We have a budget line item that is overspent already by over $1,000. What is the proper procedure to revise the budget line item or do we just leave it negative?
First, have a conversation with the committee or people in charge of the project that went over-budget by $1,000 and let them know that they didn’t have authority to overspend. If it is anticipated that a project is going to cost more than the budgeted amount, the required meeting to amend the budget should take place before the money is spent. The PTA may choose to alter the event to cost less instead.
Having said that, if you find you have a line item that is overspent, you have a couple of options. If your standing rules allow for the board to “reallocate” funds within your budget (sometimes there is a dollar limit placed on this in the standing rules), then your board could have a meeting to vote to move money from some line items that were under-budget to cover the expenses where it was overspent. If this isn’t in your standing rules, then you would need to have a general membership meeting to vote to move money within the budget.
If you have money in savings, these funds could be voted on to cover these line items. If your PTA does not have the funds to cover this, then it presents a problem with the committee that overspent to see how the PTA will be reimbursed.
If you find some items of your budget are over and others are under, it would be a good idea to change these items for your next year’s budget so it more accurately reflects what is actually being spent.