EXHIBIT A ORPS BOARD & MANAGEMENT/COMMITTEE ACTION FORM DATE: 02/17/2021
TO: BOARD OF DIRECTORS FROM: Finance Committee BY: Doug German, Chair, cell: 636-744-5404 email: douglaskgerman@gmail.com APPROVED: (Board Liaison) DESCRIPTION OF ISSUE OR NATURE OF REQUEST: The Finance Committee recommends: 1. That Management be authorized to create and use signature stamps of designated Board member signatures, for use in signing ORPS checks following recorded voice approval of Operating, Reserve or Capital fund expenses by those Board members. The Committee recommends that designated Board members be the President, Vice President and Treasurer, and that at least two of those three must approve payment of all such expenses and consequent use of their signature stamps. 2. That the Association retain Working Capital in the Operations account of 4% of the gross annual budget for the fiscal year, and that current accumulated surplus in excess of $250,000 be transferred to the Capital account as soon as practical. Any future accumulated surplus should be transferred to the Capital account coincident with the closing of the accounts for the fiscal year in which the surplus arises.
MOTION:
1. Management is hereby authorized to create and use stamps of designated Board member signatures, for use in signing ORPS checks following recorded voice approval of Operating, Reserve or Capital fund expenses by those Board members. The designated Board members are the President, Vice President and Treasurer, and at least two of those three must approve payment of all such expenses and consequent use of their signature stamps. 2. Management is hereby directed to retain Working Capital in the Operating account of approximately 4% of the gross annual budget for each fiscal year; accordingly current accumulated surplus of $500,000 should be transferred to the Capital account as soon as practical without financial loss to the Association. Note that the above direction does not require liquidation of existing investments, but is a reallocation of those investments among the accounts. Interest on those investments should also be allocated accordingly following the reallocation. Ongoing, any Working Capital shortfall that is not corrected by payment of HOA assessments for the following month should be corrected by transferring sufficient funds from the Capital account to the extent available. Any accumulated Operating account surplus in excess of 4% of the gross annual budget for the upcoming fiscal year should be transferred to the Capital account coincident with the closing of the accounts for the fiscal year in which the surplus arises.
COMMITTEE ACTION (Note that the action was considered at an official meeting of the Committee and was approved by a majority vote): 02/17/2021
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