One of the greatest benefits of working with the school to establish a budget and track the resulting expenditures is that it allows for both entities to make wise choices over the years. If historical expense data is available, those reviewing the historical expenses can see if an inordinate amount has been allocated year after year for any particular expense; the data can then be used to negotiate better rates and/or to find less expensive options rather than continue to "bleed out" for that expense every year. Without the availability of historical data, needed changes would be difficult to identify and justify.
Many PTOs do give money to what is often called the principal discretionary fund. There is no hard and fast rule on these things and it depends on the relationship between the school and the PTO. We do give a percent of the yearly earnings in this manner. We ask the principal to report how the money was used but their is no strict accounting. This has never been a big problem for us. I think it is safe to assume that the school did use it "for the good of the students" even if they didn't tell how it was used. (unless the principal got $5000 office make over).
I would not go to war over this. If this is a concern speak to the principal and explain that it help raise money if parents know where it is going. Then you can work together to be able to tell parents where money went and will go. The PTO's relationship with the school is very important so try and keep that in mind!
We never give the school funds without a written aggreement between the PTG and the school that spelling out:
1. what the funds are to be used for
2. the time frame for spending the money, and
3. what to do if these things are not done (they are required to return the money!!).
I agree. At the onset, there needs to be a budget discussion so both the PTO and the school reach an understanding as to how the PTO's funds to the school will be spent, at least with general categories: "$1,000 classroom texts", "$500 playground improvements", "$750 teacher spot awards", and so on.
Then, at intervals during the year (monthly, quarterly, or once per semester), the exact expenditures need to be documented in the PTO treasurer's report (i.e. "$457.83 for playground slide") with any leftover funds returned to the PTO at year-end.
Just handing over a big chunk of PTO money at the beginning of the year without any understanding as to how it how it will be applied is an inefficient accounting practice.
Is it an appropriate practice to issue the school a "PTO Fund" to be used at the school's discretion? I am the new treasurer of our PTO and found out that the school was not held accountable for a $5000 fund that was given last year. To me, this is not acceptable because the PTO has not control over how that money was applied. Since funds raised are supposed to be for the benefit of the students and that amount equates to 25% of all funds recieved last year, I think that it is important to know how it was used.
