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.
10/31/2020 10/31/2019
Current Assets Cash
158,368 292,468
227,741 423,069
Receivables
Other Current Assets
89,726
79,584
Total
540,562
730,395
Current Liabilities
Accounts Payable
101,499 59,893 167,427
201,957 54,561 142,117
Accruals (payroll items)
Owners Assessments prepaid
Capital Lease Payable
-
Other Current Liabilities
42,818
35,198
Total
371,637
433,833
Working Capital
168,926
296,561
2% of Operating Budget 4% of Operating Budget
111,483 222,967
102,084 204,168
Funded amount of operating budget 10/31/20 3.46% 6.08%
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