WAYNESVILLE — Leaders of this Warren County village expect its four-year fiscal emergency to end this summer.

The Ohio Auditor of State is reviewing the 12th proposed recovery plan Waynesville has filed since the emergency was declared on April 15, 2008.

Waynesville officials have pressed for lifting of the emergency and state oversight, since balancing the books in July 2011.

In September, the village council voted for the state to end the emergency and return the community to financial independence.

“It’s very important,” Waynesville Mayor David Stubbs said. “We did the celebration in September.”

Currently, 23 Ohio cities and villages are in fiscal emergency. The village of West Elkton in Preble County is the only other Dayton-area community.

For a fiscal emergency to end, the municipality must meet a series of standards while under state oversight.

In addition to a recovery plan, the state requires proof that an effective accounting system is in place, all conditions leading to the emergency have been solved, no new conditions have developed and a five-year forecast meeting state standards is in place.

Waynesville’s fiscal emergency was declared after auditors found the village in a $233,677 deficit due to improper accounting and lax oversight. The village overspent its budget by more than $2 million in 2005 and 2006, according to the audit.

Auditors found the village finance director was paying bills and making bank deposits, but failed to maintain any financial records. Computer experts eventually found pornographic movies and gambling information, but no financial records, on his laptop. In addition the council wasn’t monitoring finances, auditors found.

The auditors rebuilt the village’s books and made findings for recovery of misspent funds, including $9,500 in undocumented credit card purchases and salary miscalculations owed to the village.

The village eliminated staff credit cards and took about 20 other steps outlined in the recovery plan submitted to the state on May 8.

Waynesville has paid $27,000 for the audit and oversight while in fiscal emergency. Local officials anticipate a decision after a June meeting of the recovery commission formed to oversee the village’s return to financial health.