The Principal should have no financial control over funds raised by the PTO/PTA UNLESS you do not have your own corporation with a valid TAX ID# seperate from the School. This is very important as the corporation should file an annual tax return and have an annual audit-usually performed by an outside CPA.
barb_r is asking the correct question. You indicate that the Principal wants to take control, does that mean that you are independant?
If so do you have Bylaws?
These are two very important questions.
If not independant then you are likely under the control of the school and the Principal may be in his right for asking for this. If independant then it comes down to what your Bylaws, if you have Bylaws, indicate. Usually they indicate that the group has full control. If that is the case you can politely explain to the Principal that per your Bylaws your group must maintain full control of your finances. Talk with the Principal and find out if there is anything specific that he is looking for. Maybe your group can help...
You next step would be for your President/treasurer to define a planned budget for next year. Based on expected raised funds define expenses for the year and provide that to the Principal. This will show him that you are keeping control and have defined how to sepnd all of the planned raised funds. From there you can discuss other needs and maybe look at new fundraisers to meet these new goals.
I would say this isn't normal. Our principal has input into our budget, what she feels is important, cuts that the school board will be making that perhaps we can help cover, etc. so we know what is "needed" vs. "wanted" at the school but otherwise she has no control over the money and has to make a budget request like anyone else does.
You say you are a parent committee.... do you have your own 501c3 status? If not, and you use the schools tax id number there may not be a lot you can do...
Our principal wants to take control of our parent committee money and set-up a Standing Committee outside of the parent committee that will create the budget for funds raised by the parents. In other words, the parent committee can raise money (maybe) but have little-to-no say in how that money will be spent. Is this normal? How can we keep control of the money that we raise?
