Organizational Culture

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Why we did this audit

Agency leaders said organizational culture was a topic of interest — particularly with changes to administration and leadership in the city.

Key facts

  • Poor culture can cause turnover, which can be expensive and cost the city around $40,000 to hire and train new staff.
  • We looked at four agencies: the Mayor’s Office, the Office of Human Resources, Denver Parks & Recreation, and Denver Arts & Venues.
  • The city conducts an employee engagement survey every two years.
  • Our audit focused on the results of the 2022 survey, but the city is publishing the most recent survey results later in 2025.

 

Why this matters

Bad organizational culture is identified as the root cause for many serious issues in an agency, including staff leaving their positions. High staff turnover is expensive to the city and could impact the ability of city agencies to meet their objectives and carry out key functions.

Findings

FINDING 1 Organizational culture in each agency needs improvement

Agency leaders were not effectively using tools and information to understand organizational culture. Also, gaps existed between staffs’ preferred and perceived culture.

Agencies were not required to act on the results of citywide employee engagement surveys. Staff felt issues identified in the 2022 survey still exist or were unsure what actions were taken to address low-scoring areas.

Without formality and structure, committees used by agencies to identify and address culture concerns may not be effective or represent all staff.

FINDING 2 — Staff in all agencies do not know how to or feel comfortable reporting concerns and providing upward feedback

Staff felt opportunities for development and recognition were dependent on supervisors. Agencies lacked a documented process on how staff are selected and did not properly track their rewards data.

Staff in all agencies did not understand who to report concerns to. Also, many staff did not feel comfortable reporting concerns.

Recommendations

1.1 Hold agencies accountable for employee engagement survey results and actions – Using the results from the 2024 and future employee engagement surveys, the Mayor’s Office should work with the Office of Human Resources to ensure all city agencies develop and act on plans to address, at a minimum, the lowest-scoring areas of the survey. Action plans and progress should be documented, and updates should be periodically communicated to all staff, as well as the Mayor’s Office and the Office of Human Resources, for increased transparency and accountability.

Mayor’s Office Response – Agree, Implementation Date – June 30, 2025
Office of Human Resources Response – Agree, Implementation Date – May 30, 2025
Department of Arts & Venues Response – Not Applicable
Denver Parks & Recreation Response – Not Applicable

1.2 Assess engagement survey questions – The Mayor’s Office and the Office of Human Resources should assess the employee engagement survey to ensure it appropriately captures information on culture that will be helpful for the agency. For example, consider gathering information related to not only an employee’s agency, but also their division or region to account for microcultures within an agency. Consideration should also be given to employees’ preferred culture. Additional information should be shared with agencies in guidance for handling survey results, and the assessment process should be documented.

Mayor’s Office Response – Agree, Implementation Date – July 24, 2025
Office of Human Resources Response – Agree, Implementation Date – March 27, 2026
Department of Arts & Venues Response – Not Applicable
Denver Parks & Recreation Response – Not Applicable

1.3 Develop, document, and communicate culture strategy, goals, and objectives – Using input from staff at all levels and leading practices, leaders in the Mayor’s Office, Office of Human Resources, Denver Arts & Venues, and Denver Parks & Recreation should develop and document a preferred organizational culture. Using leading practices, agency goals should be specific, measurable, achievable, relevant, and time bound. Agency leaders should communicate a strategy to achieve this culture and associated goals to all staff.

Mayor’s Office Response – Agree, Implementation Date – July 24, 2025
Office of Human Resources Response – Agree, Implementation Date – May 30, 2025
Department of Arts & Venues Response – Agree, Implementation Date – Dec. 31, 2025
Denver Parks & Recreation Response – Agree, Implementation Date – May 31, 2025

1.4 Develop and document a plan using tools to assess current internal culture – Leaders in the Mayor’s Office, Office of Human Resources, Denver Arts & Venues, and Denver Parks & Recreation should develop and document a plan, including what tools they will use — such as internal surveys, interviews with staff, or the employee engagement survey — to understand current organizational culture and preferred culture. The plan should also include the frequency at which culture will be assessed.

Mayor’s Office Response – Agree, Implementation Date – Aug. 1, 2025
Office of Human Resources Response – Agree, Implementation Date – Dec. 31, 2025
Department of Arts & Venues Response – Agree, Implementation Date – Dec. 31, 2025
Denver Parks & Recreation Response – Agree, Implementation Date – Dec. 31, 2025

1.5 Develop and document policies and procedures for assessing culture – Once a plan is established, leaders in the Mayor’s Office, Office of Human Resources, Denver Arts & Venues, and Denver Parks & Recreation should document policies and procedures for assessing culture. These should include who will be responsible for assessing culture, how results will be analyzed, and how issues will be addressed. The plan should also include how culture improvement efforts will be communicated to staff.

Mayor’s Office Response – Agree, Implementation Date – Aug. 1, 2025
Office of Human Resources Response – Agree, Implementation Date – Dec. 31, 2025
Department of Arts & Venues Response – Agree, Implementation Date – Dec. 31, 2025
Denver Parks & Recreation Response – Agree, Implementation Date – Dec. 31, 2025

1.6 Determine and document committee need – Leaders in the Mayor’s Office, Office of Human Resources, Denver Arts & Venues, and Denver Parks & Recreation should determine and document whether a committee is needed to help achieve employee engagement and culture objectives and goals.

Mayor’s Office Response – Agree, Implementation Date – Aug. 1, 2025
Office of Human Resources Response – Agree, Implementation Date – July 31, 2025
Department of Arts & Venues Response – Agree, Implementation Date – July 31, 2025
Denver Parks & Recreation Response – Agree, Implementation Date – Dec. 31, 2025

1.7 Establish and document committee policies and procedures – Leaders in the Mayor’s Office, Office of Human Resources, Denver Arts & Venues, and Denver Parks & Recreation should ensure that all committees have documented policies and procedures to provide clarity on each committee’s role within the organization, promote accountability, ensure alignment with organizational objectives, encourage collaboration, and increase transparency and communication. The policies and procedures should include, at minimum:

  • The purpose of the committee and its authority.
  • Committee goals.
  • Roles and responsibilities.
  • Committee composition and how members are selected or recruited.
  • Terms for committee members, if applicable.
  • A requirement for minutes and action items to be documented to show progress toward meeting goals and to track key decisions.
  • How committee actions and decisions will be communicated across the agency.

Mayor’s Office Response – Agree, Implementation Date – Aug. 1, 2025
Office of Human Resources Response – Agree, Implementation Date – Dec. 31, 2025
Department of Arts & Venues Response – Agree, Implementation Date – Dec. 31, 2025
Denver Parks & Recreation Response – Agree, Implementation Date – Dec. 31, 2025

1.8 Develop and document criteria for development opportunity selection For training that is not required – such as leadership courses, conferences, etc. – leaders in the Mayor’s Office, Office of Human Resources, Denver Arts & Venues, and Denver Parks & Recreation should document criteria and the process for selection. For example, based on performance, time in role, job applicability, and so on.

Mayor’s Office Response – Agree, Implementation Date – July 24, 2025
Office of Human Resources Response – Agree, Implementation Date – Jan. 15, 2026
Department of Arts & Venues Response – Agree, Implementation Date – Jan. 31, 2026
Denver Parks & Recreation Response – Agree, Implementation Date – Dec. 31, 2025

1.9 Communicate development opportunities and criteria – Leaders in the Mayor’s Office, Office of Human Resources, Denver Arts & Venues, and Denver Parks & Recreation should ensure development opportunities are communicated to all staff when identified. Additionally, the criteria for selection should be communicated in advance to staff.

Mayor’s Office Response – Agree, Implementation Date – Aug. 1, 2025
Office of Human Resources Response – Agree, Implementation Date – Aug. 31, 2025
Department of Arts & Venues Response – Agree, Implementation Date – Aug. 31, 2025
Denver Parks & Recreation Response – Agree, Implementation Date – Dec. 31, 2025

1.10 Prioritize development opportunities for staff – Leaders in the Mayor’s Office, Office of Human Resources, Denver Arts & Venues, and Denver Parks & Recreation should prioritize staff development opportunities, such as by establishing a development goal as part of the city’s annual goal setting process.

Mayor’s Office Response – Agree, Implementation Date – Aug. 1, 2025
Office of Human Resources Response – Agree, Implementation Date – July 31, 2025
Department of Arts & Venues Response – Agree, Implementation Date – May 31, 2025
Denver Parks & Recreation Response – Agree, Implementation Date – July 31, 2025

1.11 Communicate formal recognition opportunities and criteria – Leaders in the Mayor’s Office, Office of Human Resources, Denver Arts & Venues, and Denver Parks & Recreation should ensure recognition opportunities and selection criteria are communicated to all staff when identified.

Mayor’s Office Response – Agree, Implementation Date – Aug. 1, 2025
Office of Human Resources Response – Agree, Implementation Date – June 15, 2025
Department of Arts & Venues Response – Agree, Implementation Date – July 31, 2025
Denver Parks & Recreation Response – Agree, Implementation D
ate – May 31, 2025

1.12 Follow the city’s rewards policies If they choose to provide rewards, such as the Spot On, leaders in the Mayor’s Office, Office of Human Resources, Denver Arts & Venues, and Denver Parks & Recreation should ensure compliance with all requirements in the city’s policies for tracking rewards, including gift cards, and submitting documentation to the Controller’s Office. 

This should include tracking:

  • The recipient’s name and employee ID number.
  • The date of reward.
  • The requester’s name.
  • The gift amount.
  • The reason for the reward.
  • The gift card number.
  • The next level manager’s approval.
  • A running inventory of the gift cards purchased and backup documentation.
  • A running inventory of the gift cards distributed.

Documentation for gift card reconciliation or audits each month.

Mayor’s Office Response – Agree, Implementation Date – July 24, 2025
Office of Human Resources Response – Agree, Implementation Date – Dec. 31, 2025
Department of Arts & Venues Response – Agree, Implementation Date – June 01, 2025
Denver Parks & Recreation Response – Agree, Implementation Date – May 31, 2025

1.13 Monitor rewards data – Leaders in the Mayor’s Office, Office of Human Resources, Denver Arts & Venues, and Denver Parks & Recreation should periodically monitor rewards data, including exemplary leave and other awards, to ensure compliance with city rules and that they are being provided fairly and appropriately across the agencies. These reviews should be documented.

Mayor’s Office Response – Agree, Implementation Date – July 24, 2025
Office of Human Resources Response – Agree, Implementation Date – Dec. 31, 2025
Department of Arts & Venues Response – Agree, Implementation Date – Dec. 31, 2025
Denver Parks & Recreation Response – Agree, Implementation Date – Dec. 31, 2025

1.14 Prioritize recognition – Agency leaders, supervisors, and managers in the Mayor’s Office, Office of Human Resources, Denver Arts & Venues, and Denver Parks & Recreation should prioritize recognizing staff — either formally or informally — for work done well, such as by establishing it as a goal during the city’s annual goal setting process or providing training on awards and recognition. 

Mayor’s Office Response – Agree, Implementation Date – Aug. 1, 2025
Office of Human Resources Response – Agree, Implementation Date – Jan. 15, 2026
Department of Arts & Venues Response – Agree, Implementation Date – Feb. 28, 2026
Denver Parks & Recreation Response – Agree, Implementation Date – Feb. 28, 2026

2.1 Communicate reporting process – Leaders in the Mayor’s Office, Office of Human Resources, Denver Arts & Venues, and Denver Parks & Recreation should communicate the availability of city and agencywide reporting systems and resources to staff at all levels regularly, so staff understand the process and what to expect. Agency leaders should work with the Office of Human Resources, if needed, to identify and communicate alternate processes if staff do not feel comfortable reporting to their direct supervisor or Human Resources representative. Leaders should ensure all supervisors and responsible parties are trained on this process.

Mayor’s Office Response – Agree, Implementation Date – July 24, 2025
Office of Human Resources Response – Agree, Implementation Date – June 17, 2025
Department of Arts & Venues Response – Agree, Implementation Date – July 31, 2025
Denver Parks & Recreation Response – Agree, Implementation Date – July 31, 2025

2.2 Prioritize psychological safety for staff – Leaders in the Mayor’s Office, Office of Human Resources, Denver Arts & Venues, and Denver Parks & Recreation should prioritize developing psychological safety for staff by providing trainings, creating and tracking goals related to psychological safety, and communicating to staff at all levels the importance of feeling comfortable reporting issues. Leaders should hold all staff, including managers, accountable for building and maintaining this environment.

Mayor’s Office Response – Agree, Implementation Date – Sep Aug. 1, 2025
Office of Human Resources Response – Agree, Implementation Date – June 23, 2025
Department of Arts & Venues Response – Agree, Implementation Date – Dec. 31, 2025
Denver Parks & Recreation Response – Agree, Implementation Date – Dec. 31, 2025

2.3 Establish guidelines for check-ins – Leaders in the Mayor’s Office, Office of Human Resources, Denver Arts & Venues, and Denver Parks & Recreation should establish clear guidelines for staff check-ins with their direct supervisor to ensure feedback is being provided more than once a year. These guidelines, at a minimum, should include the staff member and supervisor jointly determining the frequency of check-ins. Additionally, the guidelines should encourage two-way communication and feedback. Such guidelines shall be communicated to all staff.

Mayor’s Office Response – Agree, Implementation Date – Aug. 1, 2025
Office of Human Resources Response – Agree, Implementation Date – June 16, 2025
Department of Arts & Venues Response – Agree, Implementation Date – July 31, 2025
Denver Parks & Recreation Response – Agree, Implementation Date – May 31, 2025

2.4 Implement upward feedback process – Leaders in the Mayor’s Office, Office of Human Resources, Denver Arts & Venues, and Denver Parks & Recreation should identify and implement a process for staff to provide upward feedback without fear of retaliation.

Mayor’s Office Response – Agree, Implementation Date – May 1, 2025
Office of Human Resources Response – Agree, Implementation Date – Dec. 1, 2025
Department of Arts & Venues Response – Agree, Implementation Date – Dec. 31, 2025
Denver Parks & Recreation Response – Agree, Implementation Date – June 30, 2026

 

Auditor's Letter

May 22, 2025

We audited organizational culture in the Mayor’s Office, the Office of Human Resources, the Department of Arts & Venues, and Denver Parks & Recreation to compare the preferred culture with the actual state to help leaders address potential impacts on operations. I now present the results of this audit.

The audit found each agency was not leveraging tools — including the employee engagement surveys — to effectively understand organizational culture, and staff in each agency’s desired culture does not align with the culture that exists. Further, committees dedicated to culture in each agency may not be effective because they lack structure. Staff in all four agencies said they did not understand the process for reporting concerns and did not feel comfortable doing so.

By implementing tools and processes to assess and monitor agency culture, empower culture committees, and prioritize psychological safety and communicate reporting processes, all four agencies will be better able to create a culture where staff feel involved, empowered, and safe. This will also help reduce turnover and associated costs to the city.

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 appreciate the leaders and team members in all four agencies who shared their time and knowledge with us during the audit. Please contact me at 720-913-5000 with any questions.

Denver Auditor

Auditor's Signature
Timothy O'Brien, CPA


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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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