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.
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.