Question: Principal took PTO $ without authorization what do I do?

Our PTO was dormant for 3 years. Not dissolved, just no officers, no meetings, nothing. But we did not enact article for dissolution so we could keep 501(3)c and tax I.D#, etc. We received 2X/year our earnings from BoxTops for Education in the form of a check written to our PTO. Now we have discovered that 2 of those checks did not get deposited into our account because principal said check was written not to PTO but to the school. HOWEVER--and this is a big HOWEVER: we got copies of the cancelled checks from General Mills and they prove they were in fact written to the PTO. What should we do? Clearly the Principal lied, so do we continue to go to her and let her wheeled out of her lie? Or go to superintendent or school board? And if so, what should we ask to be done about it? The $ has already been spent on experts' speaking fees (so it benefited the kids, just wasn't handled properly and we needed that $ for our own projects now that we have reformed with new officers.)

Asked by firefighter464

Answers:

Community Advice

Stephi writes:
Well Money is a touchy subject. I would say that since the PTO was not active and the money was used for the kids benefit that I would move forward and not bring it up again. BUT I would contact GM and have them put Attn: PTO president or treasurer on anything sent from this point on. If another check is "intercepted" I would remind the principal that the check was sent to the PTO and there where plans made for it. I may be wrong but maybe someone else has more insight??

Advice from PTO Today

Craig writes:
I agree with Stephi (below) -- I think you should probably let it go. The hard feelings that will be created by pursuing this could very well set your group back more than not having the money. It makes a huge difference to have a good working relationship with the principal.

Community Advice

firefighter464 writes:
Wow. So even though it is a federal crime (bank fraud) and misappropriation of funds is a felony, I ignore that? Do I really want a relationship with an unethical thief?

Advice from PTO Today

Craig writes:
Let me ask you a question. If the PTO was dormant for three years, who collected the box tops? Was it the school or was it the PTO? If the box tops were collected after the PTO became dormant, you could easily argue that this is more of a clerical error than anything else. In that case, some people might perceive this as a money grab by the PTO. They'll argue that the reason the box tops were donated in the first place was to help the school and the kids -- the PTO was a conduit to make this happen. And that's how the money was ultimately used. In fact, the money would have just sat there for three years, benefiting no one, if it weren't for the principal's actions. I understand your concern -- I'm just playing devil's advocate. But I don't think this issue is straightforward, and I think pursuing it will ultimately cause a lot of damage to the PTO and the school. If it's worth the cost, then send a registered letter to the school demanding repayment. But go in with your eyes open.

Community Advice

firefighter464 writes:
I do very much appreciate your wise input. And I do understand. Can I ask your wisdom a bit more? To answer your question and add clarity: The BoxTops were collected solely at the direction of one individual, a PTO volunteer who never wavered in her duties, active in PTO and remained so during entire dormancy of PTO, working with the kids to collect BoxTops, collating, sending them in. She is not employed by the school. The PTO officers had resigned, but this volunteer never did. We never dissolved PTO, either. This volunteer in fact solicited the Principal on 2 occasions to send out a flyer asking for parents--especially those with new incoming kindergarteners--to help reform a new PTO, specifically because we had this BoxTops $ we could only spend if we had a PTO. Twice the Principal refused. And at no time told this volunteer the $ was already being spent. At the end here, when we discovered the spent $, the Principal actually pointed a finger at this volunteer and said SHE--the volunteer--had redirected the BoxTops $ by changing where the checks were written from PTO to the school. But it was not true. It was a bold-faced lie. Which we only uncovered by getting copies of the cancelled checks.