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How does your condo association pay for non-invoiced purchases?

Posted on Mon, Jun 07, 2010 @ 06:26 AM
  
  
  
  

hoa creditBackground: Our condo association currently has two bank accounts - a checking account (operating) and a savings account for our reserves. Generally, we get invoiced and then write checks to pay for the majority of our expenses. However, there are times when we need to get some random office supplies or make a quick trip to Home Depot. In these instances, I basically end up paying for the stuff on my own and then I am reimbursed for the expenses.

Question: I would prefer to not have to pay for things and then get reimbursed for them. Instead, we would like to have something like a credit card for the building with which we can buy those random items. However, we were told that with a credit card, there would need to be a guarantor, which nobody on the board wants to do, including myself! So, for the time being, we got a check card that does not allow any ATM transactions, and we set a limit of $500 per store. Is there a better solution? How do other condo associations and HOAs pay for items that are not invoiced? Any input would be greatly appreciated. Thanks.

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COMMENTS

My association is small (12 units) and we do the same. The president and treasurer have debit cards to the operating checking account and receipts are mandatory for our files. We allow other members to purchase items as need with preapproval and will reimburse when receipts are provided; however, we try not to have anyone other than the two above buy items. This works for our association but it might not with larger ones.

posted @ Monday, June 07, 2010 9:03 AM by Mark


Your board should check if there are any prohibitions in your current rules or bylaws. If there are no issues, then you should continue with a debit card for those kinds of purchases. Credit cards are not usually necessary with such small purchases. Why create a more complicated situation for your Association by having personal guarantees?

posted @ Wednesday, May 04, 2011 2:16 PM by Jay Raman


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