Can president spend the money?

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COMMUNITY MONEY: Can president spend the money? Photo: Shutterstock


QUESTION:

Can a president spend community money if it’s not in the agreed budget or if the budget has not yet been agreed by the owners at an AGM?

R.P. (Costa del Sol)

ANSWER:

The short answer is: yes. Standardly the president has access to the community funds. He can write cheques and make transfers.  The professional administrator usually has power over the funds also.  Sometimes the expenditures require two signatures.  If the president is also the administrator and has sole access to the funds, he needs no further authorisation to spend community money.  He is of course obligated to inform the community in a timely manner of any expense paid out that is not included in the budget voted by the community.  If the added expense is for a superior quality of paint on the building because the cheaper paint was not available, there should be no problem.  If, however, the president undertakes new projects not voted by the members, he can be called to account and even taken to court to reimburse the community.

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