Procurement Procedures & Approval Controls

   ☐ A staff member or Property Manager identifies a need for materials, supplies, or services for a Work Order that has been submitted by a member of the Team or a Homeowner.

    ☐ A Purchase Requisition Form is submitted to the Accounting Team.      Requisition must include:

• Work Order Number
• Description of item or service
• Quantity and estimated cost
• Vendor or supplier recommendation
• Budget code and line item reference
• Supporting documentation (quotes, work orders, etc.)

     ☐ Accounting verifies:

• Completeness of requisition
• Budget line and available funds
• Vendor approval status and credentials on file
   

     ☐ If requisition meets the required criteria, Accounting generates a Purchase Order (PO) with a sequential number and remits it to the required approvers.

     ☐ POs and Invoices are routed for authorization through 4 levels of approval:

• First approver (submitter) → Asst. Property Manager Approval
• Second approver → President
• Third approver → Treasurer
• Fourth approver → GM/LCAM/ Bookkeeper

Additional Approval Required for:

• Major capital or reserve projects → Board Approval by Special Assessment or  Emergency Resolution
• spend that exceeds budget requires Treasurer or Board Approval by Resolution

Approvals may be obtained via electronic signature, secure email authorization, or HOA management software. 

     ☐ Once approved, the Accounting Team issues the Authorized Purchase Order to the vendor or the team or board member that will be making the purchase and expensing it back to the HOA.

    ☐ No purchase or service should be initiated without an approved PO number.

    ☐ Vendor, team or board member must include the PO number on all invoices or expense reports.

     ☐ Upon delivery or completion, the Property Manager or designated staff verifies:

• Goods/services received are complete and satisfactory
• Invoice matches PO and work performed
• Supporting documentation (delivery receipt, inspection photos, etc.)
   

     ☐ Verification is returned to Accounting for payment authorization.

     ☐ Accounting cross-checks invoice, PO, and receipt for three-way match:

• Purchase Order
• Vendor Invoice
• Receipt Confirmation
   

     ☐ Once verified, invoices or expense reports are uploaded and approved, on then are payments made under the approved terms.

    ☐ Paid invoices are filed/referenced with PO# documentation for audit trail.

     ☐ Items classified as Assets are identified and recorded/tracked accordingly.