CO Medical Pot Unit Assailed by Auditors, Lost Money 19 Straight Months


The agency charged with regulating Colorado’s medical marijuana industry has not adequately defined its mission, squandered money on capital projects, and underreported tax revenues, says a state auditors report quoted by Reuters. The Medical Marijuana Enforcement Division failed to follow the framework laid out by the state legislature when lawmakers approved the program in 2010, auditors said. The report said the agency experienced 19 straight months of net losses, including a $2.3 million loss in June 2011 because of “large capital purchases,” including furniture, computers and a software program that failed to materialize. A drop in revenue was largely due to a moratorium on new dispensaries from mid-2010 through 2012, which meant the division collected fewer fees. “Weaknesses in the division’s fee-setting, strategic planning, and expense controls contributed to its funding problems,” the report said.

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