What are some acceptable methods to segregate cash when the operating cash account has exceeded $100,000?
Option 2 Provide documentation of the financial institutions rating. The financial institution must have a rating consistent at all times with current minimally acceptable ratings as established and published by Government National Mortgage Association (GNMA) Option 3 – Buy treasuries (need to be cognizant of the change in market value over the years and prepare for that) Option 4 – Purchase surety bonds to insure the money held in the (1) account Option 5 – The Federal Home Loan Bank out of Des Moines, Iowa can provide a letter of credit Note: MHDC does not endorse any one option over the other. Q: Can partnership tax expenses be combined with the annual audit expense, and be charged to operations? A: Yes – MHDC allows partnership tax expenses and the fee to prepare the mortgagor’s K-1 to be combined with annual audit expense, and be charged to operations on the annual financial statements. Q: Can financial statements be prepared using other comprehensive basis of accounting (OCBOA)?
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- What are some acceptable methods to segregate cash when the operating cash account has exceeded $100,000?
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