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Denver International Airport fully implemented two recommendations made in the original audit report. However, the airport only partially implemented one other and it has not taken steps to address the risks seven other recommendations had sought to resolve.
The recommendations the airport did not fully implement — including the seven recommendations it did not agree to implement — present several lingering risks. Among them:
Not following procurement procedures or documenting and maintaining records for decision-making processes, such as scoresheets used when evaluating proposals, lessens transparency and reduces the airport’s ability to show its processes are fair, reasonable, and competitive.
Failing to have policies and procedures in place to ensure subcontracted work has proper oversight and is awarded in a fair, reasonable, and open way limits the city’s ability to ensure it receives quality construction work and reasonable costs for subcontractor work.
Without proper oversight of multi-tiered subcontracted work, the airport cannot ensure contract terms are followed which can result in overpayments.
Failing to adequately oversee contractors’ awards for self-performed work limits the airport’s ability to ensure work was awarded in a fair and reasonable manner, based on open competition. As a result, the airport may not receive the best value for the work performed.
Not requiring contractors to submit documentation of actual costs that can be validated and reconciled with project allowances limits the airport’s ability to ensure it does not overpay for work.
By not maintaining detailed documentation related to general conditions costs, the airport cannot determine whether these costs are reasonable or allowable. As a result, the airport may pay the contractor for costs that are unallowable.
January 2, 2025 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 April 2023, we audited the Great Hall construction project and found risks involving project management and oversight of construction work. Denver International Airport agreed to implement three of our 10 recommendations. We recently followed up and found the airport fully implemented two and partially implemented one recommendation. Although the airport has made significant progress in implementing the recommendations it agreed to, it did not fully address all the 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 did not update the status of the seven recommendations the airport did not agree to implement, as we confirmed it took no action toward implementing those. We include these recommendations in this report as a reference. The airport’s original response and the Auditor’s addendum for each of the seven recommendations are also included. 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 Timothy O'Brien, CPA
AUDITOR TIMOTHY O'BRIEN, CPA Denver Auditor
Denver Auditor's Office
201 W. Colfax Ave. #705 Denver, CO 80202 Email: auditor@denvergov.org Call: 720-913-5000 Follow us on Facebook Connect with us on Twitter Read our social media policy