Thank you for your reply. We had someone overspend a lot on accident and now we are planning to take a vote whether or not to approve it. Luckily we have some extra funds. I was just wondering if there was an official policy on this which you say there isn't. We are working on our bylaws because our last board had a hard time keeping it's momentum let alone work on official bylaws. Any info is very helpful since this is my first year. Thanks a million.
If a committee went way over their expense budget (like Staff Appreciation), or way under their profit goal (like some fundraising project), we would have to reallocate some money from another budget, by way of a vote of the membership. If the amount is less than $100, the board can act without a membership vote.
Like <vote>, this rarely happens because we stay pretty close to the financial in's and out's of our committees. Our VP's are in touch with the committees pretty regularly, in part to ensure they use good financial management. Our bylaws do not speak to this situation.
There isn't an "official" policy - it's whatever your PTO has adopted.
Reading between the lines, I'm wondering if you're considering asking the coordinator to make up the loss personally? We would not do that. If s/he had maliciously overspent, we'd deal with the situation, but we don't have a rule that the coordinator/chairman pays the overage.
If a committee exceeds their budget we must have a motion to approve the extra funds and then the general membership votes. If the amount is under $200 the President can approve without a vote. We would treat this just like any other expenditure.
This rarely happens and there are usually a few committees that don't spend their entire budget. We also keep a small amount of funds in reserves for emergencies.
noreaster - Whenever this happened to my team we needed to vote on reimbursing any amount over budget. I've read posts on here that say their bylaws allow for a certain percent of excess spending. What do your bylaws say about allocations and budget excesses?
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Is there a treasurer out there that knows the proper proceedure for handling things when an event coordinator exceeds his/her budget? Does the executive committee take a vote or is it up to each PTO individual bylaws? Help!!! I am a policy and proceedure nut!!!
