Ohio Auditor Keith Faber declared Vienna Township a fiscal emergency on Friday after tax and township funds were reported missing earlier in 2024.

The state auditor's report found that township emergency services caused the bulk of Vienna's deficit. The report stated that the township was $1,459,267 in the hole; however, funds from the general fund and American Rescue Funds reduced that deficit to $1,012,920.

The fire department/EMS had the most significant deficit at $1,276,520; followed by the police department at $84,327; and the Road and Bridge department with a negative $98,411 balance.

The analysis report also found the township's treasury deficiency of $627,636.

The township's financial issues have led to layoffs within the fire and police departments.

The township will now be supervised by a financial planning and supervision commission, with the state auditor serving as the financial supervisor. The commission will work with township officials to develop a plan to eliminate fiscal emergency conditions.

A criminal investigation has been ongoing since the missing funds were first discovered after township employees, including the Vienna fire and police departments, went unpaid. 

The auditor's office started investigating possible irregularities in Vienna Township's finances in mid-February. These irregularities were initially blamed on a township trustee's transition to a new township fiscal officer. The Friday morning announcement by the state auditor is separate from an ongoing investigation by the state auditor's special investigations unit, which is still investigating reported missing funds in Vienna Township.

Vienna was declared in fiscal emergency by the state auditor after Ohio Auditor Faber's investigation found the township met two of six conditions, which included: 

  • It had a deficit fund balance of more than $1 million, the largest portion of which was attributable to fire services;
  • and the township treasury had a deficit of $627,636.

The Auditor of State’s Office declares a fiscal emergency if any one of six conditions exists:

  • 1. default on debt obligation
  • 2. failure to make payment of all payroll
  • 3. an increase in the minimum levy of the township that results in the reduction in the minimum levy of another subdivision
  • 4. significant past due accounts payable
  • 5. substantial deficit balances in township funds
  • 6. a sizeable deficiency when the township’s treasury balance is compared to the positive cash balances of the township’s funds

The declaration was sent to the President of the Board of Trustees of Vienna Township Phil Pegg; Ohio Governor Mike DeWine, Governor; Treasurer of State Robert Sprague, Kim Murnieks; Director of the Office of Budget and Management Kim Murnieks and Secretary of the Trumbull County Budget Commission Martha C. Yoder.

There are 12 communities in the state—including Vienna—with fiscal emergency declarations, including three cities, seven villages, and two townships. Seven of those declarations have been in place for more than six years, including one, the City of East Cleveland, which was declared in October 2012.

The report concluded, stating, "Because the above procedures were not sufficient to constitute an audit made in accordance with generally accepted auditing standards, we do not express an opinion on any of the specific accounts and fund balances referred to above. Had we performed additional procedures or had we made an audit of the financial statements in accordance with generally accepted auditing standards, other matters might have come to our attention that would have been reported to you."

Vienna Township Fiscal Officer Corine Hardman released a statement on the auditor's declaration. The statement reads as follows:

"We understand the concerns that arise with the declaration of a fiscal emergency, and I want to reassure our community that we are committed to restoring the financial health of Vienna Township. This declaration, while challenging, provides us with the opportunity to implement necessary changes and work toward a stable and prosperous future."

"Our immediate focus will be on collaborating with the Auditor of the State's office to develop and implement a comprehensive financial recovery plan. This plan will involve a thorough review of our current financial practices, identifying area where we can further reduce cost, and exploring avenues to increase revenue."

"We are dedicated to maintaining transparency throughout this process. Regular updates will be provided to keep our residents informed of our progress and the steps being taken to resolve the fiscal emergency. We encourage community involvement and welcome any suggestions or feedback from our residents as we navigate through this period."

"Our goal is to emerge from this situation stronger and more financially secure. With the support of our community and the guidance of the Auditor of State's office, I am confident that Vienna Township will overcome this challenge and move towards a brighter future."

"Thank you for your continued support and understanding."

Read the complete auditor's findings:

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