Police are investigating a report of possible fraud related to the countywide PTA in Montgomery County, Md. (iStock/iStock)

Police are investigating a report of possible fraud involving a former officer in the countywide council of PTAs in Maryland’s largest school system, authorities said Wednesday.

PTA leaders in Montgomery County say they believe $39,000 was improperly disbursed through the checking account of the PTA organization, called the Montgomery County Council of PTAs, or MCCPTA.

In a letter to members, the group wrote that since July 1, “significant financial irregularities have occurred, including the apparent theft of a substantial sum, most likely by someone inside MCCPTA.”

No one has been charged in the case, which is in the early stages of investigation, said Officer Rick Goodale, of the Montgomery County Police. Goodale did not identify a suspect.

PTA leaders say that in February and March, board members raised questions about financial reports for the volunteer-run organization.

Paul Geller, immediate past president, said he brought the case to police on April 10 after a review of financial documents revealed irregularities.

“Based on a review of PTA financial documents, it appears the funds may have been diverted,” Geller said in an interview, declining to provide details. “It’s being investigated, and we’re cooperating fully — fully — with police. Whatever they need, they’ve got.”

An independent three-member PTA audit team, which reviewed financial activities from July 1 to March 31, provided police with further documentation last week, said Lynne Harris, who was elected president of the group Tuesday night.

Harris said the audit team compared the treasurer’s records with banking records, among other things. “They were meticulous,” she said. “What they believe they discovered was unauthorized disbursements that began as early as last summer.”

PTA leaders said the immediate past treasurer of the organization resigned in late March. The Washington Post is not naming her because no charges have been filed. She did not respond to a phone call or email Wednesday.

The issue was discussed Tuesday night at an annual assembly of delegates that drew more than 150 people and included election of new officers. Many who attended reacted to a report of the audit team’s findings with surprise, dismay and disappointment, according to several who were there.

“The mood was generally one of concern, because the amount was large and some people were hearing about this for the first time,” recalled one parent who declined to be named because of the sensitivity of the investigation.

The organization is committed to improving its financial safeguards to prevent anything similar from occurring in the future, Harris said. The county group’s most recent yearly audit, done by an outside firm, showed no problems, she said.

“We’re going to be very transparent going forward, and we’re going to keep our members fully informed,” she said.

Recommendations for tightening financial practices have been made by the PTA audit team, and the county is also working with the state PTA, she said.

The countywide organization represents PTAs in more than 190 of Montgomery’s 204 schools. With an annual budget of roughly $80,000, the group has used its funds for advocacy, an arts festival, informational events and other programs.

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MCCPTA represents about 50,000 Montgomery parents, students, teachers and others who are PTA members. A dollar of each member’s annual dues goes to the countywide organization.

Harris said that, under PTA bylaws, the county organization’s checks require more than one signature of designated signatories but that the requirement does not appear to be enforced by banks.

The county group has reported its problems to its bank and closed its old account. Its current funds, about $10,000, are in a new account. It is working with its insurance carrier to possibly recover the lost funds, Harris said.

Montgomery schools spokesman Derek Turner said that district officials are aware of the issue and believe that PTA leaders have taken appropriate steps to address it.

“MCCPTA and all of our PTAs have been great partners throughout the year, and this doesn’t change the value and importance of our relationship in supporting our schools and students,” he said.

PTA leaders said they could not recall a similar incident involving the countywide organization.

In the 2006-07 school year, an Olney woman serving as PTA treasurer at Cashell Elementary School pleaded guilty to stealing $27,000, according to news reports.