Internal Audit Briefing
Presented to the Port of Seattle
Audit Committee and Tay Yoshitani, CEO
Joyce Kirangi, CPA, Internal Audit Manager
April 14, 2009
Agenda
Audit Report
3
rd
Party Management Services Agreement
• Bell Harbor International Conference
Center (BHICC)
Audit Objectives
The purpose of our audit was to determine
whether:
• 1) Columbia Hospitality, Inc. complied with
the provisions of the management services
agreement, as well as other applicable laws
and regulations.
• 2) Port management effectively monitored
the agreement with Columbia Hospitality Inc.
Conclusion
• Columbia Hospitality Inc. materially complied
with the terms of the agreement; however, we
determined that the current Port monitoring
system is not effective in managing the risks
associated with the BHICC management
services agreement.
• Our report has identified opportunities to
improve the effectiveness of the management
monitoring system.
Specifics
Bell Harbor International Conference Center (BHICC)
Inadequate Management Monitoring System
• Lack of an Established Level of Monitoring Related to
the Third-party Employee Compensation Costs Paid
by the Port
• Unsubstantiated Methodology or Support for Cost
Allocation
• Improper Advance of Public Funds for Private
Activities
• Improper Classification of Expenses
• Ineffective Monitoring of Sales Activity to CHI and its
Affiliates
