Etai’s Café Concessions Contract Follow-up

A customer pays at the Etai's café checkout.

Denver International Airport fully implemented four recommendations made in the original audit report but only partially implemented one other. It has not taken sufficient steps to address the risks two other recommendations had sought to resolve.

Of note: The airport took corrective action to address the remaining recommendation, which officials did not agree to implement when the original report was published.

Through its efforts, the airport:

  • Increased oversight of vendors’ revenue statements through stronger policies to ensure deductions from gross revenues comply with contract requirements and airport policy.
  • Has a process to ensure Etai’s Café’s invoice payments are received on time.
  • Is negotiating a new contract with Etai’s Café in accordance with Executive Order No. 8.

 Graphic showing 4 fully implemented recommendations, 1 partially implemented recommendation, 2 recommendations not implemented, and 1 recommendation the agency did not agree to implement

Remaining Risks

The recommendations the airport did not fully implement present several lingering risks. Among them:

  • While managers improved policies to define allowable deduction types, the airport is not adequately reviewing Etai’s Café’s revenue statements to ensure deductions are accurate or appropriate. Without a sufficient review process, the airport risks vendors taking unallowed deductions, resulting in the airport not receiving the full rent it is owed.

  • The airport is still not reviewing vendors’ real-time sales data. It plans to do so through a continuous monitoring program, but few details are available yet.

  • The airport has not finalized how it will accurately bill vendors for electric and water utilities. It plans to finish a pilot program in September 2024.


Auditor's Letter

June 6, 2024

In keeping with generally accepted government auditing standards and Auditor’s Office policy, as authorized by city ordinance, we have a responsibility to monitor and follow up on audit recommendations to ensure city agencies address audit findings through appropriate corrective action and to aid us in planning future audits.

In November 2022, we audited the airport’s concessions contract with Etai’s Café and found risks involving the airport’s monitoring of revenue reporting and deductions, the timeliness of payments, and utility charges. Denver International Airport agreed to implement seven of our eight recommendations.

We recently followed up and found the airport fully implemented over half the recommendations it agreed to implement. Although airport officials did not agree to implement one other recommendation when the original report was published, I am pleased the airport now requires annual certification of revenues by a certified public accountant, which adds assurance that vendors’ revenue statements are accurate.

Despite the airport’s notable progress, it did not fully address all risks associated with our original findings. Consequently, we may revisit these risk areas in future audits to ensure the city takes appropriate corrective action.

We appreciate the leaders and team members at the airport who shared their time and knowledge with us throughout the audit and the follow-up process. Please contact me at 720-913-5000 with any questions.

Denver Auditor's Office

Auditor's Signature
Timothy O'Brien, CPA


Timothy O'Brien Official Headshot

AUDITOR TIMOTHY O'BRIEN, CPA
Denver Auditor


Denver Auditor's Office

201 W. Colfax Ave. #705 Denver, CO 80202
Emailauditor@denvergov.org
Call: 720-913-5000
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