Neighborhood Food Environments Program Grant Compliance Follow-up

The Denver Department of Public Health and Environment fully implemented one recommendation made in the original audit report. The department partially implemented two others and did not implement five.

Because of the department’s efforts to ensure documents are completed and appropriately kept as required by a city fiscal rule, Public Health and Environment can now give the state documentation reflecting the allowability of its expenses, if requested. Having this documentation helps ensure the city’s requests for reimbursement of state grant funds continue to be approved.

Remaining Risks

Recommendations the department did not fully implement present several lingering risks. Among them:

• Public Health and Environment still lacks appropriate processes for gift cards that document all state requirements. The gaps in this process could lead to incorrect tracking or distribution of gift cards.
• The department did not develop training on what documentation is required for the Neighborhood Food Environments Program. While no new staff have been hired since the original audit, without having this training ready, the department is unprepared in the event of an unexpected absence or departure.
• By not creating and implementing a detailed invoice review process, the department has no way of making sure it consistently meets state invoicing requirements. Incorrectly documented invoices could lead to a denial of the city’s requests for grant fund reimbursements.
• Without developing or training staff on subrecipient monitoring, Public Health and Environment may not be able to provide the state with appropriate supporting documentation for the city’s subrecipients. This, too, could lead to a denial of the city’s requests for grant fund reimbursements.

Auditor's Letter

December 7, 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 “Neighborhood Food Environments Program Grant Compliance” audit report issued in January 2022, we determined the Department of Public Health and Environment did not implement most of the recommendations it agreed to. The department fully implemented only one recommendation, partially implemented two, and did not implement five. I hope the department will address the remaining gaps in its grant compliance controls.

During the original audit, we found expense documentation and other types of supporting documents for grant spending to be lacking. We also found the department insufficiently monitored subrecipient expenditures.

Based on our follow-up work, we determined the Department of Public Health and Environment 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 appreciate the leaders and team members in the Department of Public Health and Environment 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


Timothy O'Brien, CPA

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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