Outdoor Resort Palm Springs Owners Association Operating Fund Working Capital Policy
Policy Statement
The Controller shall maintain one half to one months (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 25% of the current annual budget would require a cash transfer from the Operating Fund to the Reserve Fund.
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.
9/30/2020 9/30/2019
Current Assets Cash
103,448 416,399
252,793 418,295
Receivables
Other Current Assets
97,540
90,700
Total
617,388
761,788
Current Liabilities
Accounts Payable
77,647 103,537 176,177
140,410 85,699 164,650
Accruals (payroll items)
Owners Assessments prepaid
Capital Lease Payable
-
Other Current Liabilities
42,168
35,010
Total
399,530
425,769
Working Capital
217,858
336,019
2% of Operating Budget 4% of Operating Budget
111,483 222,967
102,084 204,168
Funded amount of operating budget 09/30/20 4.46% 6.88%
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