DATE: December 2, 2019
TO: Stephen P. Metruck, Executive Director
FROM: Glenn Fernandes, Director, Internal Audit
SUBJECT: Internal Audit – Audits Completed in 2019
EXECUTIVE SUMMARY
The purpose of this memo is to brief the Commission and the public on audits performed in the
2019 calendar year. The 2019 Audit Plan was approved at the December 7, 2018 Audit
Committee Meeting.
Internal Audit has completed 18 audits and partnered with Information Security to report on
the results of the 2019 Payment Card Industry required annual self-assessment, per the 2019
Audit Plan. The audits identified 13 High Risk and 29 Medium Risk issues for management
action. Implementation of the associated recommendations will strengthen internal controls,
enhance processes, and improve efficiencies. Internal Audit has a process in place where we
periodically follow up on recommendations and agreed upon management action plans to
assure action is taken. Delinquent action plans are periodically brought to the Audit
Committee’s attention.
BACKGROUND
On December 11, 2007, the Port of Seattle Commission passed a motion, which resulted in the
creation of an independent and objective audit function. In discharging their duty, the Internal
Audit Director and his staff are accountable to the Audit Committee and to the Executive
Director.
For 2019, the Audit Committee was chaired by Commissioner Steinbrueck and Commissioner
Calkins served as the secretary. Christina Gehrke, Senior Vice President and Chief Audit
Executive at Sound Community Bank, served as the external member of the Audit Committee.
The Audit Committee serves as an arm of the Port Commission.
Internal Audit conducts independent, objective, risk-based audits of the Port’s operations,
activities and vendors. Our audits add value by helping the Port achieve its mission and result
in: financial stewardship, accountability, transparency, governance, and operational excellence.
Internal Audit derives its authority from the Port Commission.