Vote Required or Not

[Guest Bill]

Not sure if this is a question for this forum - but - here goes

During its 2023 budgeting process, our BOD budgeted $2,000 for a specific identified project. The board member responsible to see that the work was done requested a quote to do the work and that quote is within the budget allocation. Our management company was then instructed to contact the vendor and proceed with the work. At that time, another board member objected stating that the board needed to vote to approve the work and related expenditure.

My opinion is that since the work involved was specifically identified in the budget, the board does not have to vote to have the work done and expense incurred.

Who is correct?

[Rob Elsman]

Societies handle this in differing ways.  In some societies, adoption of a budget also implies an authorization for expenditure; in others, an authorization for expenditure separate from the adoption of a budget is required.

[Guest Bill]

Thank you Mr. Elsman

Our association governing documents are silent on this issue. We do, however, have precedent in that in the last two years the work under this same budget item has been completed without an approval vote of the board. Would precedent have any effect?

[J. J.]

You can authorize something ahead of time, "to permit ____ to hire a contractor for X work for a cost no greater than $2000."  I do not know if that is what you did. 

[Gary Novosielski]

The answer is sometimes found under the duties of the Treasurer, which in some cases says things like: "Shall pay valid bills, within the spending limits contained in the annual budget."

Edited February 17, 2023 at 08:28 PM by Gary Novosielski