After the PTO has approved the general budget each committee has "spending rights" for that money in their capacity as committee chai. If there is not a committee chair for school improvement then I would assume the spending power fall under the President/Executive Board. But I really don't know...good question. Valid reson for Financial Plan to be adopted.
Since I work full time as a bookkeeper, I know the process and how accounting should be done, however, the other people (mainly the president) will not work with me to provide me the audit trail needed by using the forms, so, I use them on my own and document who/what/when/where/why/how.
Copedad, I would love a copy of your financial policy. I think it would be helpful for me to prepare a set for us to go along with the By-Laws.
One question... When a budget has been approved, with funds allotted for something, who chooses when those specific funds are used. For example we placed funds in the budget for School Improvement. However, the president uses these funds for what they choose is "School Improvement". Am I totaly wrong for feeling that is wrong? I thought the funds are when our groups VOTES for a school improvment, then the funds are there for the using.
For our PTO either I can sign checks (president) or the treasurer. I cannot sign checks for my personal reimbursement though. All expenditures need to fall within the budget give or take a $100.00.
Definitely write those Bylaws now and get them in place so that the PTO is always covered.
Cindy
Cindy<br />
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<br>"People have the right to be stupid, but some abuse the privelege."
First, I'd say if the President gave you those bylaws to review, then review them. Provide the feedback to improve the bylaws. Just don't make the comments personal or you risk short-circuiting the whole process.
Next, as was said, your group needs accounting controls. These are not just to mind the budget and to see that power is not abused, but also to de-personalize decisions regarding how things are spent and open up the decision-making process to board members and/or general members. Money spent should be mentioned in minutes somewhere.
My group started the process of controls by brainstorming what types of forms we might need. Even though it sounds beaurocratic, it forced us to think about all the ways we would be dealing with money.
From there, we drew up our Financial Policy and attached that to our bylaws as a standing rule. We did that so the board could make changes to the policy without a major change in the bylaws.
Most of what we did at that time (now 2 years) is still in place now with a few revisions. The keys are to plan ahead and work together.
Also, we decided it would be a bad idea to have the Treasurer as a check signor. Treasurer is required to produce the chack and two officers need to sign it. This way, most checks issued are handled by three different officers. The President can write time-sensitive checks if the Treasurer is MIA, but the check needs that second sig, and the disbursement has to have prior approval.
Good luck. Actually creating an organization is frustrating, challenging, and rewarding.
If you don't expect too much from me, you might not be let down. <img src=images/smilies/smile.gif>
Definitely don't let her ramrod bylaws that the group doesn't support. That will cause problems for years to come.
As far as the current issues, you may be able to more subtly address some of them via your role as treasurer.
In that position you should be helping to craft policy and procedures for proper money handling procedures. Start documenting those - not just the problem areas with your president - but all. So it will include things like two signers on checks, two people counting cash, requiring proper documentation for reimbursements, etc.
As you get the group to accept these basic policies, you can then point to them when they are violated.
Another one is the annual audit (which can be done by a volunteer committee). But part of that checklist is that each expenditure was properly approved. Well, if you are trying to keep things in order to pass the audit - it's only natural to question expenditures that were not approved at a meeting.
Start implementing these things as routine policy that everyone needs to follow rather than singling her out for being "wrong".
That being said, the president does need some discretion in spending. Many bylaws will allow for a certain amount (often up to $100) that the president can authorize without a vote.
When I was pres, there were times we knowingly went over budget. But either it was situations where the board knew and verbally agreed (with the vote being finalized at the next meeting) or for an expenditure I was making where I felt confident they would agree or else I was prepared not to be reimbursed. This wasn't huge amounts or a pattern of bad planning - just normal changes that occur sometimes.
