Internal Audit Briefing
Presented to the Port of Seattle
Audit Committee and Tay Yoshitani, CEO
Joyce Kirangi, CPA, Internal Audit Manager
Jack Hutchinson, CPA, CIA, CISA, Audit Supervisor
July 7, 2009
Agenda
Audit Reports
– Lease and Concession
• Mad Anthony’s
– Pier 66
– Fishermen’s Terminal
– Department Audit
• Office of Social Responsibility
Internal Audit Mid-Year Report
– 2009 Audit Work Status
Mad Anthony’s
• Audit Finding
– Suggested Financial Recovery
• Bell Street Pier - - $2,703
• Fishermen’s Terminal - - $ 1,403
• Management Response
– “Management will diligently pursue recovery of
underreported concession fees.”
Office of Social Responsibility
• Audit Finding
– Noncompliance with Port policies and procedures
• Recommendation
– We recommend that management strengthen
their controls, related to disbursements, to ensure
that the entire department has the knowledge
base necessary to comply with Port policies,
procedures, and guidelines. Each disbursement
should contain adequate documentation to clearly
identify its benefit to the Port.
Office of Social Responsibility
• Management Response
“The Office of Social Responsibility (OSR) completely
concurs with the findings and recommendations. For
background, this is a new department established in
January, 2008, with a Director hired who was new to the
Port. The new Director did not have the proper training
and orientation to the numerous policies and procedures
cited above, and the OSR Manager also lacked proper
knowledge of some of the procedures. The first
administrative staff for OSR was hired in September,
2008. A year of change also included a new Central
Procurement Office (CPO) with new procedures. All in
all, this contributed to some of the inconsistency in
adhering to and knowledge of these Port policies and
procedures…”
Continue…
Mid-Year Audit Status
• 2009 Audit Status
**Certain audits charged in 2009 were 2008 audits for closing procedures.
Open Closed Total
Systems Review 1 1 2
Department 6 2 8
Lease and Concession/3
rd
Party Mgmt. 12 10 22
Special Request 2 3 5
Total Number of Audits Charged** 21 16 37
