Anyway, my BIG question is the school has said NO WAY can we start a PTA or PIE and have our own account.

You absolutely can if you want to. Unless the district has some policy that states you have to have this group in place (seems a little ridiculous to have a rule like that but by now nothing amazes me!)
I know of PTAs that meet off the property because the schools won't let them in.(not in my area, we have great Principals but in other parts of the state, yeah) All you have to do is contact the state office to help you set up. It is, however, more than helpful, if you have the support of the school behind you. They can make life very miserable for you.
There is plenty of information about starting a PTO all over this website. You would essentially be starting over and since the school won't let you do anything with the other group, you could let them keep it.
If you want help starting a PTA contact the New Mexico State PTA at (505) 881-0712
(888) 228-8880 (in state only) or e-mail This email address is being protected from spambots. You need JavaScript enabled to view it.
If you choose the PTA route, they'll likely help you with the fight. (that's how I know about the LV school that has to meet off campus, the Region director has had to help them)
Either way, be prepared for the fight. People in control, don't like to relinquish it.

I am trying to find "rules" on how to disband our current PTO and start a new parent group. I was new to PTO last year and knew we were comming in as a "clean-up crew" from the years past. Our school district has been babysitting us for a while now (I'm not sure how many years). All our funds are run though the school district. We have to do Purchase Orders and Cash Packets. I am having our books audited right now, and we have found money deposited in wrong accounts, PO's not adjusted-- say we planned on spending 275.00 but then only spent 200.00 our money out is 275.00, but there are no redeposits of the change. Our money is way off!! Anyway, my BIG question is the school has said NO WAY can we start a PTA or PIE and have our own account. I will actually have to have a meeting with my principal and the superintendent of the school district. The woman who I deal with in the central office has said that the superintendent will never let us have a parent group with a check book agian, that all money must go into an activity fund. This activity fund is crazy!! All the schools put their money in one account and each piece has a certian 3 digit code on the end of a larger account number. Our PTO treasurer cannot make deposits or write any PO's or checks. This job belongs to the school secretary. We are finding alot of PO's that we don't even know what the money was used for, and things we didn't know we were paying for, not that we wouldn't have paid for them if we were asked.

Anyway, back to the question--What can we do? What would be right?