# State Financing Activities
#### Red Flag: Lowest/highest, sum, and distribution of incomes of applicants is not possible.
Carefully review the lowest and highest incomes reported, along with the sum of all incomes, the calculated average, and the frequency distribution table. There must be at least one reported in the frequency distribution cell that corresponds to the lowest income (i.e., if the lowest income is $10,000, then there must be at least one reported in the distribution cell of $15,000 or less). Similarly, if the highest income reported is $100,000, then there must be at least one reported in the cell for $75,001 or more. If the lowest income reported is $10,000 and the highest is $100,000 and there are two additional loans in the $60,000–$75,000 category, but the average is calculated as $35,000, then either the sum or the distribution is wrong. The smallest the sum could be with that distribution is $10,000 + $60,000 (x2) + $100,000 = $57,500. You should be able to look at the distribution and see if the average is consistent.
#### Red Flag: Lowest/highest, sum, and distribution of interest rates is not possible.
Same review process as above.
*Last updated January 2023*
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