Thanks for the great discussion on this. In our case, our treasurer had receipts, copies of ALL checks (even ones students turned in for fundraisers) and it was all in order and always open at any meeting or at anytime a parent, principal, district, whoever, wanted to see it. We had reached a point where we did try to trust the district. We had meetings with the superintendent and the district finance director had 2 meetings which we never attended. Our principal from the previous year had been told about it, but he didn't show up for it, nor did he pass the word to our president. Our superintendant is a politician, so that is the game he played. Answering our questions and when confronted with a more difficult one, giving us the that's a good question and something we'd not thought of, but it would be handled like this....
We basically wanted a copy of a written procedure to have our backs and we requested this in person, on phone, and twice in letters and never received that.
We allocated funds for use for one thing to the school to help keep costs down for students, only to find out that the principal used the money somewhere we had not approved because she was afraid we would disband. We were more than willing to work with them to establish a written procedure, however, it seems they are not willing to put it on paper for us.
It appears that we have been disbanded as a group was willing to remain, but the principal sent home letters asking for parents because we had disbanded and a new group was being formed.

We are currently going to be facing the same thing. However, from my understanding, the law (at least in MA) states that the money can be taken if it is student generated (magazine sales, candy sales, etc...) This is do to some untrustworthy parents and staff that decided the money would be put to better use in their pockets!

Anyway, this is something that you should discuss with your school district business manager and treasurer. The way it will be happening here is all the books will be reviewed and any money that is student generated will be put into an account. The principal will then be given a check book with an alloted budget for PTO events and functions. Each month the principal and city treasurer is supposed to review and balance the books at which time more money will be available to her. In theory this is supposed to be done with the PTO and principal working together to be sure this money is used for the way the PTO has raised it for.

I don't think our PTO is going to be affected to much by this because we don't have any fundraisers in which the kids sell things.

However, the law is vague and the interpretation of what is student generated can be decided by the city so in theory they can say that since the kids bring home flyers, serve at dinners, etc... this may be considered student generated!

Good Luck!

Well folks here is the story from the other piont of view.....Per our school district's guidlines for PTO's in our district our funds are kept in our own account but with the school. Now I am in Colorado and not legally educated in this matter but I do know for me to get to our funds takes some work and honestly, I like it that way. I would be more nervous knowing a Mom is walking around with the PTO's checkbook with money that is for the students. I'm not sure why this policy was made but I wouldn't be surprised if a PTO in the district was having problems with a parent etc. I do know there was a charter school started almost 10 years ago that has caused the district many headaches and as a newer charter school we had paid the price for mistakes made by the other school.
This policy works for our group. The school can not and will not take money from our account because as the President I have to sign off on any money that is spent as does the Principal---she signs all and any checks written. I should also mention that our school very recently went through allegations made by a group of parents about misspending of funds. Nothing was found and charges were dropped but in the same sence the handleing of ANY ACCOUNT at our school has taken on a whole new light. We trust our school and have to trust this policy will work in our favor. A parent dipping into the pot is hard to do anything about, but with our arrangment that school employee is bonded and CAN be prosicuted (SP) for such a crime. I look at it this way, we are apart of the school as a committee of the school's board, our money should be protected by the one we are supporting.
I never claimed to have to best view on topics and I know many are reading this and wanted to commit me but you tell me this...how much do you trust the person holding your checkbook? My gal is bonded and a certified accountant and an employee of the school district. If she messes up I don't have to care if I hurt her feelings or what she will say to other parents....Plus I have her boss to air my concerns to. I know this is a hot issue but this actually works and I have seen it work flawlessly for four years......maybe it goes back to who do you trust???? I trust my school.

Hey everyone! Let me set the record straight,it is not legal for them to just take your funds and put them into the districts internal accounts! Only in a bad situation, where monies have been stolen or are under investigation, that's the only reason the school district has the right to step in. I have just been put in this situation last year and we came up with these little tidbits to share. As a PTO,you are not paid by your district as an employee. The PTO is a seperate entity of your school. You are affiliated (sp.) but not associated. What your organization does has to be approved through the district yes, but money wise, no, only the parents and thier vote at the PTO General Meetings is where that money ends up. Dances, committees, programs that's why it is so important for their involement! Because you do work as your own entity you should investigate your states Tax Exempt Status. You are a Non-Profit Organization, this does apply to you. Make sure you do your homework first though. Contact a lawyer, and or an accountant to gather information like the paperwork, filing fees, their fees. Also, consider purchasing insurance to "Bond" your Board members, it's safer for everyone! Call your sister schools in the neighborhood and see what they are doing? What information do they have? Then take it to the PTO General Meeting for approval. If you do file for Tax Exempt try to set up it's own Allocated Budget Account and get everything copied. I can't stress this enough! Create the PAPER TRAIL! When I first started the board three years ago, every year we had to start from scratch just looking for the simplist things. We created "Event Folders" for every thing the PTO had to do with. Dances, luncheons, soup labels )everything). The chairpersons collected information made copies of flyers, inserted budget costs with a list. Phone numbers, copied receipts, catalogs, and order forms or letters. When the next year came or the new volunteer was handed the job. The paper trail was there to help them make the job easier, they already have the flyers from last year, just change the dates and jazz it up for this year. For Board members the Paper Trail is essential!!! Checks written, always two signatures. Requests forms for money, teacher needs an advance on let's say a nature hike outing? Fill out a request form two signatures yours, and theirs, make sure they pay it and then file it. Bills paid, two check signers, file the bills. This also helps when you have to set up the next years budget to have all that paper trail to look up past accounts. This is also great for the "NEW" Board members. If the information can be found they won't be so stressed having to hunt everywhere for it. It will take time to set up the tax exempt status and to create the paper trail but belive me it worth it! I hope this has helped you all.

I can see where this is going to be a BIG problem. The PTO is doing all the work and then would have to ask for the money to spend on the things they need is absurd. I would go to a Board of Education meeting and ask about this or even call the Superintendant to find out how this is going to work. Tell them about how there are little things (like soda, etc) that you need and want to buy on sale. Will you have enough cash on hand to buy these things? If they make it too hard to get access to the money or make it hard for you to spend the money on the things the parents want for their schools then tell them there will not be a PTO. No one is going to buy fundraisers if it's up to the Board of Ed on what is going to be bought. We pay school taxes and I am not donating more money to them. It's hard enough getting volunteers to help never mine fighting for the money that you need. I would get all the PTO boards together in your town and ask to speak to the Board of Ed. Ask the board why exactly they want control of the money and give your side of the problem. Stand united and maybe they will see the problems that are going to caused by this. They are not going to want to see angry parents at there meetings. Remember they are voted into office and they will be up for re-election. Tell the people in your town to go to the board meetings and complain about this issue. If they want to be re-elected they will listen! GOOD LUCK!

I'm not from Arizon but we're having the same problem. I think it has something with the kids raising money...
I don't understand the logistics of it but I believe somehow it's legal. I think the only way to protect ourselves is to be incorporated.