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Auditor Yost Releases Hamilton Township from Fiscal Emergency
Columbus – Auditor of State Dave Yost today released Hamilton Township (Warren County) from fiscal emergency, a status it has held since April 2014.
“This is the fastest a local government has come out of fiscal emergency since the 1980’s,” Auditor Yost said. “Kudos to Fiscal Officer Ray Warrick and the township trustees for straightening out this garbled bookkeeping.”
The township was placed in fiscal emergency on April 9, 2014 as a result of deficit fund balances in three funds, as well as a treasury deficiency.
To eliminate the fiscal emergency, Hamilton Township utilized a provision in the Ohio Revised Code that allowed it to close the medical services fund and transfer $2,208,198 into the general fund. Township officials then transferred $1,928,353 from the general fund to the new building bond retirement fund. Officials also transferred $103,281 both from the general fund and police levy fund to cover the debt. These transfers eliminated the deficit in the new building bond fund.
In addition, officials transferred $238,764 from the general fund to the bond fund, which eliminated the deficit in the bond fund. The township no longer uses the bond fund.
To eliminate the deficit in the road and bridge fund, the township reallocated certain salaries and benefits in 2014 to other allowable funds, saving approximately $234,000. Additionally, the township moved utility charges and the purchase of salt to other allowable funds, saving approximately $2,337 and $47,710, respectively.
To be released from fiscal emergency, Hamilton Township 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, Hamilton Township 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.
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.