City of Davenport to Kick Off 2022 with Flurry of New Projects | Local news


Davenport receives ‘clean’ audit report

The city of Davenport recently received an unmodified or “clean” financial audit from the external audit firm Eide Bailly of Dubuque of the city’s annual financial report for fiscal year 2021.

The city has improved its financial situation year on year, despite the financial challenges posed by the ongoing COVID-19 pandemic, due in part to the unforeseen influx of one-time federal COVID-19 relief and rescue funds.

“If I present this to you next year, you should see stability, but you probably won’t see that level of growth,” said Mallory Merritt, deputy city administrator and chief financial officer. “It could very well be a once-in-a-lifetime type of growth just because of these funds. But we are in a very good position. “

The city increased unallocated cash from all funds to $ 146 million, an increase of more than 49% from the previous year. It also added nearly $ 8 million to its cash reserves, increasing the city’s unrestricted fund balance to nearly $ 20.6 million, representing more than 39 percent of the city’s annual operating expenses. city. City policy requires that unallocated General Fund reserves be maintained between 17% and 25% of operating expenses. However, due to the influx of federal grants, city council allowed a one-year policy waiver.

“We will work to reduce this spending and allocate these funds by the end of this fiscal year,” Merritt said. “We are definitely in an ideal financial situation. “

Brad Theisen, CPA and senior manager at Eide Bailly LLP, said the professional accounting firm found “no major problems, material weaknesses or material deficiencies” in the financial statements and in the accounting, budgeting and controlling procedures. internal city.

The company also tested to ensure the city complied with federal requirements for the COVID-19 relief fund and disaster grants for public assistance.

“We had no findings of non-compliance during these two audits,” Theisen said. “Very, very clean (audit). … We audit quite a few cities in the state of Iowa, and having a financial statement audit without significant impairment or material weakness is a feather in your hat. doesn’t happen very often. I’d say it’s probably less than 50% of the time. Hats off to the city staff for that. “


Comments are closed.