You know the answer, don't you...? At the Treasurer's Workshop at the Chicago PTOToday show, the presenter, Jim Carpenter, reminded us that ALL the officers are responsible for the PTO's money. The treasurer is merely the scribe, as he put it. Your president, for one, should demand to see the bank statements from your treasurer. Give her a deadline. You'd like to assume everything is on the up and up, but she can't prove it if she doesn't share the documents. Maybe she's embarrassed, maybe she hasn't kept up with reconciling the statements, maybe her files are in disarray. If demanding doesn't work, your president, as an authorized signer can probably request a copy of the bank statement directly from the bank. Don't let the school year end without more disclosure. Your members, the students, and all the parents/teachers who raised that money deserve it. Good Luck.
Our PTO has the same problem, except our board has no clue as to how much is in the bank. We never see reconciled bank statements. The board has no clue want is left in the budget. Some are concerned, but are afraid to say anything. How do you resolve the issue, do you let it go, hoping the money is there?
You asked how to help the board understand the reason for proper financial planning...how many members do you have? how many families participated in your fundraisers? That's how many reasons you have to manage the PTO's money responsibly. The money belongs to your members, not to your principal and not to the board. Is this overspending part of a preapproved plan? Did your members agree at the start of the year to a budget that dips into the reserves? Some would say that a $10,000 carryover is excessive, so maybe your PTO was consciously spending it down. Maybe? Ok, maybe not.
Budget, budget, budget. Does your PTO have a budget for this year? My guess is no, since it sounds like you're about the only one who knows about this deficit. With an annual budget plan, the monthly treasurer reports can show how well the group is executing the plan, then everyone, not just one or two insiders would know where the PTO stands financially. I want to be careful to not criticize too harshly, but I am fanatical about financial planning for PTOs. While we are all "just" volunteers, we have a responsibility to manage the resources of the PTO properly. Overspending without an approved plan is not responsible in my opinion. Your treasurer, as the financial custodian of the PTO, has been entrusted with the care of the finances - she should feel empowered, not shy, about raising the red flag. It's her obligation.
There have been a couple of articles about setting up and managing a PTO budget in PTOToday magazine this year (August and October). Maybe they would help make your point. Good luck!!
In doing some figures for our 501 (c) (3) filing I noticed that we are almost $5000 in the red. We do have money in the bank however, thanks to a beginning balance of over $10,000 from last year. My concern is I seem to be the only person concerned that we have spent already this year more than we have brought in and we have a Principal that no one (but me - have I said I'm opinionated and strong willed?) is willing to say no to. Our Principal started handing out popsicles to those classes with perfect attendance during state mandated testing, she then realized it was more than she could afford and requested the PTO pick up the remaning tab. Estimate 700 students at $.50 per student equals $350 per day for 5 days! We do have one more fundraiser coming up but it's proceeds were to go entirely to our playground fund, now it looks like it'll have to go for next year. Any ideas on how to explain to the board why we need to pay attention to how much we bring in vs. what we spend so that we have money to carry over each year? I feel at times like I'm the only one that gets any of it, although our Treasurer understands and is concerned as well, she on the other hand won't say anything. Unlike me. Thank you for any suggestions.
