Question: Financial help and legality

I am a new treasurer at the school for our PTO. We had a meeting about funds. I learned this evening that they have 2 accounts, 1 for the PTO and a 2nd that the principal has money for things. I asked where the money comes from and they said well the principal spends the money or deposits money in her fund (coke machine money, school extras like magician).... when looking at it, it's not reported as funds for PTO. Wondering if anyone else has this issue or is this normal?

Asked by Anonymous

Answers:

Advice from PTO Today

Liz L writes:
Hi,
The set up as you've described sounds complicated a little complicated. The concern is you should be reporting all your group's income and having two different accounts like that confuses things. It would make more sense to have a line item in the budget for a principal fund, but have the principal make any deposits she might have to the general PTO account.
Hope this helps.
Liz from PTO Today