How Should Monthly Bills Be Paid?

How should the bills of the HOA be paid each month?

When the invoices arrive, they should go in a pile. At least once a month, probably twice, at least two members of the Finance Committee should review and preliminarily approve them. A list of Payees and Amounts should be created. 

Then the Finance Committee should review the list and approve it. Questions about any particular invoice should not delay on-time payment of the rest of the accounts.

The list should be presented at the monthly BOD meeting and approved for payment by the Board. Then the Property Manager arranges for prompt payment.

Timing can be a problem, if an invoice arrives that is 30 Days Net. It's going to get paid late, likely involving Late Fees. The HOA should be paying all bills on time. It should not be paying any Late Payment Fees.

In the past there have been some payment problems, and the HOA was being charged Late Fees. I think that got resolved, but did you ever hear any discussion at a monthly board meeting?

Should only one person have the authority to give final approval of bills for payment?

Why haven't the Variances been questioned? When the budget has been exceeded, shouldn't the Board be informed and take action? The place to say it is in a monthly Board meetings. This will raise the level of confidence of the Members. They will know the Board is on top of financial matters.

When the December 31, 2024 Financial Statement is published (available at the February 3, 2025 Board Meeting), it will be clear about the Total for Variances (over-spending) in 2024.

As of November 30, 2024, the total of Variances (over-spending) in 11 categories for 11 months was $120,007.53. (The amounts were not totaled!)

Legal (Line 6500) was omitted; that category was over-spent by $9,116.81. It was the sixth-largest category of over-spending. Why wasn't it included in the report? 

The Year started with a $27,799.97  deficit. So, as of 11/30/24, the HOA was behind the curve by more than $156,000. 

Why wouldn't the Board raise the dues by $50.00/year? That would have brought in $124,000. Not enough, but better than nothing. And everybody knows that not every homeowner pays his Assessment!

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