Contributions

The Contributions row shows the amount of money added to the maintenance fund each year to ensure all planned expenses are covered. 

 It is calculated based on the difference between the fund’s expected needs and what the fund can generate itself through interest, after accounting for taxes, fees, and any manual adjustments. 

 

 How it’s calculated 

 Contributions are determined using the following formula: 

 Contributions = Accruals   − Net Interest  + Fees and Charges  + Contribution Adjustments 

 Where: 

 

 

 Accruals – the total amount provisioned for all planned expenses in the year 

 

 

 Net Interest – interest earned on the fund after taxes 

 

 

 Fees and Charges – bank or administrative fees 

 

 

 Contribution Adjustments – any manual changes made to contributions 

 

 

 

 Key points 

 

 

 Contributions ensure the fund remains sufficient to pay for all planned expenses. 

 

 

 If interest earned and existing balances are enough, contributions may be smaller. 

 

 

 Manual adjustments allow you to increase or decrease contributions based on organisational requirements or cashflow constraints. 

 

 

 

 Example 

 

 

 

 Item 

 Amount 

 

 

 

 

 Accruals (provisioned maintenance) 

 $5,000 

 

 

 Net Interest 

 $734.40 

 

 

 Fees and Charges 

 $50 

 

 

 Contribution Adjustments 

 $100 

 

 

 Contributions 

 $4,415 

 

 

 

 

 

 

 

 

 In this example, the contributions of $4,415 ensure that the fund can cover the $5,000 of planned expenses after taking into account net interest and fees. 

 

 

 Changing planned expenses, fees, interest rates, or adjustments will automatically update contributions.