Columbus –Alger’s improved financial condition prompted Auditor of State Dave Yost to release the village from its fiscal emergency status today.
“Challenging fiscal situations call for innovative ideas and tough choices,” Auditor Yost said. “The Village of Alger is taking the steps to address the issues head-on, and should continue down this path to financial stability.”
The Village of Alger was placed in fiscal emergency by the Auditor of State’s Office on August 9, 2005 based on aggregate deficit fund balances of $142,968 in the general, street, construction, street lighting, water operating and sewer operating funds. The village also had a treasury deficit of $88,983.
The Village of Alger took a number of actions to eliminate this fiscal emergency status, including increasing water and sewer rates in April 2006. In doing so, the village added approximately $42,000 in revenue annually. Village officials also obtained grants for playground equipment and saved $14,000 in general fund revenues. Council now reviews financial reports monthly, and the timeliness of recording financial transactions and monthly reconciliations of the books has improved.
To be terminated from fiscal emergency, the Village of Alger met the following criteria:
- Adopted and implemented an effective financial accounting and reporting system.
- Corrected or eliminated all of the fiscal emergency conditions; no new conditions have occurred, and it appears that, based on the village’s five-year forecast, the Village of Alger will remain out of fiscal emergency during the forecast period.
- Met the major objectives of the village’s financial recovery plan.
- 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.”
The FY 2009 and 2010 financial audits of the Village of Alger were also released today. Findings for recovery in the total amount of $2,097 were issued against various village officials for the following violations:
- Payment of village council members for meetings not attended.
- Payment of board of public affairs members for meetings not attended.
- A village employee did not pay in entirety the amount owed for the purchase of a village vehicle.
- The former fiscal officer was paid in excess of the approved contract amount.
- The village solicitor was overpaid.
Click to the view the fiscal emergency termination and the financial audit online.
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.