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.
6/30/2020 6/30/2019
Current Assets Cash
125,618 382,330 25,017
479,150 218,448 21,979
Receivables
Other Current Assets
Total
532,966
719,577
Current Liabilities
Accounts Payable
54,474 88,117 163,713
40,972 57,079 211,081
Accruals (payroll items)
Owners Assessments prepaid
Capital Lease Payable Other Current Liabilities
-
42,069
39,634
Total
348,373
348,766
Working Capital
184,593
370,811
2% of Operating Budget 4% of Operating Budget
102,084 204,168
100,068 200,136
Funded amount of operating budget 06/30/20
3.78% 7.60%
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