Approval before spending
A defined process helps the board verify the purpose, authority, amount, and available funding before payment.
What does Florida law say?
Section 718.111(15)(a) prohibits the association and its officers, directors, employees, and agents from using a debit card issued in the association’s name, or billed directly to it, to pay any association expense. [1]
The prohibition covers legitimate expenses too. A receipt, a budget entry, or prior board approval does not create an exception to this debit-card restriction. [1]
This page addresses Florida condominiums under Chapter 718. Check the law applicable to another type of association rather than assuming the same provision applies.
Why does this matter?
The following explains the financial-control rationale, rather than claiming a specific legislative motive. Debit-card purchases draw directly on bank funds and can occur before another person reviews the transaction.
A reliable audit trail
Invoices, approval records, payment confirmations, and account reconciliation help explain where association money went.
Independent review
Separating purchase requests, payment authorization, and reconciliation reduces dependence on one person’s judgment.
These controls protect volunteers as well as owners. Clear records help a director show that an expense was authorized, documented, and paid through the agreed process.
Misuse can have serious consequences
Section 718.111(15)(b) states that association debit-card use for an expense that is not a lawful association obligation constitutes theft under § 812.014 and requires removal from office and a declared vacancy. For this provision, a lawful obligation is properly preapproved by the board and reflected in minutes or the written budget. [1]
This additional consequence does not permit debit-card payment of approved expenses. [1] Seek counsel’s advice about any actual transaction; do not assume every violation has the same criminal consequence.
Practical payment options to evaluate
Discuss these options with the association’s accountant, bank, manager, and counsel. Each needs appropriate authority and controls.
| Option | Suggested controls |
|---|---|
| Association check | Supporting invoice, documented approval, authorized signer, and reconciliation. |
| ACH or bank bill payment | Verified payee details, restricted access, approval workflow, and review of withdrawals. |
| Vendor account or invoice | Authorized purchasers, clear spending limits, itemized documentation, and reviewed payment. |
| Approved reimbursement | Prior purchase authorization, itemized receipt, business purpose, and independent review. |
| Credit-card arrangement | Professional review of the product and authority, plus limits, receipts, approval, and reconciliation. |
A credit card is a different product from a debit card, but that distinction alone does not establish that a particular arrangement is appropriate or authorized. Confirm the actual product and applicable requirements.
What about a director’s personal card?
A practical reimbursement process can allow an authorized person to buy an approved item with personal funds and submit an expense claim. The director should first confirm the association’s policy, authority, documentation, and reimbursement arrangements.
Do not make volunteers finance association operations. Where possible, arrange direct vendor billing or another suitable association payment method. Keep purchases affordable and reimburse approved claims promptly.
Do not assume buying an item personally guarantees reimbursement. Resolve approval and budget questions before the purchase.
Example: buying maintenance supplies
The board authorizes specified supplies within a limit. A designated person obtains the invoice or approved purchase documentation. The payment reviewer checks the items and authorization. Payment goes through an appropriate method, and the transaction is reconciled to the association’s account.
This process can be simple while still preserving a clear record.
A board action checklist
- Identify existing cards. Confirm with the bank what products are attached to association accounts.
- Stop prohibited use. Arrange with the bank to disable unnecessary debit-card functionality and adopt a suitable payment process.
- Review past transactions. Preserve statements, receipts, approvals, and related records. Refer concerns to counsel and the accountant.
- Set written procedures. Define who requests, approves, pays, and reviews expenses.
- Prepare for urgent needs. Establish lawful payment arrangements for emergency vendors before an incident.
- Review statements regularly. Investigate unexplained transactions and update access when personnel change.
Common questions
Can the board vote to allow debit cards?
A board policy cannot override the statutory prohibition. Use a compliant payment arrangement.
Does a small purchase qualify for an exception?
The provision prohibits payment of any association expense with the specified debit cards; it supplies no small-purchase exception.
Can the manager use the card instead?
The prohibition includes employees and agents as well as officers and directors. Delegating the purchase does not bypass it.
Does this prohibit every automatic bank withdrawal?
The cited provision concerns debit cards. ACH, bill pay, and other banking arrangements need their own review and controls; do not equate every bank debit with a card transaction.
Where can we learn more about financial controls?
Explore Finances & Reserves and DBPR education resources. Bring specific banking and reimbursement questions to qualified advisers.
Official source & scope
[1] Florida Statutes § 718.111(15) — debit-card prohibition and consequences.
Updated October 17, 2026. General education and suggested financial controls, not a determination about any individual’s conduct. Obtain association-specific legal and accounting advice about payment products and past transactions.
Replace the card with a workable payment route
Board Synergy recommended practiceDo not stop at adopting a policy. Confirm with the bank which products and features are attached to each association account, arrange authorized changes to prevent prohibited use, and establish a lawful route for ordinary and urgent purchases.
- Identify recurring vendor payments before disabling a product so necessary services can be moved to an appropriate method.
- Record who may request, approve, release, and reconcile each payment type.
- Preserve prior card statements and supporting records for review; do not erase the history when a card is closed.
- Test the replacement workflow with the manager, accountant, and bank before the next urgent purchase.
A bank debit, ACH transaction, credit card, and debit card are different arrangements. Have the bank identify the actual product; a label such as “business card” does not settle the legal issue. The statute’s prohibition cannot be overridden by a low spending limit or a board vote.
Connected financial resources
- Accounting and report review →
Connect this topic with the related authority, documentation, and review process.
- Financial controls →
Connect this topic with the related authority, documentation, and review process.
- Suspected misuse →
Connect this topic with the related authority, documentation, and review process.
- Compensation and benefits →
Connect this topic with the related authority, documentation, and review process.
- Expense reimbursement →
Connect this topic with the related authority, documentation, and review process.
- Unbudgeted expenses →
Connect this topic with the related authority, documentation, and review process.
- Records inspections →
Review access rights and protected information.
- Decision and action worksheet →
Track authorization and follow-through.
- UCO information continuity →
Explore the separate community organization’s systems and access controls.
Florida law establishes statutory duties; governing documents govern authority subject to law; contracts assign agreed services. UCO procedures concern separate UCO functions. The added workflows and review controls are Board Synergy recommended practices. Relevant statutory principles reviewed October 17, 2026; retained historical articles are background, not current fee or legal instructions.