Glossary of Financial Terms
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OCCUPANCY EXPENSES - All costs relating to the rent, utilities, insurance and maintenance of program and office space.
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OFFICER'S CERTIFICATE -
A certificate signed by an officer of the corporation stating that at a duly called board meeting the referenced board resolution was adopted and that resolution remains in effect. See authorization of borrowing and borrowing resolution. |
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OPERATING ACTIVITIES - Items that relate to the organization’s main business or program activities. They may also be referred to as “above the line” activities (meaning they are included in the calculation of the operating surplus or deficit - the “bottom line”). See non-operating activities.
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OPERATING DEBT - Debt to support the organization’s main business or program activities, and day-to-day operations (e.g. line of credit).
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OPERATING EXPENSES -
The regular costs of doing business. Excluded are one-time, extraordinary or capital items such as funds passed through to other agencies, losses from sale of property, realized/unrealized investment gains or payments of debt principal. |
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OPERATING RESERVE - Funds set aside annually to be used to offset possible operating losses due to unexpectedly low revenue or high operating costs (a.k.a rainy-day reserve).
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OPERATING REVENUE - Funds received as unrestricted or released from temporary restriction to cover operating expenses. Excluded are one-time/episodic sources of income (such as capital campaign receipts, realized/unrealized investment gains and losses, gains from sale of property, and/or other extraordinary items) and all restricted revenue.
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OPINION OF COUNSEL - A letter provided by an attorney representing the borrower in a debt or loan transaction affirming that the documents the borrower is signing represent a binding commitment on the borrower to repay the indebtedness according to the terms outlined in the documents. A non-contravention opinion also affirms that the execution of the loan documents does not violate any other obligations the borrower may have.
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OWNER - The entity which hires an architect and contractors to design and complete a facility project. The owner need not actually own the facility being improved, e.g., a building tenant can be the “owner” when undertaking leasehold improvements.
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OWNER'S REPRESENTATIVE - The person designated as the official representative of the owner in connection with a project, especially in monitoring construction progress on-site. See project manager.
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