Colorado Politics

? Short-term rental rules, data-driven policing in 2017 audit plan

Denver’s enforcement of short-term rental rules and data-driven policing will be closely reviewed by Auditor Timothy O’Brien as some of the areas targeted in his 2017 audit plan.

O’Brien recently submitted the plan to Mayor Michael Hancock and Denver City Council as required by city charter. The plan consists of integrated audits that incorporate performance, financial, information technology and fraud-detection goals. The plan is flexible to change as conditions evolve.

“I’m proud of the steps my office has taken toward complying with the City Charter provision to conduct financial and performance audits,” O’Brien said in a news release. “The integrated audits my office now performs deliver relevant recommendations to improve Denver programs and make its expenditures more efficient.”

In the past 14 months, more than 95 percent of audit recommendations made by O’Brien and his staff were agreed to by the agency involved in the audit.

Among the areas, agencies and departments in the 2017 audit plan are Community Planning and Development, County Courts, Denver International Airport, Excise and Licenses, Finance, Human Services, Parks and Recreation, Public Works, Safety and Technology Services.

O’Brien said his office is now doing several things that had not been done before, from tapping private-sector ability for specialized audits like cyber-security to getting competitive bids for the independent external audit of Denver’s finances. He added the office is also establishing entry-level auditor positions “to take advantage of the talent coming out of local schools and provide a career path for auditors devoted to public service.”

The 2017 plan includes audits with a direct impact on Denver residents, like enforcement of short-term rental rules and data-driven policing. Other audits will look at internal city practices, such as indirect cost accounting and bond management compliance. O’Brien and his staff meet regularly with elected officials, agency leadership and community members to gather comments so audits target the areas of greatest risk.

“In the coming year, my office will enhance its data analytics capacity to allow the kind of continuous monitoring that best identifies areas of risk,” O’Brien said. “We want to test internal financial controls to ensure the processes are followed correctly, risk is minimized and questionable transactions are detected. We’re always looking at new ways to provide the public with meaningful information on how their tax dollars are being spent.”

This year, office audits had a measurable impact in improving city operations, explained Jeffrey Garcia, the auditor’s director of contracts and accountability.

“For example, our audit of Rocky Mountain Human Services, the organization receiving property tax dollars to care for Denver’s developmentally and intellectually disabled, resulted in state legislation providing greater accountability and transparency,” Garcia said. “Our audit of the Denver Police Department‘s community policing resulted in a new policy to collect demographic data in officer-initiated stops.”

The auditor’s office periodically reports to the Audit Committee and City and County of Denver’s operational management on the status of various audit findings and audit recommendations for improved business practices. Follow-up reports of every audit are made 18-24 months after the release of an audit report. A follow-up program provides ongoing guidance and help to city entities.


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