The Annual Cash Settlement True-up Report Q6: What calculations are being done on this report and where do the numbers come from?
A6: There are two parts to the Annual Cash Settlement True-up Report, Part (A) generates a net amount due from or owed to your company. It does this by comparing what you actually paid and received in the quarterly provisional transactions to what your assessments & reimbursements should be at this point in time (it also accounts for the interest on the difference between these amounts). Note that Part (A) does not take into account the investment income from the quarterly reimbursements; this is taken care of in Part (B). The second half of the True-up Report, Part (B), recalculates the investment income for all accident years in the Annual Cash Settlement.
Related Questions
- The Statewide Company Annual Cash Settlement Report Q4: What are the calculations on this report and where does the data come from?
- Why does the information differ from what appears in the Comprehensive Annual Financial Report (CAFR) or Texas Annual Cash Report?
- Why don the Monthly Payment and Quarterly Reimbursement figures on the Annual Cash Settlement True-up Report agree with mine?
