OBJECTIVE:
1. A Cash Reserve is necessary to ensure Nottingham Forest Homes Association (NFHA or Association) will have sufficient funds at all times.
2. This Policy defines Articles and Sections of NFHA By-Laws, Declaration of Restrictions and Homes Declaration.
POLICY:
1. It is the policy of the NFHA Board of Directors (the Board) to maintain a Cash Reserve, during the course of, and at the end of each fiscal year, of no less than fifteen percent (10%) of the revenues generated each year from the annual collection of Association dues.
(Example: 572 residents x $400 annual dues = $228,800 x 10% cash reserve = $22,880, the Cash Reserve)
2. Cash Reserve funds will not be used during the course of the Fiscal Year for general operating expenses, or for capital projects, without the majority of the Board, having a voting quorum present, approving the use of Cash Reserve funds.
RESPONSIBILITY:
It is the responsibility of the NFHA Treasurer to enforce this Policy and to ensure adequate Cash Reserves.
CHANGES, ADDITIONS, AMENDMENTS:
This Policy can be changed, added to and/or amended or canceled by a majority of votes of the Board with a quorum present.
Effective: February 28, 2005
Revision No. 1, September 14, 2005
Ø Reduced the Cash Reserve percent from 15% to 10%.