The Department of Housing Stability has a number of operational flaws, including issues with shelter security, budgeting, and contract compliance, according to a recent audit this month by Denver Auditor Timothy M. O’Brien, CPA. The audit notably highlights the negative effects of these problems on Denver’s shelters, which provide services to vulnerable groups that may be at danger as a result of these organizational shortcomings.
The audit’s conclusions indicate that Housing Stability uses inefficient techniques to keep an eye on shelter providers’ performance. Interestingly, the city had set aside $807,000 for security for a Salvation Army shelter at a former DoubleTree hotel, but hiring a security contractor took a long time. When two shelter visitors were shot dead in March 2024 and a third was hurt in a different incident, it is arguable that this security breach reached a breaking point. The Denver Auditor’s Office claims that the city only took on responsibility for the property’s security following these violent incidents.
The agency has had trouble implementing the conditions of contracts in terms of financial oversight, especially when it comes to precise documentation of shelter-related spending and repayment of expenses. Housing Stability was unable to provide the necessary documentation proving the whole amount spent on shelters between January 2022 and March 2024. The audit calculated that around $150 million was spent on these services throughout the previously specified time frame, despite the absence of precise tracking. Examples of suppliers submitting invoices after the due date and requests for duplicate reimbursements, some of which were incorrectly issued, further highlighted the department’s lax financial control.
The audit also revealed weaknesses in nondiscrimination policies, where certain shelters failed to sufficiently record their efforts to prevent discrimination against their visitors, and breaches in the protection of sensitive information, where private information was exposed on a shared drive that employees of other city agencies could access. According to the Denver Auditor’s Office, O’Brien stated, “To say that we are going to follow the law, except for when it differs from our religious practices,” in reference to any inconsistencies with nondiscrimination statutes. The Salvation Army’s contractual commitment to not discriminate was squarely at conflict with its employee handbook, which made reference to such an exemption.
The majority of the auditor’s suggestions were accepted by Housing Stability, which also pledged to fix procedural and policy mistakes pertaining to grievance procedures, nondiscrimination, better expense tracking, and the creation of thorough security measures. However, the department maintained its contentious cost-reimbursement strategy, contesting the auditor’s assertions of fiscal responsibility and adherence to local regulations.
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