The charity that operated Opus Creative Industries before to its sudden closure last week reportedly spent about half of a $1.7 million workforce innovation award on expenses that state regulators "disallowed" because of purportedly inadequate paperwork, according to the Colorado Department of Labor and Employment. The state is now requesting payment.
Opus trained media technology trainees, culinary arts students, and early childhood providers under the auspices of the nonprofit Colorado Springs Community Cultural Collective, which is led by local arts advocate Linda Weise. The Collective also worked on renovating City Auditorium, however due to issues with fundraising, the contract was terminated in the fall of 2023.
The state grant's administrator, the Pikes Peak Workforce Center, issued a statement in which it "firmly disputes any allegations of impropriety or abuse of money" and attributed the issue to the Collective's refusal to supply conventional timesheets for recording employee hours.
This is Opus's most recent financial issue. Weise announced that the Opus programs would close on March 31 in a press release shortly after the Independent published an article on March 28.
According to a "Demand for Payment of Rent or Possession" posted on the Opus operation's front door on January 15, 2025, the operation appeared to be in dire financial straits, as evidenced by bounced employee paychecks, unpaid vendor bills, and past-due rent of over $52,445, as reported by The Independent based on public records and interviews.
Employee complaints that the training did not match their expectations were also included in the piece.
Opus trained media technology trainees, culinary arts students, and early childhood providers under the auspices of the nonprofit Colorado Springs Community Cultural Collective, which is led by local arts advocate Linda Weise. The Collective also worked on renovating City Auditorium, however due to issues with fundraising, the contract was terminated in the fall of 2023.
The state grant's administrator, the Pikes Peak Workforce Center, issued a statement in which it "firmly disputes any allegations of impropriety or abuse of money" and attributed the issue to the Collective's refusal to supply conventional timesheets for recording employee hours.
This is Opus's most recent financial issue. Weise announced that the Opus programs would close on March 31 in a press release shortly after the Independent published an article on March 28.
According to a "Demand for Payment of Rent or Possession" posted on the Opus operation's front door on January 15, 2025, the operation appeared to be in dire financial straits, as evidenced by bounced employee paychecks, unpaid vendor bills, and past-due rent of over $52,445, as reported by The Independent based on public records and interviews.
Employee complaints about training that did not live up to their expectations were also covered in the paper.
According to Opus' announcement, the closure was caused by a lack of public funding, and board chair Deborah Hendrix stated that "talks are underway with interested business and education partner organizations contemplating absorbing the programs."
Weise established the Collective in 2020 to renovate downtown's City Auditorium, a 100-year-old venue for community gatherings and the arts. Weise terminated the arrangement in the fall of 2023, claiming she could not obtain the projected $85 million needed to renovate the facility, despite the Collective having spent millions of tax dollars and contributed cash.
After that, she concentrated on the Opus programs, which were Collective spinoffs that received some funding from a workforce innovation grant.
Review of the State
The almost $1.7 million in grant funds in question were obtained through the state from the American Rescue Plan Act. Through other initiatives, the county contributed an extra $700,000. The Collective received $2.4 million from the city's American Rescue Plan Act funds and an additional $250,000 from local taxes.
According to a city official, the state carried out a "monitoring review" of the Workforce Center from September 13 to October 4, 2024, but the city did not audit the nonprofit is spending. (Previously, a Workforce Center representative stated that when the nonprofit received its final payout in late November 2024, the grant funds were exhausted.)
According to a Colorado Department of Labor and Employment representative who emailed the Independent, "our investigation uncovered several compliance concerns pertaining to federal Uniform Guidance … and State fiscal rules for the different programs delivered by PPWC and subrecipient CSCC (Opus Creative Industries)."
According to the state spokeswoman, the assessment revealed that Opus Creative Industries had been awarded $828,371.78 in inadmissible expenditures. State Labor
According to the state spokeswoman, "We took swift measures to hold the receiver accountable and protect the usage of these tax monies" when the review was completed last autumn.
The state agency received a letter from the Workforce Center that was drafted by an attorney acting on its behalf. How employees' hours were recorded is the main topic of the letter dated March 19.
The state's unwillingness to accept employee-signed affidavits of "time and effort" in lieu of time sheets as proof of hours worked is cited in the letter. "A third-party beneficiary [the Collective] failed to properly generate paperwork with respect to time spent by staff who were awarded monies," it says specifically.
In his letter, Denver lawyer Benjamin Hase also points out that the state had not provided clear instructions on what kinds of documents were acceptable. He contends that employee affidavits that give "precise assessments of work completed" ought to be accepted.
According to a statement from the Workforce Center, in addition to the testimonies, the agency presented other documents that Opus had supplied as proof, such as calendars, employee declarations, and "extensive case notes" that the Opus staff had kept.
According to a statement from the Workforce Center, "these case notes convincingly substantiate the workers' time, effort, and scope of work accomplished under the grant, and they particularly outline the training sessions delivered to their customers."
The Workforce Center should implement a "corrective action plan," according to Hase's letter.
"Instead of a needless financial penalty, a suitable settlement might involve improved record-keeping practices for future compliance," the letter says.
Furthermore, Workforce Center spokesman Becca Tonn stated in an email that the case is still pending, so it is unknown where the money that has to be reimbursed will come from or whether it will be reimbursed. She added that on December 17, 2024, Weise and the nonprofit is board chair were informed of the conflict by the Workforce Center.
CITY MONEY
Weise told The Gazette that although the city still owes the Collective $250,000, the charity had over $250,000 in outstanding obligations after the Independent's story was posted online on March 28.
When questioned about it, the city denied that the Collective was owed any more money.
Vanessa Zink, a city spokesperson, cites the final contract amendment with the Collective, which Weise and then-Mayor John Suthers signed on December 7, 2022, and December 6, 2022, respectively. In addition to the $2.4 million in ARPA funds that had already been committed, that modification required the city to pay the Collective $250,000 from the city's general fund, which is financed by local taxes. The following day, December 8, 2022, the Collective sent the city a $250,000 invoice, which the city paid on December 16, 2022, according to Zink.
No more payments will be given without a written agreement, according to the December 2022 agreement, and thus
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