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Sommerset Homeowners Association

Invoice Approval Process

How every invoice gets routed for approval — who must sign, when a second layer of oversight applies, and who should never be in the loop.

For the Manager & Directors

The Approval Flow at a Glance

Start at the top. Two questions — what kind of invoice? and how much? — route every invoice to exactly the right approvers.


Step Decision Required approvers — route here
Start
Invoice received by the Manager
Classify it before routing anything.
Decision 1
What kind of invoice is it?
A · Physical Plant (Operations) Maintenance, repairs, landscaping, construction
Decision 2
Is the invoice under or over $5,000?
Under $5,000
Approve & route to
Terry + Dave
(SMD–Pools / Building Maintenance)
Over $5,000
Decision 3
Routine & budgeted, or under an existing maintenance contract?
e.g., recurring landscaping, pest control, waste services
Yes — routine / budgeted / contracted
Approve & route to
Terry + Dave only
Already approved in the budget or contract — no one else.
No — non-routine / unique / capital project
Approve & route to
Terry + Dave
+ AND EITHER
Frank (Treasurer) or Mike (Secretary)
Only one of the two is required — added financial oversight for non-recurring or large discretionary spend. e.g., roofing project, one-time engineering, capital improvements.
B · Professional Services Legal, insurance, accounting, and similar
Decision 2
Is the invoice under or over $5,000?
Under $5,000
Approve & route to
Frank + Mike
(Treasurer + Secretary)
Over $5,000
Approve & route to
Frank + Mike + Everett
(Treasurer + Secretary + President)
Core Routing Rule — Critical

Send invoices ONLY to the required approvers shown above. Do not copy or include any director whose approval is not required. Keep routing tight — no extra approvals.

The Same Rules, In Words

Approval Rules in Text

Everything in the diagram above, stated as rules you can quote.


1 · Classify the invoice

CategoryWhat it covers
A · Physical Plant (Operations)Maintenance, repairs, landscaping, construction.
B · Professional ServicesLegal, insurance, accounting, and similar services.

2 · Approval rules

InvoiceRequired approvers
Physical Plant — under $5,000 Terry + Dave
Physical Plant — over $5,000, routine / budgeted / under an existing maintenance contract
e.g., recurring landscaping, pest control, waste services
Terry + Dave ONLY
Rationale: the spend is already approved in the budget or contract.
Physical Plant — over $5,000, non-routine / unique / capital project
e.g., roofing project, one-time engineering work, capital improvements
Terry + Dave  AND EITHER  Frank OR Mike (only one required)
Rationale: additional financial oversight for non-recurring or large discretionary spend.
Professional Services — under $5,000 Frank + Mike
Professional Services — over $5,000 Frank + Mike + Everett

3 · Core routing rule (critical)

Send invoices only to the required approvers.   Do not include unnecessary directors.

4 · Manager quick decision flow

  1. Physical Plant or Professional Services?
  2. Amount under or over $5,000?
  3. If Physical Plant over $5,000: Routine / contracted? → Terry + Dave.   Unique / capital? → Terry + Dave + (Frank OR Mike).

5 · Guiding principles

Budgeted = streamlined. If it’s already in the budget or under contract, Terry + Dave approve — nothing more.
Non-budgeted / capital = add one financial overseer. One of Frank or Mike joins — not both.
Keep routing tight. No extra approvals, no courtesy copies to directors whose sign-off isn’t required.