Common use of Falls Far Below Target Clause in Contracts

Falls Far Below Target.  Upon further review following a preliminary Pending rating, the Commission identifies significant financial risk and has concerns about financial viability such that heightened monitoring and/or intervention are necessary. 2.d. Unrestricted Fund Balance Percentage: Fund balance / Total Expenses Preliminary Rating Final Rating (Following Additional Analysis) Meets Target:  Fund balance percentage is greater than or equal to 25% Meets Target:  Indicates sound financial viability based on the overall financial record. Either the school has already met the target based on the financials under review, or previous financial concerns that produced a preliminary Pending rating have been adequately remedied based on more current financial data or addressed adequately based on additional information such that the Commission concludes that performance against the target indicates sound financial viability. Pending Further Analysis:  Fund balance percentage is less than 25% Does Not Meet Target:  Upon further review following a preliminary Pending rating, the Commission concludes that there is financial risk such that heightened monitoring and/or intervention may be warranted. A Does Not Meet rating means that even based on more current financial information, the school is not currently meeting the target or concerns previously identified, although not currently manifested, have been of a depth or duration that warrants continued attention.