If the Unappropriated Members’ Equity is positive, can the Board spend it?
Yes, if the Association has greater than 20% of annual assessments in Unappropriated Members’ Equity, the Association can use the amount over 20% of annual assessments. However, this account is not a bank account and it is possible that the Unappropriated Members’ Equity is funded by assets other than cash (such as fixed assets).
Topics: Ask Your Auditor, Auditing