90-day Follow-up to

BHICC Internal Audit

Real Estate Division

July 7, 2009

a. Monitoring of Compensation

Management Action-

Bonus compensation plan will be reviewed and

approved during budget process

b. Cost Allocation Methodology

Management Action-

Cost allocation will be reviewed and approved

during budget process

c. Improper Advance of Public Funds

Management Action-

By end of 2006, procedures in place to tighten

controls. Only invoices directly related to

facility will be paid

Management Action-

Ensure that accounting transactions in

accordance with Port policy

Management Action-

Expanded monthly reporting to include “related-

party” activity, if any occurred