approval of proposed budget

[Guest Robert]

I think our Association has been approving the proposed budget incorrectly. The proposed budget is prepared by the Treasurer and his/her committee, submitted to the Board for approval (of the proposed budget). The proposed budget is delivered to all homeowners 30 days prior to the Annual meeting. And this is what I think we are doing wrong: at the annual meeting a motion has been called for to all the homeowners assembled to approve the proposed budget and the entire present membership has voted to approve it. Shouldn't it be the Board of Directors that approves it at the annual meeting, not the entire membership?

[Chris Harrison]

Only if the bylaws grant the Board that authority. Also, at a Annual meeting of the General Membership the Board as a body doesn't exist.

[Rev Ed]

I agree with Chris. If the By-laws do not give the Board permission to approve the Budget, then the General Membership retains the power to do so. So check the By-laws to see if the Board has the power to approve the Budget or not.

Also, the Finance Committee does not belong to the Treasurer. It is a Committee of the organization and should report to the Board and/or the general membership. The Treasurer may be responsible for heading the Committee, but it does not specifically belong to the Treasurer.

[Gary Novosielski]

Shouldn't it be the Board of Directors that approves it at the annual meeting, not the entire membership?

At an annual membership meeting, the "Board of Directors", as such, is not even in session, and therefore can't do anything at all.

Of course, board members may be permitted to attend the membership meeting, if they are in fact members of the society, but they have no more power there than other members do.

Remember, the highest decision-making body in an organization is the membership. The Board (if it even exists at all) has only such power as has been delegated to it by the membership, normally through the adoption of bylaws that specify the powers of the board. Any powers not specified do not exist.