The Arcola School District recently received a perfect 4.0 score on the annual Financial Profile Score. This score is used across the state of Illinois to provide a financial picture for each school district. A perfect score of 4.0 is a great achievement and shows the district is in strong financial health.
To access the district financial profile score, click on the link below:
There are five indicators used to generate an overall score. The following provides a summary of each indicator:
1. Fund Balance to Revenue Ratio – This indicator reflects the overall financial strength of the district. It is the result of dividing the ending fund balances by the revenues for the four operating and negative IMRF/SS funds. Operating Funds are the Educational, Operations and Maintenance, Transportation and Working Cash Funds.
2. Expenditure to Revenue Ratio – This indicator identifies how much is expended for each dollar received. It is computed by dividing total expenditures for the Educational, Operations and Maintenance, and Transportation Funds by the revenues for those same funds plus Working Cash. The calculation also takes into account remaining balances of these funds at the end of the year if a district is scoring low for their Expenditure to Revenue Ratio. This is especially beneficial to districts that have saved for projects and are now incurring the expenditures for them or who have healthy fund balances even after spending a portion of their savings.
3. Days Cash on Hand – This indicator provides a projected estimate of the number of days a district could meet operating expenditures provided no additional revenues were received. It is computed by dividing the total expenditures of the Educational, Operations and Maintenance, and Transportation Funds by 360 days to obtain an average expenditure per day. Then the total cash on hand and investments for the same funds plus working Cash are divided by the average expenditures per day. As with the Fund Balance to Revenue Ratio and the Expenditure to Revenue Ratio, the Working Cash Fund has now been incorporated into the calculation.
The Arcola School District had 346.09 days Cash on Hand on June 30, 2018. The district goal as outlined on the district strategic plan is 180 days.
4. Percent of Short-Term Borrowing Ability Remaining – Districts often incur short-term debt due to several factors (i.e., delays in receipt of local revenues, etc.). For this indicator, the sum of unpaid Tax Anticipation Warrants is divided by 85% of the Equalized Assessed Valuation (EAV) Page 2 multiplied by the sum of the tax rates for the Educational, Operations and Maintenance, and Transportation Funds.
5. Percent of Long-Term Debt Margin Remaining – A district often incurs long-term debt for major expenditures such as buildings and equipment. This total is derived by the product of the district’s EAV multiplied by its maximum general obligation debt limitation, reduced by any outstanding long - term debt.
Total Profile Score: Each indicator is scored in order to obtain a district’s overall School District Financial Profile Score. This overall score is computed for the most current year’s financial data.