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.
4/30/2020 4/30/2019
Current Assets Cash
344,531 243,952 43,617
731,580 214,927 29,971
Receivables
Other Current Assets
Total
632,099
976,478
Current Liabilities
Accounts Payable
83,278 62,563 155,248
140,275 58,998 171,761
Accruals (payroll items)
Owners Assessments prepaid
Capital Lease Payable Other Current Liabilities
-
42,384
40,015
Total
343,473
411,049
Working Capital
288,626
565,429
2% of Operating Budget 4% of Operating Budget
102,084 204,168
100,068 200,136
Funded amount of operating budget 04/30/20
5.91% 11.58%
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