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I’m a member of an EC in Canberra and until a few months ago our Manager always sent invoices to us for approval before paying. Recently we found that the Manager had paid a large amount for some drainage investigative work over two weeks before we even saw the report. We wouldn’t have approved payment as what was given to us in the report isn’t anywhere close to what we were quoted for.
When we asked the Manager about why they’d made that payment without coming to us for approval.she claimed one of us must have approved it over the phone. We know none of us have done that.
My question is whether the Manager is allowed to make a large payment without it being authorised by the EC. The agency agreement is very vague and doesn’t mention a dollar limit.
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ACT strata law is very similar to NSW’s so I’m taking a punt here; generally speaking, unless they have delegated authority to do so, the strata manager should only be making payments that are authorised by the committee or owners corp as a whole.
So somebody is telling porkies; either the strata manager or a committee member who gave her the go-ahead and is now feeling the heat. Approval for expenditure over the phone should be done in emergencies only. Forgetting to tell the committee that you have lined up a contractor is not an emergency.
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