Excess Adjustment
Adjustment of excess amounts earned in a Fiscal Year (FY) beginning between March 12, 2017, and March 11, 2018, must be applied to the following FY. An example is illustrated below.
Excess Example
Annual Compliance Level for FY 2019, Beginning July 1, 2018 = $704,300
Excess Uncompensated Services Provided in FY 2018 = $1,000
CPI adjustment between 2016 and 2017 = 2.5 percent
Excess + (Excess x Percent Change in CPI) = Adjusted Excess
$1,000 + ($1,000 x 2.5 percent) = $1,025 (Adjusted Excess)
Annual Compliance Level - Adjusted Excess = Adjusted Annual Compliance Level
$704,300 - $1,025 = $703,275 (Adjusted Annual Compliance Level)
Deficit Adjustment
Adjustment of deficits incurred in a FY beginning between March 12, 2017, and March 11, 2018, must be made up in the following FY, is illustrated below:
Deficit Example
Annual Compliance Level for FY 2018, Beginning July 1, 2018 = $704,300
Deficit Amount from FY 2018 to be made up in FY 2019 = $1,000
CPI adjustment between 2016 and 2017 = 2.5 percent
Deficit + (Deficit x Percent Change in CPI) = Adjusted Deficit
$1,000 + ($1,000 x 2.5 percent) = $1,025 (Adjusted Deficit)
Annual Compliance Level + Adjusted Deficit = Adjusted Compliance Level
$704,300 + $1,025 = $705,325 (Adjusted Annual Compliance Level)
