purchases are necessary for any emergency up to $5,000.00 but must still obtain the authority, written if possible, from the President, but if the President is not available, then either the Vice- President or CFO, for any amount over $5,000.00. An emergency is defined as any repair involving imminent danger to life or property, or immediately necessary for the preservation and safety of the property, or for the safety of Owners, or required to avoid the suspension of any necessary service to the Association and/or the Project. It is understood and agreed that the General Manager will, if possible, confer with the Board regarding emergency expenditures. The General Manager must attempt to notify all members of the Board of Directors immediately after making such a purchase. 5. Non-Compliance – The Controller is responsible to ensure this policy is followed and report to the Board President and/or Board CFO when not in compliance.
5.D
CHECK SIGNING
1. Purpose: To define the hierarchy of check signing for all funds. 2. Policy: To ensure there are proper controls over the signing of checks for Operation, Capital, and Reserve Funds. 3. Operations Fund - This fund has three (3) main accounts: Operations (A / P), Payroll and Flex
(if needed). Signature requirements as follows: A. Operations(A / P): (Two signatures required) i. General Manager ii. Board Treasurer (in season) iii.
Controller (summer or when 2nd signature required due to availability) iv. Board President v. Board Vice President vi. Board Secretary B. Payroll: (One signature required); however, no employee can sign their own paycheck. i. General Manager ii. Board President iii. Controller C. Flex: (One signature required) i. General Manager ii. Board President iii. Controller 4. Capital Fund: (Two signatures required) - Signature requirements as follows: a. Board President b. Board Treasurer (in season) c. Board Secretary 5. Reserve Fund: (Two signatures required) - Signature requirements as follows: a. Board President b. Board Treasurer (in season) c. Board Secretary 6. Approval of Transfer of Funds : a. Transfers of funds greater than $10,000 or 5% of the association’s total combined reserve and operating account deposits, whichever is lower, shall not be authorized from the account without prior written approval from the Board of Directors. (Civil Code Section 5502). b. Transfers of greater than $10,000, other than those approved by Resolution, will be individually submitted to the Board by emailing a copy of the invoice to the entire Board for written approval prior to making the transfer, The Board hereby appoints a Committee consisting of the elected Treasurer, Vice President and President for making such written approval, and a
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