Common use of Does Not Meet Clause in Contracts

Does Not Meet. Current Ratio is between 0.9 and 1.0 or equals 1.0 OR Current Ratio is between 1.0 and 1.1 and one-year trend is negative. 10 Falls Far Below Standard: Current ratio is less than or equal to 0.9. 0 Notes 0 Measure 1b Cash Ratio Notes Current Ratio: Cash divided by Current Liabilities Meets Standard: Cash Ratio is greater than 1.0 OR Cash Ratio is equal to 1.0 and one-year trend is positive (current year ratio is higher than last year's). Does Not Meet: Cash Ratio is between 0.9 and 1.0 OR Cash Ratio equals 1.0 and one-year trend is negative. Falls Far Below Standard: Cash ratio is equal to or less than 0.9. Result Points Possible Points Earned 50 10 0 0 Measure 1c Unrestricted Days Cash Notes Unrestricted Days Cash: Unrestricted Cash divided by (Total Expenses minus Depreciation Expense/365) Meets Standard: 60 Days Cash OR Between 30 and 60 Days Cash and one-year trend is positive. Note: Schools in their first or second year of operation must have a minimum of 30 Days Cash. Does Not Meet: Days Cash is between 15-30 days OR Days Cash is between 30-60 days and one-year trend is negative. Falls Far Below Standard: Fewer than 15 Days Cash. Result Points Possible Points Earned 50 10 0 0 Measure 1d Default Notes Default Meets Standard: School is not in default of financial obligations. Financial obligations include, but are not limited to: nonpayment, breach of financial representation, non- reporting, non-compliance, financial judgements, loan covenants, and/or tax obligations. Does Not Meet: School is in default of financial obligations. Result Points Possible Points Earned 50 0 0 Measure 2a Total Margin: Net Income divided by Total Revenue AND Aggregated Total Margins: Total 3-Year Net Income divided by Total 3-Year Revenues. Result Points Possible Points Earned 3-Year Total Margin Meets Standard: Aggregated 3-yar Total Margin is positive and the most recent year Total Margin is positive OR Aggregated 3-Year Total Margin is greater than -1.5 percent, the trend is positive for the last two years, and the most recent year Total Margin is positive. Note: For schools in their first or second year of operation, the cumulative Total Margin must be positive. 50 Does Not Meet: Aggregated 3-Year Total Margin is greater than -1.5 percent, but trend does not "Meet Standard". 30 Falls Far Below Standard: Aggregated 3-Year Total Margin is less than or equal to -1.5 percent OR the most recent year Total Margin is less than -10 percent. 0 Notes Due to the Reinstatement of Pension Liability, as required by GASB 68, Net Position may be higher than expected. Changes in Net Position due to pension reinstatement that do not provide or require current financial resources have been removed from the Net Position calculation. This reinstatement had no material effect on the outcome for this measure. 0

Does Not Meet. Current Ratio is between 0.9 and 1.0 or equals 1.0 OR Current Ratio is between 1.0 and 1.1 and one-year trend is negative. 10 Falls Far Below Standard: Current ratio is less than or equal to 0.9. 0 Notes 0 Measure 1b Cash Ratio Notes Current Ratio: Cash divided by Current Liabilities Meets Standard: Cash Ratio is greater than 1.0 OR Cash Ratio is equal to 1.0 and one-year trend is positive (current year ratio is higher than last year's). Does Not Meet: Cash Ratio is between 0.9 and 1.0 OR Cash Ratio equals 1.0 and one-year trend is negative. Falls Far Below Standard: Cash ratio is equal to or less than 0.9. Result Points Possible Points Earned 50 10 0 0 Measure 1c Unrestricted Days Cash Notes Unrestricted Days Cash: Unrestricted Cash divided by (Total Expenses minus Depreciation Expense/365) Meets Standard: 60 Days Cash OR Between 30 and 60 Days Cash and one-year trend is positive. Note: Schools in their first or second year of operation must have a minimum of 30 Days Cash. Does Not Meet: Days Cash is between 15-30 days OR Days Cash is between 30-60 days and one-year trend is negative. Falls Far Below Standard: Fewer than 15 Days Cash. Result Points Possible Points Earned 50 10 0 0 Measure 1d Default Notes Default Meets Standard: School is not in default of financial obligations. Financial obligations include, but are not limited to: nonpayment, breach of financial representation, non- reporting, non-compliance, financial judgements, loan covenants, and/or tax obligations. Does Not Meet: School is in default of financial obligations. Result Points Possible Points Earned 50 0 0 Measure 2a Total Margin: Net Income divided by Total Revenue AND Aggregated Total Margins: Total 3-Year Net Income divided by Total 3-Year Revenues. Result Points Possible Points Earned 3-Year Total Margin Meets Standard: Aggregated 3-yar Total Margin is positive and the most recent year Total Margin is positive OR Aggregated 3-Year Total Margin is greater than -1.5 percent, the trend is positive for the last two years, and the most recent year Total Margin is positive. Note: For schools in their first or second year of operation, the cumulative Total Margin must be positive. 50 Does Not Meet: Aggregated 3-Year Total Margin is greater than -1.5 percent, but trend does not "Meet Standard". 30 Falls Far Below Standard: Aggregated 3-Year Total Margin is less than or equal to -1.5 percent OR the most recent year Total Margin is less than -10 percent. 0 Notes Due to the Reinstatement of Pension Liability, as required by GASB 68, Net Position may be higher than expected. Changes in Net Position due to pension reinstatement that do not provide or require current financial resources have been removed from the Net Position calculation. This reinstatement had no material effect on the outcome for this measure. 0