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WendyM5 (North Carolina)
Posts: 1,522
Posted:
HOA mgt company says its not their problem they double paid our vendor.Vendor sent two identical invoices but with different invoice numbers about 8 times in a row getting an extra $2000 in profit. Vendor has ghosted the HOA and is not returning emails requesting refund of funds or working off the extra funds as credits to the HOA for this upcoming mowing season.

Mgt companys email:

Please see the attached invoices to which you are referring. The invoices all have different invoice numbers, thus indicating separate and valid invoices, which is why they were approved for payment. The error here is a result of the vendor billing multiple times for the same work. You will need to contact the vendor (X.X.X.) for a refund, as this is not within CedXX Management Group’s control.

What course of action would be best? Sue vendor (small mom and pop operation) in small claims, to get a judgement that will mosts likely never be able to be collected since NC is a debtor freindly state not allowing much. Or sue mgt company? We use a different company now.

contract states Mgt company can pay vendors according to approved budget.

Paragraph 8 Payment of expenses/taxes
From the funds of the Association, Agent shall pay all expenses of the Property, as reflected in the approved budget, or pursuant to other authority granted by the Board on behalf of the Association. Agent will also ensure Association taxes are prepared each year by a third party selected by Agent and at a cost to the Association.
Paragraph 9 Association and Independent Contractors
Agent may hire, retain, supervise and discharge independent contractors that may be required to repair, maintain and operate the Property on behalf of the Association and in accordance with the approved budget and or need. Agent shall require proof of insurance and bond from all independent contractors prior to being hired to maintain or operate the Property on behalf of the Association.
Paragraph 10 Record of Insurance
Agent shall maintain appropriate records of all insurance for the Property carried by the Association. Agent shall cooperate with the Board in investigating and reporting all accidents or claims for damage relating to the ownership, operation and maintenance of the common elements of the Property, or of any other portions of the Property which the Association is obligated to maintain, including any damage or destruction to them.
Paragraph 11 Agent limitation and expenditures
In discharging its responsibilities, Agent shall not make any single expenditure not reflected in the approved budget or incur any non-contractual obligation exceeding $750.00 without the prior written consent of the Association through the Board. In certain extreme situations where the Agent may be called upon in an emergency situation, or where lack of action will cause additional damage to the Property, the Agent may contract for emergency repairs without the prior consent of the Board. In these situations, the Agent will attempt to contact the board via contact information submitted. If after faithful attempt to contact the board, and no such contact can be made, the Agent may act according to its professional judgment to prevent further damage to the Association, or Property, such action will not be deemed violation of this limitation. The Board will be notified of any action taken at the earliest possible time after decision is made.


vis ta vie
LetA (Nevada)
Posts: 2,679
Posted:
who's responsible for authorizing the invoices? I would immediately get suspicious if the same charge reappeared again.
I would definitely question the charges.
TimB4 (Tennessee)
Posts: 21,059
Posted:
I don't think it is entirely the MC fault.

Since the MC was an agent for the Association, the issue for a refund is with the vendor.

I would try to contact the vendor once.
If that didn't work, I would then file legal action.
MichaelS56 (Minnesota)
Posts: 858
Posted:
Our Board is responsible for authorizing the payment of invoices, with the help of the Managment company rep. We receive from the MC a copy of every invoice they receive for our review and records.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Are you on the board? We have a 2 signature system. We have to have 2 authorized signatures on every check including the MC that cut the checks. They are specially made checks.

I don't see a problem if the person who has the landscaping company is getting paid. They did the work right?

Do we know the terms of the contract? Could it be pay half up front and half when completed? That would make sense.

Former HOA President
DeanJ
Posts: 1,786
Posted:
I think your management company is responsible to contact the vendor and get this issue corrected.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By DeanJ on 02/10/2024 7:09 AM
I think your management company is responsible to contact the vendor and get this issue corrected.

Per the OP, the MC has tried.
The vendor does not respond.
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By LetA on 02/08/2024 4:19 PM
who's responsible for authorizing the invoices? I would immediately get suspicious if the same charge reappeared again.
I would definitely question the charges.

well all the other invoices we got from lawyers to roofers were emailed to us for approval first. the landscaping invoices were always emailed to the MC asking them to pay it. We were never told that some invoices would be automatically paid without board approval, nor was that a practice we were aware of.

the only vendor auto paid every monht was the MC.

vis ta vie

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