Ohio Auditor of State Dave Yost - Press Releases - Fiscal Caution, Watch, and Emergency

Little Miami Local Schools Released from Fiscal Emergency

Wed, 22 May 2013 12:00:00 -0400

Columbus – Auditor of State Dave Yost today released the Little Miami Local School District (Warren County) from fiscal emergency, a status it has held since 2010.

“This district and its residents made major sacrifices to get to this day,” Auditor Yost said. “Choices like these are never easy, but because of them, Little Miami’s financial future is more secure.”

The Little Miami Local School District was placed in fiscal emergency on July 13, 2010 due to the inability to submit an acceptable financial recovery plan to eliminate its deficits after it was declared in fiscal watch.

To eliminate its deficits, the district passed a 13.95-mill emergency levy in 2011 to generate approximately $10,639,000 annually. The district also cut 7 certified positions in fiscal years 2011 and 2012, as well as 6 classified positions. The staff reductions save the district approximately $534,000 annually.

To be released from fiscal emergency, the Village of Melrose met the following criteria:

Adopted and implemented an effective financial accounting and reporting system;
Corrected or eliminated all of the fiscal emergency conditions and no new conditions have occurred, and it appears that, based on its five-year forecast, the Village of Melrose will remain out of fiscal emergency during the forecast period;
Met the major objectives of the financial recovery plan; and
Prepared a five-year forecast in accordance with standards issued by the Auditor of State, and the opinion expressed by the Auditor of State is “nonadverse.”

A full copy of this fiscal emergency termination may be accessed online.

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The Auditor of State’s office, one of five independently elected statewide offices in Ohio, is responsible for auditing more than 5,700 state and local government agencies. Under the direction of Auditor Dave Yost, the office also provides financial services to local governments, investigates and prevents fraud in public agencies and promotes transparency in government.

Contact:
Carrie Bartunek
Press Secretary
614-644-1111

Village of Midland Released from Fiscal Emergency

Tue, 14 May 2013 12:00:00 -0400

Columbus -- Auditor of State Dave Yost today released the Village of Midland (Clinton County) from fiscal emergency, a status it has held since 2006.

The Village of Midland was placed in fiscal emergency on November 30, 2006 due to deficit fund balances in two funds.

To eliminate its fiscal emergency status, the Village of Midland passed a five year, 3-mill operating levy in 2012 to generate an additional $7,000 in annual revenue. The village also partnered with Jefferson Township to exchange use of the village hall for snow removal in the village, as well as the partial cost of utilities. This agreement provided annual savings of approximately $4,000.

To be released from fiscal emergency, the Village of Midland met the following criteria:

Adopted and implemented an effective financial accounting and reporting system;
Corrected or eliminated all of the fiscal emergency conditions and no new conditions have occurred, and it appears that, based on its five-year forecast, the Village of Midland will remain out of fiscal emergency during the forecast period;
Met the major objectives of the financial recovery plan; and
Prepared a five-year forecast in accordance with standards issued by the Auditor of State, and the opinion expressed by the Auditor of State is “nonadverse.”

A full copy of this fiscal emergency termination may be accessed online.

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Contact:
Carrie Bartunek
Press Secretary
614-644-1111

Brookfield Local Schools Placed in Fiscal Emergency

Tue, 14 May 2013 12:00:00 -0400

Columbus – The inability of the Brookfield Local Schools (Trumbull County) to develop an acceptable financial recovery plan prompted Auditor of State Dave Yost today to place the district in a state of fiscal emergency.

“The Brookfield Local Schools have some hard work ahead and difficult choices to make,” Auditor Yost said. “My office is ready to work with school officials and the commission to bring financial stability back to this struggling district.”

On December 22, 2005, the Ohio Department of Education declared the district in fiscal caution due to anticipated deficits for the 2006 and 2007 fiscal years. The district’s failure to present an acceptable plan to eliminate the anticipated deficits prompted the Auditor of State’s office to place the district in fiscal watch on March 2, 2006. The Brookfield Local School District Board of Education passed a resolution on February 21, 2013 that stated the district was unable to adopt a recovery plan to eliminate the projected current year deficit.

A Financial Planning and Supervision Committee will now be created to assume all or part of the powers of the board of education. Three members of this commission must be appointed within 15 days of this declaration of fiscal emergency. A financial plan must be developed by the commission within 120 days of the first meeting of the commission to address the district’s financial crisis.

A full copy of this fiscal emergency declaration may be accessed online.

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Contact:
Carrie Bartunek
Press Secretary
614-644-1111

Village of Patterson Placed in Fiscal Emergency

Tue, 14 May 2013 12:00:00 -0400

Columbus – Deficit fund balances, past due accounts payables and treasury deficits prompted Auditor of State Dave Yost today to place the Village of Patterson (Hardin County) in a state of fiscal emergency.

“It’s never easy to face these types of challenges head-on,” Auditor Yost said. “As Patterson begins to make the tough choices to bring back its financial stability, my office is prepared to offer our assistance wherever we can.”

Patterson Mayor Jason Kearns requested that a fiscal analysis be performed by the Auditor of State’s office to determine if the village’s condition justified the declaration of fiscal watch or emergency. The Auditor of State’s Local Government Services section conducted the analysis, and as of December 31, 2012 and January 31, 2013, the Village of Patterson was in a state of fiscal emergency due to the existence of two of the six conditions required.

As of December 31, 2012, the village’s general fund had accounts payable at least 30 days past-due in the amount of $1,936. The village’s general fund had accounts payable at least 60 days past-due in the amount of $1,954 as of January 31, 2013. The general fund also had deficit fund balances of $3,484 and $3,921. The village’s treasury deficit exceeded one-sixth of the treasury receipts by $201 and $1,036 as of the two dates.

For villages and townships with a population of less than 1,000 who are placed in fiscal emergency, the Auditor of State serves as the Financial Supervisor and has all the powers and responsibilities of a Financial Planning and Supervision Commission. At the 2010 census, the Village of Patterson’s population was 139. The Auditor of State’s office will help in developing a financial recovery plan for the village, and once a plan is approved, see that it is carried out. The office also provides technical assistance to the village, reviews the village’s existing system of accounting and reporting, and issues a report identifying needed improvements.

A full copy of this fiscal emergency declaration may be accessed online.

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Contact:
Carrie Bartunek
Press Secretary
614-644-1111

Village of Morral Placed in Fiscal Emergency

Tue, 14 May 2013 12:00:00 -0400

Columbus – Substantial deficit fund balances at the Village of Morral (Marion County) prompted Auditor of State Dave Yost today to place the village in a state of fiscal emergency.

“The task of eliminating deficits will require some difficult decisions,” Auditor Yost said. “My office will be on hand to help develop a plan that will bring fiscal health back to the Village of Morral.”

Morral Mayor Greg Stephens requested that a fiscal analysis be performed by the Auditor of State’s office to determine if the village’s condition justified the declaration of fiscal watch or emergency. The Auditor of State’s Local Government Services section conducted the analysis, and as of December 31, 2012 and January 31, 2013, the Village of Morral was in a state of fiscal emergency due to the existence of one of the six conditions required. The fiscal analysis determined that there were deficit fund balances that totaled $7,120 at December 31, 2012 and $8,370 at January 31, 2013.

For villages and townships with a population of less than 1,000 who are placed in fiscal emergency, the Auditor of State serves as the Financial Supervisor and has all the powers and responsibilities of a Financial Planning and Supervision Commission. At the 2010 census, the Village of Morral’s population was 339. The Auditor of State’s office will help in developing a financial recovery plan for the village, and once a plan is approved, see that it is carried out. The office also provides technical assistance to the village, reviews the village’s existing system of accounting and reporting, and issues a report identifying needed improvements.

A full copy of this fiscal emergency declaration may be accessed online.

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Contact:
Carrie Bartunek
Press Secretary
614-644-1111

Village of Melrose Released from Fiscal Emergency

Thu, 09 May 2013 12:00:00 -0400

Columbus – Auditor of State Dave Yost today released the Village of Melrose (Paulding County) from fiscal emergency, a status it has held since 2008.

The Village of Melrose was placed in fiscal emergency on December 17, 2008 due to deficit fund balances in two funds and a treasury deficit.

To eliminate its fiscal emergency status, the Village of Melrose enacted a one percent income tax increase in 2010 to increase revenue by $18,000 annually, as well as a $5 permissive license tax to generate an additional $1,000 annually. The village also sold some of its equipment for $8,600. By turning off approximately half of its street lights, the village saves approximately $2,945 each year.

To be released from fiscal emergency, the Village of Melrose met the following criteria:

Adopted and implemented an effective financial accounting and reporting system;
Corrected or eliminated all of the fiscal emergency conditions and no new conditions have occurred, and it appears that, based on its five-year forecast, the Village of Melrose will remain out of fiscal emergency during the forecast period;
Met the major objectives of the financial recovery plan; and
Prepared a five-year forecast in accordance with standards issued by the Auditor of State, and the opinion expressed by the Auditor of State is “nonadverse.”

A full copy of this fiscal emergency termination may be accessed online.

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Contact:
Carrie Bartunek
Press Secretary
614-644-1111

Village of Mantua Released from Fiscal Watch

Wed, 10 Apr 2013 12:00:00 -0400

Columbus – Auditor of State Dave Yost today released the Village of Mantua (Portage County) from fiscal watch, a status it’s held since 2008.

“The Village of Mantua dug its way out of financial trouble by making tough choices -- not digging into the pockets of its citizens,” Auditor Yost said. “This is a proud day for the village.”

The Village of Mantua was placed into fiscal watch on August 26, 2008 due to accounts payable exceeding one-twelfth of available revenue and deficit fund balances in five funds.

To eliminate its fiscal watch status, the Village of Mantua took various steps to reduce its total annual expenses by more than $395,000. The majority of the reductions came through approximately $252,000 in cuts to the village’s general fund. The village also made staff reductions for a total of $102,000 in annual savings. The village solicitor’s annual salary was reduced by $14,000.

The village increased its annual revenue $125,000 without increasing taxes. By providing dispatch services for the Village of Hiram and Mantua-Shalersville Fire District, the village receives an additional $85,000 annually. The village now sells bulk water and accepts sewage from various companies for an additional $40,000 annually.

An entity is released from fiscal watch when the Auditor of State determines that the conditions that prompted the declaration are no longer present and will not recur in the entity’s three-year forecast.

The Village of Mantua had total revenues of $719,050 in 2012.

A full copy of this fiscal watch termination may be accessed online.

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The Auditor of State’s office, one of five independently elected statewide offices in Ohio, is responsible for auditing more than 5,600 state and local government agencies. Under the direction of Auditor Dave Yost, the office also provides financial services to local governments, investigates and prevents fraud in public agencies and promotes transparency in government.

Contact:
Carrie Bartunek
Press Secretary
614-644-1111

City of Portsmouth Placed in Fiscal Watch

Tue, 09 Apr 2013 12:00:00 -0400

Columbus – Lack of progress by the City of Portsmouth (Scioto County) to correct its financial problems prompted Auditor of State Dave Yost today to elevate the city’s status from fiscal caution to fiscal watch.

“This is a real disservice to taxpayers,” Auditor Yost said. “The process has two parts: coming up with the plan and then following through on it. Sitting on the recovery plan does nothing but allow the city’s fiscal condition to worsen.”

Upon the declaration of fiscal caution, the city was required to submit a recovery plan to address its fiscal issues. The Auditor of State’s office reviewed the written proposal and determined that the plan was acceptable on February 29, 2012. On November 30, 2012, the Auditor of State’s office notified the city that it had made very little progress on correcting or eliminating the issues that prompted the fiscal caution declaration.

The City of Portsmouth must now submit a new financial recovery plan within 120 days of today’s declaration designed to identify the actions that will be taken to correct its financial problems, as well as a 5-year financial forecast. If the city is unable to submit an acceptable recovery plan, fiscal emergency will be declared and a financial planning and supervision commission would be appointed.

Technical assistance is available from the Auditor of State’s office to city officials to aid in addressing their financial concerns.

The City of Portsmouth was placed in fiscal caution on November 22, 2011 based on the city’s 2010 audited financial statements. The audit included various noncompliance issues with Ohio law, significant deficiencies, and material weaknesses. The audit report disclosed that the city’s general fund had a deficit fund balance of $530,043 at December 31, 2010. The city’s municipal court grants and rural AIDS state grant special revenue had deficit fund balances of $9,482 and $10,332, respectively. In addition, Portsmouth’s insurance fund was owed $426,000 by other city funds.

A full copy of this fiscal watch declaration may be accessed online.

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Contact:
Carrie Bartunek
Press Secretary
614-644-1111

Auditor Yost Places Chillicothe in Fiscal Caution

Tue, 23 Oct 2012 12:00:00 -0400

Columbus – Deficit fund balances in police and fire pension funds, along with the failure to perform basic accounting reconciliations, prompted Auditor of State Dave Yost today to declare the City of Chillicothe (Ross County) in a state of fiscal caution.

“These conditions can be corrected, but it’s going to take work,” Auditor Yost said. “The long-run concern is protecting the General Fund and the city’s fiscal health.”

The city has not reconciled its account journals and ledgers with the bank since May 2012, and a review of the city’s 2011 audited financial statements and other records showed no evidence that the city performed year-end or periodic bank reconciliations. In addition, the city has deficit balances in its Police Pension and Fire Pension special revenue funds in the amounts of $193,130 and $157,368, respectively, as of Dec. 31, 2011.

The Auditor of State’s guidelines for a declaration of fiscal caution include (1) unauditable financial records; (2) significant deficiencies, material weaknesses, direct and material noncompliance as disclosed in the financial audit; (3) deficit fund balances; (4) a carryover fund balance of less than one month’s average expenditures for two consecutive years, and (5) a failure to reconcile accounting journals and ledgers with the treasury.

Under the declaration and in accordance with Revised Code 118.025, the city has 60 days to submit to the Auditor of State a plan to correct the budgetary conditions that led to the declaration of fiscal caution, including eliminating deficit fund balances.

A full copy of this fiscal caution declaration may be accessed online.

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The Auditor of State is one of five independently elected statewide offices under the Ohio Constitution. Auditor Yost’s office is responsible for auditing over 5,600 state and local government agencies. Staff also works in partnership with state and local governments to deal effectively with financial, accounting and budgetary issues.

Contact
Public Affairs
(614) 644-1111

Village of Newcomerstown Placed in Fiscal Emergency

Thu, 11 Oct 2012 12:00:00 -0400

Columbus – Substantial deficit balances at the Village of Newcomerstown (Tuscarawas County) prompted Auditor of State Dave Yost today to place the village in a state of fiscal emergency.

“The Village of Newcomerstown will undoubtedly have some difficult decisions to make in the upcoming weeks and months,” Auditor Yost said. “My office will be available to assist officials in bringing financial stability back to the village.”

At the request of Newcomerstown Mayor James A. Friel, a fiscal analysis was performed by the Auditor of State’s office to determine if the financial condition of the village justifies the declaration of a fiscal emergency. The analysis determined that a fiscal emergency condition exists due to the village’s total unprovided portion of aggregate deficit funds as of December 31, 2011, and April 30, 2012, which are $136,548 and $155,149, respectively.

A fiscal emergency declaration will result in the formation of a Financial Planning and Supervision Commission. The commission includes the Treasurer of State (or office designee), the Director of the Office of Budget and Management (or an office designee), the mayor, the presiding officer of the village’s legislative authority, as well as three appointed members chosen out of five names provided to the Governor by the village.

The commission is responsible for approving a financial recovery plan that details solutions for eliminating the fiscal emergency condition, ensures a balanced budget, avoids future deficits and markets long-term obligations. The plan must be submitted to the commission within 120 days of its first meeting.

A full copy of this fiscal emergency declaration may be accessed online.

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Contact:
Carrie Bartunek
Press Secretary
614-644-1111

Auditor Yost Places Newton Township in Fiscal Caution

Tue, 09 Oct 2012 12:00:00 -0400

Columbus – Deficit balances, significant audit citations, failure to file financial reports and unauditable records put Newton Township (Trumbull County) into fiscal caution, according to a declaration today by Auditor of State Dave Yost.

“Fiscal caution is a chance to get the house in order before things get worse,” Auditor Yost said. “It’s going to take some work, but let’s hope today marks the first step on the road to the financial management Newton Township taxpayers deserve.”

Under today’s declaration, the township has 60 days to submit to the Auditor of State a plan to correct the budgetary conditions that led to the declaration of fiscal caution, including eliminating deficit fund balances.

Fund financial data as of December 31, 2011 shows three funds with deficit balances in the amount of $153,001. The deficits exceeded 2 percent of estimated revenues by $151,938. Data as of April 30, 2012, shows four funds with deficit balances in the amount of $147,967. The deficits exceed 2 percent of estimated revenues by $145,562.

The Auditor of State’s guidelines for a declaration of fiscal caution include:

Unauditable financial records;
Significant deficiencies, material weaknesses, direct and material noncompliance as disclosed in the financial audit;
Deficit fund balances;
A carryover fund balance of less than one month’s average expenditures for two consecutive years, and
A failure to reconcile accounting journals and ledgers with the treasury. Newton Township met three of the conditions.

The authority to declare fiscal caution for municipalities, counties and townships is established by Ohio Revised Code 118.025. Under fiscal caution, the subdivision has an opportunity to make adjustments to avoid a declaration of fiscal watch or emergency.

A full copy of this fiscal caution declaration may be accessed online.

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Contact:
Carrie Bartunek
Press Secretary
614-644-1111

Village of Tiro Placed in Fiscal Emergency

Thu, 30 Aug 2012 12:00:00 -0400

Columbus – A default on outstanding debt at the Village of Tiro (Crawford County) prompted Auditor of State Dave Yost today to place the village in a state of fiscal emergency.

At the request of Tiro Mayor Ronald Brown, a fiscal analysis was performed by the Auditor of State’s office to determine if the financial condition of the village justifies the declaration of a fiscal watch or fiscal emergency. The analysis determined that a fiscal emergency condition exists due to the village’s default on an outstanding debt from the Ohio Water Development Authority for more than thirty days as of June 30, 2012.

For villages and townships with a population of less than 1,000 who are placed in fiscal emergency, the Auditor of State serves as the Financial Supervisor and has all the powers and responsibilities of a Financial Planning and Supervision Commission. At the 2010 census, the Village of Tiro’s population was 280. The Auditor of State’s office will help in developing a financial recovery plan for the village, and once a plan is approved, see that it is carried out. The office also provides technical assistance to the village, reviews the village’s existing system of accounting and reporting, and issues a report identifying needed improvements.

A village is placed in fiscal emergency if any one of six conditions described in Section 118.03 of the Ohio Revised Code exists. The six conditions are: 1) default on any debt obligation; 2) failure to make payment of all payroll; 3) an increase in the minimum levy of the village which results in the reduction in the minimum levy of another subdivision; 4) significant past due accounts payable; 5) substantial deficit balances in village funds; and 6) a sizeable deficiency in the village’s treasury when the balance is compared to the positive cash balances of the village’s funds.

A full copy of this fiscal emergency declaration may be accessed online.

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Contact:
Carrie Bartunek
Press Secretary
614-644-1111

City of Girard Released from Fiscal Emergency

Thu, 07 Jun 2012 12:00:00 -0400

Columbus – Auditor of State Dave Yost today released the City of Girard (Trumbull County) from fiscal emergency, a status it has held since 2001.

“This day is the culmination of more than a decade of hard work and sacrifices made by the people of Girard,” Auditor Yost said. “It’s good to see the city rise from its fiscal troubles and come out stronger and financially stable.”

The City of Girard was placed in fiscal emergency on August 8, 2001 due to defaults on two Ohio Water Development Loans and deficit fund balances in three funds.

To eliminate its fiscal emergency status, the City of Girard took steps to both reduce expenses, as well as generate new revenue. The city eliminated nine positions to save approximately $500,000 annually. Girard also contracted with the Regional Income Tax Agency to do its income tax collections, which allowed the city to eliminate two more positions and save approximately $100,000 each year.

To generate new revenue, the city raised water rates on four separate occasions, equating to a total 41.5 percent increase. City voters passed two five-year, three-mill levies in 2005 and 2010 to add between $360,000 and $375,000 in revenue annually. Voters also approved a 1.5-mill garbage levy in May 2010 to generate approximately $190,000 annually. The city sold timber for $162,000 and gas royalties for $125,000.

To be terminated from fiscal emergency, the City of Girard met the following criteria:

Adopted and implemented an effective financial accounting and reporting system
All of the fiscal emergency conditions have been corrected or eliminated, and no new conditions have occurred, and it appears that the city will remain out of fiscal emergency during the forecast period
Met the objectives of the financial recovery plan
The city has prepared a five-year forecast in accordance with standards issued by the Auditor of State, and the opinion expressed by the Auditor of State is “nonadverse.”

A full copy of this termination is available online.

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Contact:
Carrie Bartunek
Press Secretary
614-644-1111

Auditor Yost Declares East Cleveland in State of Fiscal Watch

Fri, 25 May 2012 12:00:00 -0400

Columbus – Failure by the City of East Cleveland to submit an acceptable financial recovery plan to address the concerns outlined in its fiscal caution declaration prompted Auditor of State Dave Yost to elevate the city’s status to fiscal watch.

A review of fund financial data in November 2011 found the City of East Cleveland had deficit fund balances in the amount of $5,872,222, which exceeds two percent of estimated revenue of those funds by $5,451,535. These deficit fund balances led to the city being placed in a state of fiscal caution on January 5, 2012.

The fiscal caution declaration required the city to develop and provide a written proposal to the Auditor of State to correct the budgetary conditions that led to the declaration of fiscal caution, including eliminating deficit fund balances. This declaration of fiscal watch is based on the city’s failure to submit an acceptable recovery proposal to the Auditor of State’s office.

In recent discussions, city officials have stated some improvements implemented by the mayor’s office, including procedure revisions, which may assist in the development of an acceptable financial recovery plan.

The City of East Cleveland must now submit a financial recovery plan within 120 days of today’s declaration designed to identify the actions that will be taken to correct its financial problems, as well as a 5-year financial forecast. If the city remains unable to submit an acceptable recovery plan, fiscal emergency will be declared and a financial planning and supervision commission would be appointed.

Technical assistance is available from the Auditor of State’s office to city officials to aid in addressing their financial concerns.

A full copy of this fiscal watch declaration may be accessed online.

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Contact:
Carrie Bartunek
Press Secretary
614-644-1111

Auditor Yost Places Madison Township in Fiscal Caution

Thu, 17 May 2012 12:00:00 -0400

Columbus – Significant deficit fund balances and incomplete financial records prompted Auditor of State Dave Yost today to declare Madison Township (Richland County) in a state of fiscal caution.

“Madison Township has some difficult choices to make and hard work ahead,” Auditor Yost said. “But with this early notice, officials have the opportunity to take the necessary steps to bring the township back to fiscal health and prevent further problems.”

Based on the township’s financial records as of April 19, 2012, Madison Township met four fiscal caution conditions. The township failed to reconcile account journals and ledgers with their bank for 27 months and failed to bring its financial records to an auditable condition within 90 days of their “unauditable” declaration on January 17, 2012. In addition, the township’s 2008-2009 audit included a number of citations, such as negative cash fund balances and appropriations exceeding estimated resources. A review of finances at December 31, 2011 found that Madison Township had deficit fund balances in the amount of $78,001, which exceeds two percent of estimated revenues by $69,287.

The authority to declare a state of fiscal caution for municipalities was established through the course of Ohio’s biennial budget passed last year. Auditor Yost believes that, rather than through sudden declarations of fiscal watch and emergency, local governments should be provided with earlier notice of financial concerns. Instead, these political subdivisions should have access to the same tool provided for school districts, allowing a declaration of fiscal caution. Under fiscal caution, the subdivision has an opportunity to make adjustments to avoid a declaration of fiscal watch or emergency.

A full copy of this fiscal caution declaration may be accessed online.

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Auditor Yost Places Monroe Local Schools in Fiscal Emergency

Wed, 09 May 2012 12:00:00 -0400

Columbus – Failure to present an acceptable financial recovery plan by the Monroe Local School District (Butler County) prompted Auditor of State Dave Yost today to place the district in a state of fiscal emergency.

“The Monroe Local Schools will have some difficult decisions to make in the coming weeks and months,” Auditor Yost said. “My office stands ready to assist wherever we can to bring financial stability back to the district.”

On October 1, 2011, the Ohio Department of Education declared the Monroe Local School District to be in a state of fiscal caution based on anticipated deficits for the 2012 and 2013 fiscal years. The district was placed in fiscal watch by the Auditor of State’s office on February 2, 2012 because the district failed to submit an acceptable written proposal to the Ohio Department of Education to eliminate the anticipated deficits.

The declaration of fiscal watch required that the board of education submit an initial financial plan to the State Superintendent of Public Instruction that will address the district’s current operating deficit and avoid future deficits. The Monroe Local School District Board of Education failed to submit an acceptable recovery plan following the fiscal watch declaration, and anticipates a deficit of $2,204,000 for the fiscal year ending June 30, 2012.

A full copy of this fiscal emergency declaration is attached and may be accessed online.

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Contact:
Carrie Bartunek
Press Secretary
614-644-1111

Federal Hocking Local School District Released

Thu, 01 Mar 2012 12:00:00 -0400

Columbus – Without raising taxes, the Federal Hocking Local School District in Athens County emerged from fiscal emergency today, more than five years after first being put into fiscal distress status by the Ohio Department of Education. The release from fiscal emergency was announced by Auditor of State Dave Yost.

Getting to this day has not been easy, but the district is better for having faced up to its fiscal hardship,” Auditor Yost said. “Federal Hocking skinnied down by looking at expenses instead of increasing taxes. That’s a leadership example for every district and government in the state.

Federal Hocking Local School District was placed into fiscal emergency May 21, 2007 by the Auditor of State. Previously, the Ohio Department of Education declared fiscal caution in October 2006, and the Auditor declared fiscal watch in March 2007.

The basis for the declarations of fiscal distress included projected deficits of $282,000 in FY 2007 and $1,466,000 in FY 2008, along with the failure of the district to submit a plan for alleviating the deficits.

The district saved approximately $57,000 annually by staff reductions and retirements as well as approximately $158,000 annually through benefit changes. Additional general fund adjustments were allowed by creation of a permanent improvements fund to cover expenses previously in the general fund. Overall general fund expenditures were reduced by $731,000 to $11 million.

To be terminated from fiscal emergency, Federal Hocking Local School District met the following criteria:

An effective financial accounting and reporting system has been implemented
All of the fiscal emergency conditions have been corrected or eliminated, no new conditions have occurred, and the district will remain out of fiscal emergency during the forecast period
The objectives of the financial recovery plan are being met; and
The school has prepared a five-year forecast in accordance with standards issued by the Auditor of State.

A full copy of this termination is available online.

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Contact:
Carrie Bartunek
Press Secretary
(614) 728-7198

McDonald Local Schools Released from Fiscal Emergency

Tue, 28 Feb 2012 12:00:00 -0400

Columbus –Auditor of State Dave Yost today released the McDonald Local School District (Trumbull County) from its fiscal emergency status, which it held since 2009.

“Coming back after fiscal emergency is an uphill battle for any entity, and each community must make the difficult choices that work best for them,” Auditor Yost said. “I congratulate the McDonald Schools and community for facing their challenges and bringing fiscal health back to their school district.”

The McDonald Local School District was placed in fiscal emergency on October 15, 2009 due to a general fund deficit of $2,001,000. This amount equated to 32% of the district’s general fund revenues for the fiscal year ended June 30, 2009. According to the Ohio Revised Code, a school district may be declared in fiscal emergency by the Auditor of State if the district has a forecasted operating deficit that exceeds 15% of the district’s general fund revenue for the preceding fiscal year.

The district took numerous actions to eliminate the conditions that prompted the fiscal emergency declaration, including staff reductions which added up to annual savings of more than $700,000. By renegotiating contracts with outside vendors, the district saves more than $53,000 annually. Employee contract concessions save the district almost $230,000 each year. The voters of the district passed a 4.9-mill emergency levy in 2010 to generate an additional $260,000 annually and another 7.25-mill emergency levy in 2011 to generate additional revenues of $391,000 annually.

The district received $2,001,000 in state solvency assistance advances in fiscal year 2010 and the funds will be fully repaid during fiscal year 2012.

To be terminated from fiscal emergency, the McDonald Local School District met the following criteria:

An effective financial accounting and reporting system is in the process of being implemented
All of the fiscal emergency conditions have been corrected or eliminated, and no new conditions have occurred, and it appears that the district will remain out of fiscal emergency during the forecast period
The objectives of the financial recovery plan are being met
The school has prepared a five-year forecast in accordance with standards issued by the Auditor of State.

A full copy of this termination is available online.

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Contact:
Carrie Bartunek
Press Secretary
(614) 728-7198

Beaver Local School District Released from Fiscal Emergency

Tue, 21 Feb 2012 12:00:00 -0400

Columbus – Auditor of State Dave Yost released the Beaver Local School District (Columbiana County) from fiscal emergency today, a status they held since February of 2010.

“This is a proud day for Beaver Local Schools,” Auditor Yost said. “Making the decisions necessary to get to this day is never easy, but the district is financially healthier for it.”

The Beaver Local School District was placed into fiscal caution by the Ohio Department of Education on April 24, 2009 due to projected deficits for fiscal year 2009. The Auditor of State declared the district in fiscal watch on September 10, 2009 for two reasons: 1) their failure to submit a written proposal for eliminating the anticipated deficits that prompted the declaration of fiscal caution, and 2) forecasted deficits of $555,000 for fiscal year 2009 and $819,000 for fiscal year 2010. Fiscal emergency was declared on February 11, 2010, because the district failed to submit an acceptable recovery plan to the Ohio Department of Education within 120 days of the fiscal watch declaration.

The district took a number of different actions to eliminate their fiscal emergency status, with total estimated annual savings of more than $1.15 million. Staff reductions of approximately 15 positions through reductions in force and non-replacement of retirements added up to $711,000 in annual savings. Changes in the teacher contract such as wage freezes and contract concessions save $313,000 annually. By eliminating the benefits consultant, the district is saving $16,000 annually.

The district received $889,000 in state solvency assistance funds in FY 2010 and expects to have the advances repaid in FY 2012.

To be terminated from fiscal emergency, the Beaver Local School District met the following criteria:

An effective financial accounting and reporting system has been implemented;
All of the fiscal emergency conditions have been corrected or eliminated, and no new conditions have occurred, and it appears that the district will remain out of fiscal emergency during the forecast period;
The objectives of the financial recovery plan are being met; and,
The school has prepared a five-year forecast in accordance with standards issued by the Auditor of State, and the opinion expressed by the Auditor of State is “nonadverse.”

A full copy of this termination is available online.

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Contact:
Carrie Bartunek
Press Secretary
(614) 728-7198

Auditor Yost Places Monroe Local Schools in Fiscal Watch

Thu, 02 Feb 2012 12:00:00 -0400

Columbus – Projected deficits prompted Auditor of State Dave Yost today to declare the Monroe Local School District (Butler County) in a state of fiscal watch.

“These are undoubtedly tough times for the Monroe Local Schools that will require difficult decisions,” Auditor Yost said. “I encourage the district to utilize every tool available to chart a path back to fiscal health.”

On October 1, 2011, the Ohio Department of Education declared the district in a state of fiscal caution based on anticipated deficits for fiscal years ending June 30, 2012 and 2013. The Ohio Department of Education notified the Auditor of State’s office that the Monroe Local School District failed to submit an acceptable written proposal to correct the financial conditions that prompted the fiscal caution declaration and requested the district be placed in fiscal watch.

The Auditor of State’s office reviewed the district’s five-year forecast submitted on October 26, 2011 and determined that the Ohio Department of Education’s request was reasonable. The district’s five-year forecast includes a deficit of $1,568,000 for fiscal year 2012 and a deficit of $2,705,000 for fiscal year 2013.

Within 60 days of this declaration, the Monroe Local School District must submit a financial plan designed to correct their financial problems. If the district is unable to do so, fiscal emergency will be declared. Technical assistance will be available to district leaders from both the Auditor of State’s office as well as the Ohio Department of Education, free of cost to the district.

A full copy of this fiscal watch declaration can be found online.

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Contact:
Carrie Bartunek
Press Secretary
614-644-1111