I always suggest that each individual group have their own bank account with the treasurer and chair of the committee be the primary people on the account. (Your school's business manager can assist you in setting this up.) Having the school's finance department keep track of various funds grouped into a general fund is a problem waiting to happen. With your PTA's own account you can control where the money is being spent. But I would also pitch-in to the general fund periodically with a stipulation on where the money is being spent. It is just good business and shows support for your school and principal.
"PTO committee" sounds like it's not a separate organization (with its own 501c3 designation and bank account). If it's a committee set up by the school, then probably the principal does (legally) control the money.
The question then is: does the principal realize that you feel he's undermining your efforts? What does he/she want the PTC to do? Are you really just a fundraising group for his personal projects, and does he/she understand that not many parents are willing to invest a lot of their time without having adequate input on the spending?
Hi Starr,
It probably shouldn't be happening -- at the very least without anyone's knowledge. But, the legality of it depends on how your group is structured, who is authorized to take money from the account and so on. In some cases, groups do have a principals discretionary fund. But, at the very least, you should discuss this with your board immediately and the board should be able to quickly determine if the principal is allowed to do this. That answer will determine the next step.
