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Taylor Places Mansfield in Fiscal Emergency
City is largest municipality currently under state supervision
Richland County - Auditor of State Mary Taylor today announced a fiscal emergency in the city of Mansfield. The determination was made as a result of a fiscal analysis conducted by the Auditor of State’s Local Government Services section. Mansfield Mayor Donald Culliver requested the fiscal analysis.
“Mansfield city officials face tough financial decisions in the weeks and months ahead,” Taylor said. “My office will work with the city to help them develop a financial recovery plan and identify areas for increased operational efficiency and potential cost savings.”
A fiscal emergency was declared because the analysis reveals the city had deficit fund balances of $3,407,117 and $9,754,827 as of December 31, 2009 and April 30, 2010, respectively.
The fiscal emergency declaration will result in the appointment of a seven-member financial planning and supervision commission to help Mansfield regain financial stability. The commission includes members from various state agencies, city officials and residents of the city. The commission is responsible for approving a financial recovery plan that details solutions for eliminating the fiscal emergency conditions. The plan should also balance the budget and present strategies to avoid future deficits. The plan must be approved by the city and submitted to the commission within 120 days of the commission’s first meeting.
Auditor Taylor is also offering to conduct a performance audit as part of the support services provided by her office to Mansfield city officials. A performance audit is a valuable tool for government agencies seeking to improve operations, identify cost savings and make better use of existing resources. In Mansfield, a performance audit could help identify options for reducing the city’s projected general fund deficit.
A copy of the full fiscal analysis is available online.
The Ohio Auditor of State’s office is a leader in the government accounting and auditing field, earning prestigious national honors from the Government Finance Officers Association, the National White Collar Crime Center and the National State Auditors Association.
Deputy Press Secretary