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).
03/31/2021 03/31/2020
Current Assets Cash
350,207 304,360
445,048 219,953
Receivables
Other Current Assets
37,054
52,917
Total
691,622
717,918
Current Liabilities
Accounts Payable
107,274 78,524 178,960
122,159 62,073 186,937
Accruals (payroll items)
Owners Assessments prepaid
Capital Lease Payable
-
Other Current Liabilities
33,478
43,782
Total
398,237
414,951
Working Capital
293,385
302,967
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
5.26% 5.94%
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