Village of Bloomingburg Released from Fiscal Caution
Columbus – The Village of Bloomingburg (Fayette County) today became just the second local government to be released from the state’s fiscal caution designation without slipping further into fiscal distress.
Auditor of State Dave Yost announced that the village has successfully eliminated the fund deficits and corrected the accounting shortcomings that led to a fiscal caution declaration almost four years ago in December 2013.
“The Village of Bloomingburg quickly applied the brakes to avoid plunging further into the red,” Auditor Yost said. “Congratulations to the community for this well-deserved accomplishment.”
Deficit balances in the village’s general fund totaled $28,819 and $28,011 at Dec. 31, 2012, and Nov. 30, 2013, respectively. The village’s 2011-12 audit also cited numerous deficiencies including overpayments to vendors, payments made from the wrong funds and a failure to certify purchases.
The village successfully erased its deficit by following through with its six-part fiscal recovery plan, which included steps to reduce general fund expenditures by $26,800. All funds were in the black as of Sept. 30, 2017, and the general fund balance at that time totaled $109,441.
Auditors determined that the village took action to properly certify purchases and ensure payments are made to vendors on time to avoid the possibility of making overpayments. The village also learned how to properly use features in the Auditor’s Uniform Accounting Network that aid in posting transactions to the correct funds.
Auditor Yost worked with the General Assembly in 2011 to add the fiscal caution designation to Ohio’s fiscal distress system. Under fiscal caution, entities are given earlier notice of financial concerns and an opportunity to make adjustments to avoid further decline.
The City of Akron became the first local government to be released from fiscal caution in March 2015.
A full copy of the fiscal caution termination is available online.
The Auditor of State’s office, one of five independently elected statewide offices in Ohio, is responsible for auditing more than 5,900 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.