Payment of items which are not included in a budget.

[Guest Sue Lovelace]

Can anyone tell me what steps an organization needs to go through to pay for an item which was not included in the budget of the organization?

[Gary c Tesser]

It depends on what you mean by "budget."  If, for example, the budget is a projection of expected expenses and income for the coming year, and is not binding, you simply pay for the item.

 

As another example, an organization adopts a budget, as binding.  In that case, as I understand it, the organization may only pay for items budgeted, and to pay for anything else, the budget must be changed (to "Amend Something Previously Adopted").  You put the item into the budget, and then you pay for the item.

 

On the other hand, some budgets do include padding, such as "miscellaneous expenses," so I would expect that you can pay for your un-budgeted item as something within that category, though of course you can't exceed the budgeted amount of money.

 

None of this is from RONR.

[Transpower]

Yes, I agree with Gary:  use the miscellaneous account for this "off-budget-line" item.