Caring for Denver changes alcohol policy following audit
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Caring for Denver will stop reimbursing alcohol purchases following a city auditor report criticizing the mental health nonprofit's spending and grant oversight.
Why it matters: The nonprofit's spending for mental health and substance use treatment programs has been under a microscope for years because it generates millions from city sales taxes.
By the numbers: The nonprofit awarded more than $185 million to 270 organizations as of 2024, per the auditor's report.
Zoom in: The audit found the nonprofit issued money to grantees who submitted falsified, misleading and incomplete applications.
- At least 10 grants went to recipients that didn't align with the city law governing eligible programs.
- The report also questioned certain administrative expenses, including alcohol purchases.
What they're saying: Caring for Denver executive director Lorez Meinhold told Denver City Council members Wednesday that the nonprofit spends roughly $1,000 a year on alcohol — a small share of its $2.5 million administrative budget.
The big picture: City laws dictate that food and beverage costs can be reimbursed only when necessary, not for routine meals and drinks, per the auditor's reports.
What we're watching: While council members Wednesday lauded Caring for Denver's work, many shared concerns over why more of the auditor's recommendations weren't accepted by the nonprofit, including adopting financial and legal background checks on applicants.
- Meinhold said the organization will work to improve the processes that came under fire in the auditor's report, though it won't adopt the recommendations made by the city auditor's office.