Photo Credit: The Ballard Group
For months, many residents in Johnstown have followed growing concerns surrounding the Town of Johnstown’s relationship with the YMCA of Northern Colorado.
Public attention intensified in December 2025 after a forensic audit commissioned by the Town raised questions and allegations regarding operational spending, payroll allocations, undocumented expenses, inventory tracking, and the handling of taxpayer-supported funds connected to the Johnstown YMCA.
Previous reporting by CBS Colorado highlighted allegations involving miscoded expenses, undocumented gift card purchases, questions surrounding payroll allocations, and concerns over whether some expenses tied to other YMCA locations may have been improperly associated with Johnstown operations.
At the time, YMCA leadership denied mismanagement or misuse and stated there was “no negligent intent” behind the accounting issues identified in the audit, while acknowledging that recordkeeping and financial tracking needed improvement.
Since then, many residents have continued raising concerns about transparency surrounding the dispute, future YMCA operations in Johnstown, and how taxpayer-funded subsidies have been managed.
In an effort to better understand the current status of the issue and provide additional public context, Johnstown Republic requested and reviewed additional documents related to the ongoing dispute between the Town and the YMCA.
The newly reviewed documents show that disagreements between the two sides remain ongoing, particularly surrounding audit findings, payroll allocations, inventory records, operational expenses, and financial calculations.
According to the documents reviewed by Johnstown Republic, the YMCA has until June 18 to provide its formal response to the Town regarding disputed findings and financial questions raised during the review process.
Town Requests Additional Clarification
Correspondence from Mayor Michael Duncan to YMCA leadership states that after reviewing submitted materials and financial analysis, several disputed items still require clarification before further discussions occur.
The Town requested clarification regarding:
- Audit findings and disputed charges
- Payroll allocations tied to YMCA personnel
- Missing supporting documentation and receipts
- Equipment inventory discrepancies
- Financial calculations connected to taxpayer-supported operations
The Mayor’s correspondence also references the Town’s fiduciary responsibility to taxpayers and the need for Town legal counsel and financial representatives to continue reviewing the issue.
YMCA Disputes Portions of Audit Findings
In its response, the YMCA of Northern Colorado disputes several findings identified during the Town’s review process.
The YMCA argues that some payroll allocations and operational expenses questioned by the Town were legitimate costs associated with Johnstown programming and operations. The organization also states that additional supporting documentation exists for several disputed items.
According to calculations included in the documents reviewed by Johnstown Republic, the YMCA argues the Town of Johnstown may actually owe the YMCA approximately $164,460 after revised adjustments are considered.
The primary areas of disagreement outlined in the documents include:
- Payroll allocations
- Employee assignment classifications
- Inventory and equipment valuation
- Administrative costs
- Revenue and subsidy calculations
- Audit methodology and supporting documentation
Payroll Allocations Remain a Major Focus
One of the primary areas of disagreement continues to involve payroll allocations for certain YMCA employees.
The Town’s audit reportedly questioned whether portions of payroll expenses tied to employees, including Jen Spettel and Pat Murray, should have been allocated to Johnstown operations.
The YMCA maintains those employees were supporting Johnstown-related services and argues that the audit relied on incomplete payroll information.
Additional documentation and explanations were included by the YMCA in support of those allocations.
Questions Raised Over Equipment and Inventory
The documents also reference disagreements regarding fitness and operational equipment associated with YMCA facilities.
According to the YMCA, some equipment identified during inventory reviews had been temporarily relocated, loaned, or otherwise moved during operations. The organization argues the audit overstated the value of missing equipment and states additional records exist supporting its position.
The YMCA also noted that Johnstown benefited from YMCA-owned equipment and shared operational resources across the organization.
Dispute Appears to Be Moving Into Next Phase
While the original forensic audit raised concerns about financial controls and documentation, the newly reviewed correspondence shows the issue has evolved into an ongoing dispute over how those findings should be interpreted, whether certain expenses were legitimate operational costs, and whether the Town or YMCA may ultimately owe money to the other.
The YMCA disputes several of the audit’s conclusions and argues that additional records and revised calculations significantly change the financial picture presented during earlier public discussions.
The documents also reference continued discussions regarding the future structure of recreation and YMCA-related services within Johnstown.
Town leadership mentions evaluating possible future operational models, including whether:
- The YMCA would continue operating services
- The Town could assume additional operational responsibilities
- Alternative providers may eventually be considered
No final operational decisions appear to have been made based on the documents reviewed.
An Ongoing Issue for the Community
At this stage, the documents reviewed by Johnstown Republic reflect an ongoing financial and operational dispute between the Town and YMCA. No final determination regarding liability or wrongdoing appears to have been made in the materials reviewed. However, they do show that significant disagreements remain between the Town and the YMCA over financial calculations, operational costs, and audit findings tied to taxpayer-supported services.
Given the public funding involved and the YMCA’s role in the community, the issue is likely to remain a major topic of discussion in Johnstown as the June 18 response deadline approaches.
Johnstown Republic will continue following the issue and providing updates as additional public information becomes available.
