Denver International Airport fully implemented 13 recommendations we made in the original audit report, but five others have yet to be fully implemented or acted upon.
Our follow-up work identified a new airport bank account, which the airport now uses to increase efficiency and decrease daily manual entries. In addition, the airport is developing quarterly variance analyses, reevaluating the classification of receivables, enhancing collection efforts, developing ratio analyses, hiring temporary staff, and reviewing workforce readiness on a regular basis.
However, risks remain regarding the two recommendations that were only partially implemented as well as the three recommendations the airport disagreed with.
Airport staff reconciled some accounts receivable accounts when staff were available. However, although airport management says this activity is a typical recurring process, we found not all old discrepancies were reconciled.
Meanwhile, the airport has an ongoing effort to clean up master customer accounts, but we found personnel have also not completed this effort.
Both of these recommendations were intended to be implemented before the airport reimplemented its PROPworks software system for managing property and revenue. The PROPworks reimplementation project will not be complete until the second quarter of 2022.
In the original audit report, the airport did not agree with requiring customers to include remittance advice when making payments, which delays reconciliations of customer accounts. In addition, it did not agree to implement a method to assess interest and fees on late payments before the PROPworks reimplementation, which has resulted in revenue losses to the airport. Lastly, the airport did not agree to conduct a formal staffing analysis of its accounts receivable team, which can result in continued difficulties managing the team’s workload.