Auditor of State launches ‘financial health indicators’ for Ohio schools

COLUMBUS — New Financial Health Indicators launched this week by the Auditor of State’s Office will provide a more complete picture of school districts’ financial trends and identify potential issues.

Auditor of State Keith Faber said the indicators can be used alongside financial forecasts already in place to assess the fiscal health of Ohio’s 600-plus school districts.

“These Financial Health Indicators come straight from districts’ financial statements, providing accurate and earlier indications of possible budget problems that should be addressed,” Auditor Faber said.

Since 2016, the Auditor of State’s Office has offered comparable Financial Health Indicators for Ohio’s counties and cities. The new school indicators cover 16 areas, including general fund balances and cash and investment positions; tax revenues; operating deficits; debt service; and capital asset depreciation.

Each indicator is color-classified as “positive outlook,” “cautionary outlook,” and “critical outlook.” Multiple “cautionary” and/or “critical” indicators could be a sign of fiscal stress.

Financial Health Indicators are not meant to criticize schools’ operating decisions, and no single indicator should be used to gauge a district’s fiscal condition. Most cities, counties, and school districts have at least one indicator in the “critical” or “cautionary” categories.

“Our goal is to spotlight potential issues before they become fiscal emergencies,” Auditor Faber said. “We hope school treasurers and others will find this information helpful as they work to ensure their districts are using public resources effectively and efficiently.”

Full details of the program are available online at ohioauditor.gov/FHI/default.html.

The Auditor of State’s Office, one of five independently elected statewide offices in Ohio, is responsible for auditing more than 5,900 state and local government agencies. Under the direction of Auditor Keith Faber, the office also provides financial services to local governments, investigates and prevents fraud in public agencies, and promotes transparency in government. 

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