Knowing the history and with you having taken a leadership role in putting your own PTO on the right track - it might be worthwhile for you to work WITH the district to help them develop a more sensibile instrument of accountability.

I doubt they are on a witch hunt, but just seeking reassurance and looking for an easy thing to ask for. Bank statements ARE easy - but not actually going to protect them or tell them much. (If a deposit is never made or checks forged, what does it matter if your account balances?)

If I were running a school district, I'd want every organization affilitated in any way with the school to sign an annual agreement to abide by basic rules such as:

*Having Bylaws
*Operating within current laws and school policies
*Having established cash control processes
*2 signers on checks
*Annual audit
*Public election of officers

Then I'd want some periodic accountability. Maybe some sort of quarterly statement and perhaps a year end summary.

The requirements would need to be reasonable, not overly intrusive.

So your choices are:

1) hand it over
2) fight the requirement
3) help them develop a better option

Good luck!

considering the history of the three pto's with thefts I am guessing the district just wants a little bit of sense that things have changed. Even if you are a 501 your groups reputation is a reflection on your school and district. Maybe your district is trying to save face and show that they are taking things serious, just bank statements wont say much but maybe it will put them at ease?? I wouldn't fight it, they could make your life a living you know what. Besides you are helping your reputation by showing you are willing to work with them.

I'll give some more background. In the last two years, three PTOs in our district have had money stolen by a group leader or member. We are one of those PTOs.

Last year, my first on the board, I pushed to get some financial controls into place. This year, as president, I have enacted even more checks and balances. I have put into place every financial control suggested on this site.

Recently the district held a mandatory meeting for PTO leaders on handling money. I am proud to say that my treasurer and I were able to report at this meeting that we already have in place every single financial control that the district suggested.

So I guess you could say maybe they are on a witchhunt, and we are the witch.

The board members who were in place when the embezzelment took place are no longer at our school. I would be happy to sit down with anyone at the district and have them look through our books and explain everything we are doing to prevent this from happening again. We pass out financial statements at every meeting (we are the first board at this school to do this) and we are completely open with the membership on every expenditure.

If I wanted to steal money from the PTO, I could do it and it wouldn't show up on the bank statements. Looking at the bank statements would not have prevented the last embezzlement because of the manner in which it was done...so what is having the bank statements going to show the district?

Since you are not part of the school (you are your own 501c3 ) they cannot require you to submit your MONTHLY financial records. However, as a public charity, they do have a right to see your annual report that you give to the IRS. Whereas the town or city financial reports are public info, and must be approved on a public warrant, 501c3's do not operate that way. I would invite them to attend meetings if they are concerned about how money is being distributed.

I might question the need for reconciled back statements versus a more valuable financial statement, or perhaps a signed verification that certain practices have been followed.

But I applaud the attempt by the district. I've been in the middle of trying to recover from embezzlement within an "independent" PTO. The school was spared no embarassment. Parents usually don't have a clue as to the difference. They put their trust in the fact that "it's for the school" or that the "school is involved".

Unless a PTO is REALLY independent - does not use the school name, nothing goes home in backpacks, doesn't rely on Principal support, doesn't use school facilities - they ARE tied to the school.

As a parent and a taxpayer, I want the district to enforce reasonable accountability for any school-related organization.

My only question would be if this particular request really serves that purpose.

There's no way in h%*#& I would send that to the district. (We have our own EIN and are a 501C3.) If they are on a witch hunt a reconciled bank statement isn't going to tell them anything.