A state review of the city of Durango’s adopted 2020 budget found discrepancies in water, sewer, sustainable services and transportation funds, according to the Colorado Department of Local Affairs.
The city of Durango sought assistance from DOLA in January to ensure that 2018 actual spending numbers listed in the 2020 budget matched what was reported in the city’s 2018 comprehensive annual financial report. The “review was informal and is intended for technical assistance purposes only,” Natriece Bryant, deputy executive director at DOLA, wrote in an email.
DOLA found that “generally, 2018 figures in the city’s 2020 budget spreadsheets appear to match figures in the 2018 CAFR,” Bryant wrote. That means the numbers attributed in the 2020 budget to actual spending in 2018 matched what auditors found after reviewing city spending for that year.
But the state agency found discrepancies in enterprise funds – or city organizations that operate like a business and are not funded by tax dollars. Irregularities were found in line-item funds related to miscellaneous and intergovernmental revenue, capital outlay and non-departmental expenditures.
That means the 2020 adopted city budget did not use accurate numbers related to the amount of money transfered into accounts from other municipal revenue sources, dollars set aside for major construction projects and expenses of sending money to other city services.
DOLA sent its findings to city staff, which may work with an auditing firm “to determine if amending the budget schedules would be productive or appropriate,” Bryant said.
Interim City Manager Amber Blake said at a regular City Council meeting Tuesday that the city has an on-site auditing team to help staff reconcile changes to city spending documents. DOLA recommended a number of changes, Blake said, and staff is expected to bring complete and accurate budgeting documents to the City Council on March 2.
Meanwhile, the Colorado Bureau of Investigation continues its investigation into alleged misappropriation of public funds – a state review separate from the DOLA analysis. A spokeswoman for the Bureau did not immediately respond to calls for comment.
bhauff@durangoherald.com
