11b Memo Audits Completed in 2020
COMMISSION AGENDA MEMORANDUM Item No. 11b BRIEFING ITEM Date of Meeting December 8, 2020 DATE: December 1, 2020 TO: Stephen P. Metruck, Executive Director FROM: Glenn Fernandes, Director, Internal Audit SUBJECT: Internal Audit Audits Completed in 2020 EXECUTIVE SUMMARY The purpose of this memo is to brief the Commission and the public on audits performed in the 2020 calendar year. The 2020 Audit Plan was approved at the December 9, 2019 Audit Committee Meeting. Internal Audit has completed 20 reports for the Audit Committee in 2020. These include 17 audits and 1 analysis; a dditionally, we submitted summary reports on the results of, the 2020 Payment Card Industry required annual self-assessment performed by MegaPlanIT, L.L.C., and the Criminal Justice Information Systems Audit performed by the Washington State Patrol. The audits identified 3 High Risk, 21 Medium Risk and 4 Low 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. This process also relies on attestations from Management. 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 Internal 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 2020, Commissioner Calkins chaired the Audit Committee and Commissioner Bowman served as the other commission member. Dr. Christina Gehrke, Principal Faculty, City University of Seattle, 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 Template revised April 12, 2018. COMMISSION AGENDA Briefing Item No. 11b Page 2 of 3 Meeting Date: December 8, 2020 contribute to: financial stewardship, accountability, transparency, governance, and operational excellence. Internal Audit derives its authority from the Port Commission. The Three Lines Model, a widely accepted model developed and recently updated by the Institute of Internal Auditors (IIA) for organizing governance and risk management in organizations, clearly outlines the roles of various leaders within an organization, including oversight by the governing body, management and operational leaders (First and Second-Line roles) and independent assurance through Internal Audit (Third Line). LISTING OF 2020 INTERNAL AUDITS COMPLETED Below is a list of audits completed by Internal Audit in 2020. These audits are categorized by audit type. Operational: 1) Equipment Acquisition, Monitoring & Disposal 2) Ground Transportation Taxi Cabs1 3) Cash Controls1 4) Interlocal Agreement Mapping2 5) Delegation of Authority 6) Public Health Emergency Leave Program (PHEL)1 Operational (Capital): 7) Service Tunnel Renewal/Replace Project 8) Central Terminal Infrastructure Upgrade (Bid and Design Phases) 9) AOA Perimeter Fence Line Standards Project Information Technology: 10) Network Password Management3 11) Secure Configuration for Hardware and Software on Mobile Devices, Laptops, Workstations and Servers3 12) Inventory & Control of Software Assets3 13) Malware Defenses (ICT)3 14) Payment Card Industry (PCI) Qualified Security Assessor 4 15) Criminal Justice Information Systems (CJIS)3 5 Template revised September 22, 2016. COMMISSION AGENDA Briefing Item No. 11b Page 3 of 3 Meeting Date: December 8, 2020 Limited Contract Compliance: 16) Concourse Concessions, LLC 17) McDonald's USA, LLC 18) Fireworks Galleries, LLC 19) Qdoba Restaurant Corporation 20) E-Z Rent A Car, Incorporated Special Projects by Management Request: 21) FEMA Public Assistance Program Coronavirus (COVID-19) 22) Capital Assets Construction Work in Progress 1 Highlighted audits have findings that are discussed in more detail to the Commission. 2 This was a focused analysis, not an audit, accordingly, Internal Audit issued a memo. 3 Security Sensitive Exempt from public disclosure per RCW 42.56.420; these will not be discussed. 4 This work was performed by an external Qualified Security Assessor. Internal Audit provided a summary report to the Audit Committee. 5 This work was performed by the Washington State Patrol. Internal Audit provided a summary report to the Audit Committee. ATTACHMENTS TO THIS BRIEFING (1) Presentation slides PREVIOUS COMMISSION ACTIONS OR BRIEFINGS None. Template revised September 22, 2016.
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