Climate Protection Fund

Without sufficient staffing levels and formal processes in place, the Office of Climate Action, Sustainability, and Resiliency cannot ensure that available Climate Protection Fund money is fully spent and that the fund is meeting the intent of Denver voters to mitigate climate impacts.

FINDING 1 — Low staffing levels and informal processes make program monitoring less effective

The Office of Climate Action, Sustainability, and Resiliency did not have enough staff to monitor its programs. Project managers did not monitor contracts consistently and lacked sufficiently detailed policies and procedures to guide contract monitoring. Also, individual allowable use teams were monitoring and evaluating their programs’ performance inconsistently.

FINDING 2 — Projects funded for other Denver agencies did not always align with the ordinance’s allowable uses and the office’s mission and goals

The office funded projects and programs that did not fully align with the ordinance's allowable uses, its mission and goals, and internal policies. Climate Action, Sustainability, and Resiliency and the Budget and Management Office have different definitions for supplanting, or substituting, when it comes to what projects it can fund for other city agencies. Also, other agencies’ expenses could not be independently verified.

FINDING 3 — The Climate Protection Fund’s budget process is not sufficiently researched and supported by data

The Climate Protection Fund's budgeting process was based on estimates when the office was first created because there was not enough data to go on. But the office has not reviewed the process since then, meaning it may not be the most effective way for the office to achieve its goals.

1.1 Revise staffing plan – The Office of Climate Action, Sustainability, and Resiliency should revise its existing staffing and hiring plan to determine its staffing needs to meet program objectives and goals. The plan should outline steps to be taken for completing the assessment, give details for the roles and responsibilities for requested positions, and show how staffing gaps will be addressed

Agency Response – Agree, Implementation Date – Sept. 15, 2025

1.2 Update invoice review process guide – The Office of Climate Action, Sustainability, and Resiliency should update its invoice review process guidance to include information on retaining supporting documentation. The office should also ensure all project managers are trained on documentation retention requirements.

Agency Response – Agree, Implementation Date – Aug 29, 2025

1.3 Develop contract monitoring policies and procedures – The Office of Climate Action, Sustainability, and Resiliency should develop and document policies and procedures for contract monitoring and ensure that all project managers are trained on it.

Agency Response – Agree, Implementation Date – Aug. 29, 2025

1.4 Develop objectives, goals, and indicators – The Office of Climate Action, Sustainability, and Resiliency should develop and document clear objectives, key performance indicators, and measurable goals.

Agency Response – Agree, Implementation Date – Sept. 15, 2025

1.5 Document a monitoring plan – The Office of Climate Action, Sustainability, and Resiliency should develop and document a monitoring plan for its programs and projects outlining the monitoring process, data collection, and the frequency of assessments.

Agency Response – Agree, Implementation Date – Sept. 15, 2025

1.6 Develop performance monitoring policies – The Office of Climate Action, Sustainability, and Resiliency should develop policies and procedures for documenting each program’s inputs, outputs, program activities, and outcomes.

Agency Response – Agree, Implementation Date – Sept. 15, 2025

1.7 Document performance evaluation action plan – The Office of Climate Action, Sustainability, and Resiliency should develop and document an action plan to respond to and improve issues identified in performance evaluations.

Agency Response – Agree, Implementation Date – Sept. 15, 2025

2.1 Document rules and regulations for funding decisions – The Office of Climate Action, Sustainability, and Resiliency should develop and document formal rules and regulations for what it considers when making funding decisions and the process for making funding decisions for other city agencies.

Agency Response – Agree, Implementation Date – Nov. 19, 2025

2.2 Document monitoring process – The Office of Climate Action, Sustainability, and Resiliency should document and implement a process to monitor other city agencies’ projects funded by the Climate Protection Fund to ensure funds are used in alignment with the ordinance’s allowable uses and interagency agreements.

Agency Response – Agree, Implementation Date – Aug. 29, 2025

2.3 Retain supporting documentation – As a part of implementing Recommendation 2.2, the Office of Climate Action, Sustainability, and Resiliency should document and implement a process to retain supporting documentation of its funding decisions and expenses to other city agencies in alignment with the city’s General Records Retention Schedule.

Agency Response – Agree, Implementation Date – July 31, 2025

2.4 Document supplanting guidance – The Office of Climate Action, Sustainability, and Resiliency should work with the City Attorney’s Office and the Budget and Management Office to develop and document formal guidance on what is and is not considered supplanting for the Climate Protection Fund. Once this guidance is documented, the office should document and implement policies and procedures to monitor programs to ensure supplanting does not occur.

Agency Response – Agree, Implementation Date – Sept. 30, 2025

2.5 Document expense tracking method – The Office of Climate Action, Sustainability, and Resiliency should develop, document, and implement a method to track Climate Protection Fund spending on other city agencies’ programs, such as using program codes in Workday.

Agency Response – Agree, Implementation Date – July 31, 2025

3.1 Evaluate budgeting processes – The Office of Climate Action, Sustainability, and Resiliency should conduct and document an evaluation of its budgeting process for the Climate Protection Fund to explore whether its budgeting method or alternative methods best suit its needs. This evaluation should document the data and information used to evaluate budgeting methods.

Agency Response – Agree, Implementation Date – Sept. 15, 2025

3.2 Implement desired budgeting method – After completing Recommendation 3.1, the Office of Climate Action, Sustainability, and Resiliency should implement its desired budgeting method and document it in formal policies and procedures.

Agency Response – Agree, Implementation Date – Sept. 15, 2025