Nearly two years after Denver’s auditor told city officials they needed to improve how they track expenses related to the city’s homelessness initiative, those changes still haven’t been made, according to a follow-up report released Thursday.
“The city has still not identified expenses to track related to encampment response and is still not adequately monitoring contracts or reviewing supporting documentation for invoices,” the report from Auditor Timothy O’Brien said.
That could prevent Denver officials from evaluating the effectiveness of their programs and could lead to the city paying for services that never were used, according to the report.
During a presentation of the update Thursday, O’Brien told the mayor’s office that he often hears concerns from community members about Denver’s inability to track the money spent on its response to homeless encampments.
“This question has been out there for years,” O’Brien said. “I’d like to see some progress on it myself.”
O’Brien’s office initially lodged that complaint in a 2023 audit when Michael Hancock was still mayor. But in November, the same concerns appeared in a new audit, which reviewed city procedures after Mike Johnston became mayor.
Johnston’s office has said it’s working to improve expense tracking, but that it’s difficult because the city’s homelessness program involves many contracts and outside agencies. The mayor’s office also responded to the audit by pointing to its accomplishments.
“We really have transformed the city’s response to encampments,” said Cole Chandler, Denver’s senior homelessness advisor, during the Thursday meeting. “We’ve moved more than 3,000 people indoors. We’ve permanently closed more than 400 city blocks to encampments.”
Of the 36 recommendations the auditor’s office made in its original report in 2023, the city had fully implemented only six of them by the time the updated report was completed in December, according to the update.
Eleven of the recommendations haven’t been implemented at all and another 11 have only been partially implemented.
The final eight weren’t reviewed because the original program the auditor reviewed, the Unauthorized Encampment Response Program, began under Hancock and no longer exists. The auditor’s office said it plans to review the replacement program, All in Mile High, this year.
The issues the audit found with Hancock’s program could still be present in the new approach, the auditors wrote.
Denver also improved the way it stores people’s property, but there are still flaws with that system, the report said. The mayor’s office also needs to ensure it has a “periodic and formalized review process” for its data or it can’t ensure the data it uses to make decisions is accurate.
Stay up-to-date with Colorado Politics by signing up for our weekly newsletter, The Spot.