Columbus – The inability to adopt a financial recovery plan while under fiscal watch prompted Auditor of State Dave Yost today to place the East Knox Local School District (Knox County) in a state of fiscal emergency.

“This is a math problem – it’s time to come to the blackboard,” Auditor Yost said. “The task at hand will require difficult decisions, but my office stands ready to help the commission address this deficit.” 

The East Knox Local School District was placed in fiscal caution by the Ohio Department of Education on September 4, 2012 due to an anticipated deficit for the fiscal year ending June 30, 2012 and potential deficits for future years. The Auditor of State’s office placed the district in fiscal watch on September 30, 2014 after the district failed to submit a written proposal to eliminate the anticipated deficits. The East Knox Local School District Board of Education passed a resolution on November 10, 2014 stating their inability to adopt a financial recovery plan. 

A Financial Planning and Supervision Commission 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 its first meeting to address the district’s financial crisis.

The Auditor of State serves as an advisor to commissions for all school districts in fiscal emergency. In this role, the office provides accounting training and assistance, as well as monthly monitoring of the district's financial activity to ensure compliance with the recovery plan and various accounting rules and reports.

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 5,800 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.