Did Thousands of PTO $FUNDS Get Tossed in a Dumpster? Comptroller Investigates
WHITE HOUSE, TENNESSEE: (Smokey Barn News) – An investigation by the State Comptroller has uncovered alleged financial misconduct by the former treasurer of the White House Heritage Elementary School Parent Teacher Organization (PTO). Robertson County Schools identified the financial discrepancies that led to the investigation, which examined records from May 2021 through September 2023.
According to a report from Jason E. Mumpower, State Comptroller on Tuesday, the investigation revealed allegations that the former PTO treasurer misappropriated at least $8,000 from two father-daughter dances held in 2022 and 2023. Additionally, the investigation found that the former treasurer destroyed records related to the 2023 father-daughter dance and failed to maintain proper custody of financial documents. Missing records included collection logs and other essential documentation for accurate financial reporting, the report stated.
According to the report, the former PTO treasurer admitted that instead of depositing the 2022 dance money into the PTO bank account, she used a portion of it to pay various personal living expenses and retained the remaining funds at her residence. She further admitted that upon the conclusion of the 2023 dance, she kept (in her possession) all the money from the 2023 dance and any remaining money from the 2022 dance in a bank bag at her residence. The former PTO treasurer stated that in July 2023, when questions were raised about the missing funds, she panicked and threw away the bank bag in a dumpster. According to the former PTO treasurer, the bank bag that she threw in the dumpster could have included several thousand dollars.
Further discrepancies totaling at least $1,265.87 were identified across various events and fundraisers, attributed to missing or inadequate records. This made it challenging to reconcile the amounts collected. The investigation also highlighted deficiencies in internal controls, such as inadequate oversight of financial operations, failure to perform bank reconciliations, and lack of segregation of duties. The former treasurer allegedly did not deposit collections promptly and failed to turn over PTO records and a computer in a timely manner.
The PTO officials also did not file the required Form 990-N with the IRS, which is necessary to maintain the organization’s tax-exempt status. The findings of the investigation have been communicated to relevant authorities, including Governor Bill Lee, the State Attorney General, and the District Attorney General of the 19th Judicial District.
On July 11, 2024, the PTO received an $8,000 check for deposit on behalf of the former PTO treasurer. The Comptroller’s full report can be read HERE.
Robertson County Schools released the following statement.
“Robertson County Schools is aware of the recent incident involving the misappropriation of funds by a member of a Parent Teacher Organization (PTO) at one of our schools. We deeply regret that this situation has occurred and understand the concerns it raises within our community. It’s important to emphasize that PTOs, while they collaborate with our schools, are independent, parent-led organizations and are not directly affiliated with Robertson County Schools. The district encourages everyone to support our schools through state and district-approved school support organizations. A list of these organizations is posted on the district website early each fall.”
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