Isn't JHB a peach? Your knowledge is appreciated.

I do not live in Texas but our PTOs have their own bank accounts. Going through our schools bank accounts could get a little sticky. Which is what we are doing right now but we are working on bylaws and all that wonderful stuff which will probably prompt me to post several questions that I am sure I will need drawn out for me.

Although it's possible your district has a special situation, here's how I understand it works in Texas for public schools. (Private could be entirely different.)

If the PTO is an independent entity and has control over the funds it raises, then the bank account should be separate. But if the school controls the fundraisers and moneys and the PTO is primarily just providing volunteers to help raise the funds, then the moneys would get deposited in the school's account.

In Texas, public schools have "Activity Funds".

The Activity Fund is designed to account for funds held by a school in a trustee capacity or as an agent for students, club organizations of the campus, teachers and the general administration of the school. These funds are used to promote the general welfare of each school and the educational development and morale of all students. The accounting function for the Activity Fund is delegated to each campus and must comply with the guidelines and procedures required by this manual.

The accounting rules governing these accounts specifically say:

The principal is not responsible for funds collected, disbursed and controlled by parent or booster organizations. These parent and booster organizations funds are not to be accounted for in the school's Activity Fund.

Here's the link to those rules, which are based on Federal and State laws as well as accounting best practices. Financial Accountability System Resource Guide

In our school we have both situations. We are independent and have our own bank accounts. But there are also funds raised (where we still do much of the work) that get deposited directly into the school's account. They "own" those fundraisers and we all know that in advance.

As long as the PTO and school had a good relationship, I personally could work with either model - with a PTO as an independent financial enity or as one that focuses primarily on volunteerism, letting the school own the funds. But the most common situation in public schools is where the PTO is separate.

[ 07-01-2005, 09:47 AM: Message edited by: JHB ]

Thanks for the info. Would love any advice you have on convincing our principal the accounts should stay separate.

Do you know the stats for private schools?

Marta

[ 06-30-2005, 11:51 PM: Message edited by: Marta Gaddis ]

Hi Marta -

My best guess: 85%+ of the parent groups at public elementarys keep a separate bank account.

Tim

I have a question about PTO bank accounts. Does your PTO keep a separate bank account or do your funds go to the school's account? I am trying to gather this information for our school committee and the principal. Please let me know if your school is in Texas.

Thanks for your help.

Marta