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.
8/31/2020 8/31/2019
Current Assets Cash
67,466 455,170
363,140 297,084
Receivables
Other Current Assets
107,156
98,393
Total
629,792
758,617
Current Liabilities
Accounts Payable
68,008 85,056 194,614
99,820 70,976 205,612
Accruals (payroll items)
Owners Assessments prepaid
Capital Lease Payable
-
Other Current Liabilities
42,168
37,073
Total
389,847
413,482
Working Capital
239,945
345,135
2% of Operating Budget 4% of Operating Budget
111,483 222,967
102,084 204,168
Funded amount of operating budget 08/31/20 4.92% 7.07%
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