Commission Meeting Portal

Audit Meeting on Jun 02, 2009 1:00PM

Minutes for the Port Of Seattle Commission meeting, held on Jun 02, 2009 1:00PM

                        Commissioners                                               Tay Yoshitani 
                                                                                              Chief Executive Officer 
                      Bill Bryant 
                      Chair and President 
                   John Creighton                           P.O. Box 1209 
                     Patricia Davis                           Seattle, Washington 98111 
                   Lloyd Hara                             www. portseattle.org 
                   Gael Tarleton                              206.728.3000 

             An audio of the meeting proceedings and meeting materials are available on the Port of
                                        Seattle web site - 
                http://www.portseattle.org/about/organization/commission/commission.shtml 
                     APPROVED MINUTES 
               AUDIT COMMITTEE SECIAL MEETING JUNE 2, 2009 
            The Port of Seattle Commission Audit Committee met in a special meeting at 9:30 a.m.,
            Tuesday, June 2, 2009 in the Commission Chambers at Pier 69, 2711 Alaskan Way,
            Seattle, WA. Committee members Creighton, Hara and Miller were present, as well as
            Deputy CEO Linda Strout and Joyce Kirangi, Port Internal Audit Manager.
            Commissioner Gael Tarleton was also in attendance. 
        CALL TO ORDER 
            The committee special meeting was called to order at 9:37 a.m. by Commissioner Lloyd
            Hara. 
           Approval of Minutes 
            Motion for approval of the Minutes of April 14, 2009 and May 5, 2009  Creighton 
            Motion carried by the following vote: 
            In Favor: Creighton, Hara (2) 
            Mr. Miller participates as a non-voting member of the Committee. 
           Internal Audit Report of Louis Dreyfus Grain Terminal Lease 
            Presentation documents: Computer slide presentation from Joyce Kirangi and report
            titled, "Internal Audit Report  Louis Dreyfus, Corporation Lease Agreement No. 228" 
             Presenters: Ms. Kirangi and Jack Hutchinson, Senior Internal Auditor 


                June 2 SCM Audit Min

        PORT COMMISSION MINUTES OF THE AUDIT COMMITTEE MEETING 
          TUESDAY, JUNE 2, 2009                               P. 2 
            Ms. Kirangi opened by saying that the Internal Audit Department would be presenting
             three audit reports to be closed today, and that all would be very brief as there were few
             issues to be discussed. 
            Regarding the Louis Dreyfus Lease Audit, staff noted that the audit covered the period of
            2006-2008 and pointed out that risk was not very high. The objective of this audit was to
            determine whether 1) Louis Dreyfus is properly reporting in accordance with the lease
            agreement, and 2) Port management has adequately monitored the agreement. 
            Staff stated that recommendations for the Louis Dreyfus lease to include: (1) An audit
             clause to adequately protect Port interest, and (2) A payment term to establish and
            maximize cash flow. 
            Responding to Commissioner Hara's question about the recommendations being included
             immediately rather than at the current end of the lease, Mr. Hutchinson stated that the
            intent was to incorporate the recommendations into the lease when it is renewed in
           November. 
            Commissioner Hara commented on the importance of including terms within the lease as
            to when any payments are expected to be received (30 days, 15th of the month, etc.) 
            Ms. Kirangi responded to comments from Mr. Miller about using information from the
            USDA (United States Department of Agriculture) and whether there were any
             discrepancies found in the shipping and delivery weights at the site noted by Louis
            Dreyfus. Ms.Kirangi stated that she could provide more in-depth information to the
           Committee. 
           Internal Audit Report of World Trade Center Seattle Mgmt. Services Agreement 
            Presentation documents: Computer slide presentation from Joyce Kirangi and report
            titled, "Internal Audit Report - World Trade Center Seattle, Management Services
           Agreement No. 677" 
             Presenter: Ms. Kirangi 
            Coverage period of the audit was noted as 2005 2007 for the World Trade Center
           (WTC) Seattle management services agreement, which is managed by Columbia
             Hospitality. Staff stated that the main focus of the audit was related to accurate revenue
             reporting. Staff noted that the only issue of focus was related to the budget, and that they
            could not find enough documentable information to show the Port had been notified of
            budget variances.
           Internal Audit Report of Seaport Security Department 
            Presentation documents: Computer slide presentation from Joyce Kirangi and report
            titled, "Internal Audit Report  Seaport Security Department" 

                June 2 SCM Audit Min

        PORT COMMISSION MINUTES OF THE AUDIT COMMITTEE MEETING 
          TUESDAY, JUNE 2, 2009                               P. 3 

            Presenter: Ms. Kirangi and Mr. Hutchinson 
             Staff stated that this was a departmental audit for the period of January 2006 through
            December 2008, and noted that it was a clean audit, with adequate and effective controls
             to monitor its projects and assets. 
            Mr. Miller commented on the importance of the audit committee to have clear
             understanding of the audit coverage and internal control coverage of port security grants,
             and not assume it is included in the single audit. Discussion followed about the need to
            avoid duplicating efforts in staff audits and audits performed by Moss Adams. 
            Staff spoke at a high level committee what port security grants cover, including cameras
            and badging costs for employees. It was also noted that much of what is covered by the
             grants is dictated by the US Coast Guard. 
          Upcoming Items 
            Staff commented that at the July Audit Committee meeting, there would be a presentation
            from the Real Estate Division regarding the World Trade Center. 
            Comments were also made regarding the upcoming audit by the State Auditor's Office
            (SAO), which would begin soon. 
             It was noted that this may be a good time to check in with the Internal Auditor's Office to
            follow up on their upcoming work plan. 
        10. ADJOURNMENT 
            There being no further business, the meeting was adjourned at 10:40 a.m. 
             (A digital recording of the meeting is available on the Port's website.) 

           Lloyd Hara 
           Commissioner 





                June 2 SCM Audit Min