By Wayne Allen
October 17, 2013
PDT Staff Writer
Auditor of State Dave Yost announced on Thursday the Village of Rarden has been placed on fiscal caution by the state.
According to information from Yost, poor records and failure to prepare required financial documents prompted him to place the Village of Rarden in a state of fiscal caution.
“The Village of Rarden is failing to perform basic accounting and operating procedures,” Yost said in a released statement. “Now is the time for the village to heed this early warning and get its finances back on track.”
Rarden Mayor Ronald Syroney said this action by the state is a good thing and will ultimately help the village get back on track financially.
“We’ve got an issue that we’re trying to resolve. According to the Auditor of the State, they can help us by putting us on fiscal caution,” Syroney said.
When asked if he saw this designation as a good thing for the village, Syroney said, “I do, yes.”
He said representatives from the Auditor’s office have been meeting with him with more meetings scheduled.
When asked if any village officials have indicated they will resign over the situation Syroney said, “I’m not sure, there may be a resignation coming up, I’m not sure.”
According to Yost, the village was placed on fiscal caution after a review of their finical records on Oct. 2.
Yost said, the inspections found, “Account journals and ledgers with the bank have not been reconciled since Dec. 31, 2010 (33 months).
“Since the village’s records are so poor and in need of reconstruction, fund balances cannot be determined for 2011 and 2012. The village also failed to file an annual tax budget, appropriations, certificate of year-end balances and a resolution accepting the amounts and rates as determined by the Scioto County Budget Commission for 2012 and 2013. In addition, the village failed to follow the necessary procedures to renew two of its tax levies (a 6.0-mill current expense levy and a 5.5-mill fire levy) and did not file annual financial reports with the Auditor of State’s office for 2011 and 2012.”
The Auditor of State’s guidelines for a declaration of fiscal caution include unauditable financial records, significant deficiencies, material weaknesses, direct and material noncompliance that have a material effect on the financial condition. Deficit fund balances, a carryover fund balance of less than one month’s average expenditures for two consecutive years, and a failure to reconcile accounting journals and ledgers with the treasury are other guidelines.
“Under the declaration and in accordance with Revised Code 118.025(A), the village has 60 days to submit to the Auditor of State a plan to correct the conditions that led to the declaration of fiscal caution.
Wayne Allen may be reached at 740-353-3101, ext. 228, or firstname.lastname@example.org. For breaking news, follow Wayne on Twitter @WayneallenPDT.