Question: Multi Year Contract

The PTO board has decided to move forward on a 5 phase playground over 5 years. With the help of the principal we have created have created a 5 year budget. This budget as no increase in revenue projections, only a reallocation of expenses. Are there rules against this?

Asked by Anonymous

Answers:

Advice from PTO Today

Craig writes:
Creating a budget for a major project is a smart idea. Undoubtedly, things will change over the five years and you'll need to readjust at times, but the best way to get where you want to go is to start with a plan. As far as deciding what to fund and what to cut, those are decisions for each individual group -- there aren't any hard and fast rules.

Community Advice

dssmcorbett writes:
Are there any rules or IRS guidlines that signing a multi year contract is bad practice. We are signing a contract that commits future boards to a "pre exsisting" committment.