“Getting back to the super’s credit card, the board should have a hands-on approach regarding the cooperative’s financial affairs and convenience should not supersede that approach. The checks and balances in place by having funds requisitioned from the managing agent and approved by the board for expenditures over a certain dollar level are important and prudent protections for the board and the cooperative. Giving the superintendent the decision-making ability and the apparent authority to use the credit of the cooperative and/or to spend unlimited amounts in his/her discretion could be viewed as an abandonment of the board members’ fiduciary obligations. While the superintendent of your cooperative building may be an honest and trustworthy person, if the credit card were misused, it is entirely possible that the board members could be held responsible for the cooperative’s losses. For this reason, issuance of a credit card to the superintendent is not recommended.
“Has your cooperative considered a petty cash system which will provide needed funds to the super for those instances in which immediate and relatively small purchases are required? Does your cooperative have accounts with vendors that will allow the superintendent to make purchases for needed supplies without a credit card? Does your super have an inventory system for regularly used materials and does the cooperative have, generally, the equipment needed for your super to perform his or her duties? I would suggest that the board explore these options rather than issue a credit card to one of the cooperative’s employees.”