City and County of Denver

201 West Colfax Avenue. Dept. 705 I Denver, Colorado 80202

 

720-913-5000 I Fax 720-913-5253 I 

Timothy M.0?Brlen, CPA
Audito-

Mayor Michael Hancock
Denver Mayor?s Of?ce

1437 N. Bannock St. Rm 350
Denver, CO 80202-5390

Sent e?mail to 

 

July 8, 2019

RE: Westin Denver lntemational Airport Hotel?s Failure to Comply with Audit Requirements

 

 

Mayor Hancock,

In October 2017, an audit of Westin DIA Hotel revenue was included as part of the 2018 Audit
Plan. In June 2018, my of?ce began an audit of the Westin. During the audit, the Westin failed to respond
to numerous requests to provide documentation related to hotel operations and revenue. On December
18, 2018, the audit team ended the engagement due to lack of cooperation from the Westin. On February
21, 2019, my of?ce issued a report to the city detailing the Westin?s noncompliance. Following issuance
of the audit report, Westin of?cials stated to the Business, Arts, Workforce, and Aviation Committee of
the Denver City Council, the Westin would cooperate with the audit and produce the required records.

Denver law states, the Auditor shall conduct audits of city contracts. The law further states, city
contractors are required to provide the Auditor timely access to information. The Westin?s lease agreement
with the city states, all books and records related to the operation of the hotel, excluding Westin proprietary
information and guest information is city property and subject to city inspection upon request.

Twenty-one months after receiving notice of the audit and a year after the audit began, the Westin
has failed to provide suf?cient records to support reported revenue or operation of the hotel in compliance
with lease requirements.

Westin?s noncompliance has prevented an audit of its operation and revenue. Additionally
concerning is the airport?s failure to provide ?nancial records demonstrating appropriate contract

oversight and veri?cation of revenue for a signi?cant city asset.

I am requesting you instruct the City Attomey?s Of?ce to take action to require the Westin to
comply with Denver law and the terms of its lease.

Thank you for your attention to this matter. Please contact me if you have any questions.

:lmothy O?Brien, CPA

Denver Auditor