Performance Center [Premium Feature] - Finance Dashboard Overview

The Finance Dashboard within Performance Center allows organizations to assess the financial performance of a school. Epicenter leverages the framework developed by the National Association of Charter School Authorizers (NACSA).
Seven financial indicators are provided in a series of pie charts (shown below). When selecting a section of a pie chart, the number of schools at each rating (Meeting, Below, Far Below, and Undetermined) will be shown. The ratings within the pie charts are based on the most recently uploaded financial data for each school [i.e. if one school's most recent financial data is 15-16 and another school's most recent data is 16-17, both schools will be measured by their respectively most-current years].


The right-hand panel contains the list of schools and their rating colors for each financial indicators.  Selecting a section on the pie charts for an indicator will modify the list to only show the schools with that rating.

Ratings:
Meeting:

  • Not a financial risk
  • No follow-up required
Below:
  • Financial risk
  • May require follow-up, depending on other measures
Far Below:
  • Significant financial risk
  • Follow-up is necessary
Undetermined:
  • No rating as data is missing
The rating targets for the seven financial indicators are outlined below.

Enrollment Variance:
Measures: Whether or not the school is meeting its enrollment projections
Metric: Current Enrollment ÷ Budgeted Enrollment (according to Board-Approved Budget)
Meeting:
  • Enrollment Variance ≥ 95% in the most recent year
Below:
  • Enrollment Variance = 85 – 95% in the most recent year
Far Below:
  • Enrollment Variance < 85% in the most recent year
Undetermined:
  • Data is missing.
 

Near-Term Measures
Financial position and viability in the upcoming year.

Current Ratio:
Measures: A comparison of current assets to current liabilities
Metric: Current Assets ÷ Current Liabilities
Meeting:                    
  • Current Ratio > 1.1 or
  • Current Ratio = 1.0 - 1.1 AND current year’s ratio > previous year’s ratio
NOTE: For schools in their first or second year of operation, the current ratio must be greater than or equal to 1.1
Below:                                          
  • Current Ratio = 0.9 - 1.0
Far Below:                                             
  • Current Ratio <.9
Undetermined:
  • Data is missing.
 
Unrestricted Days Cash:
Measures: How many days a school can pay its expenses without any cash inflow
Metric: Unrestricted Cash ÷ ([Total Expenses - Depreciation Expense] ÷ 365)
Meeting:
  • Unrestricted Days Cash ≥ 60 Days or
  • Unrestricted Days Cash is between 30 - 60 Days and the current year days cash is higher than the previous years days cash (trend is positive) or
  • Unrestricted Days Cash is ≥ 30 days in the last two years
NOTE: Schools in their first or second year of operation must have a minimum of 30 Days Cash.
Below:
  • If it does not meet the rating criteria above and the Unrestricted Days Cash is  ≥ 10 Days
Far Below:
  • Unrestricted Days Cash < 10 Days Cash
Undetermined:
  • Data is missing.

Sustainability Measures
Financial position and viability over time.
Cash Flow:
Measures: A school’s change in cash balance from one period to another
Metric 1: Single-Year Cash Flow = Current Year Cash – Previous Year’s Cash
Metric 2: Three-Year Cash Flow = Current Year Cash – The Second Year Prior’s Cash
Meeting:
  • Option 1:
    • Three-Year Cash Flow > 0
    • AND Single-Year Cash Flow > 0 in each of those three years
  • Option 2:
    • Three-Year Cash Flow > 0
    • Single-Year Cash Flow > 0 in either the previous year or the second year prior
    • AND Single-Year Cash Flow > 0 in the current year
NOTE: Schools in their first or second year of operation must have positive Cash Flow.
Below:
  • Three-Year Cumulative Cash Flow > 0, BUT Single-Year Cash Flow does not “Meet Standard”
Far Below:
  • Three-Year Cumulative Cash Flow < 0

Total Margin and Aggregated Three-Year Total Margin (A3YTM):
Measures: Whether or not the school is living within its available resources
Metric 1: Total Margin = Net Income ÷ Total Revenue
Metric 2: A3YTM = Total Three-Year Net Income ÷ Total Three-Year Revenues
Meeting:
  • Option 1:
    • Less than 3 year’s worth of data
    • AND the most recent year Total Margin > 0
  • Option 2:
    • A3YTM > 0
    • AND the most recent year Total Margin > 0
  • Option 3:
    • A3YTM > -1.5%
    • AND the current year Total Margin > 0
    • AND the current year Total Margin is > the previous year’s Total Margin
NOTE: For schools in their 1st or 2nd year of operation, the cumulative Total Margin must be > 0.
Below:
  • A3YTM > -1.5%
  • AND the most recent year Total Margin ≥ -10%
Far Below:
  • A3YTM ≤ -1.5%
  • OR the most recent year Total Margin < -10%
 

Debt to Asset Ratio:
Measures: The extent to which the school relies on borrowed funds to finance its operations
Metric: Total Liabilities ÷ Total Assets
Meeting:
  • Debt to Asset Ratio < 0.9
Below:
  • Debt to Asset Ratio ≥ 0.9 - 1.0
Far Below:
  • Debt to Asset Ratio is > 1.0
 
Debt Service Coverage Ratio:
Measures: a school’s ability to cover its debt obligations in the current year
Metric:      (Net Income + Depreciation + Interest Expense)
(Annual Principal + Interest + Lease Payments)
Meeting:
  • Debt Service Coverage Ratio ≥ 1.1 or
·       *Debt Service Coverage Ratio = 0 (meaning the school has no debt)
Below:
  • Debt Service Coverage Ratio < 1.1 and > 0
Far Below:
  • Not Applicable
 

*Note: For schools with no debt, there is no Debt Service Coverage ratio, so this chart is not displayed.
 
Other Information
Additional Charts
Below are examples of the Total Assets and Liabilities and Per Student Finances charts which are also found in the Finance Dashboard when an individual school is selected.
 
Data Sources:
Data for these charts is collected differently for schools in different states.

For additional information regarding using Submission Tags to collect the Current Enrollment, Budgeted Enrollment and Waiting List counts shown on the Enrollment chart, click here.

Attachments

Performance_Center_Finance_Dashboard_Overview.pdf Performance_Center_Finance_Dashboard_Overview.pdf

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