Phil,

While I agree that unplanned expenditures should be controlled, and you must set limits, the situation here is not the Principal's, but the PTO representative (Exec board, committee head etc) that has fiduciary responsbility to the PTO. Thus, giving an independent party like the Principal does not allow initiation of the special expense by the Principal, just confirmation.

Of course, just about any rule can be abused, which is why verbal confirmations, emails etc can help when enough officers can not be there. And the smaller the limits can be set, the less chance of abuse of funds. Hopefully, you can strike a happy median.

No one says that one can't have different "emergency fund" amounts for different situations. E.g. see a sale of items for the Holiday Shop, and needs to be picked up might be $25 max. On the other hand, the Spring Dance might need more latitude with expenditures, so perhaps $150. These could be hard coded in the bylaws, or allowed to be set by the Exec Board or similar, or a combination of both (I would always set some cap in the bylaws, so there was no way to just change it at a whim)

In any case, there should always be reporting of all expenditures both in reports and to the membership, even including unreimbursed expenditures or donations. This is important to better plan future expenditures, where you can't always plan on someone donating or eating the cost.

A final review of money situations that have occured should be performed to help eliminate their cause in the future.

The by-laws can state whatever the PTO wants them to state.

That said, making a new by-law for an unusual circumstance is rarely a good idea.

Unless the Principal is a member of the Exec Bd, then s/he has no fiduciary responsbility to the PTO. It would probably be a bad idea to give the Principal that kind of authority over the PTO budget, especially on an "emergency" basis (who's emergency?). Your current Principal may take this responsibility seriously and always do the right thing, but once it is in the by-laws there would be no stopping the next Principal from abusing the priviledge. There are enough issues with Principals listed on the other forum that you should avoid the temptation.

Our PTO requires a vote of at least 3 (of 5) board members to approve anything - period. We do allow for e-mail votes and require that the votes are specifically mentioned at the next PTO meeting (so the membership knows what the board did and can challenge the decision).

As for the situation mykidsmom describes, if the board is not available to vote for the expenditure, and it really has to be done right now!, the I would make the purchase and plead my case to get reimbursed after the fact. There is a risk you won't get paid back, but reasonable people objectively looking at the situation should approve of a true emergency (especially - in this day of cell phones - if reasonable efforts were made to contact the decision-makers). For a $5 overage you should never have been called on the carpet publically like you were - for $50 maybe but not for $5.

Okay, on the side of the "all best laid plans don't alwasy go as planned..." veiw last Chirstmas we were putting together gifts for needy families and a student starts to giglle as she is wrapping. Asking her to share, she told she needed to wrap something else as she knew this studetn and asked who purchased all this girl stuff for this boy. Oh ________ yeah. SO Off to "wally world" I was to correct this issue but I only have a $50 before I need approval!!! So I'm at the checkout and it comes to $55! To fast forward here, I was so mad to be totally humliated at the meeting when the treasurer yelled at me for going over budget...$5. Her argument was to only reiburse me 49.99 since I went over. ( the other gifts were bought by a volunteer)

Our solution...okay comprimise...gift card. A prepurchased gift card for purchases that our PTO will buy. in other cases we are talking about using the Visa gift cards that you can buy about anywhere to cover unexpected costs. Our biggest problem is volunteers that forget to bring food dishes (or just never show) so we have to run to the store.
Stuff happens and I like knowing know I have the "oops fund". I would love to have 250 but my 100 is good for my budget.

I also think $250 is very generous, maybe too generous. Could lead to trouble.
What possible expense over $250 could come up that needs to be taken care of immediately that can't wait until a few phone calls are made? We've had a few (ran out of raffle tickets, bags, resale items) a few times over the years, but nothing that expensive!
As stated above, doesn't the treasurer and/or president have to sign the check?
I agree with Critter, better planning next time may be the solution.

I'm guessing you're addressing this issue because of one specific unusual situation. How likely is it that this situation, or one like it, will arise again? The way I'm reading your posting, a single board member can approve up to $250 of unbudgeted $ on the spot. That's a generous contingency budget. The issue is whether the principal can make that call, right?. Question: if s/he approves the emergency expenditure, who is actually creating the check to pay the expense if there are no board members on site? Also: at whose instruction is the principal approving the emergency expenditure? The committee chair?

Rather than revise your bylaws to weaken your financial controls, I'd focus on ways to improve planning so as to avoid this position in the future. I don't mean to sound harsh, just suggesting a different approach to the problem.

I think that if you really require it, then sure. Bylaws can say whatever you want.

The Principal is sort of an independent party that could be given a right to approve an expenditure in an extraordinary circumstance. I would still put a cap on the maximum amount the Principal could approve.

But 1st, reasonable efforts to locate the needed board approvals should be tried.

Regards,

Ira