To Prevent Theft, Pay Attention to Finances

When embezzlement stories are in the news, it’s normal for PTO leaders to get a little spooked and maybe even look at their team and wonder, is it possible someone here would steal from us?

by PTO Today Editors

11/01/2021

The truth is, it is possible. There’s no quick fix to guarantee someone won’t steal from your group. But groups can implement a series of sound financial practices that will go a long way toward preventing embezzlement. What’s more, groups can get insurance so that if they are victims of embezzlement, they can recoup their losses.

A good first step for groups is to take a look at their current financial practices. This isn’t about putting the treasurer on the spot; it’s about the board working as a team to ensure that the financial process is open and well-managed. In other words, the more eyes you have on the money, the less likely that it will be stolen.

Here are 10 best practices to consider:

Always require two signatures on checks.
When counting money after an event, have two people handling it and confirming totals.
Review bank account statements as a group at executive board meetings. Take a look at what checks have been written each month as part of that process.
Paper trails are a good thing. Make sure your group requires volunteers and teachers to fill out reimbursement forms and to submit expenses.
Don’t leave cash hanging around. When you collect money for an event or any program, deposit it as quickly as you can. Some groups, in fact, go as far as to not keep any petty cash on hand.
If you do use credit cards and debit cards, make sure you implement strict procedures for them.
Keep on top of financial records. Use generally accepted rules for record-keeping. For example, best practice is to keep bank statements for seven years. The more organized you are (online or with hard copies) the more in control you’ll be. Software programs such as PTO Today’s Finance Manager help your treasurer track transactions and make your group’s finances more transparent.
Commit to having an annual audit done by an independent party. This will highlight any areas of improvement your group should consider for financial reporting and control.
Be willing to enforce procedures. Sometimes it’s easier to just say “Sure, you can pay us later” or “Everyone’s busy, so let's review the books next month.” No one likes to be overloaded by process, but when it comes to finances, it truly is a good idea.
Consider insurance for your group. You can get insurance through PTO Today, and that includes crime insurance to cover your group should money be stolen.