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Board approved fund raising event budget

Guest Fighter for Rights

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6 minutes ago, Fighter for Rights said:

If an expenditure exceeds the estimate

should it need approval

even if it does not exceed the 3,200?

Are you saying _________?:

• IF an expenditure DOES exceed the estimate of $3200,

• THEN the expenditure needs approval,

• EVEN IF  the expenditure DOES NOT exceed the estimate of $3200.


How is this even logically possible? 


Edited by Kim Goldsworthy
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Sorry, I’ll clarify. An individual expenditure estimated at 300.00, ended up costing 825.00.  The overall budget still did not exceed 3200.  But should the individual expenditure have been approved since it was more than double the estimate?

or can the committee spend on whatever it wants without further approval as long as it doesn’t exceed the total budget?

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Well, was the committee empowered to actually spend this money, or is it just a line item in a budget? If the committee was empowered, then presumably it's up to the committee whether it wants to continue to deal with the vendor after a low-ball estimate. (If the committee signed a contract agreeing to pay whatever it cost, with an estimate of 300, and then got billed 825, you have a legal question, not a parliamentary question, about the obligation to pay.) The board could amend its past action to take it out of the committee's hands if it no longer trusts the committee.

On the other hand, if the committee has not been empowered, then no one should be spending any money without specific authorization.

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39 minutes ago, Guest Zev said:

Yes. However, I would always require a vote on a motion directing the treasurer to make any disbursement of any kind, budgeted or not.

The society could always insist on such a rule, but it is not customary.  Customarily, when a budget of a certain amount is approved for a project or even for the society as a whole, the treasurer (or the committee) is considered authorized to write checks  for up to the budgeted amount.  Amounts  not budgeted usually do require specific approval. I think it  is impractical in many organizations to require that each and every check  be specifically and individually approved by the board or the membership. It should not be necessary, for example, to get board or membership  approval every month for the treasurer to write the check for the rent, utilities, salaries, etc which have been, in essence, approved by the adoption of a budget including those expenditures.

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