The budget is your financial road map for the year. The budgeting process should be taken seriously. However, it does not need to be complicated.
Developing the Budget
The budget committee should begin the budgeting process during the transition period, after the new officers have been elected. The goals of the PTA for the year should be established first, and then decisions can be made about how to raise the needed funds.
To create a budget proposal, the following information should be considered:
- Prior year financial records
- Needs assessment results
- Input from each commissioner and/or program chair
The estimated expenses of every program, project, and activity should be determined, along with any anticipated related revenue (for example, with a book fair). The budget should also include general and administrative costs, especially for leadership training (such as the Utah PTA Leadership Convention). Sources of revenue will include membership dues (local portion only) and contributions, as well as fundraising projects. Both the funds carried over from the previous year and the amount of money to be carried over to the subsequent year should be identified.
The budget should be general and flexible enough to meet the changing needs of the PTA. Establishing categories for both revenue and expenses is recommended, individually listing only those items greater than ten percent of the total budget. Budget categories can be organized by commission, with more detailed information for executive committee use only. The PTA may consider including a phrase such as “Revenues received in excess of budgeted amounts will be carried over to the subsequent year” on the budget.
Approving the Budget
Once the proposed budget is approved by the executive committee, it must be approved by a majority vote of a quorum of the membership at the first general membership meeting (such as Back-to-School Night). The number needed for a quorum can be found in your bylaws and is usually at least ten members. The treasurer might present the budget item by item, either by distributing a copy of the proposed budget to each member or projecting it on an overhead or via computer at the meeting. Members should have the opportunity and the time to ask questions before voting on the proposed budget.
The motion to approve the budget is made as follows:
- The treasurer could make the motion: “I move that the budget be approved as proposed.”
- If the motion comes from the budget committee, no second is required.
- The president asks: “Are there any (further) questions or discussion?”
- After discussion and questions, the president calls for the vote: “If there is no further discussion, we will take the vote on the motion to approve the budget as proposed. All in favor, please say aye. All opposed, say nay.”
- The president then reports on the result of the vote: “The motion to approve the proposed budget has passed (failed).”
A majority vote of the general membership is required for approval, with at least a quorum in attendance as specified in the bylaws. (Most local PTA bylaws specify that ten members constitutes a quorum; see Article IX, Section 8.) The secretary must take minutes at this meeting to document the approval of the budget. A copy of the approved budget and the minutes of the general membership meeting where it was approved must be submitted via Givebacks by October 1st (with other Beginning of Year Documents).
Take Note...
The approved budget gives the board of directors authorization to spend the PTA’s funds in accordance with that budget. Committees and committee chairs receive authorization to proceed with a project or to spend funds from the board of directors. No committee or committee chair should ever obligate the PTA to a program, project, or activity—or any obligation, financial or otherwise—without the approval of the board of directors. No officer is authorized to spend funds that have not been approved by the membership. All expenditures must have been approved through the budgeting process.
Amending the Budget
Because the budget is only an estimate or approximation, it is likely that changes will be necessary during the year. (For example, if a fundraiser is more or less successful than anticipated or if a situation or opportunity arises that had not been considered when the original budget was created.)
Changes or amendments to the budget during the year must be approved by a vote of the membership. PTA funds belong to the membership. No other group or individual—including the president, the treasurer, the executive committee, the school principal, and the school community council—may make financial decisions alone.
Any substantial change (10%) to the budget must be approved by a two-thirds vote of a quorum of the membership (or a majority, if prior notice of the vote was given).
- The amendment must occur prior to any additional funds being disbursed.
- The vote may be taken at any regular general membership meeting or at a special meeting called for that purpose.
- The number of members required for a quorum is defined in the bylaws.
The motion to amend the budget is made as follows:
The treasurer could make the motion:
- I move that the budget be amended to… “ (e.g., add $100 to Health and Safety; transfer $175 from Education to Individual Development; provide that the $3000 in fundraising revenue received in excess of the budgeted amount be carried forward to the 2022-2023 fiscal year).
- Unless the motion comes from committee, a second is required: “I second the motion.”
- The president asks: “Are there any questions or discussion?”
- After discussion and questions, the president calls for the vote: “If there are no further questions, we will take the vote on the amendment to [read the original motion]. All in favor, please say aye. All opposed, say nay.”
- The president then reports on the result of the vote: “The proposed amendment to the budget has passed (failed).”
For a printable copy of the Budgeting process or to see samples of both long and short versions of a Budget, see links below.