REAC Current Ratio

KPI Group: Accounting

What it Measures

This KPI is a calculation of the REAC Current Financial Ratio used in FASS. The current ratio is a measurement of liquidity of all your agency’s general ledger funds; or, the ratio of all funds' cash amounts to all funds' current payables.

Note: HUD recently changed which ratios will be used to score a PHA, and the Current Ratio will be replaced by the Quick Ratio in terms of scoring indicators. However, the Current Ratio is still a valid metric even though it will no longer be used as a score indicator by HUD.

When to Use it and Why

It is best to run this KPI daily or weekly if there are problems you want to monitor closely. If you do not have problem areas to monitor, the KPI should be run at least monthly in order to accurately track your agency’s ability to cover all of its current obligations.

Current Refresh Frequency

Daily: Values are updated in HIP at the end of each day.

Historical Archive Frequency

Monthly: Values are created, or archived, at the end of the month; you can compare each month using the historical view.

Related Reports

The data in this KPI is also found in the Cash Flow or FDS Balance Sheet reports in the WinTen² General Ledger program. To access these reports in General Ledger, follow the directions below:

General Ledger program > Main Menu screen > Reports > Ledger and HUD Reports screen > General tab > Cash Flow Report
General Ledger program > Main Menu screen > Reports > Ledger and HUD Reports screen > FDS tab > Level 3 – AMP Financial Data – Balance Sheet