In a follow-up report from the Denver Auditor’s Office, city agencies have implemented many of the recommendations made in 2018 to better manage debt, but risks have “not been fully mitigated.”
The original audit focused on the Better Denver Bond Program from 2007, which allowed for $550 million in debt, and 2015’s Measure 2C, which authorized an additional $778 million. It found that the city had no formal policy to define what was an allowable expenditure under debt-issued funds and no procedures for governing user access to the software managing debt and project management, among other discoveries.
“We need to make sure we’re getting what we expect when we use software applications in our work,” auditor Timothy O’Brien said upon release of the updated findings. “Although the city has a close working relationship with the software developer and communicates well when changes are made, we still need safeguards to keep bad actors from causing errors we might not catch.”
Among the handful of recommendations not yet implemented, the auditor’s office found that the software vendor had not trained Department of Public Works officials on how to use the system because, the company said, Public Works did not have “sufficient technical expertise on their team.” The target date for completing this recommendation was August 2018.
The report also found that Public Works had not collected control reports that monitor the services provided to the city by third parties. The Department of Finance said that it is working on an “overall strategy.” The original implementation date of the recommendation was March 2019.