I agree with the advice: don't panic. There are probably hundreds-maybe thousands-of PTO's operating just like yours. That doesn't make the officers bad people - we just didn't know any different. It also doesn't mean the IRS is going to show up and conduct an audit-I hope they have more important things to do. Thank this magazine and this forum for educating all of us on the important points you raise. You know these issues are important, but your officers may just be ignorant. The challenge is to educate the PTO without confrontation. How about printing off some of the discussion strings that address insurance and tax exemption and share them with the board? Or giving them your copy of the magazine and the webid? Or volunteering to do the research on tax id numbers, tax exemption, or insurance?

I think even mentioning that your father-in-law is an IRS CPA to your colleagues sets up an adversarial and threatening relationship. We are all volunteers trying to the best we can. We need help and advice, which he might be able to facilitate. But many, many PTO's have imporoved their controls and become 501c3 on their own, relying only on the resources available to everyone thru this forum and the IRS phone help. Clearly, your intentions are in the best interest of the PTO.

Regarding your treasurer: if s/he is providing monthly reports that tie out, and your PTO have good controls for reimbursement requests, deposits, and check issuance, you have a good treasurer. I wouldn't worry about her personal life.

You hit the nail on the head Metzy Mom! I don't want to seem bitter about what happened. I don't want them thinking that this is all some sort of revenge, because it isn't! I had asked my father-in-law to come to the school for grandparents reading day, a few weeks before the president decided to run again, and I thought I would have no competition. He said I should make sure everything was in order before taking charge of a committee that could or could not owe some sort of money to the IRS. I was the one who asked about insurance after reading about it on this site. It almost makes me not want to go to any PTO after hours things because if someone gets hurt, the school's insurance won't cover it. I doubt I could get my father-in-law to come to a meeting, as he lives an hour away. Getting him to come to the 2 school functions he did was a bear to say the least!

Maybe you could get your Father-In-Law a spot on the next PTO Agenda as a guest speaker. I think that putting him on their tails (so to speak) will go a lot farther than ambushing them. Anything else, seems to me, is going to look like sour grapes (I only say that because I know the background history) even if it isn't. Tell the prez you have an "Expert Guest Speaker" (I'm not sure there is a need to tell everyone that you are related) for the next meeting. He will probably get no more than about 10 minutes to speak, so he needs to be quick and concise. If you put him into the position of 'helping them', I think everything will turn out just fine.
Good Luck

The only reason I brought up the fact that she is doing jobs for a neighbor and getting paid under the table is the fact that if she handles her own money that way, what is she gonna do with money that belongs to the PTO? These are large sums of money she is dealing with. Not that I think she would take any or anything, but I honestly don't know if I trust her. She is another person the president asks quite frequently how to do things. I actually brought this fact up to the president and she said the way things are done now are fine, who is gonna audit a PTO? (My father-in-law) He came to our school and saw some of the things the PTO bought for the school and started asking questions about how much money the PTO brings in and do we file income taxes and things of that nature. I said I didn't know and he went and looked it up at work. He is just ready to jump at the chance! He is so honest, he won't even give me and my hubby a break on our income taxes. He is one of the CPA's that audited John DeLorean, if you can remember back in the '80's. The man is ruthless. I am afraid he is going to take things into his own hands if something isn't done soon. He also wanted the names of the president and treasurer, they are the ones in charge of the money. I am pretty much stuck in a spot between following the rules or protecting the PTO, which I was a part of for 3 years. I am so confused.

<blockquote>quote:</font><hr>Our PTO does not have a tax ID number nor have we ever filed a tax retur <hr></blockquote>

I would contact the IRS and start the proper paperwork.

<blockquote>quote:</font><hr> our PTO has been using the schools tax ID number to get things tax exept through local shops and warehouses <hr></blockquote>
Sales tax exemption is different than federal income tax exemption. If your group is using your districts state sales tax exemption I'm wondering if your PTO has their own bank acct. I say this because, in most cases, a business will not accept a sales tax id if it does not match the name on the check. I would check to see if your group has its own bank acct, or if the money is run through the district acct. Some groups do this and it works out quite well.
<blockquote>quote:</font><hr> . I also found out that we don't have insurance of any kind. <hr></blockquote>
I would reccommend to the board that this is something that is a must for any group.

<blockquote>quote:</font><hr> It also came to light that the treasurer is doing work for one of our neighbors and he is paying her under the table. I am concerned with this. What would you guys do in this situation?? <hr></blockquote>

Frankly, I have no idea what this has to do with anything. Unless I misunderstand the statement, I don't see what business it is of anyone's what the treasurer does outside of PTO as far as her personal/professional life goes.

<blockquote>quote:</font><hr>I had intended on using this information to get the PTO back on the right track and to make sure everything was as it should be. HELP!!! <hr></blockquote>

I'm hoping this is still your intention. As Metzymom stated "I would take it up at the first meeting, make sure it gets into the Minutes, and let the exec board handle it immediately. Go at it from the angle that they DON'T know there is something wrong, that you are being a good member by pointing out the problem, and let them take care of it. Period."

Excellent advice!

I beg to differ Lisa. I'm not sure that the Treasurer has done (or not done as the case may be) anything that would be considered illegal. I think that the entire executive board is at fault, or at the very least, has to share the blame. Also the school administrative personnel will need to accept some of the blame (if you can actually call it 'blame'). The thing to do is raise the issue at the first meeting and decide what steps need to be taken to rectify the situation. The prez is ultimately responsible, not the treasurer, as he/she runs the group and is supposed to know what is going on. If nothing is done to rectify the situation, the entire executive board should be ready to answer to the IRS.
I am not an attorney, and certainly not well versed in IRS matters, but it seems that the executive board together have to see that this is taken care of or face the consequences. It is definately a can of worms, especially if it can be proven that they knew the problem exsisted. I would take it up at the first meeting, make sure it gets into the Minutes, and let the exec board handle it immediately. Go at it from the angle that they DON'T know there is something wrong, that you are being a good member by pointing out the problem, and let them take care of it. Period.

Good Luck!