1. a) The formula abbreviations are as follows:

   1. 1) ATA = Announced Term Awards
   2. 2) ADV = Average Dollar Value of ATA
   3. 3) CT = Current Term
   4. 4) DA = Dollars Advanced
   5. 5) FY = Fiscal Year
   6. 6) PFY = Previous Fiscal Year
   7. 7) RR = Retention Rate
   8. 8) %AD = Percentage Advanced

2. b) The advanced payment formula established at Section 2735.50 may be demonstrated as follows:

   [(ATA x RR) x %AD] x ADV = DA

3. c) Sample Award History:

   Announced Awards	Awards Claimed	RR
   FYA: 6,050	3,063	.51
   FYB: 5,271	3,214	.61
   FYC: 5,001	2,313	.46
   FYD: 3,333	1,619	.49
   PFY: 3,468	1,285	.37

   Five year average RR: .49

   Total Dollars Announced	Total Dollars Claimed	RR
   PFY: $1,245,568.00	$383,647.50	.31

   CT ATA: 859

   CT ADV: $403.27

   %AD: .75

4. d) Sample Calculation:

   1. 1) [(859 x .31) x .75] x 403.27 = DA
   2. 2) (266.29 x .75) x 403.27 =
   3. 3) 199.718 x 403.27 =
   4. 4) DA = $80,540.28

(Source: Amended at 22 Ill. Reg. 11149, effective July 1, 1998)