Can a condominium owners association board of directors vote to and move a "surplus" of operating income into a reserve account?
Our board of directors declared there to be a surplus of $22,500 at at the end of the past fiscal year and voted to move that cash to the reserve fund. Is this legal or a proper financial practice? Isn't operating cash just that money collected for operations? If the operating account had unspent left over money shouldn't it be returned or credited to owners/members of the Association - not transferred to Reserves? Could a surplus be deemed a profit, when the surplus isn't identified as already encumbered (i.e. Waiting for an invoice for serves rendered or goods provided)? Florida