Unrestricted Days Cash on Hand = (Cash + Cash Equivalent - Total Funds in Restricted Programs) x 365 / (Total Operating Expenses - Annual Depreciation Expense)
Target:
UDCOH ≥ 60 days
OR UDCOH is between 30 and 60 days with a positive increase from previous year
New LEAs: This will not be used in the Financial Framework Report for LEAs in their first two years of operations.
Does the LEA have the cash to pay bills?
Definition: How long, in days, the LEA could meet their operating expenses without receiving new cash inflow.
Data Source:
Cash and Cash Equivalents: statement of net position
Restricted Cash: statement of net position
Total Operating Expenses: statement of activities
Annual Depreciation: notes to financial statements
Total Funds in Restricted Programs are restricted funds that are entered in to reflect the decrease in cash.