Question: Principal controlling PTO finances

We have a principal who exercises too much control over our PTO's expenditures. We began our school year with $11,000 of money that was raised last year but not spent. Parents have made several suggestions about spending it, but she ignores all requests. We believe that the money should be spent in the year it is raised, but she will not listen to our suggestions. What do we do?

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Advice from PTO Today

Elly writes:

Hmmm. Before you can proceed, you need to find out why the principal wants to keep a lid on your spending. Maybe she has a special project in mind. Maybe she's concerned that the school will have a budget shortfall and she wants to use your budget as a source of supplemental funds. Maybe she's just the type to squeeze a nickel so hard you can hear Thomas Jefferson holler.

Elly suggests that your board meet with her to get some answers about why she's been so thrifty with your money. Your questions needn't come off as accusative. You could start with "We've noticed you've been hesitant to see us spend our budget as we've planned. Is there another project that you would like us to consider?" Maybe she'd like some help with a new reading program or science lab, but she doesn't quite know how to approach your group. Or maybe she's just inexperienced when it comes to parent groups. Find out. Give her an opportunity to present her ideas and financial requests, but let her know that your PTO views involvement as its top priority and will make expenditures using this parameter.

Elly's also wondering why your principal has such a heavy hand in your group's business and money decisions in the first place. While it's good practice to seek your principal's support for events and programs that you run for families at school, that's really as far and as formal as her involvement needs to be.

When you say the principal "ignores" your requests to spend money, it makes Elly wonder whether the principal has control of your checkbook. That should never be the case. The money you raise should be allocated by the parent group, with advice from the principal—not the other way around. Making sure your group is a separate entity with its own employer identification number (EIN) from the IRS is a simple step that establishes you as distinct from the school. Incorporating and applying for tax-exempt 501(c)(3) status from the IRS are other things you can do.

One more thing—if your principal has had sole control of your checkbook, Elly strongly recommends that you conduct an audit. It's important to make sure the money has been spent for the things you've agreed to spend it on. Even with appropriate checks and balances in place, it's crucial for every parent group to conduct an annual audit. Don't skip this step.