Caring for Denver Follow-up

Graphic illustration featuring a street mural in downtown Denver depicting a black woman with short hair, a white palm grasping a chain-link fence, and other images used on the Caring for Denver Foundation's website.

The Department of Public Health and Environment fully implemented five recommendations made in the original audit report. The department amended its contract with the Caring for Denver Foundation, and it reviewed the foundation’s strategic plan and some of its financial management policies, including the board’s policies and procedures. It also duly authorized the foundation’s executive committee.

Graphic showing one fully implemented recommendation and one partially implemented

Remaining Risks

Public Health and Environment only partially implemented two recommendations relating to oversight of the executive director’s authority and clear expectations for conflict-of-interest disclosures. It did not address the risks associated with two other recommendations it agreed to implement, as well as those associated with one other recommendation it had disagreed with.

The recommendations the Department of Public Health and Environment and the Caring for Denver Foundation did not fully implement present several lingering risks. Among them:

  • The foundation might spend the designated tax revenue on expenses not generally allowed in ordinance. It also might be inappropriately limiting the amounts awarded to city agencies.
  • The foundation might not be updating and reviewing its strategic plan often enough, and its procedures still lack proper safeguards against possible abuse and fraud in the executive director’s authority to award certain grants.
  • By allowing the foundation to carry forward unspent administrative funds, the department allows the foundation to potentially exceed the 5% cap allowed by the ordinance and the contract.
  • By allowing interest income to be used for administrative expenses instead of mental health and substance misuse programs, the department and foundation are not adhering to city ordinance or the voters’ intent.
  • By not finalizing self-evaluation policies and procedures, the board may inhibit its ability to consistently assess its impact, learn from previous work, and demonstrate progress.
  • Vague ordinance language prevents the department from adequately overseeing the foundation.

Auditor's Letter

January 5, 2023

In keeping with generally accepted government auditing standards and Auditor’s Office policy, as authorized by city ordinance, we have a responsibility to monitor and follow up on audit recommendations to ensure city agencies address audit findings through appropriate corrective action and to aid us in planning future audits.

After following up on the “Caring for Denver” audit report issued in October 2020, we determined the Department of Public Health and Environment fully implemented five recommendations it agreed to, only partially implemented two, and did not implement another two.

During the original audit, we found the department needed to provide better oversight of the Caring for Denver Foundation. Specifically, the foundation had not developed a strategic plan to carry out city ordinance, its key policies were not aligned with requirements or available leading practices, and it needed to improve board policies and governance documents.

Based on our follow-up work, we determined the department and the foundation did not fully address all the risks associated with our initial findings. Consequently, we may revisit these risk areas in future audits to ensure the city takes appropriate corrective action.

We did not update the status of the one recommendation the department disagreed with, as we presume it took no action toward implementing that. We include that recommendation in this report as a reference.

We appreciate the leaders and team members at the Department of Public Health and Environment and the Caring for Denver Foundation who shared their time and knowledge with us throughout the audit and the follow-up process. Please contact me at 720-913-5000 with any questions.

Denver Auditor's Office

Auditor's Signature
Timothy O'Brien, CPA

Timothy O'Brien Official Headshot

AUDITOR TIMOTHY O'BRIEN, CPA
Denver Auditor

Denver Auditor´s Office

201 W. Colfax Ave. #705 Denver, CO 80202
Email: auditor@denvergov.org
Call: 720-913-5000
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