1 / 6

Financial Health Indicator / Measurement Project

Financial Health Indicator / Measurement Project. Chief Finance and Facilities Officers Conference January 27, 2010. Purpose of project. Identifies possible financial or control issues putting college/university at financial risk. Modeled in part after Higher Learning Commission program.

dakota-chavez
Download Presentation

Financial Health Indicator / Measurement Project

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Financial Health Indicator / Measurement Project Chief Finance and Facilities Officers Conference January 27, 2010

  2. Purpose of project • Identifies possible financial or control issues putting college/university at financial risk. • Modeled in part after Higher Learning Commission program. • Requires reporting (response) to the specific exception.

  3. Measures: short-term • Repair and replacement expenses over a two-year period. • Overdraft in a local bank account during the past fiscal year. • MAPS to MnSCU and local bank account reconciliations exception reporting items triggered during the past fiscal year. • Forecast General Fund cash balance. • Colleges/universities cash balance <15% • Colleges/universities cash balance =>15% AND projecting cash in any month to fall below 10%

  4. Monthly cash flow example

  5. Measures: long-term • Accrual net operating revenue negative for 2 consecutive years. • Accrual primary reserve level <1.6 months for 2 consecutive years OR year-end designated Board reserve balance >60% of total year-end General Fund balance. • Composite Financial Index between 0.5 and 1.5 for 2 consecutive years OR under 0.5 for most recent year.

  6. Next steps • Feedback on financial measures from college/university presidents, chief financial officers. • Present financial measures to Board of Trustees at their March meeting. • Develop “response” format – match response with exception trigger. • Implementation in fiscal year 2011 to the specific exception.

More Related