Subpoena power passes for city audit work

Subpoena power passes for city audit work

Published on September 09, 2024

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DENVER - In a win for Denverites calling for more accountability and transparency in their government, the Denver City Council has passed a bill granting subpoena power for audit work and creating a necessary conflict resolution tool.

The final vote was unanimously in support. Our office is especially grateful for the hard work and partnership of bill co-sponsors Council members Amanda Sawyer, Sarah Parady, and Shontel Lewis.

"The value of giving the Auditor every necessary tool to do the job they were elected to do for the people of Denver cannot be understated," Denver Auditor Timothy M. O'Brien, CPA, said. "By passing this conflict resolution tool, the City Council has championed good governance and made it easier to do transparent business with the city."

Subpoena power is a win for transparency and accountability because it supports efficient information sharing and timely reporting to the public through audit work that impartially shows how their resources are being used.

A similar bill for Denver Labor's wage investigations in the Auditor's Office passed unanimously in April. The audit subpoena bill largely mirrors the structure of the labor bill, with additional cybersecurity protections and more lenient fine structures. This was directly in response to feedback from Denver's business community.

The key difference between the bills is that the Auditor will seek approval for subpoenas from the Audit Committee, instead of issuing on sole authority.

"As the chairman of the Audit Committee, I look forward to working with my colleagues to ensure an effective and secure process for approving subpoenas," Auditor O'Brien said. "I hope the need for the Audit Committee to issue subpoenas happens rarely, but I am glad to know this tool is available if needed."

The audited entities have already signed contracts guaranteeing the production of records for audits. This tool helps create a clear and fair process to ensure reasonable record production, while protecting sensitive data.

The audit subpoena bill follows months of engagement with community partners to build the best tool possible, while making adjustments to address reasonable concerns.

Thanks to the subpoena power tool, both auditors and the external organizations being audited will have a clear path to resolve disputes over the production of information. An independent hearing officer can compel an auditee who received taxpayer resources to comply with their contractual obligations to provide information. The independent hearing officer can also add extra protections for sensitive information or give the audited organization more time to respond to an audit.

"Subpoena power is a good and efficient tool that will help keep audit work on track and give businesses a clear avenue to object without the need for lengthy and public disputes," Auditor O'Brien said.

We especially want to thank our dedicated community partners who advocated for the value of this auditing and accountability tool. The bill received endorsements from:

• Denver leaders and advocates like Coloradans for the Common Good, the Colorado Cross Disability Coalition, and city contractors and nonprofits like El Centro de los Trabajadores and the Community Economic Defense Project.
• Workers groups with members operating under city contracts like the Colorado Building and Construction Trades Council; United Food and Commercial Workers Local 7; Denver Area Labor Federation; Communications Workers of America 7777; Western States Regional Council of Carpenters; Service Employees International Union Local 105; Laborers International Union of North America Local 720; and the Sheetmetal, Air, Rail, and Transportation Local 9.
• Experts including District Attorney Beth McCann, the Colorado Fiscal Institute, the Association of Local Government Auditors, and other local government auditor organizations in cities like Portland, Oregon; Baltimore; Honolulu; and San Diego.

Every individual audit we perform matters because it represents accountability for millions of taxpayer dollars. Our audit work fulfills our voter-approved duty under the Denver Charter.

This bill for subpoena power in government audit work is a moderate step to allow for conflict resolution without having to risk damaging relationships with city partners through a lawsuit. Subpoena power is a common and appropriate tool for our audit function, as demonstrated by many other government audit organizations in the country.

"This bill is community-driven and responsive to feedback," Auditor O'Brien said. "Passing this bill is in the best interest of the people we serve."

You can find more information about the Auditor and recent work on our website.

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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