o If the next income due date is prior to the last day of the fiscal year, the system determines the date of the last payment to be made in the fiscal year and then calculates the number of days until the date of the last payment to be made in the fiscal year. It then calculates income to be accrued for the remainder of the fiscal year: Number of days until last payment date times security rate times holding units, the result of which is divided by 365. This value is then added to the Accrued Income Due to obtain the total income the KEMID might receive for this holding through the end of the fiscal year.

For pooled funds, the system obtains the next income due date and the frequency of payments from the Security record.

o If the next income due date is after the fiscal year end date, the value is zero.

o If the date is prior to the last day of the fiscal year, the system determines the date of the last payment to be made in the fiscal year. Based upon that date and the frequency of payments, the system calculates the number of payments remaining in the fiscal year. It then calculates as follows: Remainder of Fiscal Year Estimate = (Number of Payments Remaining x Security Rate x Holding Units) Total Number of Payments Expected for the Entire Fiscal Year.

For stocks, the system assumes quarterly payments. After determining the next income due date:

o If the date is after the fiscal year end date, the value is zero.

o If the date is more than four months in the past, the system assumes that the value is invalid since it has not been updated recently. As a result, the expected income value is zero.

o If the date is prior to the last day of the fiscal year, the system calculates that Total Anticipated Income for Twelve Month Period = Holding Units x Security Rate. The system then determines the quarter of the fiscal year that the next income due date falls into. If the date is in the first quarter, Anticipated Income = Total Anticipated Income for Twelve Month Period. If the date is in the second quarter, Anticipated Income = Total Anticipated Income for Twelve Month Period x 3/4. If the date is in the third quarter, Anticipated Income = Total Anticipated Income for Twelve Month Period x . If the date is in the fourth quarter, Anticipated Income = Total Anticipated Income for Twelve Month Period x .

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Next Fiscal Year Estimated Calculations