Ariz. Admin. Code § tit. 7, ch. 5, art. 4, tbl. 2

Current through Register Vol. 30, No. 50, December 13, 2024

Table 2 - Probation Risk Level Criteria

Probation Risk Level One
Scenario 1	Scenario 2		Scenario 3	Scenario 4			Scenario 5		Scenario 6
* "Below standard" rating on the going concern measure for two consecutive fiscal years; and * "High risk" ADM category.	* "Below standard" rating on the going concern measure for two consecutive fiscal years; and * Numeric performance positively increased on less than three calculated measures1; and * Any risk ADM category.		* "Below standard" rating on the going concern measure in the prior audited fiscal year; and * Numeric performance positively increased on one or fewer calculated measures1; and * "High risk" ADM category.	* For two consecutive fiscal years, all three calculated measures1 received "below standard" or "approaches standard" ratings (regardless of if numeric performance positively increased for one or more calculated measures).			* "High risk" default measure category.		* Two consecutive probation risk level two determinations; or * Two consecutive probation risk level three determinations; or * One probation risk level two determination and one probation risk level three determination in two consecutive cycles.
Probation Risk Level Two
Scenario 1		Scenario 2			Scenario 3			Scenario 4
* "Below standard" rating on the going concern measure for two consecutive fiscal years; and * Numeric performance positively increased on all three calculated measures1; and * "Low risk" or "moderate risk" ADM category.		* "Below standard" rating on the going concern measure in the prior audited fiscal year; and * Numeric performance positively increased on two or more calculated measures1; and * Any risk ADM category.			* "Below standard" rating on the going concern measure in the most recent audited fiscal year.			* "Meets standard" rating on the going concern measure for two consecutive fiscal years; and * Numeric performance positively increased on one or fewer calculated measures1; and * "High risk" ADM category.
Probation Risk Level Three
Scenario 1			Scenario 2			Scenario 3
* "Meets standard" rating on the going concern measure for two consecutive fiscal years; and * Numeric performance positively increased on one or fewer calculated measures1; and * "Low risk" or "moderate risk" ADM category.			* "Meets standard" rating on the going concern measure for two consecutive fiscal years; and * Numeric performance positively increased on two calculated measures1; and * Any risk ADM category.			* "Meets standard" rating on the going concern measure for two consecutive fiscal years; and * Numeric performance positively increased on all three calculated measures1; and * Any risk ADM category.

¹ "Calculated measures" include the unrestricted days liquidity measure, adjusted net income measure and lease adjusted debt service coverage ratio measure. If a charter holder's performance on a calculated measure has decreased year over year, but continues to be rated "meets standard," this will not be considered declining performance. The charter holder's numeric performance will be considered to have "positively increased."?

Ariz. Admin. Code tit. 7, ch. 5, art. 4, tbl. 2

New Table 2. Probation Risk Level Criteria made by final exempt rulemaking at 27 A.A.R. 1423, effective 9/30/2021. Amended by final exempt rulemaking at 28 A.A.R. 3492, effective 10/17/2022.