No one can feel accused of anything, if the books are OPEN and run accoridng to the local rules and regs or IRS rules depending on your corp status.
Thats the way it should be, of course, most financial things are 'open book' if youre
1) a public school (as by federal rules) just as disclosure almost all district finances, or
2) 501c3, then just about EVERYTHING is open book as by irs rules.
I believe above is correct although I am NOT a CPA/lawyer.
If above is true, it is astounding to hear all the tales of financial PTOA woes, becuase if things are out in th open as they should be , and accessible to those who inquire, then funy business either doestn happen or can be nipped in the bud.
A friend and I were discussing this very issue a couple weeks ago. The PTO she belongs to is very lax in the area of financial controls where the group I belong to has some basic guidelines and has been working to make them even more detailed. We both agreed that having a clear cut set of financial controls and rules to follow in regards to money handling and other financial matters is not only helpful in preventing embezzlement and messy bookkeeping, but it protects the person(s) involved with the handling of the group's finances. As seen many times on these boards, there are people who like to stir up trouble and make accusations. If you have clear, detailed financial controls then everyone understands how things should be done and there are clear, detailed records to show that there has been no wrongdoing.
Trust has nothing to do with anything.
It is totally beside the point imho.
It is about runnning the business as a business, and not as a CLUB, as some smart person at the beginning noted.
And businnesses, well run ones, need checks and balsances. simple as that. doing them doenst meant you dont trust the treasurer, or anyone else, it simply means you take the organixation seriously and give it the respect it deserves, so your parent body too will respect you (and tjerebuy support you ie help you fundraise).
A club without checks and balances is not taken seroiously by anyone. its more of a social thing, in that case. its what you make of it, basically.
Our Treasurer was once let go from another job because of embezzlement. The principal complained about her in that role but put her right back in the next year.
Everyone needs to have some system of checks and balances. I do believe that most people are trustworthy and it is best to trust than doubt everyone; however it is best to keep an open eye!
More info can be found in the PTOToday Treasurer's Toolkit binder that can be ordered from the PTOToday store at this site.
Regarding your president voting....per Robert's Rules of Order, the president should vote only to break a tie.
No petty cash. None. Even with the best financial controls, petty cash can get lost, misused, or misreported. Can any group's reputation withstand the loss of petty cash? Does any group want that cloud of suspicion?
Every financial transaction should be backed up with a paper trail including receipts and two authorized signatures. From what you've described, your PTO needs a financial makeover quick!
New to PTO. I am looking for some rules that our PTO can adopt. 1) to prevent fraudulent use of funds. Past PTO President insisted checks to be made to them, so they can cash and disburse. Receipts did not balance. 2)I have been on other nonprofit boards where Presidents did not vote, they only vote to break a tie. 3)Also need something or rules on who and how real cash is handled, petty cash use and who should be involved when you have events handling cash. Thank you, and your response and advice is needed asap.
