Taylor Releases Waynesville Audit

Village remains in fiscal emergency

Thursday, October 16, 2008

Warren County -

Auditor of State Mary Taylor today released the audit of the village of Waynesville for fiscal years 2005 and 2006. The audit reveals that improper accounting and lax budgetary oversight resulted in the village overspending more than $2 million. Additionally, fiscal mismanagement and poor record keeping has contributed to a significant delay in the audit process.

Taylor placed the village of Waynesville in fiscal emergency on April 15, 2008 due to a $538,102 deficit. As a result, the Auditor of State’s Local Government Services (LGS) section is serving as financial advisors to assist the village with its financial recovery. The village remains in fiscal emergency.

“Waynesville officials have a lot of hard work ahead of them as they seek financial stability,” Taylor said. “I am pleased my office can assist the village with its financial recovery and I encourage Waynesville officials to review and implement the recommendations we have outlined in this report.”

The audit reveals that the former Waynesville finance director paid village bills and made bank deposits but failed to maintain any records of village financial activity. Furthermore, council members were not monitoring village financial activity as required by state law. The lack of oversight resulted in village officials spending $2,101,943 more than was officially budgeted.

Additional findings include:

  • Undocumented credit card purchases and salary miscalculations totaling $9,500.47 that is owed back to the village
  • Fees and penalties paid to the Public Employees Retirement System and the Ohio
  • Police and Fire Pension Fund for late reporting totaling $6,720.07
  • Errors and miscalculations of employee tax and benefit withholdings

The Auditor of State’s Local Government Services section reconstructed village financial records and assisted the village in the development of a financial recovery plan. LGS serves as a consulting and fiscal advisory group to all governmental agencies and subdivisions. The section issues publications, accounting manuals and advisory bulletins to assist local governments with their duties.

A copy of the complete audit is available online at www.auditor.state.oh.us.