Council Sees Results of Audit

DAVENPORT | The city doesn't have much money on hand for emergencies, but it doesn't owe as much as it did in the past, either.

In presenting the audit of Davenport's finances for the 2006-2007 fiscal year to the city council on Oct. 6, certified public accountant Mike Brynjulfson congratulated the city on reducing its debt, but recommended having more cash on hand in the future.

"I suggest you build your reserves up," he said after spending an hour explaining the completed audit to the council.

According to the audit, the city has about $100,000 in reserve funds, but was able to lower its debt from $300,000 to $130,000 during the fiscal year that ended on Sept. 30.

"Sounds to me like the city is pretty sound," Council Member Brynn Summerlin said after the council voted unanimously to accept the audit. "I'm not unhappy about a lower unencumbered fund balance, as long as it's accompanied by lower debt."

One of the mandates given to city manager Amy Arrington when she was hired just before the start of the 2006-2007 fiscal year was that she make reducing the city's debt a major priority.

"I think we've made tremendous progress," council member John Lepley said.

Brynjulfson made other recommendations in presenting the audit, including one to improve the security of the city's information systems. He pointed out that former officials - including the city manager who preceded Arrington and a finance manager who is no longer with the city - still have access to the computer system.

That, Summerlin said, concerned him a great deal.

"Do we have an exit process for employees, particularly executive level employees?" he asked. "I will be happy when you say we have a process in place."

Arrington said an effort is currently underway to take care of the problem, including putting in a password system that will make the city's computers more secure.

The auditor also pointed out that a third of the nearly $1.5 million the city has on deposit is in banking institutions that do not meet standards set by state statute and were not drawing as high an interest return as they could be earning.

David Dyer, the city's finance director, said he and Arrington are working on moving those accounts.

"We are going to fully collateralize," he said. "We're going to move them to fully government-approved institutions."