DENVER – Denver’s airport has significantly improved how it manages collection of nearly half a million dollars in revenue after an audit from Denver Auditor Timothy M. O’Brien, CPA.
“When we looked at how the airport handled badging fees, we found the airport was leaving a lot of money on the table,” Auditor O’Brien said. “Today, budgets are the tightest we’ve seen in a long time and every dollar matters. I’m pleased to see our recommendations are making a difference.”
In 2018, the Auditor’s Office found the airport was owed or foregoing collection on more than $430,000 in late fees and overdue invoices for badging services. The airport issues the security badges to thousands of workers to allow employees of private contractors and government agencies to access select areas of Denver International Airport.
In the audit report, we found instances when some invoices were more than a year overdue. From January 2017 through March 2018, the airport’s finance office processed more than $1.4 million in badging transactions. Twenty percent of the invoice revenue was overdue from more than 1,600 outstanding invoices.
According to a new follow-up report out today, Denver’s airport has made significant strides in improving how it manages parts of the security badging process. The airport has streamlined its billing processes and is in the process of implementing new systems.
We found the airport has a new identity management system and a new process allowing airport security and financial management to collaboratively reconcile and follow up on overdue invoices.
The Finance Division is also working to collect overdue balances — including those for badging — with a focus on invoices more than 90 days past due.
The airport still has some work to do to improve communication with companies and encourage on-time payment. We recommended an automated billing reminder. However, the airport is doing this manually and only on a limited basis. The airport expects to be able to complete this recommendation after it implements a different financial system by the end of the year.
The airport is also still unable to assess late fees for overdue balances. Airport officials expect to gain this functionality by the end of the year with the new system.
“By taking quick action on most of our recommendations, the airport can now have confidence in its financial processes when it comes to badging invoices and billing,” Auditor O’Brien said. “None of us have money to waste during this economic downturn.”