Denison’s 2019 financial report showed the city’s fund balance had decreased slightly for the year. The report was given to the city council at its meeting on Monday.
Brooks Watson & Co. Senior Audit Manager Louis Breedlove presented the audit.
“We do an assessment where we look at each department of the city,” Breedlove said.”We look at how it impacts the financials of the city. We give our opinion of the financials, it is an unmodified opinion also referred to a clean opinion it is the highest level of assurance we as auditors are able to provide.”
Breedlove said the city had $22.6 million in cash investments. The fund balance decreased from $10.9 in 2018 to $9.7 million last year. The unassigned general fund balance was $6.2 million. He said that makes up 21 percent of the general fund expenditures. He said the decrease in the fund balance was due to capital expenditures that were planned.
Breedlove said the City wide outstanding debt went from $55.3 million in 2018 to $58.3 million in 2019.
“The policy of the city is to maintain an unassigned fund balance in the general fund to between 60-90 days of operating expenditures,” Breedlove said. “The balance is within the range. Overall a healthy fiscal year. “
The total cost of the auditing services is approximately $35,000.
According to the financial report provided to the city stated the report made the city eligible to receive the Government Finance Officers Association Award of Excellence in Financial Reporting, an award it has received for the last eight years.
“Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that is established for this purpose,” it stated. “Since the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements.”