Just to fill all of you in on what has happened since I last reported on our situation...
I called an executive meeting, including 1 school board member who knows our bylaws back and forth. I questioned the Pres. on ALL checks I didn't understand and I question each check written that had not followed our bylaws. I inturn questioned anything relating to our funds that seemed "iffy" and made sure we received a clear answer. Turns out that none of us were following our bylaws, probably because none of us received them when we took office. This led us to reveiwing our bylaws and we are now in the process of revising some amendments, especially in the funds and committee duty area. We have given the checks, ledger and books to the treasurer and limited the names on the account to 3 people, now requiring 2 signatures on each check. All receipts must have the person requesting reimbursements signature and then initialed by our treasurer, she must then reveiw the receipt to be sure it is legit and then and only then should she bring it to the next board meeting for approval. Hopefully, now that we are aware of our bylaws, our meeting will be conducted properly with roll call, motions and proper minutes. At this point I am still not 100% positive the Pres. has not used some of our funds for herself (or neglected to deposit the full amount)but I am more at ease that we will be conducting our "business" properly from now on. I want to thank all of you for your advice, I am sleeping a little better now...
Wow! The red flags are flying all over the place! Let me see if I understand this -- you were Treasurer before becoming VP and *never* saw the books?? Do I have that right??
Here are some suggestions for the future:
1. There should be at least 3 signers on the bank account. (That is so a signer can have a check made to them for reimbursement, and the other 2 signers would sign the check.)
2. 2 signers must sign each check. (Although the bank doesn't care about this and will never look at each check, this is absolutely necessary and should raise flags in an audit if checks have only one signature.)
3. A 4th person, not a signer on the account, should open and look over the monthly bank statements, looking for potential red flags.
4. There should be no debit cards or ATM cards on the account. (Because this only takes one person to make withdrawal or purchase.)
5. There should be no online access to the account, for the same reason as #4.
6. Your bank should give you checks you have written back in your statement. If this costs an extra fee, it is a justifiable cost to protect yourselves and the money you raise.
7. At least 2 people should count any incoming money (like from a fundraiser) and fill out a deposit report that shows the breakdown of bills, coins, and checks. Those 2 people sign the report.
8. The treasurer verifies the deposit, signs the report and takes deposit to bank immediately. The deposit slip should match the deposit report exactly.
9. Audits should be conducted annually (at least) or anytime signers change or leave office or anytime it is warranted, and the audit committee can not be anyone who is a signer on the account.
I'm sure there are more ways to protect yourselves and the funds you receive, but that's a good start. In the meantime, have your books audited and if necessary, by all means, take your books to the district attorney, and let them see if there is any criminal activity.
a2zmomof2;144025 wrote: All-3-boys - Hi, I'm new here, but wanted to interject my 2 cents, if I may. In our school, PTO money is handled by a member of the administration. If PTO wishes to buy something, we have to go to her to get a check and then a receipt is required after the purchase is made. Many times, our PTO members will buy something with our own money and then we are reimbursed when we hand over a receipt. Perhaps you can suggest this to your principal and other members of PTO, so that (if this is a case of mishandling funds) this never happens again and the community has no reason to ever wonder. Trust is very hard to build, yet can be gone in the blink of an eye. You never want your community wondering if their money (fundraising) is being spent on something other than PTO.
Hope this helps!
Just a quick note on this: having the school handle the funds is no guarantee of safety from theft and definitely not a replacement on checks and balances. Many of the embezzle stories we've seen over the years have involved a school staffer.
Certainly Ok to operate as you are, but I'd strongly advise you to still have an annula audit and still make sure that the person with check signing authority is not also the person opening account statements and running the audit. (among other checks).
I think you have to adjust your bylaws as well- we handle our own funds as a PTO, not the administration-- but the treasurers are the signers and there must be 2 signatures on the check-- a check request with original receipts to get reimbursed as well. The treasurers are also bonded-- so they hand handle the funds without any issues.
You may have to get the police involved at this time though with your money issues-- good luck and keep us informed of what happens
Might I suggest that when you review your bylaws that you pay particular attention to the area(s) on treasurer's duties, handling of funds and accounting. That is, if your bylaws have those sections. Get those areas tightened up and very clear cut as to who is responsible for handling all financial transactions and the processes they need to follow.
It's really ashame that your group is having to go through this situation. Good luck with your efforts.
