A troubled nonprofit that accepts Denver taxpayer money still has not divulged why it suddenly had financial problems.
Rocky Mountain Human Services (RMHS), formerly Denver Options, which provides services to adults and children with disabilities, fired its founding executive director and chief financial officer.
The agency, which receives federal, state and local funds, has cut staff, eliminated programs and raised administrative fees on subcontractors.
But it has yet to say why all of this needed to be done. Even though the agency receives most of its funding from public sources, it doesn’t have to comply with Colorado’s open records laws.
Denver City Councilwoman Debbie Ortega is concerned about the lack of information and fears the city may not be able to get out of its contract because the relationship with the agency was outlined in ballot language.
To change providers, the city may have to ask voters.
In 2003, Denver voters approved the property tax hike to fund Denver Options — one of 20 community-centered boards created by the legislature to provide services to the state’s developmentally disabled population.
Last year, Denver taxpayers provided RMHS about $13 million, but city officials are having trouble learning how that money was spent. Agency officials says they are reviewing the problem and have assured the city the tax money is being spent as expected.
The agency had been directed to provide yearly face-to-face meetings with the council, but hasn’t done so since 2009.
A meeting scheduled for this month was canceled because the City Council has new members, which is strange. A new council shouldn’t need a two-month rest before beginning work.
A meeting is now set for Sept. 15, after the deadline for the council to put anything on November’s ballot.
Caregivers who are paid by RMHS have seen their payments cut after the agency increased administrative fees to 7 percent from last year’s 2 percent. Those fees are expected to rise to 17 percent in April.
In an e-mail, a spokeswoman said the agency was only making its fees “commensurate with the actual costs to RMHS.”
“It appears they are trying to balance their budget at the expense of their clients,” said a caregiver, who didn’t want to be named out of fear of reprisal.
Nevertheless, it is evident RMHS is trying to right the ship.
Late last month, the agency severed ties with founder Stephen Block, who earned an annual salary of $437,729.
Weeks before, Chief Financial Officer Ted Hernandez resigned. He earned $271,492, according to federal forms.
Interim director Shari Repinski is now earning about a quarter of what Block was paid.
Due to the ongoing struggle to find out information, a Colorado lawmaker is drafting legislation to force nonprofits like RMHS that get at least 60 percent of their funding from public sources to comply with open records laws.
This is a logical move.
An agency entrusted and funded with public funds to provide services for the city’s most vulnerable citizens should be as fully transparent as possible.
Jeremy P. Meyer: 303-954-1367, jpmeyer@denverpost.com or
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