Exit Recommendations
Port of Seattle
Audit Period Ending: 12/31/2018
Page 1 of 2
We are providing the following recommendations for management’s consideration. They are not
referenced in the audit report. We may review the status of the following verbal and exit items in
our next audit.
Exit: Policy for Professional Services Procurement – Architectural and Engineering (A&E)
The Port's Policy for Consulting Services section 7.3 on publication and solicitation says:
Policy 7.3.1. For procurements with contract value(s) less than $50,000, the Port is not
obligated to publish or issue a solicitation
Policy 7.3.2. For procurement with contract value(s) less than $200,000, the solicitation
may be in the form of a letter or email directed to specific firms.
RCW 39.80.030 states each agency shall publish in advance that agency's requirement for
professional services. The announcement shall state concisely the general scope and nature of the
project or work for which the services are required and the address of a representative of the agency
who can provide further details. An agency may comply with this section by:
(1) Publishing an announcement on each occasion when professional services provided by a
consultant are required by the agency; or
(2) Announcing generally to the public its projected requirements for any category or type of
professional services.
We recommend the Port modify its policy regarding publication and solicitation for professional
services so advanced publication requirements are included for contracts less than $200,000.
Exit: Procurement for Professional Service (A&E) Contracts
We tested 17 architectural and engineering contracts and noted the Port did not follow competitive
negotiation (qualifications-based selection) requirements for one contract for $93,871.
We recommend the Port strengthen its internal controls over the procurement of professional
service contracts to ensure compliance with state law.
Exit: Electronic Fund Transfer (EFT) Disbursements
In our review of the Port's policies and procedures over EFT disbursements, we noted the following
opportunities for improvement:
The Port’s policy did not clearly reflect staff responsibilities over the creation of new
vendors and modification of current vendor bank account information in its database.
Exit Recommendations
Port of Seattle
Audit Period Ending: 12/31/2018
Page 2 of 2
The Port did not consistently document to evidence follow up procedures to confirm the
validity of request for changes to vendor bank account information.
In addition, our testing of 33 additions/modifications of vendor information noted the following
exception:
Three requests to change vendor bank account information did not include evidence of a
follow up by Port staff to confirm the validity of the request, such as contacting the
managing department or the vendor directly.
We recommend the Port strengthen its internal controls over EFT disbursements by:
1. Ensuring policies over EFT vendor setup and changes are clearly documented and
accurately reflect staff responsibilities.
2. Consistently document to evidence the Port’s follow up on requests to change vendor bank
account information.
Exit: Day Labor Used for Public Works
RCW 53.08.135 states Port districts shall determine if any construction forty thousand dollars can
be accomplished less expensively by contracting out. If contracting out is less expensive, the port
district may contract out such project.
The Port's process to demonstrate compliance with state law is to complete a Port Crew Analysis
for self-performed work exceeding $40,000. Our audit found the Marine Maintenance Department
did not consistently complete the Port Crew Analysis for self-performed work exceeding $40,000
as required by the Port's internal process.
We recommend the Port consistently complete a formal evaluation of self-performed work
exceeding $40,000 to demonstrate compliance with state law.
