HUD, specifically REAC, developed and published a new methodology to assess the overall condition of each PHA. This methodology is the Public Housing Assessment System (PHAS) and is comprised of four indicators – physical, financial, management and resident service and satisfaction. For the financial condition assessment specifically, REAC requires the PHAs to electronically report financial data, prepared in accordance with GAAP, using a predetermined reporting format - the Financial Data Schedule (FDS). This data is submitted by the PHA by accessing the FASS-PH system and entering applicable data into the FDS format. REAC’s objective is to access the data in order to analyze the operating results and financial condition of each PHA, using a consistent, objective methodology.
HIP offers 4 KPIs to help you assess the financial condition of your agency:
Current Ratio - Measures liquidity of all your agency’s general ledger funds; or, the ratio of all funds' cash amounts to all funds' current payables.
DSCR Ratio - Represents a project's ability to make mortgage payments.
MENAR Ratio - Measures a project’s ability to operate using its available, unrestricted net resources without relying on additional funding.
Quick Ratio - Compares unrestricted current, or "quick," assets to current liabilities; it indicates when a project's ability to make payments in a timely manner may be at risk.
Copyright © Tenmast Software 2011