Your quite welcome! And, please, let us know how it turns out.

Thank you all for you input on these situations. Our next meeting is in March and hopefully things will go well. Once again Thank you for all you help. I really appreciate it and it is nice to know that there are people out there that can give you advice when needed. Thank You:)

I'll echo the rest... you definitely need to take a look at the voting rights listed in the bylaws. You may need to form a committee to take a look at your bylaws, and may end up needing to make some necessary changes. You may need to speak up at your meeting, and yeah, step on some toes. But if your bylaws say it, then "it be so!"
As for the money counting, definitely speak up and express concern that the same 2 are doing the money counting. Our bylaws prohibit any money going home with me (president), treasurer, or anybody else. All funds stay on sight, and are counted by at 2 people, and not by the same 2. There was a problem here a few years ago with a situation similar to yours. And there should be no way those 2 are keeping the money records to themselves, and not letting the others know how much was being made.
As for the audit, i'm almost positive that the problem is poor bookkeeping. I don't know the intentions of your current treasurer, but i'm hoping she's just looking out for her neck, by making sure things add up. I wouldn't think school employees would steal, but unless your current treasurer is out to get the old treas., then you should probably let them proceed... and again, refer to your bylaws (those bylaws will be your best friend).
As for running for President... DO IT! When I took office mid-year last year, the first act, among many, was to assure the school that i was going to change things, and get away from the bad image the old PTO had developed. It's taken a little work, but i'm reaping the benefits now! SO DO IT!
good luck!

At the next meeting be willing to point out that while the 'relatives' input insight is helpful their votes can no longer be counted according to the PTO By-Laws. Of course you will have the by-laws open to the page required for all to view.
An audit will help to straighten things out ... all parties involved will (an hopefully should) have an opportunity to discuss any missing funds while they were in office. Should be an interresting result and will help to inforce that you should have receipts for everything in the future.

If your bylaws define your voting members as you stated, then don't wait for the principal to come back and say something. You need to politely point this out to the President and Treasurer. Looks to me like they are trying to have total control over your group and seem to be willing to do anything to get it.

As for the audit, if the case is as you stated above, they definitely should have at least notified the other officers of the situation. They also should have spoken to the previous officers instead of just making assumptions as to where the funds went. Those previous officers should have taken care to make a note in the financial records of the payments to the DJ. They could have simply written a note that stated what amount had been paid and for what service and then had the DJ sign it. Always cover yourself! There are also ways to prove if someone cashed a check and then deposited it in another account as they are claiming. Sounds like they are just trying to discredit these previous officers. Shame on them!

They say the reason for the audit is that there is money unaccounted for. If that is the case then okay but I feel that they should have went to the previous president and treasure and talked to them. I talked to the previous treasure which is my sons teacher and she said that there are some receipts that are not in there for when we had dances we just paid the dj out of the money that we took in at the door. But she can guarentee that there was no money taken out of the acct. for they both had to sign the checks. The current treasure said that the previous president was at the bank and cashed a check from our pto acct and deposited it into another acct. I asked her if she had proof and she said no. I kinda feel that this is a personal thing for the current treasure and president does not like the previous ones. Both the previous ones are employed by the school board of education. If we are audited I am afraid that they will loose there jobs and they are excelent teachers. The current ones went over so many heads about this audit. The principle didnt know until I notified him. He feels that things should have been talked between the previous and currents officers before anything was done. If we are audit we will loose the pto acct we will have to go thru our board of education to get money to do anything. I am afraid that this is going to make the school look bad and affect the students.
The bylaws state that you need to be a parent/guardian or teacher to vote. But our prinicple has been out of town since the first part of Jan. and has not been able to attend our meetings to say anything to her family. thank you for all you help and suggestions.