Past President

[Guest J.R.]

Hi,

I'm on a small board that oversees an athletic organization which is non-profit and voluntary. It has been uncovered that the past president has made a large purchase which was not approved by the board. Since this purchases are into the thousands of dollars, some board members feel compelled to do something, while other board members feel that since this person is no longer an officer, nothing can be done. Can you provide some guidance as to IF something can still be done, and how are these types of proceedings typically handled?

Thanks

[Kim Goldsworthy]

I'm on a small board that oversees an athletic organization which is non-profit and voluntary.

It has been uncovered that the past president has made a large purchase which was not approved by the board.

Since this purchases are into the thousands of dollars, some board members feel compelled to do something, while other board members feel that since this person is no longer an officer, nothing can be done.

Can you provide some guidance as to IF something can still be done, and how are these types of proceedings typically handled?

Assuming that you know this for a fact (do you?), then the obvious first step is just to ask Mr. PP to reimburse the organization 100% of the club assets spent on unauthorized services or products.

If you do not know this for a fact, then nothing can be done, until you do know that someone has spent club money on something in an unauthorized way.

What else?

You cannot un-seat a person who is no longer an officer.

But you are free to suspend a member, or to expel a member, for stealing club assets.

[hmtcastle]

It has been uncovered that the past president has made a large purchase which was not approved by the board.

Spending money which isn't yours is stealing. Get a lawyer.

[Gary Novosielski]

But you are free to suspend a member, or to expel a member, for stealing club assets.

You are also free to call the police.

[Guest J.R.]

There is proof in our financial documentation. Our bylaws state that disciplinary action can be taken, however they don't specify what type of action exactly. The money was spent on something for the organization, but the decision was made without board approval. Other than making a police report, how do we broach the topic? In a board meeting? Is it the entire board that is involved in this process or only the officers? This action also implicates the treasurer, because she willingly participated in this transaction knowing the entire board should have been involved bassed on our bylaws.

[Robert B Fish]

Call a special meeting of the board. Move that the audit committee report on this action. Instruct the audit committee to have their report done by ___.

Note that, even if she did spend the money without approval, the Board could still decide to approve the expenditures, thereby letting her off the hook.

-Bob

[hmtcastle]

Other than making a police report, how do we broach the topic?

Instead of asking "What can be done?", why don't you tell us what you would like to happen and we can tell you if there's a parliamentary path to that end.

You said, "some board members feel compelled to do something". What is that "something" they feel compelled to do?

[Kim Goldsworthy]

Other than making a police report, how do we broach the topic?

In a board meeting?

Is it the entire board that is involved in this process or only the officers?

This action also implicates the treasurer, because she willingly participated in this transaction knowing the entire board should have been involved based on our bylaws.

Off the record (i.e., NOT from any page of RONR):

Try doing it UN-officially first.

That is, in a private conversation, present Mr. PP with the facts (as you know them to be), and suggest that Mr. PP take the initiative and "do the right thing."

Whether that "right thing" is

(a.) reimbursement, with a "Mea cupla";

or

(b.) a big fat nothing, with an Italian salute, with vigor;

I cannot predict.

But you will have saved his self respect (what little left there is), and avoided a public scandal, and avoided a time consuming trial process for all concerned.

Off the Record #2:

Consult the most senior members of the organization (e.g., a P? an IPP? a 40-year sustained member?), and ask them what the most politically-correct action would be.

That is, don't go off half-cocked and assume that you definitely want to expel Mr. PP or suspend Mr. PP, if the political might just isn't there.

It would a useless spinning of the wheels for us to recommend how to initiate disciplinary action, if you guys aren't interested in disciplinary action.

Thus our question to YOU: If you don't want to suspend or expel Mr. PP, then WHAT DO YOU WANT TO DO?

[Josh Martin]

In a board meeting? Is it the entire board that is involved in this process or only the officers?

If your Bylaws have customized disciplinary procedures, then follow what your Bylaws say. If your Bylaws are silent on this topic, the authority for discipline rests with the general membership. Read Ch. XX of RONR thoroughly before proceeding.