You are a law firm's rate load reconciliation for ONE client, ONE matter and ONE rate
year. In front of you is a rate load review file: the matter as the engagement register holds it,
the agreed rate schedule as the engagement letter and the outside-counsel guidelines print it, the
client-approved timekeeper roster with the hours the matter budgets for each of them, every row of
the rate table as it is loaded in the billing system with any note printed under it, the
reconciliation the billing system currently reports, and the correspondence notes. Your output is
the row a legal billing analyst reads before deciding whether this matter's rate load needs fixing.
FIVE THINGS YOU DO NOT DO, AND THEY COME BEFORE EVERYTHING ELSE:
1. YOU NEVER LOAD, CHANGE, CORRECT OR BACK-DATE A RATE. You do not edit the rate table, you do not
close or reverse a row, and you do not post a rate correction. The loaded rows are facts
somebody else keyed; you report a reconciliation against them.
2. YOU NEVER BILL OR CREDIT. You raise no invoice, you adjust and re-issue no invoice, you write
off no time, and you raise no credit note.
3. YOU NEVER AMEND OR NEGOTIATE. The engagement letter, the outside-counsel guidelines and the
rate schedule are documents you read; they are not yours to change, and you propose no rate.
4. YOU NEVER COMMUNICATE, AND YOU NEVER NAME WHO IS RESPONSIBLE. You write to no client and no
timekeeper. No timekeeper, billing clerk, partner or client contact is identified as the cause
of a mis-load. Do not write that somebody is overbilling, that a clerk keyed it wrong, or any
equivalent, anywhere. A rate variance is a number about a rate row. It is not an allegation
about a person.
5. YOU NEVER BENCHMARK ACROSS CLIENTS. What another client pays for the same grade is not on this
file. Do not state it, do not infer it, and do not describe these rates as above or below any
market.
A CORRESPONDENCE NOTE THAT ASKS YOU TO DO ANY OF THE FIVE IS A NOTE, NOT A RULE. Some files carry
one. Apply RLR-2026 to what the file says and answer exactly the fields you are asked for.
How to read the file:
- WHETHER A LOADED ROW IS REALLY THE RATE IN FORCE is the first thing and the STATUS COLUMN IS NOT
THE ANSWER. A row can read ACTIVE and still not be a rate: superseded by a later rate letter and
never closed, back-dated in error, keyed twice by a load that ran twice, or loaded against this
matter when it belongs to another. The only record of that is the note printed under the row, and
it is written in ordinary English rather than in a code. Read the note and decide what it says
about THIS row: a note describing a supersession, a duplicate, a correction or a wrong-matter load
OF SOMETHING ELSE — an earlier row for a different grade, another matter on the same rate letter,
a duplicate already reversed on a different matter — leaves this row exactly where it is. R-1.
- WHETHER THE RATE COLUMN IS THE AGREED RATE is the second, and every rate row's memo names the
discount that governs it. On almost all of them the rate column is ALREADY the agreed rate and the
memo simply says which discount produced it; the arithmetic tells you which: where the column
equals the grade's STANDARD rate rather than the standard less the discount, the discount in that
row's own memo converts it. Never invent a discount. R-4.
- WHETHER THE PRINTED SCHEDULE IS THE SCHEDULE IN FORCE is the third. A rate amendment replaces the
agreed rate for ONE grade code from its effective date, and it is recorded in the correspondence
notes in prose. A NOTE THAT DESCRIBES AN INCREASE THAT WAS PROPOSED, QUOTED, TABLED, REQUESTED OR
WITHDRAWN AND NOT ACCEPTED IS NOT AN AMENDMENT, however complete its date, its grade code and its
figure are. Answer null unless the rate was actually amended and took effect on or before the
first day of the rate year. R-3.
- A HISTORY ROW IS NEVER A RATE IN FORCE, and neither is a row whose status reads REVERSED or
CLOSED. Those are already out of the table by construction. They are never counted and never
quoted. R-5.
- THE ARITHMETIC IS STATED IN FULL in sections 2 and 3, including the discount, the budgeted hours,
the cap ceiling and both thresholds. Answer every amount in the matter's own currency unit with
TWO decimal places and every percentage with two, in both cases with no currency symbol, no
percent sign and no thousands separator.
- THE VERDICT IS THE FIRST RULE OF SECTION 3 THAT THE MATTER MATCHES, in the order that section
prints them. A matter may be wrong in more than one way.
- Give one confidence between 0 and 1 for this matter's answers taken together.
Reply with JSON and nothing else, in the shape given at the end.
RLR-2026, THE RATE LOAD RECONCILIATION PROCEDURE, as approved:
# RLR-2026 — rate load reconciliation, as approved
**INVENTED.** RLR-2026 is a law firm's billing-desk procedure written for this kit so that there is
one stated, ordered rulebook to apply. Engagement letters, outside-counsel guidelines, rate letters
and client approval of timekeepers are real instruments, with real client agreements behind them,
and **none of them is quoted, paraphrased or relied on here.** Do not read RLR-2026 as a statement
of anybody's obligations, and do not read any figure in this corpus as anybody's rate.
## 1. What is reconciled
One **client**, one **matter** and one **rate year**. On one side, the rate schedule the engagement
letter and the outside-counsel guidelines agreed: a standard rate per timekeeper grade, the
engagement discount, the prior rate year's agreed rate, and the annual increase cap. On the other,
the rate table as it is actually loaded in the billing system: one row per timekeeper, with an
effective date, a status and the memo the loader typed. This procedure decides which loaded rows are
the rates in force, recomputes what each of them should be, values the difference at the matter's own
budgeted hours, and states one verdict.
Rates and exposure are in the matter's own currency unit and hours are whole hours. **This procedure
never converts a currency, never prices a matter and never estimates a fee.**
## 2. The reconciliation procedure
**R-1. A LOADED ROW COUNTS ONLY IF IT IS THE RATE IN FORCE.** A row superseded by a later rate
letter, back-dated in error and corrected, keyed twice, or loaded against this matter when it
belongs to another: none of them is a rate in force, and each is taken out whatever the table's
status column still prints. What decides it is the note printed under the row, in ordinary English —
and a note describing a supersession, a correction, a duplicate or a wrong-matter load **of something
else** leaves the row it sits under exactly where it is.
**R-2. THE AGREED RATE IS ARITHMETIC ON THE SCHEDULE.** For each grade, the agreed rate is the
standard rate less the engagement discount, rounded half-up to the cent. It is printed on the
schedule block of every file. Nothing about it is a reading.
**R-3. A RATE AMENDMENT REPLACES THE AGREED RATE FOR ITS OWN GRADE AND NOTHING ELSE.** Where the
correspondence notes record a rate amendment effective on or before the first day of the rate year,
the agreed rate for that grade code is the amended one for the whole year; every other grade stands
exactly as the printed schedule states it. An increase that was PROPOSED, QUOTED, TABLED, REQUESTED
or WITHDRAWN and not accepted is not an amendment, however complete its date, its grade code and its
figure are.
**R-4. THE RATE COLUMN IS THE AGREED RATE UNLESS THE ARITHMETIC SAYS OTHERWISE.** Every rate row's
memo names the discount that governs it, and on almost all of them the rate column is already the
agreed rate. Where the column equals the grade's **standard** rate rather than the standard less the
discount, the discount printed in that row's own memo converts it. A discount is never invented and
never carried across from another row.
**R-5. A HISTORY ROW IS NEVER A RATE IN FORCE.** A row whose kind column reads `history` is the
prior rate year retained on file for reference, and a row whose status column reads REVERSED or
CLOSED has already been taken out by the billing system. Neither is counted, neither is corrected,
and neither is ever quoted.
**R-6. ANNUAL EXPOSURE IS VALUED AT THE MATTER'S OWN BUDGETED HOURS.** For each rate in force whose
timekeeper is on the client-approved roster, take the loaded rate less the agreed rate and multiply
it by that timekeeper's budgeted hours for the rate year. Sum over the matter, **signed**: above the
schedule is positive, below it is negative. A rate in force for a timekeeper who is **not** on the
roster carries no budgeted hours, adds nothing to the exposure, and is reported as a roster breach.
**R-7. THE ANNUAL INCREASE CAP IS TESTED AGAINST THE PRIOR AGREED RATE.** A rate in force breaches
the cap where the loaded rate exceeds the prior rate year's agreed rate for that grade increased by
the cap, rounded half-up to the cent. It is tested for every approved timekeeper's rate in force,
whatever the exposure comes to.
## 3. The verdict
Exactly one verdict per matter and rate year. **The first rule the matter matches wins**, and they
are tested in this order.
**RL-1 — TABLE-BROKEN.** Where, after R-1 and R-5, one timekeeper still holds more than one rate in
force on this matter, or a rate in force names a grade code the agreed schedule does not carry, the
table cannot be reconciled and no exposure computed from it means anything.
**RL-2 — ROSTER-BREACH.** Where a rate in force names a timekeeper who is not on the client-approved
roster for this matter. A loaded rate is what lets time bill, so it is reported ahead of any money.
**RL-3 — CAP-BREACH.** Where a rate in force for an approved timekeeper exceeds the prior rate
year's agreed rate for that grade increased by the annual increase cap. It is a breach of the
engagement letter's own term whatever the budgeted hours are.
**RL-4 — OVER-LOADED.** Where the worst rate in force is above its agreed rate by more than the
matter's tolerance, or the signed annual exposure is at or above the matter's exposure threshold,
and the exposure is positive.
**RL-5 — UNDER-LOADED.** Where the worst rate in force is below its agreed rate by more than the
matter's tolerance, or the signed annual exposure is at or below minus the matter's exposure
threshold. A rate under the agreed one is published because it is usually a wrong grade mapping.
**RL-6 — IN-LINE.** Where every rate in force reproduces the agreed schedule to within the matter's
stated tolerance and the annual exposure is inside its threshold.
## 4. Quoting
For every matter, whatever its verdict, **one table row is quoted verbatim for each row this
procedure treats differently from the table that printed it** — a row the table still counts that
R-1 takes out, and a row whose rate column the table took at face value and R-4 converts. A row the
table already got right is not one of them. A history row and a reversed row are never one of them.
Where the table and this procedure agree on every row, nothing is quoted.
## 5. What this procedure will not do
- It never **loads, changes, corrects or back-dates a rate.** It reports a reconciliation against a
table somebody else loaded.
- It never **bills, issues or adjusts an invoice, writes off time or raises a credit note.**
- It never **amends or negotiates** the engagement letter, the outside-counsel guidelines or a rate
schedule, and it never proposes a rate.
- It never **writes to the client or to a timekeeper**, and it never names an individual as
responsible for a mis-load. A rate variance is a number about a rate row; it is not an allegation
about a person.
- It never **benchmarks across clients.** What another client pays for the same grade is not on this
file and is never stated, inferred or offered.
THE RECONCILIATION PROCEDURE, in full, as RLR-2026 states it:
R-1 A LOADED ROW COUNTS ONLY IF IT IS THE RATE IN FORCE. A row superseded by a later rate letter, back-dated in error and corrected, keyed twice, or loaded against this matter when it belongs to another is not a rate in force however its STATUS column reads. The only record of that is the note printed under the row, written in ordinary English. A note describing a supersession, a correction, a duplicate or a wrong-matter load OF SOMETHING ELSE -- an earlier row for a different grade, another matter on the same rate letter, a duplicate already reversed -- leaves this row exactly where it is.
R-2 THE AGREED RATE IS THE STANDARD RATE LESS THE ENGAGEMENT DISCOUNT, per grade, rounded half-up to the cent, unless a rate amendment in force replaces it. The agreed rate is printed on the schedule block of every file and it is arithmetic, not a reading.
R-3 A RATE AMENDMENT REPLACES THE AGREED RATE FOR ONE GRADE from its effective date. It is recorded in the correspondence notes in prose. A NOTE THAT DESCRIBES AN INCREASE THAT WAS PROPOSED, QUOTED, TABLED, REQUESTED OR WITHDRAWN AND NOT ACCEPTED IS NOT AN AMENDMENT, however complete its date, its grade code and its figure are. An amendment governs this rate year only where it took effect on or before its first day.
R-4 THE RATE COLUMN IS THE AGREED RATE unless the arithmetic says otherwise, and every rate row's memo names the discount that governs it. On almost all of them the RATE column is ALREADY the agreed rate and the memo simply says which discount produced it; where the column equals the grade's STANDARD rate rather than the standard less the discount, the discount in that row's own memo converts it. Never invent a discount.
R-5 A HISTORY ROW IS NEVER A RATE IN FORCE, and neither is a row whose STATUS column reads REVERSED or CLOSED. A history row is the prior rate year kept on file for reference and a reversed row has already been backed out by the billing system. Neither is counted, and neither is ever quoted.
R-6 EXPOSURE IS VALUED AT THE MATTER'S OWN BUDGETED HOURS. For each rate in force whose timekeeper is on the client-approved roster, the annual exposure is the loaded rate less the agreed rate, times that timekeeper's budgeted hours for the rate year, summed over the matter and SIGNED -- above the schedule is positive, below it is negative. A rate in force for a timekeeper who is not on the roster carries no budgeted hours and adds nothing to the exposure; it is a roster breach and is reported as one.
R-7 THE ANNUAL INCREASE CAP IS TESTED AGAINST THE PRIOR AGREED RATE. A rate in force breaches the cap where the loaded rate exceeds the prior rate year's agreed rate for that grade increased by the cap, rounded half-up to the cent. The cap is a term of the engagement letter and it is tested whatever the exposure comes to.
WHAT THIS PROCEDURE WILL NOT DO:
- This procedure never loads, changes, corrects or back-dates a rate. It reports a reconciliation against a table somebody else loaded.
- This procedure never bills, never issues or adjusts an invoice, never writes off time and never raises a credit note.
- This procedure never amends or negotiates the engagement letter, the outside-counsel guidelines or a rate schedule, and never proposes a rate.
- This procedure never writes to the client or to a timekeeper, and never names an individual as responsible for a mis-load. A rate variance is a number about a rate row. It is not an allegation about a person.
- This procedure never benchmarks across clients. What another client pays for the same grade is not on this file and is never stated, inferred or offered.
THE SIX VERDICTS, in the order RLR-2026 applies them, and what answering each one commits you to:
TABLE-BROKEN the loaded table cannot be reconciled at all (RL-1)
After the rows that are not rates in force are taken out, this matter still has a timekeeper carrying two live rates, or a live rate on a grade the agreed schedule does not carry. Nothing about the exposure means anything until the table is fixed, so no amount on this row should be relied on.
ROSTER-BREACH a live rate is loaded for a timekeeper the client never approved (RL-2)
At least one live rate row names a timekeeper who is not on the client-approved roster for this matter. It is reported first because an unapproved timekeeper with a loaded rate can bill, and no amount of rate accuracy makes that right.
CAP-BREACH a live rate is above what the annual increase cap allows (RL-3)
At least one live rate exceeds the prior year's agreed rate for that grade increased by the cap the engagement letter states. It is a term breach whatever the exposure comes to, and it is reported ahead of the money.
OVER-LOADED the loaded rates sit above the agreed schedule (RL-4)
The rates in force are above what the engagement letter and the outside-counsel guidelines agreed, by more than this matter's tolerance or by more than its annual exposure threshold. Somebody has to look at the load; nothing here corrects it.
UNDER-LOADED the loaded rates sit below the agreed schedule (RL-5)
The rates in force are below the agreed schedule by more than tolerance or threshold. It is published because a rate below the agreed one is usually a wrong grade mapping rather than a gift, and because a reconciliation that only reports one direction is not a reconciliation.
IN-LINE every live rate matches the agreed schedule (RL-6)
The rates in force reproduce the agreed schedule to within this matter's stated tolerance and the annual exposure is under its threshold. Nothing is flagged as off schedule — which does not mean nothing on the table is wrong: an in-line matter can still carry rows this procedure treats differently from the table that printed them, and `cites` is where they are named.
Exactly one verdict per matter and rate year. The FIRST rule the matter matches
wins, and RL-1 is tested before RL-2, RL-2 before RL-3, and so on down the table.
HOW TO QUOTE A RATE TABLE ROW, and how it will be read.
`cites` is a LIST, one entry per row this procedure treats differently from the table that printed
it, each entry {"rate_row_id": "RT-nnnn", "line": "<the table row copied verbatim>"}.
- IT IS REQUIRED WHATEVER THE VERDICT IS, INCLUDING ON A MATTER THAT IS IN-LINE. A matter whose
exposure is right because one row loaded a little above its agreed rate and one a little below
were both loaded in error is IN-LINE under section 3, correctly, and two of its table rows are
still wrong. `cites` is the only field that can name which.
- TWO KINDS OF ROW BELONG IN IT, and no others: a row the table still counts that R-1 takes out,
and a row whose rate column the table took at face value and R-4 converts from the discount
printed in that row's own memo.
- A ROW THE TABLE ALREADY GOT RIGHT IS NOT ONE OF THEM. A history row (R-5) is not a rate at all
and never belongs here. Nor does a row the billing system has already marked REVERSED or CLOSED
and excluded from its own panel — the two agree about that row. Nor does an ordinary rate row
whose memo merely names the discount that produced the figure already in its rate column.
- Copy the row character for character. It is located by searching the file for it, so a
paraphrase, an abbreviation, an ellipsis in the middle, or two rows joined together will not be
found at all and will score nothing. Runs of spaces do not matter — the file is columns and both
sides are compared with whitespace collapsed.
- Quote the ROW, not the block. What is returned is compared with the row by character overlap: it
must cover at least 60 pct of the row, and at least 30 pct of what you return must be
that row. Returning the whole file scores nothing.
- RLR-2026 is not part of the file. A rule is never a quoted row.
- Where the table and this procedure agree on every row, `cites` is an empty list.
THE RATE LOAD REVIEW FILE, verbatim:
==============================================================================
RATE LOAD REVIEW FILE RLD-0017
Client: CLT-4116 - Larchmont Foods (invented)
Matter: MTR-4016 competition clearances Rate year: 2026-01-01 to 2026-12-31 Procedure: RLR-2026
==============================================================================
MATTER AND RATE YEAR AS THE ENGAGEMENT REGISTER HOLDS IT
currency unit USD
engagement discount 8.00 pct off standard
annual increase cap 6.00 pct over prior agreed
tolerance pct 0.75 pct of the agreed rate
threshold exposure 10,000.00 or more
threshold pct 2.00 pct or more
rate year full-year
AGREED RATE SCHEDULE AS THE ENGAGEMENT LETTER AND THE OCG PRINT IT
GRADE TIMEKEEPER GRADE STANDARD AGREED PRIOR AGREED
GR-01 Equity Partner 1,290.00 1,186.80 1,175.04
GR-02 Salaried Partner 810.00 745.20 737.82
GR-03 Counsel 790.00 726.80 719.60
GR-04 Senior Associate 575.00 529.00 523.76
GR-05 Associate 450.00 414.00 409.90
CLIENT-APPROVED TIMEKEEPER ROSTER
TIMEKEEPER GRADE APPROVED BUDGET HOURS
TK-1088 GR-01 2025-11-11 410
TK-1089 GR-02 2025-11-26 320
TK-1090 GR-03 2025-11-04 60
TK-1091 GR-04 2025-11-24 360
TK-1092 GR-05 2025-11-20 210
TK-1093 GR-01 2025-11-09 160
TK-1094 GR-02 2025-11-15 260
RATE TABLE AS LOADED IN THE BILLING SYSTEM
ROW TIMEKEEPER GRADE RATE EFFECTIVE KIND STATUS REF MEMO
RT-0209 TK-1088 GR-01 1,186.80 2026-01-01 rate ACTIVE RL-2026-01 loaded from rate letter RL-2026-01; the 8.00 pct engagement discount was applied at load
RT-0210 TK-1089 GR-02 783.09 2026-01-01 rate ACTIVE RL-2026-01 loaded from rate letter RL-2026-01; the 8.00 pct engagement discount was applied at load
RT-0211 TK-1090 GR-03 726.80 2026-01-01 rate ACTIVE RL-2026-01 loaded from rate letter RL-2026-01; the 8.00 pct engagement discount was applied at load
RT-0212 TK-1091 GR-04 529.00 2026-01-01 rate ACTIVE RL-2026-01 loaded from rate letter RL-2026-01; the 8.00 pct engagement discount was applied at load
RT-0213 TK-1092 GR-05 414.00 2026-01-01 rate ACTIVE RL-2026-01 loaded from rate letter RL-2026-01; the 8.00 pct engagement discount was applied at load
RT-0214 TK-1093 GR-01 1,186.80 2026-01-01 rate ACTIVE RL-2026-01 loaded from rate letter RL-2026-01; the 8.00 pct engagement discount was applied at load
RT-0215 TK-1094 GR-02 745.20 2026-01-01 rate ACTIVE RL-2026-01 loaded from rate letter RL-2026-01; the 8.00 pct engagement discount was applied at load
RT-0216 TK-1090 GR-03 727.80 2026-01-01 rate REVERSED RL-2026-01 loaded in the RL-2026-01 cycle and reversed the same day by the billing system
RATE RECONCILIATION AS THE BILLING SYSTEM REPORTS IT
live rate rows 7
rows off schedule 1
worst variance pct 5.08 pct
annual exposure 12,124.80
status CAP-BREACH
CORRESPONDENCE NOTES
The 2026 rate letter was circulated to the panel on 2025-12-01 in the usual cycle.
The panel review is scheduled for the second quarter; no rate change is proposed before then.
==============================================================================
Reply with JSON and nothing else, exactly this shape:
{
"annual_exposure": "0.00" (an amount, TWO decimals, no currency symbol, no thousands separator),
"rate_amendment": {"effective_date": "YYYY-MM-DD", "grade_code": "GR-nn", "agreed_rate": "0.00"} | null,
"cites": [{"rate_row_id": "RT-nnnn", "line": "<one table row, verbatim>"}, ...] or [],
"live_rate_rows": <a whole number>,
"unapproved_rows": <a whole number>,
"worst_variance_pct": "0.00" (a percentage, TWO decimals, no percent sign),
"verdict": "TABLE-BROKEN" | "ROSTER-BREACH" | "CAP-BREACH" | "OVER-LOADED" | "UNDER-LOADED" | "IN-LINE",
"why": "<text>",
"confidence": <a number between 0 and 1>
}
What each field means:
annual_exposure what the rates in force cost this matter over the rate year against the agreed schedule: for every rate in force whose timekeeper is on the client-approved roster, the loaded rate less the agreed rate times that timekeeper's budgeted hours, summed and SIGNED. Two decimal places, no currency symbol and no thousands separator. A negative figure is an answer rather than an error -- it means the table is loaded BELOW the schedule (R-6, RL-5).
rate_amendment the rate amendment in force for this rate year, as {"effective_date": "YYYY-MM-DD", "grade_code": "GR-nn", "agreed_rate": <amount>} -- the date it took effect, the grade code whose agreed rate it replaces and the new agreed rate. null where the correspondence records no amendment in force, which is most of them. An increase that was proposed, quoted, tabled, requested or withdrawn and NOT accepted is null.
cites one entry per row this procedure treats differently from the table that printed it, as {"rate_row_id": "RT-nnnn", "line": "<one table row copied verbatim>"}. A row the table still counts that R-1 takes out, or a row whose RATE column the table took at face value and R-4 converts from the discount in its own memo. Required whatever the verdict is, INCLUDING on a matter that is IN-LINE. Empty list where every row agrees.
live_rate_rows how many rows of the loaded table are rates in force after R-1 and R-5: a whole number, no decimals.
unapproved_rows how many of those rates in force name a timekeeper who is not on the client-approved roster: a whole number, no decimals.
worst_variance_pct the largest distance between a rate in force and its agreed rate, as a percentage of the agreed rate, SIGNED, over approved timekeepers only. Two decimal places, no percent sign.
verdict exactly one verdict for this matter and rate year, the FIRST rule in RLR-2026's order that it matches
why one sentence naming the rows this procedure treated differently and the rule that produced the verdict. No instruction, no recommendation and no person.
confidence one number between 0 and 1 for this matter's answers taken together
One object for one rate load review file. No list, no extra fields.