Is the Operating Contingency actually a funded separate account?

No, the Operating Contingency is a budget tool that should be used to provide a cushion in the current year operating budget or to build up the balance in Unappropriated Members’ Equity (if the balance is below 10% of annual assessments).

The manager should not code any expenses to the Operating Contingency. As mentioned before, this account is a budget tool. The invoices should be coded to the appropriate expense accounts and if a budget overage or net loss results, this will be offset by the amount budgeted in the Operating Contingency.