I support the recommendation that this woman must be removed from the office of Treasurer. Clearly she does not respect the responsibility of handling other people's money. List the improprieties and tell her she is being removed from office. Suggest another PTO volunteer opportunity better suited to her skills/personality/time availabilty, etc. I have been a PTO treasurer for 2+ years - you can't be flippant with the money or information you know as an officer.
THEN....immediately - before you select another Treasurer - audit the books and implement financial controls to tighten up the system.
- As suggested above, require 2 signatures per check (from a very short list of approved signers like the Prez, VP, and Treasurer
- Document every check, deposit, and reimbursement request with a supporting form that describes the transaction and has space for approvals (I have a file of forms I can share if you want)
- Separate duties! The Treasurer should not be the fundraiser chairperson, nor the membership chairperson, nor the ice cream social ticket seller, etc. If there's a different person in charge, it's unlikely the treasurer can take advantage of the situation. (I have a set of control forms to help track outstanding fundraiser payments - just ask)
- Change the lock on the PTO cabinet, if possible.
- Require a detailed monthly report that shows the activity of the PTO and the current balance in the checkbook. (Ok, Ihave one of these, too)
I agree with everyone who said to sit down with your treasurer and make it clear that her behavior is unacceptable. Also, I would work with my exec. board and establish written guidelines for fundraisers. I hope you require at least one other signature to write PTO checks. If not, you should go to your bank and get copies of the statmenets to make sure any checks she has written were for PTO. When you have all the facts, you will be able to make an informed decision about how to deal with her.
Not sure of your own organization, but being in charge of ours, if this were to happen, after I got out of church, I would think that not only do I have the recourse but the OBLIGATION to remove her from this position. Even had there been no impropriety (which there definitely is!) the mere appearance of impropriety against the finances of the group would give me enough pause to remove this person from the situation. If this ever came to light, and especially the fact that you were aware of it (and it will, no matter how careful everyone plans to be) it will look poorly not only on her, but also on anyone who knew of the situation and didn't do what should be done.
I realize that oftentimes we think of ourselves as do-gooders (not goody two shoes, but an organization with the sole purpose of doing good) but in this instance you must look at this as a business. What would a corporation do if the CFO "borrowed" money only to repay it later. The request for a resignation would be the GOOD news.
I know that this is not an easy position to be in, but it is one that must be taken charge of immediately.
Hi ...Thanks for reading my post!! As far as the fundraiser, she did collect some of the money from the people she sold the merchandise to. The PTO does not have to pay for the merchandise until after delivery which is October 30th and she is planning on putting the rest of the money that is owed in the bank then. With the sweatshirts it is also a prepaid sale that she wants me to order her son a shirt and pay for it when the bill comes in, since I am directly handling this sale I have given her until tomorrow to give me the cash for the shirt or I am not ordering hers. The principal, the vp and myself are calling a meeting on Friday with her...My hope is that she will resign with out much of a fuss and this nightmare can end...but if she refuses what recourse do I have if she magically puts the money in??
I read the post as Kathie did, that she did not pay for the orders taken by her child, not that she "borrowed" other people's money rather than depositing it. Both are stealing. In my opinion, your first stop is the bank, have her signature removed from the checking account. Your second stop is to schedule a meeting with her and either another PTO board member or the principal. You cannot take this chance. As much as I would like to say to be nice, you need to be professional and concerned about the money and about the reputation of your organization, while being pleasant at the same time. Be kind, but forceful, I would say that this is not up for negotiation. Next - find a parent who can be trusted with their silence who has an accounting background and immediately perform an audit. This, again, is a sticking point. You need this for your protection as well as the treasurer's. If she runs her mouth about other things, my guess is that she brags, even unintentionally, about the "perks" of being the treasurer to others. For her protection it needs to be clear that every penny has been repaid. For your protection, reputation, and insurance rates - same situation.
I wish you every bit of luck with this. I do not envy you at all. Know that your PTO TODAY friends are here for you!
If I'm reading the original post correctly, the treasurer didn't spend the fundraising money, she probably paid for the fundraiser with PTO money with the intention of paying for her portion later. Is that right?
Here is one suggestion to salvage the situation. First, The top seller should be the person that sold - and paid- for the most items. The #2 seller.
Sweatshirts- Let her have them and then sit down and have a talk with her, alone or with building principal or another PTO officer and explain about proper procedure regarding her position. It's amazing but believeable how lacking in common sense she is. #1) Fundraisers cannot be taken home. #2) No special payment plans for board members or even friends. etc. #3)Discrestion- As Board members, you are expected to be role models and keep to a higher standard.
It would probably be a good idea to put these guidlines in writing so you can refer to them in the future if need be.
