The money should have been placed in the new account after all outstanding bills were paid and all deposits made. Then an audit done (just as if a new treasurer was coming in) to check the books. At that time, once an OK was done for the closing of the year, the balance transferred over to the new account and the new account, treasurer and process begun.
At this time, it could be perceived that the PTO was not fully forthcoming, there is money unaccounted for and it could be used inappropriately. Also, those tied to that account are no longer being made accountable to report that bank account, so it is not on the radar of the school or parents who helped to raise that money.
I would insist that all money be deposited and the old account closed out after the audit completed.
The only thing I can tell is that this decision to keep the checking account was from the PTO officers without a discussion with the members, I don't even know if the School knows this is happening. I just want to know how others would handle this situation.
I am checking into this and plan on asking questions at the next PTO meeting. It is funny how things change so much with new officers.
If you are going to do this, then yes, all the funds should be in the same account. While the school might have one "bank account", it should have a variety of different accounts (cost centers) on paper. And it has a responsibility to track those separately and assure the funds are only used by the group for whom they are holding them.
That being said, you'll want to be very clear (in writing) who has decision making authority over any funds and exactly what the process and timeline is for reimbursements, disbursements, deposits, periodic reports, etc.
When you have any type of fundraiser, be very clear how it will be used and who has control. If it's a partnership and a % goes to the school or if a certain amount is dedicated for XYZ or if it's all for the PTO to decide later - all those are fine. But everyone needs to understand up front to avoid problems.
P.S. The school may have wanted to start with a clean slate and only deal with transactions from X date. That might be why some funds were left in the old account. But once you are ready to close out the prior year, the balance should be transferred and the account closed.
Our Superintendent came to us last year and wanted us to either; 1. All PTO Funds go into an account through the school or 2. Obtain our own Tax Exempt Status. In the past we have used the schools Tax ID.
#1 was the end decision after a huge discussion, lack of funds and a vote. Our PTO deposited $3000.00 in to the new account at the school, and also kept a remaining balance in the PTO bank account.
I think the reason for the PTO Bank balance is for reimbursements or unfinished business. But wouldn't that be handled by the school accountant, via the PTO Treasurer with a Purchse Order?
Should ALL funds be in the same account? Should the PTO set a deadline that all funds be deposited? What, if any, troubles would it cause when the School/PTO is audited?
....and I have some huge concerns! We voted for this in August, but we did not give it all. Some funds were left in the PTO checking account. Is this right?
