Internal Audit Department Charter

ORGANIZATION AND AUTHORITY
The Internal Audit Department (IAD) reports functionally to the Audit Committee of the Port
Commission and administratively to the Chief Executive Officer, to permit independent and unbiased
judgments essential to the proper conduct of audits.
The authority of the Internal Audit Department is derived from the Audit Committee Charter.
MISSION AND SCOPE OF WORK 
The Port's Internal Audit Department conducts operational/performance and compliance audits, in
accordance with Generally Accepted Government Auditing Standards, promulgated by the
Comptroller General of the United States. Government auditing is essential in providing accountability 
to legislators, oversight bodies, those charged with governance and the public. Audits provide an
independent objective, nonpartisan assessment of the stewardship, performance or cost of
government policies, programs or operations.
The mission of the IAD is to provide an independent, objective, nonpartisan assessment of the
stewardship, performance or cost of government policies, programs or operations, along with
nonaudit services, designed to add value and improve the Port's operations/performance. The IAD
provides insight that helps the Port accomplish its objectives by bringing a systematic, disciplined
approach to evaluate and improve the effectiveness of risk management, control and governance
processes.
The scope of work of the IAD is to determine whether the Port's network of risk management, control,
accountability and governance processes, as designed and represented by management, is adequate
and functioning in a manner to ensure:
Risks are appropriately identified and managed
Interaction with the various governance groups occurs as needed
Significant financial, managerial and operating information is accurate, reliable and timely
Organizational performance expectations are achieved
Employees' actions are in compliance with policies, standards, procedures and applicable
laws and regulations
Resources are acquired economically, used efficiently and adequately protected
Programs, plans and objectives are achieved
Quality and continuous improvement are fostered in the Port's control process
Significant legislative or regulatory issues impacting the organization are recognized timely
and addressed properly
INDEPENDENCE 
To provide for the independence of the Internal Audit Department, its staff reports to the Internal Audit
Director. The Director reports administratively to the Chief Executive Officer and functionally to the 

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Internal Audit Department Charter
Audit Committee. To further ensure independence, the Director and staff of the Internal Audit
Department are not authorized to:
Perform any operational duties for the Port
Initiate or approve accounting transactions external to the Internal Audit Department
Direct the activities of any Port employee not employed by the Internal Audit Department,
except to the extent such employees have been appropriately assigned to auditing teams or to
otherwise assist the internal auditors
ACCOUNTABILITY/ RESPONSIBILITY 
The Internal Audit Director must:
Report significant issues related to the processes for controlling the activities of the Port and
its tenants, customers and vendors, including potential improvements to those processes, and
provide information concerning such issues through resolution
Provide information periodically on the status and results of the annual audit plan and the
sufficiency of department resources
Coordinate and interact with other control and monitoring functions (e.g., risk management,
compliance, security, legal, ethics, environmental, external audit)
The Director and staff of the Internal Audit Department have responsibility to:
Develop a flexible annual audit plan using appropriate risk-based methodology, including any
risks or control concerns identified by management, and submit that plan to the Audit
Committee and to the CEO for review and approval
Execute the annual audit plan, as approved by the Audit Committee and the CEO
Maintain a professional audit staff with sufficient knowledge, skills, experience and
professional certifications to meet the requirements of this Charter
Establish a quality control and assurance program by which the Director monitors the
operation of internal auditing activities
Obtain an external peer review at least once every three years
Perform nonaudit services, beyond internal auditing's independent, objective, nonpartisan
assessments, in order to add value and to assist Port management in meeting its objectives:
o Facilitate process improvements
o Assist with process design
o Provide training
o Evaluate and assess significant functions and new or changing services, processes,
operations and control processes coincident with their development, implementation
and/or expansion
Issue periodic reports to the Audit Committee and management summarizing results of audit
activities
Inform the Audit Committee of emerging trends and best practices in internal auditing
Provide a list of significant measurement goals and results of the IAD to the Audit Committee
(e.g., the status of the work plan accomplished and budget hours used)
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Assist in the investigation of suspected fraudulent activities within the organization and notify
management of the results
Consider the scope of work of the external auditors and regulators, as appropriate, for the
purpose of providing optimal audit coverage to the organization at a reasonable overall cost
ACCESS TO RECORDS AND STAFF 
The Director and staff of the Internal Audit Department are authorized to:
Have unrestricted access to all functions, records, property, staff and to the Audit Committee
Allocate resources, set frequencies, select subjects, determine scope of work and apply the
appropriate methodologies to accomplish audit objectives
Obtain the necessary assistance of personnel in business units of the Port where they perform
audits, as well as other specialized services from within or outside the Port 
STANDARDS OF AUDIT PRACTICE 
The Internal Audit Department must follow the audit guidance in the Government Auditing Standards
(Yellow Book) of the Government Accountability Office. The Internal Audit Department will adopt best
practices, some of which will be from the International Standards for the Professional Practice of
Internal Auditing (Red Book) of The Institute of Internal Auditors.

____________________________________ __________________________________
Director, Internal Audit                   Date

____________________________________ __________________________________
Chief Executive Officer                 Date

____________________________________ __________________________________
Audit Committee Chair                Date




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