Professional Report

1. When a district fails to submit or update a five-year forecast as required by section 5705.391 of the Revised Code or by Administrative Rule 3301-92-04.

2. When there is a potential current year deficit with no acceptable plan in place to avoid the projected deficit.

3. When a district notified under division (B) of section 5705.391 of the Revised Code fails to submit an acceptable plan to address a potential future year deficit within the timeframe allowed.

4. Whenever the Department discovers any other “fiscal practices or conditions” that could lead to a declaration of Fiscal Watch or Emergency through the examination of a school district’s five-year forecast required under division (B) of section 5705.301 of the Revised Code. 5. When the Auditor of State certifies a deficit between 2% and 8% of prior year general fund revenue and elects not to place the district in Fiscal Watch, the district must be placed in Fiscal Caution as required by section 3316.031(B)(3) of the Revised Code. 7. When the Auditor of State reports that a district has not complied with section 5705.412 of the Revised Code by attaching a signed certificate to an appropriation measure, qualifying contract or salary schedule. 8. When the Auditor of State identifies significant deficiencies, material weaknesses, direct and material legal noncompliance or management letter comments which, in the opinion of the Auditor, the aggregate effect of all such reported issues has an significant effect on the financial condition of the district. Section 3316.031(B) of the Revised Code requires the Department to consult with the local board of education before declaring a district to be in Fiscal Caution. The written and/or verbal communication between the Department and/or the Auditor of State and the school district will constitute the required consultation with the local board of education. Typically such communication is with the district superintendent and treasurer but may involve the board president. If the State Superintendent decides to place the district in Fiscal Caution, the local board of education shall receive written notice at least 10 business days prior to the effective date of the declaration. The written notice will be sent to the board president, district superintendent, and treasurer and shall include but not be limited to an explanation of the circumstances that led to the decision and if there are any steps the school district could take to avoid the declaration. Consultation with School District Board of Education 6. When the Auditor of State declares that a school district’s financial records are unauditable.

What does it mean to be in Fiscal Caution?

State law requires districts to provide written proposals for discontinuing or correcting the practices and conditions that led to the declaration of Fiscal Caution. Districts will be given approximately 60 days to provide a written proposal. At the request of the district, the Department may grant the