Feds Flag Colorado Homeland Security Grant Use

State may have to return more than $1M spent using "Byzantine" funding route

Details of the transaction consume about seven pages of the 80-page state audit, which accuses DOLA officials of failing to comply with federal laws and guidelines when it used the homeland security grant money for the state office space.

But DOLA's then-executive director, Mike Beasley, defended the plan even as state auditors skewered it. He called it perfectly legal and said it was approved in advance by various federal and state officials. He also noted that the state's emergency operations center is a benefit to local communities.

Before the state auditor's finding, Beasley called the financing plan to build the state's emergency operation center an ingenious shuffling of funds to meet state security needs.

Beasley left the agency in December to take a government relations position with Xcel Energy.