The budget and finance committee develops a budget to meet the needs of the PTA’s programs and activities. After the PTA has adopted the budget, the budget and finance chairman (usually the treasurer) is responsible for assuring that PTA money is disbursed in accordance with the budget, presenting necessary amendments to the budget at executive board and general meetings, and keeping all expenditures within the line item amounts of the budget. Remember that any changes to the budget must be approved (voted on) by the general membership.
Composition of the Committee
Refer to the bylaws to determine whether the budget and finance committee should be elected or appointed. The committee usually consists of members knowledgeable about the PTA’s needs, proficient in bookkeeping and accounting, and experienced in planning a budget. The treasurer, past treasurer, and standing chairmen should be members of this committee. The president is an ex-officio member.
Budget and Finance Committee Procedures
- The budget committee should meet and plan the budget prior to the close of the current fiscal year. If this was not done, do so as soon as possible at the beginning of the school year.
- Treasurer’s records and copies of last year’s budget should be available for guidance in planning the new budget. However, do not let past practice limit your planning for the new year’s budget.
- The committee should take into consideration the funds needed for approved programs and projects, leadership development, and committee and officers’ expenses.
Adopting the Budget
- Present the proposed budget to the executive board meeting for input and approval for presentation to the general membership.
- Present the proposed budget at the first general membership meeting (after adoption of audit report) for consideration and adoption by the PTA members. This presentation must be made at a meeting where a quorum is present. A majority vote of the members present and voting is required for adoption. The budget and finance committee chairman says, “I move the adoption of the proposed budget for the _____fiscal year.” [Note: The fiscal year is identified by the calendar year in which it ends, so the budget your PTA adopts this fall is for the 2019 fiscal year.] The chairman then presents the budget line by line for explanation, discussion, and possible amendments. A vote is then taken to adopt the final version of the budget.
Remember, the executive board (officers and chairmen) approve the budget for presentation, but the general membership is the group that adopts and amends the budget. Illinois PTA has created a Local Unit Sample Budget.