Review/update responsibility

Revision

Reference

Florida Statute 720.303

Florida Statute 720.31

Operating expenditures

• The Board’s approval of the Association’s operating budget constitutes authorization for the commitment of funds for budgeted expenditures, subject to Board approval of contractual obligations.
• The PM has the responsibility for managing the annual operating budget and ensuring that the budget is achieved by monitoring actual revenue and expenses against budget. As such, the PM has the authority to commit funds for all approved budgeted operating expenditures and approved contracts, consistent with the Association’s Procurement Policy, as long as the total budgeted net income (revenue less expense) is achieved. Over expenditures of budget line-item accounts must have the prior approval of the Treasurer or the President.
• The PM may delegate the authority to commit operating funds for budgeted small purchases under $250 per purchase to Department Heads and their full­time direct reports. All expenditures over $250 per purchase, or where the line-item budget amount is not sufficient to cover the expenditure, must be authorized by the PM.
• The PM and/or the PM’s designee and the property management services accounting representative will review the Profit and Loss Statement monthly with the Finance Committee and identify and explain those areas that are currently, or are projected to be, substantially over or under budget. The Board also has the responsibility to review the Profit and Loss Statement monthly to ensure that the annual operating budget will be achieved and to question those items that are substantially under or over budget. At the Board’s discretion, additional spending in selected accounts may be suspended for a specified time or for the remainder of the budget year.

Reserve expenditures

• Approval of MRR, MI and EE&P Reserve budgets does not constitute authorization for the commitment of funds for budgeted Reserve expenditures. Each Budgeted Reserve expenditure in excess of $10,000 and any unbudgeted items, must be individually authorized by the Board. In addition, MI Reserve expenditures that cause the aggregate total to exceed $100,000 per budget year or that are over $100,000 on an individual project basis must be authorized by a majority vote of Class A members present or by proxy, at a meeting at which a quorum has been attained.
• Any agreement to acquire leaseholds, memberships, and other possessory or use interests in lands or facilities, including, but not limited to, county clubs, golf courses, marinas, submerged land, parking areas, conservation areas, and other recreational facilities, shall require the approval of seventy-five percent (75%) of the total voting interests of the Association (Florida Statute 720.31).
• All Reserve expenditures must follow the “BOD Request for Funds Process” and documentation procedures.

Emergency expenditures

• Emergency situations are defined as those that must be taken care of within the next 72 hours to continue the Association’s daily operations or safeguard residents or community common properties.
  • The PM has the authority to commit funds up to $5,000 in emergency situations, even if the expenditure will cause the associated line-item account to run over the PM’s authority limits.
  • Any EC member has the authority to approve emergency expenditures between $5,001 and $10,000,
  • The Board must approve all emergency expenditures over $10,000. The PM shall attempt to contact all Board members to obtain an affirmative vote of a majority of those Board members reachable for approval. All emergency expenditures made must be ratified by the Board at its next meeting.