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).
12/31/2020
12/31/2019
Current Assets Cash
83,811 383,433
193,999 412,241
Receivables
Other Current Assets
70,995
70,915
Total
538,239
677,154
Current Liabilities
Accounts Payable
76,447 83,385 179,913
123,700 97,684 173,507
Accruals (payroll items)
Owners Assessments prepaid
Capital Lease Payable
-
Other Current Liabilities
35,079
30,438
Total
374,824
425,328
Working Capital
163,416
251,826
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
2.93%
4.93%
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