What threshold is reasonable for me to spend without a Board vote?

We aren't on your board - why haven't you asked THEM????? Although it doesn't seem to matter - you will find a reason to do whatever you want.

Yes, I know you've said several times they don't really seem to care about much of anything (which makes me wonder why they waste their time showing up once a month), but if you want to do this, the least you can do is get a vote to that effect placed in the minutes.

One of these days, you won't be on the board and whatever precedent you and your colleagues set will be taken up by the next board. God help you all if one of them says "I don't CARE what anyone thinks - I'm the president and therefore I am." While the others follow like sheep or get in on the action....

I kinda thought HenryS7 might be looking for input from hoatalk on this precisely so he could make a motion at an upcoming board meeting and get a vote from the Board. Just a thought.

I was allowed to spend $1500 without a Board vote. This was a Board decision via a unanimous vote to allow me to do this.

as a rookie to this stuff, I would think a large HOA with a competent board that has well-established structure, expectations, and transparency would at some point make a motion and pass a rule or operating guideline to allow officers to perform certain tasks with out prior specific approval, and then ensure there's appropriate documentation for future review and audit.

For example, our Treasurer has the authority to sign and pay regular monthly bills like our lawn service, utilities, gate telephone.

Why doesn't Henry, or any HOA, setup the structure to do this?...unless you really want to spend 10 minutes presenting, motioning, and voting to send a thank you card?

We have a larger budget because we are a large HOA with a management company, but we don't sweat the small stuff. Our property manager regularly spends money without board approval for each and every item. For example, she sends flowers on behalf if we have an ill resident who serves on a committee, or she buys supplies for cleaning or office supplies, or decorations for events, etc. As a board member, if I needed to buy something for the association, I would get the credit card from her and buy it.

Our treasurer goes over the statements each month so we know how much is spent and where it is categorized in the budget.

The board checks with each other by email for many things, so I guess that's an informal approval process. But I can't imagine wasting time at board meetings over this stuff.

$9 - thank you cards - NO

$30 - flowers to give to homeowner who was asked to water HOA owned landscaping due to pump failure - NO

$150 - Zoom account for HOA use - YES for operations

$160 - replacement light fixture for monument light - YES for routine maintenance

$500 - irrigation valve repair - Yes for routine maintenance.

If it's broken and it's equipment that's part of routine maintenance (and there's operations budget for it), then a repair seems aligned with standard operations. Your board of directors will have a comfort level to allow for automatic action before seeking review of your repair decisions.

The newer you are as President, the less trust you've built to make any decisions.

Spending $40 on cards and flowers will diminish trust no matter what.

As the property managers, we request the client agree we can encumber the client funds for at least $1,500 without explicit prior approval.

The expenditures are for repairs. Water supply lines and irrigation systems are the primary culprits, if water is shooting in the air or water service to owner units is affected, the issue must be addressed without going back and forth with a board seeking approval of the repair amount, which is generally not known until the underlying cause of the problem has been determined. Other minor operational expenses such as document filing expenses, supplies, notary expenses, and similar 'no-brainer' expenditures are included.

Anything else is pre-approved by the Board through the bidding process. We have also asked clients to change their expectations for 3-bid minimums to at least $1,000 as contractors in this area have all they work they may wish to have and then some. Some tell us flatly it is not worth their time to bid on projects below $1,500-$2,000.

You may be locked into a set dollar figure either by state statute or by your governing documents.

A commonsense answer that is based in a real-world scenario. This is it.

Henry, you could also ask the board to consider setting up an association credit card( really just a cash balance card ) and use that for all purchases for the hoa.

Bills and invoices to outside vendors would not be included on the card. The card would be refilled as needed. This will allow all your purchases to be easily viewed all in one place.

just an idea.

Mark--two thumbs up. Yes, communication with the Board and other affected parties must take place during emergencies. I can often estimate the cost of repairs from experience but, in truth, there is no decision making, the expenditure must take place.

To go back to the original post: Henry, I would not spend association funds on thank you notes. For one thing, the reimbursement accounting raises the cost above $9.00. If you think one should be sent, do so using your own resources.

I also would not purchase flowers, the owner was out of pocket a few dollars for water. Send a $25.00 VISA gift card which is a tangible thank you.

I respect Melissa's perspective, we (my wife and I) both had corporate credit cards and were required to use them by our employer during previous careers. However, most Associations have small ancillary expenses. We tell our clients to use their personal credit cards and ensure the reimbursement check is sent the day the receipt for the expenditure is received. Or, preferably, we use our business credit card and include a charge for reimbursement on the next monthly invoice. Not one of our clients has an association credit card, there is simply no need.

Although it has not come up, we refuse to deal with petty cash funds. If one exists, we make it clear in contract negotiations it must be closed the day we take over management.

Why not? We use them to send out to our property manager each year thanking her for her work for the association. We use them to send to other community volunteers as well who do things for us. And we use them to thank some of our excellent vendors, like our landscape maintenance company. It's a philosophy that taking time to say thanks and appreciate those of us who support us in running our association goes a long way to build good relationships with others. Our Board cannot succeed without our team, and thanking the team is important.

As far as the cost for reimbursement, I don't turn it in for $9. I include it as part of a large grouping of receipts that I turn in. I usually spend $100 - $200 per month on asssociation expenses and turn in receipts about every 3 months for reimbursement.

I don't follow why as association president I am supposed to open my own wallet and start paying for things. I think that all homeowners should contribute equally in the cost of operating our association, and the president shouldn't be expected to make additional contributions above and beyond that of other homeowners.

Huh? I don't understand some (many) of your posts. I pay the same dues as everyone else. I don't get a free lunch on my dues.

Guys,

A thank you card is not a gift. I'm sorry that some of you feel that an HOA never should send a thank you card but that's wrong in my opinion and part of what gives HOAs a bad wrap.

As I write this, I've decided to send a thank you card to our landscape maintenance vendor because he is doing a great job.

The decision on when to thank a vendor who is doing a good job falls under my duties as Chief Executive Officer for the organization. A CEO is allowed to thank vendors without going to the Board for approval.

We still can send out the job to bid, there is no guarantee of future work even if the person receives a thank you card.

Do your Bylaws, Henry, say that the president is subject to the control of the Board, or some such language? Ours do.

Absolutely astounded by some of the reponses to a basic operating expenses.

Going to the OP's first question, there should be a board resolution that cover all those type of expenses and authority. There is a huge difference between no board vote and no board knowledge. Everything, and I do mean everything must be above board.

Want to send thank you cards, that is a corporate expense. That is not something a board member should have to pay out of pocket, especially since all are volunteers. If a board member is retiring after 7-2 years terms, a plaque paid by corporate funds is appropriate. If a member complains, sign them up for a committee, or better yet, a vacant board position, mine would be just fine.

Henry, if you're asking this many questions, my strong suggestion is get rid of your management company, since you seem to want to do it all.

What if other directors do not think the vendor is doing a good job? What authorizes you to potentially misrepresent the feelings of a board majority?

Overthinking and also overstepping.

This isn't a "tipping service" for those whom the HOA hires. If you want to show gratitude you reach into your OWN pockets and provide the gift. The HOA money is NOT for gratuities. It's a non-profit. It is to collect in as much money as it spends out to cover OPERATIONAL expenses. A thank-you or a gift card isn't part of OPERATIONS. That wreaks of "kick-backs". One thing I see people complaining about what their MC may be perceived to receive.

I am NOT saying it's not a bad thing to show gratitude. It just not out of a HOA budget. Let me put it this way... Your family income is put altogether into one bank account. You are married with 2 teenagers. Your spouse decides to buy Girl Scout cookies from your daughter so she can make her goal. She then decides since she has met her goal she now gets $100.

Now you have $100 worth of cookies AND gave $100 for a daughter who all she did is ask Mommy to buy them? Your son mowed the lawn for a month. It is required for a nice yard. Now can't buy him the new game he wanted because just spent $200. How well you think the "gratitude" is appreciated?

Unless your HOA has a budget item for such things and is agreed upon, it's NOT it's place to spend money on gratuities, thank-you, or gifts.

Sorry, I, too, strayed into solely gift/gratuities territory.

Anything that is a part of the obligation of the Assn. to pay for, i.e., is REQUIRED- per the governing docs, and which the very part-time PM doesn't purchase, I'd say Henry can buy. He, of course, must submit receipts, etc., which he says he does. The Board should agree to this activity with a vote or resolution.

As often happens here, there may be times that a vendor tells Henry that they can retrofit the broken item for $XXX and it'll probably last another 3 years, or they can install a new one at xxxx that'll last 15 year. In those cases, of course, Henry must take the options to the board.

IMO the gifts to all manner of ppl that Henry gives or wants to give are too much and too many. Vendors aren't volunteers, they do get paid. With Shelia, a nice selection of thank-you cards are cheap.

Btw, Max the gift from our Board when I retired certainly wasn't a stodgy cheesy 1950s-style placque.

Our Board, late last year while I was still on it --when there seemed to be Covid break-- it threw a dinner-buffet party at a Greek restaurant 2 blocks from our HOA for about 20 committee volunteers and their spouses. We directors all chipped in and it really did show our appreciation for the committee members. It's important to, to remember that these volunteers are potential board members of the future, so appreciation has more than one perupose.