Question: Switching from PTA to PTO - dealing with funds

We are voting today on switching over and we have a substantial amoutn of money in the PTA accounts. Could we open an account under our propsed PTO name if we get the votes and deposit funds in there? I have been told that you should only carry over half your budget from one year to the next. Is this true and is it ok to do this or should we spend all of the money now? Also we have a very substantial amount of money in the savings which I was also told is a big no no because it has been in there for years and must have flown under the PTA's radar. Shoudln't we soend that also? Please help my meeting is this afternoon.

Asked by JAllums



Advice from PTO Today

Rockne writes:
Hi JA -

Whoa -- big questions with short time. My best suggestion is not to take that vote today. Breathe a bit while you figure things out. I can't imagine delaying the vote will prevent you from doing good work in the school at all, and your 2012-13 dues are likely all paid anyway, so a delay won't cost you anything.
You can definitely start a PTO bank account anytime. The bigger questions are your existing funds. You'll want to check your bylaws and read what is said about closing down and remaining funds. If you see issues there, you can delay your closing until you've made other arrangements with the funds (like spending them or other approved actions).

Good luck!

Tim Sullivan

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