Overspending after a motion was approved for $X amount.

[blatterj]

Our Board of Trustees passed a motion to make a purchase of an item with a maximum limit of $15,000.

It was later found out that a purchase was made of the item, but at a contracted price of $18,000. Our Board was not consulted as to the extra $3000 spent, nor was another motion made to fund the additional $3000 expenditure.

Can anyone shed some light as to how to proceed. A contract was signed and a deposit of considerable amount was given to the manufacturer.

Thank you.

[Rev Ed]

If the contract has been signed then you have to consult a lawyer who may be able to get out out of the contract - the person signing on behalf of the organization would likely have the right to enter the organization into the contract but this does not mean for the price allowed, and rules change in each jurisdiction.

As a parliamentary question, you could "Amend Something Previously Adopted" but that does not solve the problem. The person (or persons) who signed the contract on behalf of the organization could perhaps be reprimanded, but to what degree is up to the organization and if the contract has to be honoured or not. The responsible person(s) could be censured, suspended, have other rights temporarily/permanently removed, removed from office, etc. This depends also on what the By-laws state. Read Chapter XX of RONR if there are no discipinary routes available under the By-laws and if RONR is the parliamentary authority of the organization.

[Gary Novosielski]

It's also possible that the person who exceeded his authority and spent the extra money could be held accountable for paying the difference out of his own pocket, but that would be a legal matter, not a matter of parliamentary procedure.