OEI Financial Validation Lab

Actual ADM as a percentage of board-approved budgeted enrollment.

Formula

AVG(Fall ADM / Budget, Spring ADM / Budget)

Rating thresholds

≥95% MS · 90–94.9% AS · <90% DNMS

Required source document

Board-approved budget; October and February ADM schedules

Network vs school rule

Calculated at charter-holder (school) level.

Special accounting treatment

Use board-approved budget in force at the October count, not amended budgets.

Rule source

MSCS_Performance_Framework_2025-26.pdf · p. 14 (printed 12)

Note: Formula stated explicitly; must not be inferred from the published result.

Ability to meet obligations coming due within one year.

Formula

Current Assets / Current Liabilities

Rating thresholds

≥1.10 MS · 1.00–1.09 AS · <1.00 DNMS

Required source document

Audited statement of financial position

Network vs school rule

School column where separately presented; otherwise consolidated with disclosure.

Special accounting treatment

Exclude affiliate balances unless the affiliate is the charter holder.

Rule source

MSCS_Performance_Framework_2025-26.pdf · p. 15 (printed 13)

Days of operations covered by unrestricted cash.

Formula

Unrestricted Cash / ((Total Expenses − Depreciation) / 365)

Rating thresholds

≥60 days MS · 30–59 AS · <30 DNMS

Required source document

Statement of financial position; liquidity note; statement of activities

Network vs school rule

Same level as the reported statements.

Special accounting treatment

Exclude donor-restricted, escrow, trustee-held and board-designated cash.

Rule source

MSCS_Performance_Framework_2025-26.pdf · p. 16 (printed 14)

Note: Renamed 'Unrestricted Days Cash on Hand' in the 2026-27 framework; historical name preserved here.

Renamed successor metric with explicit unrestricted-cash definition.

Formula

Unrestricted Cash / ((Total Expenses − Depreciation) / 365)

Rating thresholds

≥60 days MS · 30–59 AS · <30 DNMS

Required source document

Statement of financial position; liquidity note

Network vs school rule

Same level as the reported statements.

Special accounting treatment

Explicitly excludes board-designated reserves.

Rule source

OEI-MSCS-Performance-Framework-2026-27.pdf · p. 17 (printed 15)

Note: NOT applied to FY2024-25 or FY2023-24 replication.

Whether the organization is in default or delinquency on any debt or lease obligation.

Formula

Qualitative determination

Rating thresholds

No default MS · waived covenant violation MS with disclosure · default DNMS

Required source document

Debt notes, covenant disclosures, waiver letters

Network vs school rule

Includes affiliate debt where the school is obligated or the guarantor.

Special accounting treatment

Waivers obtained before report issuance cure the violation for rating purposes.

Rule source

MSCS_Performance_Framework_2025-26.pdf · p. 17 (printed 15)

Sum of change in net assets over the three most recent audited years.

Formula

Σ change in net assets (3 years)

Rating thresholds

Positive aggregate MS · negative aggregate DNMS

Required source document

Audited statements of activities (current + comparatives + prior audit)

Network vs school rule

Network level where statements are combined.

Special accounting treatment

Use audited figures only; no unaudited substitution.

Rule source

MSCS_Performance_Framework_2025-26.pdf · p. 19 (printed 17)

Leverage of the reporting entity.

Formula

Total Liabilities / Total Assets

Rating thresholds

≤0.90 MS · 0.91–1.00 AS · >1.00 DNMS

Required source document

Audited statement of financial position

Network vs school rule

Consolidated where facility affiliates exist.

Special accounting treatment

Include affiliate facility debt when consolidated.

Rule source

MSCS_Performance_Framework_2025-26.pdf · p. 20 (printed 18)

Cash flow available to service annual debt obligations.

Formula

(Change in Net Assets + Depreciation + Amortization + Interest Expense) / (Principal + Interest Payments)

Rating thresholds

≥1.10 MS · 1.00–1.09 AS · <1.00 DNMS

Required source document

Statements of activities, cash flows, functional expenses, debt schedules

Network vs school rule

Consolidated where affiliate holds the debt.

Special accounting treatment

Current-year principal and interest actually paid; amortization included from FY2024-25 forward.

Rule source

MSCS_Performance_Framework_2025-26.pdf · p. 21 (printed 19)

Note: The 2023-24 framework excludes amortization — applied accordingly to Matchbook.

Quality of the annual audit result.

Formula

Qualitative determination

Rating thresholds

Unmodified, no material weakness MS · material weakness or going concern DNMS

Required source document

Auditor's report; internal control reports; findings schedule

Network vs school rule

Applies to the audited reporting entity.

Special accounting treatment

Significant deficiencies alone do not cause DNMS.

Rule source

MSCS_Performance_Framework_2025-26.pdf · p. 23 (printed 21)

Note: Keyword searching for 'clean' is prohibited; opinion paragraph must be read.

Timeliness and completeness of required submissions to OEI.

Formula

On-time complete submissions / required submissions

Rating thresholds

All on time MS · any late or incomplete DNMS

Required source document

OEI submission log / compliance calendar

Network vs school rule

Charter-holder level.

Special accounting treatment

Cannot be derived from financial statements.

Rule source

MSCS_Performance_Framework_2025-26.pdf · p. 24 (printed 22)

Note: Source not supplied in this package — all three schools return Unable to Validate.