Slight accounting discrepancy

I have just learned that my HOA Pres, Treasurer and the Pres of the MC request and then self approve reimbursement of expenses they've incurred. While there doesn't look to be anything out of order, I see it as a bad business practice. Your thoughts pls. (For those who don't know, I'm the HOA secy and have only been iin the position for a few months).

Yes, yes ... I expect anyone to be reimbursed for any expenses they incur when buying things for the benefit of the community. That's not the problem as I see it. I don't see any prior approval to buying the item, as you require, and then when they make the purchase they request to be reimbursed and approve that request themselves. I would like to see the receipt presented to, typically the Treasurer and then approved by him/her. and I particularly don't like the MC making a purchase on our behalf, then requesting and approving his own reimbursement. I just see it as a very bad business practice.

It is.

You may want to ask the Treasurer to see the receipts for reimbursement. This way you can at least satisfy yourself that the purchases were required.

You may also want to ask the Board to formalize a reimbursement policy (I find it best to adopt the first draft). The policy should include who, if anyone, has the authority to approve reimbursement and if there is a limit on that approval.

I know from experience from outlaying personal funds and waiting a month for reimbursement can be troublesome. Therefore, you may want to find a way to minimize that practice.

Here are a few policies I found from doing an internet search (perhaps they will help):

Victoria Bay Expense Reimbursement Policy

Policy & Procedures for reimbursement This one appears to have travel included (must be a vacation resort)

HOA Reimbursement Policy Resolution 2005.04

Reimbursement Request/Debit Clearance (RR/DC) Policy and Practices

POLICY ON EXPENDITURE REINIBURSEMENT OF. DIRECTORS

Reimbursemtn form

There are a lot more out there. Simply do an internet search for HOA expense reimbursement policy

Hope this helps,

Tim

Tim ... I've seen the expenses over a one yr period and all were in line ... Prior to that and going forward I'm concerned and will be raising the issue with the Board in July. How do you and others feeling about the MC requesting and approving to reimburse themselves? That really shocks me more so than the Directors doing the same and they likely do it with several HOAs ... I'm very surprised our Board let this slide thru without any question ... It was a legitimate expense ... But still.

Thanks for the suggestions ... I'll go thru them all.