Apr 14 SCM Audit Min

Seattle, WA. Commissioners Hara and Creighton were present, as well as citizen committee

member Steve Miller. Also in attendance were CEO Tay Yoshitani and Joyce Kirangi, Port

Internal Audit Manager.

CALL TO ORDER

The committee special meeting was called to order at 9:07 a.m. by Commissioner Lloyd

Hara.

Approval of Minutes

In Favor: Creighton, Hara (2)

Mr. Miller participates as a non-voting member of the Committee

Motion for approval of the Minutes of the February 27, 2009 Audit Committee Meeting –

Creighton

Motion carried by the following vote:

In Favor: Creighton, Hara (2)

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Apr 14 SCM Audit Min

Internal Audit Report of Bell Harbor International Conference Center

Presentation documents: Computer slide presentation from Joyce Kirangi and report titled,

“Internal Audit Report – Bell Harbor International Conference Center (BHICC) Management

Services Agreement No.488”

Presenters: Ms. Kirangi and Margaret Songtantaruk, Internal Auditor

Ms. Kirangi noted that there was only one area of concern within this particular audit, which

was from a management point of view, and the need to be more connected to the

management of the agreement, as well as the need to further monitor the day-to-day

operations of the contractor who monitors activities at Bell Harbor.

Regarding the inadequate monitoring system of BHICC, staff addressed the following, more

Staff clarified to the Committee that other similar contracts to the one being discussed are

with the World Trade Center Seattle, which CHI also manages, and also a contract with

Wright-Runstad.

It was noted that although there are areas of concern with CHI, CHI is doing what they are

allowed to under the current contract. It was suggested that the contract be looked at

regarding possible double incentives being provided, when perhaps there should be one

incentive.

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Operational Risk Assessment & Mitigation of Accounting and Financial Reporting

Presentation document: Computer slide presentation titled, “Risk Assessment & Mitigation –

Accounting & Financial Reporting (AFR) Department”

Presenters: Rudy Caluza, Director, Accounting & Financial Reporting and Diane Jensen,

Senior Manager, Accounting & Financial Reporting, Business Technology

public funds and assets.

Mr. Caluza noted that the approach to the assessment was more of a practical approach than a

structured approach, and commented that it may be a model which could be used by other

Port departments in the future.

Five key areas of focus of the risk assessment were noted by Mr. Caluza, which included:

Ms. Jensen reported on the broad scope taken during the assessment, which included all

members of the department, covering all of the department’s key operations.

Key action areas noted by Ms. Jensen were:

Responding to a question from Mr. Miller, Mr. Caluza stated that as a result of the

assessment, no new objectives were really identified; however, the result was to be more

serious about and strengthen current objectives.

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Apr 14 SCM Audit Min

Although no timeline was stated, Commissioner Hara suggested that staff may want to come

back to the Committee to report on the payoffs of the risk assessment which was conducted.

Mr. Miller expressed appreciation for the report on the AFR risk assessment, noting that

hopefully it could set the tone to provide some sort of template for other departments within

the Port.

ADJOURNMENT

There being no further business, the meeting was adjourned at 10:44 a.m.