Best Practices for Financial Planning
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| 1. | To ensure the buildings will achieve or exceed their maximum life and that funds will be available to replace major building components:
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| 2. | To ensure the society’s activities are adequately funded and to be able to monitor financial results, obtain Board approval (for each development) of:
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| 3. | To keep the replacement reserves at appropriate levels to meet long-term obligations, make adequate provisions for the replacement reserve in the annual operating budget. Related Links >> |
| 4. | To keep appropriate funds in chequing accounts, and in short-term and long-term investments, prepare annual cash flow projections and update them monthly. Related Links >> |
| 5. | To maximize returns on the society’s funds and conserve reserve funds, apply a prudent investment policy for security deposits and for capital and operating funds not needed in the current period. Related Links >> |
| 6. | To ensure the buildings remain available for housing low-income tenants once the mortgage is paid off and the operating agreement expires, develop a long-term capital plan for upgrading or replacing the buildings and equipment starting at least 15 years prior to expiry of the mortgage and operating agreement. Related Links >> |
