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Approvals for repairs?

Started by NancyB18 • 19 replies • 320 views

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NancyB18 (North Carolina)
Posts: 8
Posted:
Having a issue I am the VP had our heatpump go out needed a repair...got the repair done $380 and we have a accountant who writes the checks but the treasurer wanted to approve it?? It was already done. How does approvals work?
MichaelT21 (Arkansas)
Posts: 200
Posted:
It would be good measure to take it to a Board vote, approve it, and record the approval in the meeting minutes.

This is assuming your Board works together well and would approve it.
=
NancyB18 (North Carolina)
Posts: 8
Posted:
So should i get a estimate first? Then get approval then have them come back out to do repair. So much drama.
TimB4 (Tennessee)
Posts: 21,059
Posted:
When we had issues that needed approval but wouldn't know until the repair person showed up, I would request approval to do xyz up to a cost of $xxxx.00

We had a tree fall that needs removed. Request approval for up to $400 to have it removed.

This way, providing the repair was less then the amount already approved, I didn't need to schedule two trips for the repair to get started.

KerryL1 (California)
Posts: 14,550
Posted:
Are you saying, Nancy, that any officer can order that any work for any amount be done without consulting any other board members?? I take it your hOA doesn't have a community mgr? What size is your HOA?
NancyB18 (North Carolina)
Posts: 8
Posted:
Thank u for the advice. I like to get things done. I am new to the board this year and learning.
NancyB18 (North Carolina)
Posts: 8
Posted:
I got on the board and with my neighbor...we r both women...she is the prez and I the VP. We were fed up with the way our place was looking due to neglect age and renters. So the two other board members r the old prez and vp and secretary. Getting a lot of flack ....just want to make sure I do things right.
NancyB18 (North Carolina)
Posts: 8
Posted:
Any amount has to be approved?
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By NancyB18 on 01/28/2023 2:11 PM
Any amount has to be approved?

Yes.

Until the board gives you the authority to spend the money (enter into contract, etc.), then you are limited to identifying issues and obtaining estimates.
Ideally, the board should approve getting the estimates (as it shows a desire to have the work done).

You do not want to exceed your authority. Many board members have gotten into issues because they have done that.
NancyB18 (North Carolina)
Posts: 8
Posted:
So I buy paint to paint the bathrooms they have to approve that?
KerryL1 (California)
Posts: 14,550
Posted:
So....there are 5 on your Board, and the former prez and secretary are giving the two off you, who're new, flack? And there's also a treasurer who wanted to approve the, what, invoice for the heat pump that went to your accounting firm? Or are there a total of 4 on the Board?

What does the heat pump service? How many homes or units in your HOA?

I agree with Tim. and also your Board needs to make a policy with its votes in an open meeting bout who may make decisions to spend money without a board vote, and what the spending limit is. You might fine something about this topic in your bylaws. Have you had a chance to read them yet?
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By NancyB18 on 01/28/2023 2:17 PM
So I buy paint to paint the bathrooms they have to approve that?

If you want the Association to pay for it, yes.

As a director, your only authority to cast a vote on board decisions.
As an Officer, your only authority is to propose options and implement the decisions of the board along with any other duties outlined in your Bylaws for that officer position.

NancyB18 (North Carolina)
Posts: 8
Posted:
Heatpump heats r pool. Renters were complaining. Pool too cold. 30 units. Why would we have a Treasurer that doesn't write checks but wants to approve things?? We have a accountant that writes the checks. 5 people on the board. Will reread bylaws. Why do they make them so complicated?
TimB4 (Tennessee)
Posts: 21,059
Posted:
Because Associations are ran by a committee vs. one or two people.
SheliaH (Indiana)
Posts: 6,964
Posted:
It's not that complicated. On your job, I'm sure you or your supervisor have to get certain expenses approved before you can order them, and this isnt any different.

The other thing you have to remember (and thus is the most important) THIS ISN'T JUST YOUR MONEY, IT'S THE ASSOCIATION'S MONEY! You and your neighbors are the association and they have a right to know how much and where the money's being spent,where and how much. 6ou don't just say Xmas to be done and get a check cut.

As tim said,said, the board could write a policy allowing certain bills to be paid without a formal meeting up to a certain amount (and I would expect to see receipts and invoices with a description of what was done). After that, there needs to be more work, such as getting bids from at least three vendors.

But dont get discouraged- this is new to you and you will learn, so be patient, moisten carefully and ask questions.Meanwhile, listen to Kerry and read up on your documents. They should give you even more insight on association finances. Just wait until you learn about the reserve account!
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
JohnT38 (South Carolina)
Posts: 1,631
Posted:
Respectfully, it's time for you to read your governing documents and learn how your HOA should be run. It sounds like you currently are just running things the way you think they should and that ain't how it works.
KerryL1 (California)
Posts: 14,550
Posted:
So, as you can see from others, who are on target, governing an owners association is guided by your association's documents and, especially in FL, by important laws.

The accountant only writes the checks. The board, usually, or if the Board votes it, the treasurer approves the expenditure.

As a non-profit corporation you have some serious obligations to the members of your assn. It's crucial to know that non-profits are governed by Boards, not by presidents or any individuals. The Board is "the deciders." The entire board is "the boss."

I can understand that you're very eager to "get things done." But you cannot make any decisions alone UNLESS the Board with its votes at an open meeting permit it. So, for example, you might write an agenda item requesting authorization from the board to make decisions about paint colors in certain common areas. You might get authorization from the Board to gather bids for larger projects.

Whoa, wait. Are you actually saying you yourself would paint the (pool or other common area) bathrooms???
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Best advice ever got... The HOA money is NOY your money. It is every members money. As a board member you represent all the members on daily operations. When you spend the HOA money you are spending it on every members money. It should be approved to do so prior to spending. It is kind of considered the right thing to do.
Former HOA President
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By NancyB18 on 01/28/2023 3:01 PM
Why do they make them so complicated?

cause stuff like HOA boards embezzling 2 million dollars happens
https://www.aol.com/news/leaders-florida-largest-homeowners-association-124732210.html#:~:text=Prosecutors%20say%20Juan%20Antonio%20Gonzalez%2C%20husband%20of%20former,what%20they%20call%20the%20%E2%80%9CGallego%20Mafia%E2%80%9D%20for%20years.
vis ta vie
MelissaP1 (Alabama)
Posts: 13,836
Posted:
It is also should be noted that Renters are NOT HOA members. Why are you spending HOA money on renter complaints? The HOA money goes towards HOA items and what the HOA owns.

You actually caused more drama by not following the process. If you think this is "drama" and complicated" then you should NOT be on the board. The accountant is not your accountant. It is the HOA's. The Treasurer is typically another board member who office position is the Treasurer. So they not approving indicates that the rest of the board isn't on board to approve.

Typically in most if not all HOA's there is a process before the HOA spends a dime. First is to present the issue/idea to the board at a meeting. They decided if it is something want to or need to do. Once agreed, they go and get bids from vendors/contractors. It is recommended atleast 3 bids. Once the bids come in and are approved, then the project can commence. Once done, then the HOA cuts the check to the vendor/contractor.

You not following the process and spending the money yourself, does not guarantee payment back to you. What you spent out of your own pocket doesn't equal getting reimbursed. The HOA money has a distinct purpose. It is for the maintenance and expenses of the HOA. If money needs to be spent, it's not by a member but from the HOA's budget. Otherwise people look at the board as "writing it's own checks on their dime".
Former HOA President

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