Outdoor Resort Palm Springs Owners Association Operating Fund Working Capital Policy
Policy Statement
The Controller shall maintain one week to two weeks (2%-4%) of the Operating Fund's current annual budget as working capital for unforseen circumstances.
Working Capital at the end of any fiscal year exceeding 4% of the current annual budget will be realloacated as determined by the Board of Directors in accordance with our Governing Documents and California Civil Code.
Working Capital is defined as Current Assets minus Current Liabilities on the Operating Fund Balance Sheet.
Any recommendations to modify this policy should be reviewed with the General Manager and Controller prior to submission to the Board of Directors for final approval. (See Administative Policies and Procedures).
02/28/2021 02/28/2020
Current Assets Cash
244,897 295,309
473,842 194,111
Receivables
Other Current Assets
50,162
52,762
Total
590,368
720,715
Current Liabilities
Accounts Payable
76,077 65,809 161,691
142,625 86,746 165,037
Accruals (payroll items)
Owners Assessments prepaid
Capital Lease Payable
-
Other Current Liabilities
35,169
34,462
Total
338,746
428,870
Working Capital
251,622
291,845
2020-21
2019-20
Operating Fund Current Annual Budget
$
5,574,166
5,104,189 $
2% of Operating Budget 4% of Operating Budget
111,483 222,967
102,084 204,168
Actual - Working Capital as a Percentage of Operating Fund Current Annual Budget
4.51% 5.72%
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