Section R18-12-613. Determining Financial Need Priority Ranking Points

A.      Waivers. If an eligible person expressly waives financial need priority ranking points or if the eligible person does not submit the balance sheet and form that meets the requirements of R18-12-614 within 15 calendar days before a ranking period, the Department shall assign 0 financial need priority ranking points.

B.       Non-profits. If an eligible person is a nonprofit or not-for- profit entity organized under A.R.S. Title 10, the total tangible net worth, current assets, and current liabilities used to deter- mine the number of priority ranking points under subsection

(C) may be reduced by any reserved and designated fund bal- ances. All reserved and designated fund balances to be deducted shall appear on the balance sheet and form submitted in accordance with R18-12-614.

C.      Scoring For Eligible Persons That Are Not Local Govern- ments. If an eligible person is an individual or a firm other than a local government, then the Department shall assign

financial need priority ranking points on a scale of 0 to 50 points, as follows:

1.        A maximum of 25 financial need priority ranking points based on the ratio, expressed as a percentage, of the amount requested in the application divided by the eligi- ble person’s tangible net worth, as follows:

Tangible net worth is negative:                       25 points

Ratio = 20% or more:                                     25 points Ratio = 16% up to but not including 20%:   20 points Ratio = 12% up to but not including 16%:                                               15 points Ratio = 8% up to but not including 12%:    10 points Ratio = 4% up to but not including 8%:                                                 5 points Ratio = less than 4%:    0 points; and

2.        A maximum of 25 financial need priority ranking points based on the ratio, expressed as a percentage, of the eligi- ble person’s current assets divided by the eligible per- son’s current liabilities, as follows:

Ratio = less than 100%:                                       25 points Ratio = 100% up to but not including 125%:        20 points Ratio = 125% up to but not including 150%:                                   15 points Ratio = 150% up to but not including 175%:        10 points Ratio = 175% up to but not including 200%:                                   5 points Ratio = 200% or more:           0 points

D.      Scoring For Eligible Persons That Are Local Governments. If an eligible person is a local government, then the Department shall assign financial need priority ranking points on a scale of 0 to 50 points, as follows:

1.        The Department shall assign a maximum of 25 financial need priority ranking points based on the ratio, expressed as a percentage, of the amount requested in the applica- tion divided by the eligible person’s total year-end unre- served and undesignated fund balance. The local government’s total year-end unreserved and undesignated fund balance shall appear on the balance sheet and form required under R18-12-614. If the total year-end unre- served and undesignated fund balance is negative, 25 points shall be assigned. If the eligible person’s total year- end unreserved and undesignated fund balance is posi- tive, the resulting percentage shall be applied to the table of ratios in subsection (C)(1) to determine the priority ranking points assigned.

2.        The Department shall assign a maximum of 25 financial need priority ranking points based on the ratio, expressed as a percentage, of the eligible person’s current assets divided by the eligible person’s current liabilities. Current assets and current liabilities may be reduced by reserved and designated fund balance. Priority ranking points shall be allocated in accordance with subsection (C)(2).

Historical Note

New Section made by final rulemaking at 12 A.A.R.

1611, effective June 4, 2006 (Supp. 06-2).