The Office of the State Auditor (OSA) recently completed a performance audit of Connect for Health Colorado focused on our sponsorship program, financial management practices, and Senate Bill 81 financial reporting. On Monday, October 20, Chief Executive Officer Kevin Patterson, Chief Financial Officer Brian Braun, and Chief Policy and External Affairs Officer Nina Schwartz appeared before the Legislative Audit Committee to present findings and answer questions.

On Thursday, October 23, in a public meeting of the Executive and Finance Committee of the Connect for Health Colorado Board of Directors, CEO Patterson walked through the audit findings, answered questions, and discussed work underway and planned improvements with board members.

There were several key findings discussed that we were pleased to report.

1. No evidence of participation in political fundraisers or activities.
2. No misuse of funds for personal benefit.
3. Previous 2017 audit findings regarding financial management and internal controls have been addressed.
4. No Senate Bill 81 funds were used for meals or lodging, and all public funds were properly used for educational and outreach purposes as required by statute.

The Committee also reviewed the findings requiring corrective action from the organization, a number of which are underway. Connect for Health Colorado accepts all audit findings and recommendations and is already implementing enhanced processes to strengthen fiscal management, documentation, and reporting. Those findings are:

1. The organization did not consistently follow its policies and procedures in vetting and documenting sponsorships.
2. Improvements need to be made in documenting sponsorship alignment with organization mission.
3. The organization did not consistently follow its financial documentation policies and there were gaps in oversight of executive use of credit cards.

Connect for Health Colorado takes these findings seriously. We have already established a plan, discussed publicly with our Board of Directors, to strengthen internal policies and procedures. These improvements include:

• Strengthening oversight processes for administrative expenditures.
• Enhancing receipt retention and documentation protocols across departments.
• Providing additional fiscal training and support for our volunteer Board of Directors to reinforce accountability.

The audit further noted that Connect for Health did not fully meet statutory reporting requirements for Senate Bill 81 funds in a prior period. This reporting process has since been modified.

We appreciate the legislature’s oversight and partnership in helping us continue to serve Coloradans responsibly, transparently, and in full alignment with our mission to increase access to affordable healthcare.