JHB answered it appropriately. As a working insurance agent, I deal with this issue often. There is no way to guarantee that an event like this won't occur. You can lessen the odds of it happening by taking appropriate precautions. And you can minimize it's effect should it happen by putting protection in place (insurance). Annual audits, two or more signatures on checks, money handling procedures will lessen the likelihood of it's occurance but a person intent on committing a crime, will find a way to commit it. There are no guarantees.

My opinion is that it would never be impossible for someone to steal from the PTO.

Most everything in life is just a question of mitigating risk. You can't sew up your processes to the point where the operations are inefficient.

But you do put in reasonable preventions and safeguards AND you put in methods whereby such acts will be uncovered (audits, etc.)

But the point is, steps are taken to prevent loss. That's the best you can do.

Our bylaws require us to have an annual audit of a min of 3 members. And we do. It helps keep things in balance.

Dave is right - it's a business and it has to be run that way.
Good luck. Your in an ugly situation.

I have been reading this thread for a while now and one question keeps poping into my head, How can a parent group ever truly stop the stealing?

Every year or so we vote for a new ex board, what ever work one group has done won't necessarily be done by the next. Bi Laws are only paper if you get a group that doesn't want to run the group as a legit business. Then principals change and each of them come with a new set of ideas of what they want the parents to do. The most obvious problem is how easy it is for volunteers to put a little snack day money in their pocket, or take some of the product home.

I don't mean to bring anyone down, it just seems that this is truly a problem that won't be changing anytime soon.

think it is important to get the least amount of people involved. This person is the treasurer but he is a parent also and his children attend the school. This is nasty business and we all know that parents talk and children listen and children can sometimes be cruel

This is the most true statement ever. Think about the children and also think about the investigation...

I am so glad the treasurer turned himself in. That was a great move.

I'm glad it worked out for you in the end, and that the guy decided to do the right thing. Bertha had a posting on the boards a while ago concerning a VP and stealing. Oh Vey!! It's such a delicate situation--if only every one with this problem could be a lucky as you!