Columbus – The inability to submit an acceptable financial recovery plan that eliminates the projected current year deficit prompted Auditor of State Dave Yost to place the Coventry Local School District (Summit County) in a state of fiscal emergency.

“It’s no secret that the Coventry Local Schools have been facing a constant financial struggle,” Auditor Yost said.  “With today’s elevation into fiscal emergency, we’ll take a hard look at their issues and help the district find a path toward solvency.”

The Coventry Local School District was placed in fiscal watch on May 15, 1997 by the Auditor of State based on the following:

• An operating deficit of $895,000, which exceeded 8 percent of the previous year’s general fund revenues;
• An unencumbered cash balance in the general fund (minus property tax advances for the preceding fiscal year) of negative $306,000, which was less than 8 percent of the preceding fiscal year expenditures; and
• The failure to pass a levy that would raise enough revenue in the succeeding year to eliminate conditions one and two.

After the declaration of fiscal watch, the district was required to submit and update a financial recovery plan each year with the state superintendent of public instruction.  However, the district’s board of education passed a resolution on October 26, 2015 that stated their inability to adopt a financial recovery plan that would eliminate the projected current year deficit.  With today’s declaration of fiscal emergency, the Auditor of State’s office will conduct a full financial analysis of the district and certify the deficit to the Ohio Department of Education.

A Financial Planning and Supervision Commission will now be created to assume all or part of the powers of the board of education.  Three members of this commission must be appointed within 15 days of this declaration of fiscal emergency.  A financial plan must be developed by the commission within 120 days of its first meeting to address the district’s financial crisis.

The Auditor of State serves as an advisor to commissions for all school districts in fiscal emergency. In this role, the office provides accounting training and assistance, as well as monthly monitoring of the district's financial activity to ensure compliance with the recovery plan and various accounting rules and reports.

A full copy of this fiscal emergency declaration may be accessed online.

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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.

Contact:
Brittany Halpin
Press Secretary
614-644-1111