City Equity Program and Practices

Photo: As seen from above, people of all different races and ethnicities stand in a circle, extending an arm so their hands meet in the center.

Objective

The objective of our audit of the city’s equity program and practices was to determine whether the Mayor’s Office of Social Equity and Innovation effectively designed, implemented, and evaluated its initiatives to increase social equity and minimize institutional, structural, and systemic racism in the City and County of Denver.

Background

The Mayor’s Office of Social Equity and Innovation — established by a mayoral executive order in June 2020 — oversees efforts to evaluate Denver’s systems, policies, and practices to help “increase social equity and to minimize institutional, structural, and systemic racism in City government.”

The office aims to use “best and innovative practices to lead Denver in transformative change with a commitment to equitable outcomes.”

Why this matters

Without properly designed programs, strategies, policies, and procedures and without adequate support from the Mayor’s Office, Social Equity and Innovation cannot successfully oversee efforts to eliminate social inequities and racial and social injustice from city systems and practices — particularly those that affect historically marginalized communities in Denver.

Findings

FINDING 1 – The Mayor’s Office of Social Equity and Innovation Lacks a Detailed Strategic Plan and Other Foundations for Effective Governance

Previous leaders of Social Equity and Innovation did not:

  • Document how they designed the program.
  • Develop a detailed strategic plan with defined metrics to track progress.
  • Develop and document clear roles and responsibilities for office staff and members of other agencies’ equity, diversity, and inclusion teams.

FINDING 2 – The Executive Order Establishing the Mayor’s Office of Social Equity and Innovation Provides Insufficient Clarity to Empower Staff

Because of the lack of clarity in Executive Order No. 146 — and because of a lack of ongoing support — the Mayor’s Office of Social Equity and Innovation does not have the authority to enforce the executive order’s requirements for city agencies, such as that they attend trainings on race and social justice.

The order also does not clearly define the office’s or city agencies’ roles in the budget equity process, and it does not define what the required “citywide equity scans” are.

Additionally, the executive order does not ensure the longevity of the city’s equity initiatives — including the Mayor’s Office of Social Equity and Innovation as an established city agency — because executive orders can be revoked by future mayors.

FINDING 3 – The Mayor’s Office of Social Equity and Innovation Does Not Have a Plan to Ensure Clear, Consistent Communication with Other City Agencies

While the office communicates well, we learned it does not do so with the clarity and consistency other agencies and city employees need to have a uniform understanding of the city’s equity initiatives and their role in supporting that work.

Recommendations

1.1 Review and Update Existing Program Design – Consulting leading practices, the Mayor’s Office of Social Equity and Innovation should review and update its existing program design and then document all elements of the office — including:

  • How it aligns with both Executive Order No. 146 and other citywide goals and priorities.
  • Its specific goals and strategies.
  • A logic model specifying office activities, staffing, resources, results, and expected outcomes.
  • How it plans to monitor and evaluate the success of the office’s programs and initiatives.

Agency Response: Agree, Implementation Date – Nov. 23, 2022

See page 52 for the Auditor’s Addendum.

1.2 Assess Needs the Office Should Address – While reviewing and updating its program design as part of Recommendation 1.1, the Mayor’s Office of Social Equity and Innovation should conduct a formal, documented needs assessment of the office and its initiatives to ensure it meets identified needs in the city. This assessment should include a clear description of the issues the office wants to address and how each issue aligns with the office’s goals and strategies as well as Executive Order No. 146.

Agency Response: Agree, Implementation Date – Nov. 23, 2022

1.3 Develop and Document a Strategic Plan – The Mayor’s Office of Social Equity and Innovation should develop and document a strategic plan that aligns with Executive Order No. 146, stakeholders’ strategic plans, and leading practices. At a minimum, the plan should include:

  • Specific and measurable objectives.
  • A clearly defined mission statement.
  • Key performance metrics.
  • An action plan detailing how strategies will be implemented — including specific activities, associated costs, designated responsibilities, and time frames.
  • An effective method for analyzing outside factors and stakeholder concerns.

Agency Response: Agree, Implementation Date – Nov. 23, 2022

1.4 Ensure Consistent Mission, Goals, and Strategies – The Mayor’s Office of Social Equity and Innovation should ensure its mission, goals, and strategies are consistent across Executive Order No. 146, all strategic planning documents, and all office communications.

Agency Response: Agree, Implementation Date – Nov. 8, 2022

1.5 Document Policies and Procedures – The Mayor’s Office of Social Equity and Innovation should document comprehensive policies and procedures to ensure office staff and members of other agencies’ equity, diversity, and inclusion teams properly implement the office’s programs and initiatives. The policies and procedures should define key roles and responsibilities for individual staff to ensure institutional knowledge is retained.

Once approved, the policies and procedures should be communicated to office staff and members of other agencies’ equity, diversity, and inclusion teams. In addition, the office should develop and document a process to periodically evaluate these policies and procedures and revise them as necessary.

Agency Response: Agree, Implementation Date – Sept. 23, 2022

1.6 Develop and Document Succession and Contingency Plans – As the Mayor’s Office of Social Equity and Innovation documents roles and responsibilities through Recommendation 1.5, it should develop and document a succession and contingency plan to reassign responsibilities and minimize interruptions when a key staff member leaves.

Agency Response: Agree, Implementation Date – Sept. 23, 2022

See page 52 for the Auditor’s Addendum.

1.7 Implement Performance Metrics – As the Mayor’s Office of Social Equity and Innovation develops and documents key performance metrics through Recommendation 1.3, it should implement them to track the success of the city’s social equity and race and social justice efforts. The office should ensure these metrics align with its goals, strategies, and objectives.

Agency Response: Agree, Implementation Date – Nov. 23, 2022

1.8 Identify Agency-Specific Equity Personnel – The Mayor’s Office of Social Equity and Innovation should develop and document a process to identify agencies with their own equity staff members to ensure those individuals receive and communicate information consistent with citywide initiatives. The office should also work with these agency-specific personnel to develop clear roles and responsibilities that align with citywide equity initiatives.

Agency Response: Agree, Implementation Date – Nov. 8, 2022

2.1 Review and Revise Executive Order No. 146 – As the Mayor’s Office of Social Equity and Innovation updates its program design as part of Recommendation 1.1, it should work with the Mayor’s Office to evaluate Executive Order No. 146 and revise it to clarify vague wording and to better reflect Social Equity and Innovation’s existing responsibilities and initiatives. Specifically, the revised executive order should clearly define:

  • Social Equity and Innovation’s authority to enforce other city agencies’ compliance with its initiatives.
  • The roles and responsibilities of other city agencies in fulfilling the executive order’s requirements.
  • Whether equity training offered by Social Equity and Innovation is mandatory for city staff.
  • Social Equity and Innovation’s and other city agencies’ roles in the budget equity process.
  • What a “citywide equity scan” is intended to be.

Once the executive order is revised, Social Equity and Innovation should ensure it fully complies with all requirements.

Agency Response: Agree, Implementation Date – Nov. 8, 2022

2.2 Evaluate the Future of Executive Order No. 146 – As the Mayor’s Office of Social Equity and Innovation works with the Mayor’s Office to review Executive Order 146 as part of implementing Recommendation 2.1, it should consider whether an executive order is the appropriate method for achieving agencies’ compliance with the city’s equity initiatives or whether Social Equity and Innovation and its efforts should be codified by other means, such as in city ordinance. Social Equity and Innovation should document its decision and the decision-making process it used.

Agency Response: Agree, Implementation Date – Nov. 8, 2022

2.3 Ensure Agencies Comply with Executive Order No. 146 – The Mayor’s Office of Social Equity and Innovation should work with the Mayor’s Office to obtain the support it needs to ensure all agencies under the mayor comply with Executive Order 146. The office should document these discussions and any efforts to gain agencies’ compliance.

Agency Response: Agree, Implementation Date – Nov. 8, 2022

2.4 Explore Alternative Training Methods – The Mayor’s Office of Social Equity and Innovation should work with the Office of Human Resources to evaluate other ways to offer training courses on equity and racial and social justice to city employees to maximize Social Equity and Innovation’s mission of achieving transformative change in city government.

Agency Response: Agree, Implementation Date – Sept. 23, 2022

2.5 Identify Budget Personnel – The Mayor’s Office of Social Equity and Innovation should work with the Budget and Management Office to develop and document a process to identify city agencies’ staff who are new to the budget equity process and ensure they understand the process and receive the necessary resources and training.

Agency Response: Agree, Implementation Date – Sept. 23, 2022

2.6 Document Activities for the Budget Equity Process – As part of documenting roles and responsibilities in policies and procedures as part of Recommendation 1.5, the Mayor’s Office of Social Equity and Innovation should draft policies and procedures that document its roles and responsibilities specifically for the budget equity process. The office should define specific activities such as:

  • Training city employees about the process.
  • Reviewing and providing feedback on agencies’ budget proposals.
  • When Social Equity and Innovation should be involved in the budget equity process.
  • How it should work with the Budget and Management Office.

Agency Response: Agree, Implementation Date – Nov. 8, 2022

2.7 Evaluate Staffing and Resources for the Budget Equity Process – As the Mayor’s Office of Social Equity and Innovation updates its program design as part of Recommendation 1.1, the office should conduct a formal, documented evaluation of its staffing levels and resources to determine whether they are adequate for office staff to participate in the budget equity process to the extent they desire.

Agency Response: Agree, Implementation Date – Nov. 8, 2022

3.1 Develop and Document a Communication Plan – The Mayor’s Office of Social Equity and Innovation should develop and document a communication plan for how it plans to communicate information with other city agencies. The plan should identify all necessary stakeholders and detail when, where, and how the office will communicate:

  • Timely notification of upcoming trainings.
  • The roles and responsibilities of agencies’ equity, diversity, and inclusion teams, in line with Recommendation 1.5.
  • Citywide initiatives, either from Social Equity and Innovation or other city agencies.

The office should share the plan with all necessary stakeholders to ensure communication is clear and consistent.

Agency Response: Agree, Implementation Date – Oct. 14, 2022

Auditor's Letter

August 25, 2022

The objective of our audit of the city’s equity program and practices was to determine whether the Mayor’s Office of Social Equity and Innovation effectively designed, implemented, and evaluated its initiatives to increase social equity and minimize institutional, structural, and systemic racism in the City and County of Denver.

After we finished our audit work, we discovered a consulting contract pertaining to some findings in this report that city officials did not disclose to us. Their lack of disclosure impeded our ability to ensure we fully assessed how the Mayor’s Office of Social Equity and Innovation implemented its equity framework and initiatives. This limitation is described in more detail on page 53 of the report.

The audit determined the Mayor’s Office of Social Equity and Innovation did not adequately structure itself for effective governance. In addition, a city executive order lacks sufficient detail to empower the office to ensure other city agencies comply with the order and support the city’s equity initiatives. The officials who originally led the office did not document how it was designed nor did they formally assess whether that design aligned with citywide initiatives and the needs the office intended to address. Meanwhile, the executive order is vague in key areas, and it does not ensure the longevity of the city’s equity initiatives because executive orders can be revoked by future mayors. The office also does not clearly or consistently communicate with city agencies.

By evaluating its existing design; assessing its authority, needs, and purpose; documenting policies, procedures, and a detailed strategic plan; and improving communication, Social Equity and Innovation will be better equipped to execute its responsibilities and achieve its mission to reduce both social inequity and racial and social injustice.

This performance audit is authorized pursuant to the City and County of Denver Charter, Article V, Part 2, Section 1, “General Powers and Duties of Auditor.” We conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives.

We extend our appreciation to the personnel in the Mayor’s Office of Social Equity and Innovation who assisted and cooperated with us during the audit. For any questions, please feel free to contact me at 720-913-5000.

Denver Auditor

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
Emailauditor@denvergov.org
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