The Department of Transportation & Infrastructure fully implemented one recommendation made in the original examination report. But the department only partially implemented the second recommendation.
As a result, the department is better able to clearly track and monitor billing progress compared with total contracted amounts. It also improved its ability to identify how change orders impact the total work completed by subcontractors. These actions should better equip the department to manage future construction contracts and their related costs and timelines. In addition, the department added a requirement for project managers to justify why a change order is needed and how the costs are appropriate. However, we did not see evidence that the appropriateness of the cost was validated for the change order within our scope that involved added costs.
The recommendation the department did not fully implement presents several lingering risks. Among them:
October 6, 2022
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.
After following up on the “Denver County Jail Building 24 Buildout Contract” examination report completed by CliftonLarsonAllen LLP and issued in June 2021, we determined the Department of Transportation & Infrastructure fully or partially implemented all the recommendations it agreed to.
During the original examination, we found the department did not ensure sufficient documentation was provided to identify and verify billings for work performed by subcontractors. Additionally, the department processes for documenting and approving project changes were not made in a timely fashion and did not include adequate support explaining why additional work was necessary beyond the original project scope.
Based on our follow-up work, we determined the Department of Transportation & Infrastructure did not fully address all the risks associated with our initial 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 Department of Transportation & Infrastructure who shared their time and knowledge with us throughout the examination 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´s Office
201 W. Colfax Ave. #705 Denver, CO 80202
Call: (720) 913-5000
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