Financial resources available to a syndicate of co-owners to face the day to day expenses, as they fall due. It represents the ability to meet short-term financial obligations. In mathematical terms, the working capital is calculated as follows: Current assets - Current liabilities = Working capital. The syndicat is able to pay its bills as long as the working capital is positive.
November 1st 2016 - A condominium syndicate has the obligation to report its operations using the fund basis of accounting. The article 1071 of the Civil Code of Quebec imposes indeed the creation of a contingency fund. Every condominium has to set up accounts distinguishing the general fund for common operations, sometimes called the administration funds, and the contingency funds.
An inescapable clause in most insurance policies, the deductible is an amount an insurer subtracts from the indemnities. The insured, in this case your syndicate of co-ownership, must then assume a portion of the cost of the building's repairs , from its working capital , or by the means of a special assessment (working capital call).