Denver Human Services has made progress in administering its child welfare placement services but there is still room for improvement within its kinship caregiver program, according to a follow-up audit completed in March.

During a meeting of the city’s Independent Audit Committee on Wednesday, auditors reviewed recommendations made to the human services agency in 2023 regarding risks, including a lack of documented guidance for training certification staff, retaining caseworkers, and maintaining and securing the agency’s imprest fund  — a type of petty cash.

“I’m pleased to see Denver Human Services follow through on our recommendations to improve processes to help kinship caregivers, who play an important role in a child’s life,” Denver Auditor Timothy O’Brien said in a statement. “When the city can support kinship caregivers, it sets children up for success.”

While Denver Human Services agreed to implement all seven of the recommendations by the auditor, a follow-up report found that not all issues were fully addressed:

• Two recommendations were fully implemented, including the development of a formal training plan for certifying kinship caregivers and removal of outdated kinship certification guidance from its internal shared drive.
  
  
• Four recommendations were only partially implemented, with lingering gaps in staff retention strategies and secure access procedures.
  
  
• One recommendation remains unaddressed and involves obtaining clarity on the fiscal rule requirements that apply to the imprest fund, so that critical fiscal safeguards can be established.

When a child must be removed from their home due to reported abuse or neglect, Denver’s Child Welfare Division assists in placing the child with a close family member or friend.

Kinship caregivers who are trained by DHS staff and meet specific criteria can become certified, making them eligible for some types of financial assistance.

The DHS imprest fund provides emergency financial support for families and caregivers and is available to all divisions, according to the DHS website. The fund helps residents needing assistance with food, rent, child care and other time-sensitive expenses.

Despite preparing draft procedures and a new software system, DHS has yet to finalize oversight measures for the fund or submit a required fiscal rule waiver to the city’s Department of Finance — leaving the agency at risk for noncompliance and misuse of funds, a statement from the auditor’s office said.

O’Brien questioned why the waiver, which was created in 2023, had not been submitted.

“It (waiver) indicates that we need to have the policies fully in place,” Laura Tateyama, financial director for the Denver Human Services Financial Services Division, said. “And so, without having those policies go through our policy review committee and having full approval, we felt it was too soon to submit a waiver. The waiver is absolutely fully documented and ready to go. As soon as the policy is approved by our committee.”

Auditors may revisit the risk areas in future audits to ensure the city takes appropriate corrective action.