I am the PTO president at my son's school and we have had a debit card for about a year now. It has worked out great. The reason why I wanted one is because I could never find our treasurer to get a check from her. I only use the debit card for PTO purposes, and I give the card and the receipts back to the treasurer the same day. I would never use the card for my own purchases!
A police report could be filed for embezzlement. However, since the funds have been repaid and she has been released from the board, it would seem to be a waste of everyone's time. If the PTO/school chooses to do nothing, there are no legal ramifications.
Our president had her own debit card for the PTO money account and used the card numerous times for personal purchases although has put the money back in the account. Of course now that the rest of us know, everything has been turned over and she has been released from her position. I am wondering what legal trouble she may be in for this. I doubt the school will pursue anything but I would like to know for personal informational purposes.