Rules for requesting expenditures

[Guest Guest Guest]

Hello - this question ties in with the topic raised about the Board not allowing a motion to be voted on. 
 

Our Not for Profit, member-owned private club ended the year $50,000 in the negative according to our Treasurer. Members have asked to see the expenditure reports on certain projects that supposedly caused this deficit. The Board, including the all the executive Board, refused to state what was spent on what, stating “they don’t have to”. 
 

Members requested verbally and in writing at the last Board meeting for these numbers to be available in order to discuss them at the first of three all members meetings. The first meeting was just held in May. (It is unusual, but our Board has always presided over Board of Directors, General Membership, and Executive Sessions since the inception of the club 40 plus years ago). 
Despite their requests, no information was given. The members requested verbally during the all members’ meeting once again for the expenditures. The Board now states that the “proper forms” weren’t filled out, and that’s why they are not honoring any of the members requests. The meeting was Saturday. On Tuesday, the first business day our office is opened after the Saturday meeting, some members called the office asking for the proper form to request the detailed expenditures, per the Board’s direction. (So verbal and hand-written requests were “wrong” according to the Board, and we were told to request properly by filling out the form from the office.) Upon asking for the proper forms from the office manager to make the request, the members were told there’s no such form, and what were we talking about?!?
 

We, the members, feel this was a diversionary stall tactic to us receiving the requested numbers. As a member owned club, we have a right to know how our money is being spent, and why we were in the negative. 
 

To be noted: the President and Vice-President chair the committee where the questionable expenditures came from
 

Our by-laws state the following: 

Section 9, letter B - Audit/Examination of Finances

B.  Any Director or committee chairperson handling Club funds from various activities shall, at the request of any member in good standing, make available to that member the financial report of the specified activity at a reasonable time and at the principal office of the Club or such other reasonable place, as may be designated. 

Also: 

Section 4, letter C- accountability

Committee chairpersons,  who are authorized by the Board of Directors to handle funds, shall keep an up-to-date record of monies handled.

1.  During the months of May through October, inclusive, publish and post in the Club office, a monthly record of activities and monies handled. 
 

2.  Furthermore, these chairpersons shall submit a monthly report of monies received/expensed to the Treasurer. 

 

How should the members proceed in order to find out the information of how the money was spent? Our by-laws do not specify how the request should be made. 
 

Thank you in advance for your answers and advice. 

 

 

[Josh Martin]

On 5/7/2024 at 4:08 PM, Guest Guest Guest said:

Our Not for Profit, member-owned private club ended the year $50,000 in the negative according to our Treasurer. Members have asked to see the expenditure reports on certain projects that supposedly caused this deficit. The Board, including the all the executive Board, refused to state what was spent on what, stating “they don’t have to”. 

The board appears to be mistaken, since your bylaws provide:

"Any Director or committee chairperson handling Club funds from various activities shall, at the request of any member in good standing, make available to that member the financial report of the specified activity at a reasonable time and at the principal office of the Club or such other reasonable place, as may be designated."

On 5/7/2024 at 4:08 PM, Guest Guest Guest said:

How should the members proceed in order to find out the information of how the money was spent?

Well, I would start with making a request, and pointing to the section of the bylaws which provides that such requests are to be honored.

Then after that, I'd probably take a look at the sections pertaining to removal of board members, if the board continues to stonewall such requests.

On 5/7/2024 at 4:08 PM, Guest Guest Guest said:

Our by-laws do not specify how the request should be made. 

Then it would seem to me the requests can be made in any manner. I would suggest it would be best to make the request in writing, so there is a record of the request.