Youth detention program still risks misusing funds

Youth detention program still risks misusing funds

Published on January 08, 2026

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DENVER - Internal processes are stronger for the Colorado Youth Detention Continuum Program, but without updated program policies, risks for noncompliance with city and state requirements and the potential for misusing small dollar funds remain. This is according to a new follow-up report from Denver Auditor Timothy M. O'Brien, CPA.

With the support of state grant funding, the program aims to reduce the number of children in detention centers. The city uses these funds to conduct assessments and provide services to kids. Our 2024 audit found gaps in policies and procedures that risked future compliance with state and city rules and could impact future grant qualification. Staff in the Office of Social Equity and Innovation currently oversee the program.

Formal documentation is needed to specify which program staff training expenses are exempt from state approval, otherwise staff may incur unapproved training costs. Also, regular reviews of purchase cards expenses are needed to ensure proper card use. We found three instances where staff used a purchase card to buy cash-equivalent gift cards, but we received no documentation of prior approval.

The office updated its gift card policy, which requires staff to fill out a gift card receipt form, to align with the city's records retention policy and the program's grant contract. But the policy does not ensure there is sufficient separation of duties. As noted in our original audit, some employees have access to the physical gift card inventory and can also edit the digital inventory, creating a risk for misuse.

The program also did not update other polices about recording information in Workday, the city's system of record. Our recommendations involved providing better supporting documentation for transactions and protecting confidential information like children's names.

The program's inventory of state-owned assets staff use is still not aligned with Technology Services' inventory. Without an accurate inventory of the program's state-owned assets, Technology Services may reassign or retire state-owned equipment, causing issues when the contract ends, like a delay in payment.

"The office made progress, but it risks misusing funds without updated, documented policies. Especially when new staff do not have an updated policy to follow," said Auditor O'Brien. "These are small dollar amounts, but they do add up. Complying with city and state rules will better support the program's goal of reducing the number of children in detention centers."

AUDITOR TIMOTHY O'BRIEN, CPA
Denver Auditor

Denver Auditor's Office

201 W. Colfax Ave. #705 Denver, CO 80202
Email: [email protected]
Call: 720-913-5000
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