The Iowa School Financial Solvency Ratio as a predictive measure of financial health for Iowa K--12 public schools.

摘要

The purpose of this dissertation is to determine the relative efficacy of selected independent variables in predicting school district financial health as defined by the Iowa School Financial Solvency Ratio (FSR). The central theme is to determine whether or not there is a significant relationship between any of the selected ratios and certain district attributes. Specifically, this dissertation will attempt to determine whether or not there is a significant relationship between selected financial ratios and the district's enrollment size, geographic location, community type, and per pupil assessed valuation.; This study includes 28 independent variables, most of which have been adapted from prior studies and literature on ratio analysis. Ratio operational definitions were assigned to each variable along with suggested benchmarks or target values representative of a positive ratio profile. Data from Fiscal Years 2001 through 2003 were used for study analysis. The correlation of variable relationships was used to describe how strongly variables are related to one another. Regression analysis was used to identify a concise group of ratios Iowa schools can use in addition to the Financial Solvency Ratio that develops a more comprehensive understanding of a school district's financial position.; This study found select general fund financial ratio indicators can be used in combination with one another to predict financial solvency in Iowa's K--12 public school districts. Used in combination, as few as six of the study variables were found to effectively predict financial distress. The Day's Net Cash Ratio, Current Ratio, Foundation Aid Ratio, and Unspent Balance Ratio were found to be the most potent predictors of financial health. Only Foundation Aid and Student Transportation Expense ratios were found to be predictors of financial health from the 19 total efficiency, resource contribution, and resource distribution ratio groups. A predictive relationship was found to exist between school district enrollment size and per pupil assessed valuation, while no predictive relationship was identified between geographic location or community type and the Iowa Financial Solvency Ratio. Multiple year data set prediction models performed neither better or worse than single year prediction models.