Question: Spending more than approved

I have found out that the PTO president/treasurer spent significantly more for a program than was approved at our last meeting. The PTO has the funds to cover this but the program was 'sold' as only costing a set amount and now they've decided to add on unapproved extras. What can be done now? What can be done in the future to avoid this? The president/treasurer are related.

Asked by Anonymous

Answers:

Advice from PTO Today

Rose H writes:
Hi,
Did this extra spending already take place? Then the president/treasurer will need to explain this to the group. Plus, groups typically have a limit for discretionary spending -- this may be included in the bylaws. Often, limits are a few hundred dollars. In the future, make sure at least two (unrelated) board members are signing checks. This will help ensure that spending corresponds with the group's wishes. Here's an article on Smart Financial Controls that can help your group handle money.

Good luck!
Rose C.

Community Advice

yredford writes:
Rose,
Thank you for your response and we do pretty much follow the items in the listed article. Our bylaws do limit the discretionary spending and they went over it by about $1,000. Other than having someone unrelated co-signing the checks is there anything that can be done? Or is it just a matter of calling them out at our first meeting next year? What can be done if it continues? Our bylaws don't mention recall elections.

Community Advice

LaurieBrasil writes:
The important thing to remember is that we are all volunteers, and human. We make mistakes. Hopefully the President did not intend to go over the budget. I miss understood our Spirit wear provider one year, and went WAY over our budget, I was extremely sorry for letting down our group. They were not happy with me, but understood I was sorry for my mistake.

Community Advice

Advice from PTO Today

Rose H writes:
Hi LaurieBrasil,
Thanks for your post. You've made a really good point and I think it is particularly timely. With school just starting up, many PTO leaders are new -- and nervous that they will make a mistake. Your thoughts are appreciated!

Rose