Property Expense Approval Process
Summary
It is critical that we operate our properties efficiently and in a cost-effective manner. It is the GMs (general managers) responsibility to oversee
the expenses at their property. GMs are expected to take a commonsense approach to this task. The following SOP covers the approval levels for
each Management role within the Spacious Skies Organization and the process for escalating expense requests outside of an individual's approval level.
STOP! All levels of management must be immediately notified of any emergency repairs needed at the property over $1,000.
GM Notifies RM
RM Notifies DOO
DOO notifies CEO and Director of Finance
Best Practice
At no time should an expense request or payment occur without the GM’s knowledge regardless of the value. GMs will reference their annual operating budgets as well as the profit and loss of the property when making decisions pertaining to spending money.
·
Preferred Vendor Pricing
We believe in utilizing local vendors and businesses.
All properties should have a list of preferred vendors
Pricing from these vendors should be checked frequently to ensure that we are receiving the best rates available for work being
performed onsite
Approval Levels
·
General Manager $500.00
o Authorized to approve all expenses up to $500.00
Regional Manager - $1,000.00
o Authorized to approve all expenses between $501 and $1,000 ·
Director of Operations - $5,000
o Authorized to approve all expenses between $1,001 and $5,000 ·
CEO
– Approves all expenses above $5,000
Process for Expense Escalation
·
All expenses up to $500.00 - GM may approve. No further action needed
All expenses $500+
o GM sends a request and recommendation email to the RM
o $501 - $1,000 – RM may review and approve. No further action is
necessary ·
All expenses $1,001 - $5,000
o RM reviews and forwards to the DOO with recommendations
o DOO may approve. No further action necessary ·
All expenses $5,001+
o DOO reviews and forwards to the CEO with recommendations
·
Expense Escalation Email Template
·
All bids are attached to an email
o Subject Line of email should read “Project Name/Campground Short Code/Approval Needed”
o Body of email should contain the following:
Brief description of the expense
Amount of money budgeted for the expense
· Please provide a note if this is an unbudgeted expense
If vendors are being used:
Bullet point of each vendor name and price
Recommendation by the General Manager of which bid to accept and why.
o Regional Manager will review bids and provide final approval
If the project is above the RM’s approval limit, the request will be forwarded to the Director of Operations.
o The Director of Operations will review bids and provide final approval.
If the estimate is above DOO’s approval limit, the request will be forwarded to the CEO for final approval.
Large Repair Projects (Over $1k)
We require that all large repair or projects be sent out for bid. All requests should be initiated by the General Manager.
The following is the process that should be followed when gathering and submitting estimates for work.
Developing the Scope of Work
The General Manager should work with their Project Manager and vendors to develop a clearly defined scope of work for the project
o Scope of work should include the following:
Specifics about the work to be performed
Proposed start date
Proposed completion date
Any applicable requirements i.e. permits etc.
Bidding Process
·
Identify and contact local vendors to bid on the project
Schedule on-site meetings with the vendor to assess and then discuss the scope of work
Provide the vendor with a due date for all bids
Bid Selection
The General Manager will review all bids received and determine the following:
o Ensure there is a clear scope of work in all bids.
o Prepare a recommendation for whom should be awarded the work based
upon:
Pricing
Start and Completion Dates
Vendor Reputation
Final Approval Process
Once bids have been received and review process is complete the General Manager will submit all bids to their Regional
Manager for review and final approval using the following process:
·
All bids are attached to an email
o Subject Line of email should read “Project Name/Campground Short Code/Approval Needed”
o Body of email should contain the following:
Brief description of the project
Amount of money budgeted for the project
Bullet point of each vendor name and price
Recommendation by the General Manager of which bid to accept and why.
o Regional Manager will review bids and provide final approval
If the project is above the RM’s approval limit, the request will be forwarded to the Director of Operations.
o The Director of Operations will review bids and provide final approval.
If the estimate is above DOO’s approval limit, the request will be forwarded to the CEO for final approval.
Vendor Notification and Construction Agreements (if applicable)
Once final approval has been received the following will occur:
·
Vendors should be notified of the decision.
General Manager must ensure that the selected vendor is set up as an approved vendor in our A/P system following the New Vendor Set Up
Process.
·General Manager works with HQ to:
o Prepare company approved construction agreements
o Is responsible for oversight on the delivery of agreements to the vendor
o Is responsible for follow-up to ensure receipt/delivery of fully executed agreements back to HQ.
o Ensure that lien waivers are received at or prior to delivery of final payment to vendor