Critter, I agree with you in theory about the credit card stuff and we do try to control this. It's only used when everything, even the source, is agreed in advance and a check won't work. (Believe me I'd rather not be the PTO bank.) However, on certain items we've ordered (from another state) we couldn't write a check because the shipping was only estimated. As a one time purchaser they wouldn't just bill us and setting up a corporate account for the PTO (with the proper credit checks) for a one-time purchase was not worth anyone's time. We also had some things come up during the two week period in May that the auditor had all our financial records and we couldn't write checks.

My point is, that although I agree with the idea expressed, a PTO may need to think about times there's not another good option. In those cases, what are the controls? For us, first the reimbursement form has to be signed by two people, and then second (my own personal decision) I don't want to sign checks to myself.

But I'm curious how the rest of you handle this as it's hit us 3 or 4 times. Always when we are ordering something big from a source out of state. They want a credit card since we don't have an account and the shipping isn't known until it's shipped. Sometimes we can get the school to order it and they'll let them use a P.O. and we just transfer the funds to the school. But there have been some times the school couldn't (because of internal restrictions) process the order. What do you do?


[This message has been edited by JHB (edited 09-06-2001).]

I know I'm resurecting an old thread here, but this is a topic I'm dealing with right now. My view on two signatures is this: while the bank may not stop handling a check with only one signature, it provides the organization with the ability to decide whether an expenditure was properly authorized, and if not to take legal action if necessary. Currently my treasurer is trying to convince me that the checks that we have are OK, and that we can both sign despite the fact that there is only one line for a signature.

Arrggghhhhh....as I type this I can see the falicy of my argument. It doesn't matter if there is only one line for a signature since the signature area is just there for after the fact verification....the only real control is regularly reviewing the statements and taking action ASAP.

For those of you who said you require two signatures you may want to know an issue that came up at our bank. Even though the front of our PTO checks say "Two Signatures required" our bank has informed us that there is no system in place to kick out a check that only has one signature. A sharp teller might catch it if it's presented at the window to be cashed. But once it gets into the processing system nothing scans for that 2nd signature. If I were you I'd check with your bank and see it their policies or systems are any different. We found out the hard way when our Treasurer wrote several checks out to herself for re-imbursement of questionalbe expenses and we didn't find out until well after the checks had been processed with just her signature on them.

I am a member of two PTOs, both of whom require 2 signatures per check: at one, the authorized signers are the Pres, VP, and Treasurer. At the other school, this year's board put all 5 officers and the principal on the signature card (too many!). Many members disagree with having the principal as a signer. Our principals sit on the Executive Boards, but it is the parents who run PTO. This year, at one school, it seems that the treasurer may have written some checks (or not written them as the case may be...) and the PTO president was left out of the loop. Not good. I recommend 3 authorized signers, officers only.

Also, be cautious of the sometimes common practice of having one of the signers "pre-sign" checks. I know it goes on, but I worry that approach could really allow things to get out of hand.

Finally, in response to JHB's post describing how she has made large purchases on her own credit card for subsequent reimbursement. JHB, this is nothing against you; I think you are terrific and a great resource to other PTOers, but we really discourage individuals making large (+$50) purchases directly. Here's our experience: with the PTO's approval, a parent ordered and paid for some classroom games to the tune of $700. Although the principal had told the parent to select other games, the parent placed the order on her credit card. The parent subsequently refused to return te items and demanded reimbursement from the PTO. This was one battle we lost, and we ended up paying out the $700 and keeping the games we really didn't want. Moral: keep control of the PTO's money by paying for large items with PTO checks, signed by authorized persons.

Our situation is exactly like juliedio's. We required 2 signatures on all checks. The president, treasurer, and principal are on on the account. The treasurer keeps control of the checkbook and our district auditor performs an audit of the books at the close of each school year. During our transition this month from the old to the new treasurer, we had a couple weeks lapse before the new one got the forms to be the signer. With a lot of end-of-year expenses, the Principal's signature was key. But we routinely use him as the second signature.

As president, I try to sign as few checks as possible, since I tend to pay for a lot of PTO expenses personally and then turn in the paperwork to be reimbursed. We just ordered art drying racks for all the kindergaten classes, so I have about $800 on my credit card for just for that one item. Since I'm getting some pretty big PTO checks made out to me - even with proper paperwork - I don't want to be part of the payment process routinely.

[This message has been edited by JHB (edited 05-23-2001).]

Our checks also must be signed by two qualifying people. Eligible signers are always the treasurer, president and principal. The principal has come through on many occasions when I (the president) have been unable for whatever reason. However, only the treasurer has the ACTUAL checkbook.