I am a new president of our PTO. I was involved in fundraising last year and I am sure we don't have Treasurer guidelines nor have we ever performed an audit. I do know that someone in a prior regime (several years back) did steal PTO money. So, who can help provide me with their school's guidelines. Please feel free to email me or even send me a hardcopy. My email is This email address is being protected from spambots. You need JavaScript enabled to view it. By the way you guys are so generous with your imput... I am so impressed with this site!!!!!

What do your bylaws say about financial reviews. It would be very wise to have an annual review done at the end of the fiscal year, when the treasurer or president resign or whenever you have serious questions.
I am a firm believer in standing rules, which work with your bylaws. You can include your money handling procedures, and tons of other things in them. And, if you review them annually and have the board approve them, there can be no question on procedure. After the approval, each board member should get a copy for their procedure books.
I have worked with PTAs that have had money stolen and been at a PTA that had funds taken. It can be a very painful situation. The thief is usually a trusted volunteer that you never had any reason to doubt. They might be one of your best volunteers. My husband always says we are too nice and therefore people run over us. It is now time to stop being nice and start thinking about running your PTA/PTO as a business. Businesses don't tolerate this type of behavior, they prosecute to the fullest extent of the law.
My advice is to do a review of the books immediately. I am involved with the County Council and we do reviews for local units. When we find missing money our advice to contact the police. You can be sued by your membership for fiscal irresponsiblity if you cover it up. You also need to contact the local State Attorney's Office for the correct procedure on handling the issue. If it is done incorrectly, they can refuse to prosecute. In our area, you can not discuss repayment with the indiviual.
My personally opinion is if you handle it quietly and do not contact the police you are doing a disservice to your children and your members. The message we need to be sending is that this type of behavior will not be tolerated. You can not steal from our children and get away with it.

Hey anne-
Our books are audited by the school district and little (or no) charge to us. We trust them completely and BOY DO THEY LOOK OVER EVERYTHING ....

You may look into having so your group needs two people (deposit slips need to be signed by the Prez AND treasurer as well as expendatures etc) to your procedures in the by-laws.

As far as the PTO's "fan club" you could really use some legal advice from the district as to how to handle disclosing this situation. Last year a car hit a student crossing the street and the first call made (the next morning) was to legal council how to handle telling the families and handling the media. They are there to help. I've even seen a parent charge another with slander, and the judge sentenced him to angry manament classes with a small fine. (The parent was called a few names that I really can't print here ) Start documenting what they do, start keeping track, I hate to suggest this but in the long run they are really hurting their children and their relationships.

Stay strong, do what you want your children to know is the best way to handle the situation, even if it means walking away from a parent talking bad about the school, you have to know what is right.

ever need to vent, free for all is there for us

We did have an audit done on our PTO account at the end of the 1st and 2nd years that the former treasurer was treasurer. He had a co-worker, who deals with the books at his workplace, do the audit. At least that's what he told us. This past summer is the only time when our books haven't been audited, yet. But all 3 years are in question because of certain comments he has made. We do have additional guidelines in place now for the current, and future, treasurers.

We believe we have things under control, at least for the moment. Thank you, everyone, for your advice.

It sounds like you have already handled this with the treasurer turning himself in. I do have to touch on something jonwilson said,

First, I believe in full disclosure. The executive board needs to sit down with the administration and decide how to tell the parents. Keeping it quiet is the WORST thing you can do

I think it is important to get the least amount of people involved. This person is the treasurer but he is a parent also and his children attend the school. This is nasty business and we all know that parents talk and children listen and children can sometimes be cruel. You don't want this to affect them if you can help it. It doesn't have to trickle out unless someone lets it. It's a bad situation. no need to make it worse.

Several thoughts!

Contact the local DA! Lett hem build a case. I trust you have relieved this person of all duties, authority and responsibility.

Next, have a CPA perform an audit. Yes this is going to cost you!

Another point, none of your board and I gate to put it this way including you are guiltless here. No not criminally, but what I can gather you went 3 years without an audit! This needs to be performed by someone outside the PTO every year. It does not need to be a certified audit, but it needs to be done by someone who knows what the word means:

Some hints on audit: It is not just a financial audit. It is an audit of everything you all have done! Every record, every fundraiser, every expense, every activitiy (money involved or not). You have the resources at your school in your parents (members of the PTO or not) to get this done, you just have to find them.

Next before the bank account can be touched - set it up with the bank that 2 (TWO) signatures be required. As a minimum: Principal, Vice Principal (Who should NOT be a member of the PO Board), the Treasurer and the President should be on the accounts. It should be required that one of two signatures ALWAYS be required - the Treasurer or the President (these two officers hold joint liabilty in most states for the accounts anyway) plus one other signature. If the bank cashes any Check or permits any withdrawl after establishing this you have recourse!

Lastly, the account you use is a Business account and not a personal account right???

Anyone who reads this and does not understand the last needs a quick course in Business 101. Start treating your PTO as a business and not a club!

Dave