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Editor's Note: The following policy is one way of creating a spending policy. Like all policies, it should vary with the specifics of the environment in which it is applied. Start with this, and make changes according to your own development.

Regularly Occurring Operating Expenses

The co-op's managing agent is authorized to make payments from the co-op's bank account(s) as necessary to pay regularly occurring bills. These bills include, but are not necessarily limited to, the following:

- common area utilities
- dues to the Co-op Federation
- insurance
- lease fee to Tax Credit Partnership
- management fees
- contract maintenance and materials
- property taxes
- trash and snow removal
- water and sewer service
_ vacancy reserve

Assuming that funds are available, these bills may be paid without any further approval from the co-op or the Treasurer.

Other Operating Expenses

The Treasurer may authorize any other payment that falls within the budget set by the Board.

Maintenance Spending

The Building & Grounds Committee (B&G committee) determines spending from all line items within the co-op=s board-approved maintenance budget. This applies only to itemized maintenance expenses approved by the Board as part of the annual operations budget. Examples of these line items are:

trash removal
snow removal
repairs material
repairs contract
sprinkler maintenance
painting & decorating
unit turnover

All other spending (including capital expenditures and expenditures above the board-approved budget) must first go to the board for approval. In these cases, the role of the B&G committee is advisory only.

Proposals for Maintenance Spending

Except for On-Call spending as described in the On-Call policy, all proposals for maintenance spending to the B&G Committee must be in writing using the co-op's approved proposal form. This applies to proposals from co-op Members, committees, committee members, and supporting staff. Except in the case of an emergency (as determined by the B&G committee), the B&G Committee will not consider any spending proposals, regardless of merit, unless this form is completed!

To request that a proposal be placed on the B&G committee agenda, the proposal=s sponsoring contact person should contact the B&G committee chair prior to the meeting. To ensure that the committee has had sufficient time to review and consider the proposal, a copy of the completed proposal form should be submitted to the B&G Committee Chairperson eight days or more before the B&G Committee meeting. (This will allow the chairperson to post the agenda seven days before the B&G meeting.) The B&G committee may decide to consider proposals that are received less than eight days before the meeting.

All changes to proposals as originally submitted must be noted on the proposal form and/or in the minutes of the committee meeting.

All spending by the B&G committee as well as a summary of On-Call expenditures must be reported quarterly to the finance committee.

Expenses Above or Beyond the Budget

Any significant changes in the budget must be approved by the Board of Directors and the Tax Credit Partnership. Specifically, this includes adding line items or increasing any line item above 110%.

Check Requests and Petty Cash (Committee Spending)

Committees may recommend spending to the Board of Directors, however, the Board of Directors must approve all spending. Individual or committee spending that has not been approved by the Board may not be reimbursed. Unless determined otherwise by the Board of Directors, Committees can spend from their Board approved committee budget only. Other spending must be first authorized by the Board.

Each co-op committee shall name a contact person designated to be the one person from that committee to be allowed to request checks from the Treasurer. No one else may request checks for that committee. This system will be maintained by the Treasurer.

For purchases within a committee's Board approved budget (under the approved Operation Budget line item "Board and Committee Spending"), the Committee contact person must request a check from the Treasurer. For all purchases, the contact person must present the Treasurer with documentation that the committee approved the expense. (A signed resolution or signed approved meeting minutes indicating approval of the expense.) Receipts and documentation that the committee aprroved the expense must accompany requests for reimbursement. The treasurer will report to all committees quarterly to let them know their Board approved committee budget balance.

The Park Place Co-op has a petty cash system established and maintained by the Treasurer. The petty cash system may not have more than $50. Any committee member may request petty cash for small purchases approved by that committee. For expenses under $10, the committee may access money through the Co-op=s petty cash system. Spending from petty cash will be deducted from the Committee=s remaining funds. For reimbursement, receipts must be presented to the Treasurer.

 Capital Expenses

All capital expenses must be pre-approved by the Board of Directors and the Tax Credit Partnership.



Unless otherwise indicated, copyright 1999 ARCH. All rights reserved.
Revised: October 02, 2003.

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