Question: Spending More than what is in the budget
When you go over your budget, is there anything you are supposed to do? One of our officers believes that we will "get in trouble" if we spend more money than we had planned, but I don't understand! Can we use these unallocated funds? How do we record this?
Asked by Anonymous
Advice from PTO TodayRose H writes:
The budget is your financial guideline for the school year. If, on occasion, you overspend on an event, you should be able to take money from the general fund to adjust to that change. This isn't a ticket to spend like crazy, but more a recognition that sometimes unexpected expenses pop up. Of course, these unexpected expenses should be within reason and committee are supposed to stick to the budget. But there will be times when budget adjustments are necessary. It makes sense to be upfront about changes and include them in a treasurer's report to the members if possible. Groups often have guidelines in their bylaws that the board, at its discretion, can spend up to a certain amount from the general fund and if it goes beyond that it needs to put it to the group for a vote.
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