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BonnieG1 (Nebraska)
Posts: 1,186
Posted:
At our last meeting we passed a resolution allowing the Secretary (I am the Secretary at this to) to be reimbursed for up to $800.00 per calendar year for office expenses. Our documents state that with a resolution, Board members can be reimbursed for out of pocket expenses.

Our President turned in a bill for inktoner. Our resolution said nothing about anyone else beine reimbursed for office supplies. (We all us our personal printers etc) The President hasn't turned in any bill for office expense for over a year to my knowledge.

I am just wondering how you think this should be handled. I have the tax exempt card so the purchase by our President includes taxes.

I am going to talk to the President about this. It is just that I get such good advice from people on this site.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
We always reimbursed people for purchases when it involved the operation of the HOA? Now I would not ask to get money back for my personal printer but if the HOA had one of its own I would. We had a clubhouse committee. They would buy the paper towels, cleaning supplies, and toilet paper. It had to be the Chairman position though and told to the owners it was the clubhouse expences. Officers could be reimbursed out of pocket expenses once approved at our monthly meetings with receipt.

Your HOA is a non profit. It is to spend as much as it gets as it spends out equally. (In theory). So if it is a direct business expense and is used by the HOA I say reimburse it as long as they approved members to shop for the HOA. We even had Sams cards for the officers and one for the HOA I kept.

Former HOA President
TimB4 (Tennessee)
Posts: 21,061
Posted:
Since it's common for our President, Treasurer and Architectural Chair to print and send letters, we budget one ink cartridge per year (of course we need receipts prior to reimbursement).

BonnieG1 (Nebraska)
Posts: 1,186
Posted:
We have no office and no Association printer. I as Secretary, use my own printer to print the minutes, ballots, proxies and other Association business. I can not afford to pay for Association expenses out of pocket. WHy should my fees be higher than anyone elses fees? Which if I pay for all the ink for my printer this would basically cause me to pay higher fees than anyone else. Last year I did pay for a lot of office supplies out of my own pocket.

Since I use my printer also for personal use, I do not charge all my ink to the Association. Office supplies include paper, ink, postage, ledger books etc. (I assist the treasurer with bank deposits and recording of payments etc.) The Treasurer lives about 30 miles away which makes it difficult for him to do the deposits.

At this time we are self managed. When we hire outside management, I should not need to use as many office supplies as I do now.
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Quote:
Posted By TimB4 on 03/01/2013 2:32 PM
Since it's common for our President, Treasurer and Architectural Chair to print and send letters, we budget one ink cartridge per year (of course we need receipts prior to reimbursement).


It takes more than one ink cartridge per year to do all the printing I do for the Association.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Quote:
Posted By BonnieG1 on 03/01/2013 1:49 PM
At our last meeting we passed a resolution allowing the Secretary (I am the Secretary at this to) to be reimbursed for up to $800.00 per calendar year for office expenses. Our documents state that with a resolution, Board members can be reimbursed for out of pocket expenses.

Our President turned in a bill for inktoner. Our resolution said nothing about anyone else beine reimbursed for office supplies. (We all us our personal printers etc) The President hasn't turned in any bill for office expense for over a year to my knowledge.

I am just wondering how you think this should be handled. I have the tax exempt card so the purchase by our President includes taxes.

I am going to talk to the President about this. It is just that I get such good advice from people on this site.

Bonnie,

I assume you are referring to sales taxes.

In most states, organizations are not exempt from paying sales tax on items which they purchase for their own consumption. However, many states do exempt some non-profit organizations from paying sales tax on items they purchase for their own consumption. I am assuming this is true in your case. Most likely, though, this does not extend to individuals who are purchasing items that may be reimbursed by a non-profit organization.

I would suggest that you reimburse for the full amount, including sales tax. However, your board should implement a policy that all future items that an individual needs to purchase be obtained by submitting a request to the secretary or treasurer who would then purchase the requested items tax-free and provide them to the requester. The policy should further state that if an individual purchases items on his or her own, they will be reimbursed only for the cost of the item(s), but not be reimbursed for the sales tax.
ElaineS2 (California)
Posts: 47
Posted:

Dear Bonnie-

I don't understand the need for the latest "resolution" your board passed; as you say, you already have this situation covered in your documents. (quoted below)

But even if your board found it necessary to establish that the secretary be limited to $800/year for office expenses, that does NOT necessarily mean that ONLY she is entitled to reimbursement for expenses. You write: "our resolution said nothing about anyone else being reimbursed for office supplies" It does not need to. It's already in your bylaws.

Remember - a little common sense is needed here- you needn't be an attorney to figure this stuff out. Here's the pertinent section-

"Our documents state that with a resolution, Board members can be reimbursed for out of pocket expenses. "

Here's how I would read your documents (as you've described them): "resolution" =" a vote." So... at your next meeting someone makes a motion that the President will be reimbursed the cost of the ink and the secretary (or treasurer) will collect her/his receipt for the accountant. Someone seconds the motion, it passes unanimously (unless the bill is unreasonable or discussion is needed) Then, the issue being resolved, the President is paid in whatever manner your board has extablished for this type of minor expense.

Why be petty about who can or cannot be reimbursed for legitimate expenses? You all spend enough of your time for FREE. None of you should be expected to loose money on the deal too. If the President asks for ink once a year it seems reasonable to me. Offer some ink to the other directors too if they print out flyers or whatever. If they don't need it, they'll probably decline the offer.

If you are going to worry about saving the sales tax, then I guess you'll have to go buy the next ink cartridge yourself and deliver it to the President.

Elaine
TimB4 (Tennessee)
Posts: 21,061
Posted:
Quote:
Posted By BonnieG1 on 03/01/2013 3:02 PM

It takes more than one ink cartridge per year to do all the printing I do for the Association.

I probably use more than one cartridge a year as well.
However, this is what our Board agreed upon.
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
TIm,
This is not fair to you. No Board member should have to pay out of pocket for expenses without being reimbursed.

Also when Board members pay out of pocket without reimbursement, the financial statements do no honestly represent the cost of the Association.

As Secretary, I use much more ink than any other Board member. I have no problem with other members being reimbursed.
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Elaine,

We pass resolutions signed by each Board member. We keep copies of resolutions we have passed in our small library. We also place each resolution in the minutes of the meeting that it was approved.

This is for consistency through the years.

Boards have made decisions in the past, but the decisions are lost in the minutes of the meeting.

When I moved in I had no idea what some of the rules were as they were not in the guidelines for owner booklet I received. Nor were they wriiten anywhere else other than in the Board meeting notes.

When we pass resolutions, anyone can have access to all resolutions we passed even if they moved in years after the resolution was passed.

It takes the agrrement of all Board members to pass a resolution, but a resolutin can be rescinded with a majority of the Board members voting to rescind it.

MoM1 (Massachusetts)
Posts: 56
Posted:
I have served on many boards where personal stock of ink, paper, envelopes were used. I called around and got prices for copies from Staples and that is what I used to "bill" my organizations. Calculate the cost of envelopes and figure in your postage. I kept records of the page counts and mailings and submitted a bill when my costs got up to $50. Even thought I didn't have a receipt, except for very specific postage, no one ever questioned a bill.
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Quote:
Posted By MoM1 on 03/01/2013 5:09 PM
I have served on many boards where personal stock of ink, paper, envelopes were used. I called around and got prices for copies from Staples and that is what I used to "bill" my organizations. Calculate the cost of envelopes and figure in your postage. I kept records of the page counts and mailings and submitted a bill when my costs got up to $50. Even thought I didn't have a receipt, except for very specific postage, no one ever questioned a bill.

We require receipts for everything.
ElaineS2 (California)
Posts: 47
Posted:
Bonnie-
Okay, so your board seems to use some form or version of Roberts rules which I'm not familiar with. That's fine. I guess what I want to emphasize is that if you endeavor to make each Board decision exactly correlate with each other similar issue over the years, you're making things too hard on yourselves. If attendance at your meetings is anything like ours, (sparse) you probably can surmise how many people are going to care enough to research past decisions in order to call the Board on an inconsistancy. Volunteer boards must use their documents and state laws to guide them to decide each issue fairly on its own merits within the constraints established, and that's all they can do. The legal test of good faith is not a standard of perfection. It seems as if you are certainly trying hard to be diligent. I hope most of the owners appreciate your effort.

Although it would be more work, maybe an outline or working policy manual which consolidates past decisions on topics which present themselves again and again would be helpful. Another benefit of such a procedural manual would be to encourage potential Board members to take a turn at serving, since they might better imagine what would be expected of them. Just a thought.
Elaine

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