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Rush Township, Scioto County, Released From Fiscal Caution
Columbus – Auditor of State Dave Yost today released Rush Township in Scioto County from fiscal caution – a designation it has held since 2014.
“Rush Township heeded our warning and acted on it,” Auditor Yost said. “As a result, township officials have changed course and steered the township away from deeper fiscal peril.”
The township was placed in fiscal caution on July 22, 2014, based on an audit and a follow-up review that found significant financial problems. Among other issues, auditors determined that the township had gone 27 months without reconciling its account journals and ledgers with bank statements, made expenditures that exceeded appropriations, posted receipts and disbursements to incorrect funds and accounts, and had a negative cash fund balance.
The Local Government Services Section of the Auditor of State’s office, which works with local governments that have been declared to be in fiscal caution, fiscal watch or fiscal emergency, has determined that the township has taken steps to correct financial deficiencies.
The township now is reconciling its accounting ledgers and journals with the bank each month, and has eliminated negative cash balances. It also has begun using a five-year financial forecast to help guide spending, and is passing appropriations on or about the first of the year as required by Ohio law. The township is properly encumbering funds before committing to spend them and no longer has expenditures in excess of appropriations.
Auditor Yost worked with the General Assembly in 2011 to add the fiscal caution designation to Ohio’s fiscal distress system. He argued that cities, counties, villages and townships should not be faced with sudden declarations of fiscal watch and fiscal emergency. Under fiscal caution, the subdivision is given earlier notice of financial concerns and an opportunity to make adjustments to avoid further difficulty.
A full copy of this fiscal caution 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 6,000 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.