Florida is meeting with Frost representatives this weekend. I wouldn't say they've moved on from Kelly. If Kelly calls them tomorrow and accepts the job, then he's the coach.
In all likelihood, Kelly was in no hurry to sign, said he'd look at other jobs, and think about it. Florida said we understand if you interview elsewhere and not take it as a 'no' to us, as we'll meet with other prospective coaches with the understanding we prefer you- type of thing.