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Budget


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Our organization By Laws, state that we must have a Budget approved by April 1st of each year.  This deadline will not be met.  Is it true that at that time the budget from the prior year is accepted as our new budget.

 

My next question is the officers without having an approved budget gave the staff a pay raise, I questioned at the time could this be done due to the fact we had no budget in placed I was told his basic day to day operation expense.  Although I understand we have to pay our staff, it just doesn't seem that an increase of pay without a budget is considered a day to day operational expense.  Just wondering if I'm looking at this the right way.

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In the order you asked...

 

No, not unless your (previously adopted) rules say that an "old" budget carries forward automatically.  Note the U.S. Government passes "Continuing Resolutions" as needed when a new budget has not been adopted. It isn't automatic.

 

Yes, your vision is good.  What the Board had better do is adopt a proper new budget with that pay raise included.  Right away!  This, in effect, is ratifying (p. 124) their previous action to shell out the additional money.

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