Audit - City and County of Denver
Audit - City and County of Denver
Audit - City and County of Denver
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<strong>City</strong> <strong>and</strong> <strong>County</strong> <strong>of</strong> <strong>Denver</strong>201 West Colfax Avenue, Department 705 • <strong>Denver</strong>, Colorado 80202 • 720-913-5000 •FAX 720-913-5247 • www.denvergov.org/auditorDennis J. Gallagher<strong>Audit</strong>orJuly 18, 2013Mr. Tom Downey, DirectorDepartment <strong>of</strong> Excise <strong>and</strong> Licenses<strong>City</strong> <strong>and</strong> <strong>County</strong> <strong>of</strong> <strong>Denver</strong>Dear Mr. Downey:Attached is our performance audit <strong>of</strong> the <strong>City</strong>’s medical marijuana licensing process. Thepurpose <strong>of</strong> the audit was to assess the policies <strong>and</strong> practices <strong>of</strong> the Department <strong>of</strong> Excise <strong>and</strong>Licenses’ (Department’s) medical marijuana operations focusing on the associated processes<strong>and</strong> controls <strong>and</strong> their efficiency <strong>and</strong> effectiveness. This audit also included reviewingrecommendations for follow-up from our August 2010 Department <strong>of</strong> Excise <strong>and</strong> LicensesPerformance <strong>Audit</strong>.I would first like to commend you <strong>and</strong> your team for their complete cooperation <strong>and</strong> opennessduring this audit. You <strong>and</strong> your team provided my audit team with full access to information <strong>and</strong>systems allowing for a timely audit. His cooperation is extremely appreciated.With that said, our audit team found that the Department lacks an integrated control frameworkfor licensing medical marijuana businesses. This lack <strong>of</strong> sound controls governing a businessprocess that generates significant revenue is <strong>of</strong> grave concern to me. It is my sincere hope thatyou <strong>and</strong> your team will dedicate a good faith effort in addressing the issues identified throughthis report. This becomes even more important as Colorado enters a new era as it begins theregulation <strong>of</strong> lawful retail marijuana operations.If you have any questions, please call Kip Memmott, Director <strong>of</strong> <strong>Audit</strong> Services, at 720-913-5000.Sincerely,Dennis J. Gallagher<strong>Audit</strong>orcc:Honorable Michael Hancock, MayorHonorable Members <strong>of</strong> <strong>City</strong> CouncilMembers <strong>of</strong> <strong>Audit</strong> CommitteeTo promote open, accountable, efficient <strong>and</strong> effective government by performing impartial reviews <strong>and</strong> other audit servicesthat provide objective <strong>and</strong> useful information to improve decision making by management <strong>and</strong> the people.We will monitor <strong>and</strong> report on recommendations <strong>and</strong> progress towards their implementation.
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