Digital Spreadsheet System Provides Transparency and Control to Building's Finances

Transparency is key when it comes to managing a building’s finances, and the lack of it can lead to distrust and dishonesty.

Out Of the Loop

A 10-building co-op in Whitestone, Queens, found itself in that predicament. “It had been with a management company for about two years, and when we came on the board was very vocal about the issues,” says Michelle Abubo, a managing partner at High Rise Property Management. “The board members didn't know about invoices for repairs and utilities being paid, and when they asked about it, the management company just would take phone calls here and there, but weren't actually giving them the information they wanted. They weren't showing actual copies of invoices, they weren't trying to sit down with them and explain this is why it cost this much, this is why it cost that much.”

Specifically, the management company was paying the building’s utility bills directly from its own account, not the co-op’s, and then getting reimbursed. “I was kind of shocked to hear that,” says Abubo, adding that it appeared management was making its own invoices and never showing the board ones from the actual utility companies. There was also a problem with vendors. “We were not able to get receipts and other documents and go over them,” she explains. “There was the possibility that management had overcharged the co-op and then pocketed the money.” 

A Digital Solution

Abubo instituted the same procedure she uses with all her clients — creating an online spreadsheet that lists all of the co-op’s expenses. “Let’s say you're buying supplies,” she explains. “We attach the receipts, which become the invoices for the building, so the board can see exactly what was ordered, when, and how much.” Boards have access to the spreadsheet, which is updated monthly, and can click on a link that takes them to the PDF of the bill from the vendor. Abubo pays bills out of the co-op’s account, but not until she gets the go-ahead from at least two board members. “There are two columns that allow two or three members to either approve or, in some cases, deny payment and put it on hold for the time being. Once it’s approved, we release the check to the vendor.”

When there’s dissatisfaction with a vendor’s work, Abubo will solicit bids and present them to the board. “We’re working right now on finding a new landscaper,” she says. The board didn’t like how the job was being done, and requested many times to do a walkthrough with the landscaper to point out areas with dead patches in the grass, shrubs that weren’t being trimmed properly, and other areas that were being neglected. “But that never happened,” she says. “We’ve provided them with a couple of proposals, and now they’re in the deciding stage.”

A New Skill

At some buildings, there is a learning curve adapting to the spreadsheet system. “There have been cases where we do show up in person to explain in full the invoicing and how to use the live sheets,” Abubo says. Some boards still like having paper sheets, so she provides both. But whether digital or print, Abubo adds, “the system gives boards much more control.”

—Paula Chin