BANK ACCOUNTS / DISBURSEMENTS

STATEMENT OF POLICY:

It shall be the policy of this Homeowners Association that all funds of the Association shall be deposited in a depository designated by the Board of Directors and that approved signers shall be any two of the following: president, vice-president, secretary, and treasurer.
The Bylaws (Article IV, Section 20) stipulate that the treasurer shall have responsibility for Association funds and securities and shall be responsible for keeping full and accurate accounts of all receipts and disbursements in books belonging to the Association. He shall be responsible for the deposit of all monies and other valuable effects in the name, and to the credit, of the Association in such depositories as may from time to time be designated by the Board of Directors.
It is anticipated that the treasurer will be one of the signers and that one other officer shall countersign all checks and other documents which disburse Association funds. Should the treasurer be unable, due to absence or other reasons, to perform this duty and it becomes necessary to disburse funds under these conditions, any two of the remaining officers may sign such disbursing documents and provide all substantiating details to the treasurer upon his return to duty.
It shall be the policy of this Homeowners Association that all disbursements shall be approved prior to payment of invoices, except that certain recurring items such as utilities, pool service charges, etc. may be paid on sight or on due date without prior approval of the Board of Directors.

IMPLEMENTATION:

07/11/85 – The president or vice-president may authorize the expenditure of not more than $500.00. Amounts over $500.00 require prior approval of the Board of Directors.
08/11/88 – A motion was made, seconded, and carried that the Director in charge of a committee cannot exceed a spending limit of $200.00 without prior approval of the Board of Directors.
10/20/88 – The Director in charge of a committee cannot exceed a spending limit of $200.00 per fiscal year, May 1st to April 30th, without prior approval of the Board of Directors. The motion carried.
09/12/91 – Within the responsibility to designate a proper depository for the funds of the Association, the Board of Directors shall cause the funds of the Association to be deposited in such depositories as will provide ready access to the funds while providing maximum benefits to the Association in terms of service, return on investment, etc.
03/24/94 – A motion was made, seconded, and passed that all committee members are to get approval from their Director before making purchases.
05/26/94 – Any officer signing the check must not be the Officer requesting or approving the expenditure (i.e., for his own committee).
05/26/94 – Each disbursement must be supported by the original copy of a bill, or by a cash register receipt or similar documentation where reimbursement for a cash payment is requested.
05/26/94 – The Director responsible for the activity affected, by dated signatures, must approve the dollar amount charged and confirm that the quality of the service(s) performed or the product(s) purchased are acceptable and/or meet contract specifications where the contract is specific.
05/26/94 – The treasurer is authorized to pay without prior approval of the Board of Directors, pool service charges, other recurring service charges or leases subject to contractual provisions, and utility bills, providing same do not contain items which appear to be unique and/or excessive. Telephone bills containing long distance charges require prior notification to the treasurer by the Director making such call of the substantiation for that call.
05/26/94 – The treasurer is authorized to initiate checks transferring amounts between the accounts of the Association without prior approval of the Board of Directors, provided the check is countersigned by one of the above-named Officers.
05/26/94 – A motion was made, seconded, and carried that the president or vice-president cannot exceed a spending limit of $500.00 each per fiscal year without prior approval of the Board of Directors.
05/27/03 – Motion for charge card policy from Bank of America distributed to President, treasurer, Secretary, and Director of Clubhouse, not to exceed $1000 in an emergency event. Cardholders may not exceed $500 for repairs without approval of the Board of Directors. See Corporations: Not-for-profit – 617-0207, emergency bylaws (5).
05/27/03 – Motion to amend 05/26/94 policy, page 14a, to read:
The treasurer is authorized to pay without prior approval of the Board of Directors…pool service charges, or leases, subject to contractual provisions, such as computer, printer, UPS devices, camera equipment, copy machine service…and utility bills, providing they do not contain items that appear to be unique and/or excessive. Since the office telephone is not long-distance capable at this date, any long distance calls made on a director’s telephone should be paid if a director has need to make a long distance call for the association.
Bills for service must have the approval of the work performed by the director in charge before being paid.
5/13/08 -The Treasurer is authorized to pay, without prior approval of the Board of Directors, approved, budgeted, recurring items such as utilities, pool service, etc. In the event that an actual, budgeted recurring charge extraordinarily exceeds budgeted approval, contains items which appear to be unique and/or excessive, Board approval is required. The Director responsible for the activity affected must substantiate the discrepancy for Board approval.

All expenditures over $1000 need no less than two (2) bids and all efforts be exhausted to get three (3) or more bids. In the event that three (3) bids cannot be obtained, the board member obtaining the bids must document who was called, how many contractors were contacted for bids, and what the responses were. The estimates are to be reviewed and discussed at a workshop by the Board of Directors. Provided a quorum is present, they may be voted on and approved at the workshop.

The President or Vice President may authorize a non-budgeted expenditure of not more than $500, and may not exceed a non-budgeted spending limit of $500 each fiscal year without prior approval of the Board of Directors. Any and all non-budgeted expenditures in excess of these limits require approval of the Board of Directors.

Each disbursement must be supported by the original copy of a bill, or by a cash register receipt or similar documentation where reimbursement for a cash payment is requested. The Director responsible for the activity affected, by dated signature, must approve the dollar amount charged and confirm that the quality of the service(s) performed or the product(s) purchased are acceptable and/or meet contract specifications where the contract is specific.

The Treasurer is authorized to pay without prior approval of the Board of Directors, pool service charges, landscape maintenance, and other recurring, budgeted service charges. Non-recurring, budgeted bills for service must have the approval of the work performed by the Director in charge before being paid

Two signatures are required on each check, that of the Treasurer plus one of the following: President, Vice President, or Secretary. Any Officer signing the check must not be the Officer requesting or approving the expenditure. Should the Treasurer be unable, due to absence or other reasons, to perform this duty, and it becomes necessary to disburse funds under these conditions, any two of the remaining officers may sign such disbursing documents and must provide all substantiating details to the Treasurer upon his/her return to duty.

The Treasurer is authorized to initiate checks transferring amounts between accounts of the Association without prior approval of the Board of Directors, provided a check is countersigned by one of the above-named officers.

All committee members must get approval from their Director before making any purchases. The approving Director is responsible for insuring that all such purchases conform to stated Disbursement Policy. That is, they must be approved budgeted expenses, approved by the Board of Directors if not budgeted, and, if in excess of $500, approved by the Board of Directors.

DEBIT/CREDIT CARDS
Debit/Credit Card Authorization is as follows:

President Cash Advance $1000, Debit Card $1,000
Treasurer Cash Advance $1000, Debit Card $1,000
Secretary Cash Advance $ 0, Debit Card $1,000
Clubhouse Director Cash Advance $ 0, Credit Card $1,000

Debit/Credit cards are to be used for approved, budgeted expenditures not to exceed $500, and not to exceed $1000 in an emergency event. Debit Cards are issued to authorized bank signers only. Credit Card is issued to Clubhouse Director only. The Director responsible for the activity affected, by dated signature, must approve the dollar amount charged and confirm that the quality of the service(s) performed or the product(s) purchased are acceptable and/or meet contract specifications where a contract is specific. Each debit card purchase must be supported by the original copy of a bill, or cash register receipt. Signed receipts are to be turned in to the Treasurer at time of purchase. Any use of the debit/credit card for a non-budgeted expense requires approval of the Board of Directors.

This Policy Statement supersedes all previously recorded Disbursement Policy Statements.