Audit Finds Denver Council Still Lacking Clarity on Public Funds Spending

By Deborah Grigsby | The Denver Gazette

Denver’s councilmembers continue to give city funds to local organizations using a process lacking clarity and accountability, weakened by inconsistent terminology and legal opinions around donations, sponsorships and grants, according to city auditors.

City Council officials countered that no definitions exist in the city charter or in ordinance for these terms and changing them at one level would have a ripple effect across government.

In a new follow-up report, Denver Auditor Timothy O’Brien commended the City Council on its efforts to remedy recommendations from an earlier audit but suggested there’s more work to be done.

“I commend the City Council for doing a great job implementing most of our recommendations from our initial 2023 audit,” Auditor O’Brien said. “But the lack of clarity around the issues of appropriate spending will be scrutinized more than ever in this economic climate.”

The City Council implemented eight recommendations, partially implemented four, and did not implement two, the auditors said.

While the council has made strides in formalizing policies and procedures for other recommendations, such as collecting keys and badges from departing councilmembers and staffers, plus conducting an annual inventory of technology devices, auditors pointed out that recommendations to address the lack of clarity around donations, sponsorships, or grants have not been resolved.

“City Council members’ offices receive taxpayer funding for their office budgets and use some of it to support local organizations,” a statement released from O’Brien’s Office on Nov. 20 said. “Our 2023 audit found councilmembers’ offices inconsistently followed council policies and procedures, as well as some city rules associated with this type of spending.”

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