Thanks for all your input and advice. As Michelle noted, we seriously do believe there may be some mental instability at play.
We have since come to find out that the one order we could not stop was already paid for (they were ordered and paid for the week after the new board was sworn in). The kicker here is that the items totaled over $1,300. We could not understand why the outgoing treasurer complied with this. Well, apparently the ex treasurer was going away for vacation and as is the policy she left the checkbook with the old prez (although it should have been left with the new Prez technically). So here she was left to her own devices with the checkbook.
The old Treasurer is due to give the new one all the books this week. At this point we do not know if the old treasurer is aware of what this woman did But either way she will soon find out because the new treasurer is fit to be tied and on the warpath.
The other members on the board want to legally go after this woman, but for the sake of the town and the school we won't.
As for the folders...The new Prez is literally at the point of just telling her to keep her folders and stick them where the sun doesn't shine and that if something goes wrong that it will be the children who suffer and that she will make sure everyone knows why. The members of our board have been involved in the PTO for some time now and have chaired many events. So collectively it will be more work on our part, but we can certainly go it without the folders if we must and yes there is an older ex prez we can go to for assistance if need be.
Right now of course there is a lot of anger and I am not one who believes in reacting in anger. So we still are pondering the posibilities.
It is sad to see that so many here have been stuck with a folder hoarder. It is a shame as they belong to an organization and not any one lone lunatic. You supposedly get involved to help the kids and this behavior benefits no one and certainly accomplishes nothing for the culprit other then make them look petty and foolish,
Thanks again for all the input!!!!