Airport Capital Assets Follow-up

A collage of photos from the airport showing a moving walkway, the train station doors, maintenance vehicles, with an asset tag overlayed on top.

 

  

Denver International Airport fully implemented seven of the recommendations we made in the original audit report, but 12 others have not been fully implemented or acted upon.

While the airport took steps to address some of the issues we identified, lingering risks remain from the 10 recommendations the airport agreed with but did not fully implement — as well as the two recommendations the airport disagreed with during the original audit.

For example:

  • Airport staff started developing a comprehensive preventive maintenance plan for each asset category — but this will take at least five years. And until that is complete, the airport cannot assess appropriate staffing levels and budget needs for preventive maintenance.

  • The airport has more work to do to improve data integrity for capital assets in its computerized maintenance management system, Maximo. The airport developed a procedure for how supervisors should review and approve assets added to the system, but this procedure is not included in the airport’s policies and procedures. Documenting procedures is critical for ensuring continuity of operations in the event staff leave the city.

  • Airport staff made some progress to better monitor contract compliance using Maximo. But the airport still is not adequately enforcing penalties on contractors that do not fulfill contract requirements. Furthermore, while the airport collected $2,100 out of the $2,150 in penalties we identified during the original audit as being owed to the airport, the maintenance contract does not allow staff members to use discretion in deciding which penalties for noncompliance they will enforce. Therefore, the airport should have collected the entire amount.

  • The airport took steps to update its policies and procedures for contract monitoring, but those documents still lack all relevant details for how staff should use Maximo as a contract monitoring tool. Similarly, the airport updated its procedures for how to enter assets in Maximo, but those procedures also do not have all necessary details — such as the process for deviating from recommended preventive maintenance schedules.

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Auditor's Letter

April 7, 2022

In keeping with generally accepted government auditing standards and Auditor’s Office policy, as authorized by city ordinance, the Audit Services Division has 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 our follow-up effort for the “Airport Capital Assets” audit report issued in December 2020, we determined Denver International Airport fully implemented seven recommendations, partially implemented seven recommendations, and did not implement the remaining three recommendations it agreed to in the original audit report. Despite the airport’s efforts, auditors determined the risks associated with the audit team’s initial findings have not been fully mitigated. As a result, the Audit Services Division may revisit these risk areas in future audits to ensure the city takes appropriate corrective action.

The Highlights page in this report provides background and summary information about the original audit and the completed follow-up effort. Following the Highlights page is a detailed implementation status update for each recommendation. We did not update the status of the two recommendations Denver International Airport disagreed with, as the airport presumably would not have taken action toward implementing those. However, we include these recommendations in the status update section as a reference.

I would like to express our sincere appreciation to the personnel at Denver International Airport who assisted us throughout the audit and the follow-up process. For any questions, please feel free to contact me at 720-913-5000.

Denver Auditor,

Auditor's Signature
Timothy O'Brien, CPA

 

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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
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