Strong financial controls aren’t about distrust — they’re about protecting your volunteers, your PTO’s reputation, and every dollar you raise for students. Here are 10 rules that every PTO should follow, no exceptions.
Rule 1: Two-Person Rule for Cash Handling
No one should ever handle cash alone. Two people count, record, and sign off on the total.
Rule 2: Deposit Within 48 Hours
Money should go from the event to the bank quickly — not sit in a car, home, or desk for days.
Rule 3: Keep PTO Funds in PTO Accounts Only
Never use personal bank accounts for PTO money, even temporarily.
Rule 4: Require Dual Signatures for Large Checks
Set a threshold (e.g., $500) and require two board members to sign checks above it.
Rule 5: Separate Duties
The person collecting money should not be the same person reconciling the bank account.
Rule 6: Monthly Bank Reconciliation
Reconcile every month and have someone other than the treasurer review it.
Rule 7: Written Approvals for All Expenses
Require receipts and pre-approval for any reimbursement or payment.
Rule 8: Keep Digital and Paper Records
Store receipts, bank statements, and reports both physically and in a secure digital folder.
Rule 9: Conduct an Annual Financial Review
Have an independent person review the books before the new fiscal year begins.
Rule 10: Train Every Treasurer and Board Member
Don’t assume people know the rules — review them at the start of every school year.
💡 True Story: A PTO that skipped Rule 5 discovered $1,800 missing. The treasurer wasn’t dishonest — she’d made bookkeeping errors that no one else caught for months.
Bottom line: These 10 rules protect your PTO from loss, confusion, and suspicion. Follow them consistently, and you’ll keep your finances safe, your volunteers confident, and your community’s trust intact.