ADP/ACP Refund Earnings

Formula for determining earnings on refunds is earnings * excess/(Beginning balance plus contributions for the plan year).  What does contributions for the plan year mean?  Does it have to recognize all contributions including receivables?  If not, why not?

Contributions are the "deposits" that were made during the year.  There may be a deposit that was a receivable from the previous year that actually got deposited during the current year.  That amount would've gotten some earnings.  You're merely using algebra to assign a proportion share of the trust earnings to the excess amount.

Good Luck!

Thanks, would it matter if the plan was a balanced forward plan operating on an accrual basis? are we to back out receivables?

I'm not sure.  These are really document driven questions; meaning the answers would depend on how the document is written.  Many documents prescribe 'any reasonable method' for determining the earnings and would allow some flexibility.  

With that said, it's hard to give an answer that would help in your specific case. 

Good Luck!