Davis told The Commercial Appeal that he thought he had received an extension after questions were raised about $53,000 in expenses he had recently provided auditors.
"It was our understanding that an extension would be granted until the questions about the receipts was cleared up," Davis said, referring to himself and his attorney. "I was shocked to learn that this was not the case, and I am royally confused, and hope to clear this up next week."
State Auditor Stacy Pickering's office says no such extension was granted. The auditor's office said on Nov. 2 that it had issued a demand letter to Davis for $153,589 for expenses, $16,822 for interest and $13,571 for investigative costs.
Lisa Shoemaker, a spokeswoman for the auditor's office, said while the office had requested additional information about some of the receipts that Davis submitted earlier to help defray the amount he owed, that didn't mean Davis was excused from meeting Friday's deadline.
"We did not grant an extension for repayment," Shoemaker said. "Yes, we have requested additional information on some of the receipts the mayor submitted, but we have not granted an extension on the order to repay."
She said if no payment is made Monday, the auditor's office will decide whether to file a civil lawsuit against Davis or recover the money through a bond placed on elected officials.
"We are exploring all our options and moving forward to recover the money in this ongoing investigation," Shoemaker said.
Altogether, the auditors cited $170,782 worth of unsubstantiated expenses, including penalties and interest, which they said Davis must repay or produce receipts to prove it was city business.
The investigation leading to the order revealed charges that included family counseling, clothing purchases and personal meals and entertainment, all charged to a city-issued credit card or to Davis's personal card for reimbursement by the city.
Shoemaker said auditors had questions about receipts for a few thousand dollars.
"While the focus is on the mayor, the aldermen did approve a majority of the expenses and we have not ruled out the liability of the board," she said.
She said in addition to the receipts, the auditor's office is investigating the mayor's mileage reports because the hand-written reports were not itemized.