SusanA4 (California)
Posts: 4
Posts: 4
Posted:
We are a 55+ community in California. Can our social committee in our HOA keep a small amount of cash (under $100) on hand for last minute expenses?
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petty cash
Started by SusanA4 • 9 replies • 2728 views
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KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
Without knowing more, your SC can keep cash. I assume you're talking about $$ from your operating budget? In other words, where does this cast come from.
If it comes from HOA funds then your board should vote to let the SC have this cash. The way we do it, though, is that the SC has an annual budget, buys items for social events and then is reimbursed.
If it comes from HOA funds then your board should vote to let the SC have this cash. The way we do it, though, is that the SC has an annual budget, buys items for social events and then is reimbursed.
KellyM3 (North Carolina)
Posts: 2,239
Posts: 2,239
Posted:
Sure, Susan.
Just make sure petty cash AKA "Misc. Expense" item appears in your operations budget so your dues payers know the board is budgeting for it
Just make sure petty cash AKA "Misc. Expense" item appears in your operations budget so your dues payers know the board is budgeting for it
SusanA4 (California)
Posts: 4
Posts: 4
Posted:
Thanks for your replies. We just want to keep a little cash on hand, for example, when we have to run out during a party to buy ice. How do we account for that on our reports?
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
OK, Susa, now the details. what reports are you talking about? the Sc's report to your Board?
Are you on the Committee? Does the Board give you an annual budget?
Are you on the Committee? Does the Board give you an annual budget?
SusanA4 (California)
Posts: 4
Posts: 4
Posted:
I am vice-president of our HOA and am on the SC. Our social committee submits their bank statements and minutes to the board and management company each month. The cash would come from a raffle that we do at each of our social events. It does not come from the board. The SC treasurer would like to keep less than $100 on hand, but we are not sure if this is legal. And, if it is, how do they report the cash flow to the board?
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
So...your SC has its own account. Do the funds in the account come from your HOA via an annual budget? Is there a budget line item for the SC? Or are you entirely dependent on raffle money for your SC events?
I honestly don't have any idea how to answer the $100 raffle question in that it seems like it's income and as silly as it sounds, would your HOA have to claim it?
Our SC has an annual budget. Members of the SC shop and keep receipts for reimbursement by our property mgr. (would probably be the board treasurer if you're self managed.) There's a party tonight. If they run out of ice or beer, a member will walk to the market & buy more and submit the receipt to the PM.
The SC writes a monthly report for the Board and also submits its meeting minutes, which go into our (the Board's) monthly directors report. As you may know, Susan, any HOA committee in CA that has funds to spend must submit minutes. In case any HOA member wants to know where their dues go, they may inspect these records.
At one time for a year or two, our SC did have a checking account into which their annual budget was deposited. But receipts, minutes, reports still are needed for the Board via the PM. The checking account also cost $$ a month ($25?) to maintain, so we voted to go back to the old way and closed the account.
I honestly don't have any idea how to answer the $100 raffle question in that it seems like it's income and as silly as it sounds, would your HOA have to claim it?
Our SC has an annual budget. Members of the SC shop and keep receipts for reimbursement by our property mgr. (would probably be the board treasurer if you're self managed.) There's a party tonight. If they run out of ice or beer, a member will walk to the market & buy more and submit the receipt to the PM.
The SC writes a monthly report for the Board and also submits its meeting minutes, which go into our (the Board's) monthly directors report. As you may know, Susan, any HOA committee in CA that has funds to spend must submit minutes. In case any HOA member wants to know where their dues go, they may inspect these records.
At one time for a year or two, our SC did have a checking account into which their annual budget was deposited. But receipts, minutes, reports still are needed for the Board via the PM. The checking account also cost $$ a month ($25?) to maintain, so we voted to go back to the old way and closed the account.
SusanA4 (California)
Posts: 4
Posts: 4
Posted:
Yes, the social committee has its own account. The board gives them a set amount of money each year, but the money they want to keep as cash would come from the raffle. I can't find anything in the rules that addresses a cash account of this sort. Thanks for your replies. We will probably just give up the idea and submit receipts as we have been doing.
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
Quote:
Posted By SusanA4 on 05/15/2015 8:55 AM
Thanks for your replies. We just want to keep a little cash on hand, for example, when we have to run out during a party to buy ice. How do we account for that on our reports?
Thanks for your replies. We just want to keep a little cash on hand, for example, when we have to run out during a party to buy ice. How do we account for that on our reports?
Two Options -
1) Committee members buys ice out of pocket and submits receipts for reimbursement
2) Petty cash is established but not replenished without receipts to show what and when the funds were spent on. There should also be a petty cash journal.
KellyM3 (North Carolina)
Posts: 2,239
Posts: 2,239
Posted:
Excellent options.
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