The PTO would be its own organization. With its own Tax ID, Executive Board and bylaws to clearly outline the purpose of the PTO and how funds are to be spent, the principal would not necessarily have control over the money. Our Principal does not hold an Executive Board position and can only approach the PTO and request funding. The Exec. Board must then announce the voting on the request and vote at our next PTO meeting. If the PTO membership attending the meeting does not vote in favor, the PRincipal would not get their request fulfilled.
The only way I see that the Principal would have more access to the PTO funds is if she was planning on holding a board position. However, that could be written into the bylaws that the Principal or any teacher does not hold an exec. board position, but is considered a PTO member. There was another thread with sample bylaws on this site somewhere you may want to check out. I haven't seen them, but if you use Roberts's Rules, it will help you draft your bylaws to be fair and protect your assets.
Also, two members of your executive board (usually the Treasurer and President) should be co signers on the bank account. That way both signatures are needed on all checks and one person cannot be manipulated or used to misappropriate any funds.
This situation sounds like a Board of Education issue and you need to have them address it. Parents could attend their meetings and voice their concerns for the lack of updated materials. However, as a PTO you could offer to fund tutoring or afterschool study programs which I would think would be a lower cost than the price of books. But you would need to make it clear it is a year by year committment---not longstanding. ---just so you don't get sucked into funding it forever!
I'm a PTA president who just found out that the principal is on probation for mishandling of the school budget. It is 'hearsay' that the principal wants to strongly advise the PTA to change to PTO. This 'hearsay' is backed up by a series of strange events that makes it plausable and has puts me is a box. It is my opinion that she may try to influence how the organization's funds are spent...and she would consider PTO an extension of the school's budget in an effort to make up the deficit. Last year, the school's budget was blown by December and the prin. was constantly throwing hints about how the broke the school was. The school buys non-priority items-plants, pictures, teacher incentives, etc. while computers & books had not been updated since 2000 and afterschool or tutoring programs are not in place to address the increase of academically at-risk students. Last year, the PTA spent money directly to improve students' behavior and outlook. My question is, if the school switches to PTO, how much of an influence can the principal be and can the principal, in any way control the finances through the manipulation of teachers? I understand that this is a complex matter and red flags are popping up everywhere. I'm trying to figure out what else may be lurking up the principal's sleeve that I may not be aware of? How would the principal benefit from a PTO vs. PTA?