Office of the Washington State Auditor
Pat McCarthy
Insurance Building, P.O. Box 40021 Olympia, Washington 98504-0021 (360) 902-0370 Pat.McCarthy@sao.wa.gov
February 12, 2019
Port Commission
Port of Seattle
Seattle, Washington
Management Letter
This letter includes a summary of specific matters that we identified in planning and performing
our accountability audit of the Port of Seattle from January 1, 2017 through December 31, 2017.
We believe our recommendations will assist you in improving the Port’s internal controls in these
areas.
We will review the status of these matters during our next audit. We have already discussed our
comments with and made suggestions for improvements to the Port’s officials and personnel. If
you have any further questions, please contact me at (206) 615-0557.
This letter is intended for the information and use of management and the governing body and is
not suitable for any other purpose. However, this letter is a matter of public record and its
distribution is not limited.
We would also like to take this opportunity to extend our appreciation to your staff for the
cooperation and assistance given during the course of the audit.
Sincerely,
Joe Simmons, CPA, Audit Manager
Attachment
Management Letter
Port of Seattle
January 1, 2017 through December 31, 2017
Compensation increases for non-represented employees
The Human Resources department administers the job evaluation system and approves all job
evaluation outcomes, including positions within Human Resources.
Human Resources prepares an annual Salary and Benefits Resolution for Port Commission
approval. The Resolution includes Exhibit A, “Schedule of Authorized Non-Represented Jobs,”
which contains authorized pay grades, pay ranges and job titles for non-represented employees.
The Commission approved the Port’s 2018 Salary and Benefits Resolution on November 28, 2017,
and the 2017 resolution on November 22, 2016.
Human Resources performed job evaluations throughout the year that resulted in job titles
receiving pay grade increases and amended Exhibit A to reflect the changes.
The amended versions of Exhibit A were posted to the Port’s website, but the Commission did not
approve the amendments. These amendments resulted in compensation increases for 202 non-
represented employees totaling $503,849 in 2017 and $383,983 in 2018.
The following chart summarizes the changes to Exhibit A for 2017 and 2018:
Year
Resolution
number
Amendments
Job titles
reclassified
Employees
reclassified
Total pay increases
not approved
2017
3727
3
72
125
$503,849
2018*
3739
2
74
77
$383,983**
Total
5
146
202
$887,832
*As of October 31, 2018
. **Includes 15 positions in the Human Resources department, totaling $ 46,200
Without being provided sufficient information and full disclosure, the Commission cannot provide
proper oversight of management and the Port’s activities.
We recommend the Port ensure amendments to the Salary and Benefits Resolution are approved
by the Commission, which ensures management has performed the necessary due diligence as part
of its control environment.
