The village of Smithfield in Jefferson County has been placed in a state of fiscal caution by Auditor of State Dave Yost.
Yost said the village’s failure to bring financial records into an auditable condition prompted the action.
“The village is failing to conduct basic accounting and bookkeeping procedures,” Auditor Yost said. “It’s time to buckle down and correct these weaknesses before matters get worse.”
The auditor of state’s guidelines for a declaration of fiscal caution include (1) unauditable financial records; (2) significant deficiencies, material weaknesses, direct and material noncompliance that have a material effect on the financial condition; (3) deficit fund balances; (4) a carryover fund balance of less than one month’s average expenditures for two consecutive years, and (5) a failure to reconcile accounting journals and ledgers with the treasury.
Under the declaration, 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. The Auditor of State may visit and inspect the entity while under fiscal caution and may provide technical assistance to the entity in implementing proposals to eliminate the conditions that prompted the fiscal caution declaration.