One other note. Standard accounting best practices dictate that each check have two signatures. So whomever is on the account, you typically want two people plus at least one spare.

So I'm not suggesting turning over the checkbook to the principal - that's the treasurer's job. But the principal often makes a very convenient second signature.

Although anyone with signing authority could write a check, it's normally the treasurer who initiates the transaction, with another signer serving as the second signature. But in the event the treasurer were unavailable and the matter couldn't wait, another signer could initiate the check with another authorized person being the second signature.

WOW cannot think of one THING to add to JHB...in fact I'm going to copy and save it!!!
d

As President my name is on it along with our treasurer. For some reason the bank wanted another signature also so our secretary is on it. We do only have the treasurer to write out the checks (less confusion) but we are all allowed to if it is an emergency.

Your issues may be larger than a mere bank account. If the PTO is seen as an independent entity (as is most common), and not under the school's umbrella, then it needs to examine its business structure.

The general rule of the thumb is that if an organization has less than $5000 per year GROSS income, it can operate pretty informally. But if the PTO is exceeding that threshold, it should be set up with the IRS as a 501(c)(3) organization. (The $5000 represents everything coming in; not what's left after expenses.)

Whether the PTO is operating properly (legally) may have an impact on your decisions regarding the bank account.

The PTO should get its own EIN (Employers Identification Number) and establish the bank account. The treasurer and at least one, probably two, other officers or board members should be signers on the account. Usually the President is one of these. (Note - getting an EIN is very simple. No cost; can be done online or over the phone with the IRS in minutes.)

Whether or not the principal should be on the account is a matter of opinion/personal preference and there is no wrong or right answer. Your official role in the PTO may also impact the decision. In our elementary PTO, the principal was a signer, adding valuable continuity and a vested stakeholder who was easy to track down for a signature. (And the principal was one of our board members.)

In our middle school PTO, the principal wouldn't touch our bank account with a ten foot pole. He and the PTO work well together, but he feels that he should have no rights to the PTO bank account.

Here on the Forum, you'll hear both opinions.

Many organizations find it very convenient to have the principal as a signer. Some feel it's a conflict of interest. In some school districts, the policy is that the principal not be on parent group accounts - so that might be a consideration. If you know the PTO is not setup legally, you might not want your name on the account.

I would think it fairly unusual for the PTO President not to be a signer.

To learn more about properly organizing a PTO in the business sense, you may want to view this post .

P.S. If the PTO is not independent and basically functions as a committee under the school's umbrella, you should follow whatever the accounting practices are for the school.

I am a 2nd-year principal at an elementary school. In the past, the PTO and the school have shared a checking/bank account. Both groups, the PTO and the school, have amicably expressed the desire & need to have seperate checking/bank accounts.

I have some questions about how this is carried out and fulfilled. My name and the name of school secretary are required signatures for the school account. Who should be on the "signature card" for the PTO account?

The PTO President has expressed a desire to NOT have her name on the PTO account's signature card, and also a request for my name to be on the PTO signature card (in case of emergency, etc).

Can someone please explain how this process/practice is carried out for maximal effectiveness? [Whose name should be on each account]

Thanks in advance for your help.