ITEM NO.  7a_Supp 
DATE OF 
MEETING  5/24/2011 

Audit Recommendations 
Port Action Status Report 

Briefing to Port Commission 
May 24, 2011

Apr. 2009 SAO started preliminary data gathering 
Oct. 2009 SAO presented preliminary observations 
Jul. 2010   SAO presented prelim draft audit report 
Sep. 2010  SAO presented final Draft Audit Report 
Dec. 2010 SAO issued Final Audit Report 
10 Recommendations 

2

Century Agenda 
Complete the Century Agenda as soon as possible 
Action Status 
Century Agenda process described to auditors 
Century Agenda Committee established on January 4, 2011 
Monthly panel discussions held on strategic topics March  
September 2011 
Commission reviews and approves preliminary goals monthly 
Staff sets 5-year milestones 
Final approval of goals/milestones to be complete by 
December 2011 
Final product to be provided to SAO by December 2011 
3

Clear Real Estate Management 
Clarify Seaport and Real Estate division responsibilities 
Action Status 
Completed
Seaport and Real Estate divisions reviewed all properties, 
ensured assigned to appropriate division 


4

Commission Oversight 
Resolution No. 3605 delegated authority; strategic 
management plan 
Action Status 
Construction management & real estate management, 
two different functions 
Sections 2 & 3 of Res. No. 3605 address real estate 
Revisions to Res. No. 3605 to be presented in September 2011 
Updated resolution to be provided to SAO 
Seaport and Real Estate divisions reviewed all properties, 
ensured assigned to appropriate division 
5

Acquisitions & Sales 
Policy adoption and enforcement 
Action Status 
Current real estate policies RE1  RE6 
Commission briefed on management of real estate 
portfolio March 1, 2011 
Century Agenda panel in September 2011 includes 
real estate policy issues 
Section 3 of Res. No. 3605 addresses acquisitions 
and sales 
Resolution No. 3605 to be reviewed in Fall 2011 
Updated resolution to be provided to SAO 
6

Real Estate Strategy 
Establish strategy for each real estate asset 
Document transaction negotiations
Action Status 
Strategy for real estate assets are reviewed and refined 
annually as part of the Port's budget process 
Assignment of property reviewed  per 
Recommendation 2 
Procedures developed - per Recommendation 6 

7

Rates & Financial Analysis 
Establish policies and procedures to ensure market 
rates and acceptable rate of return 
Action Status 
Completed 
Updated real estate procedures prepared 
Port already uses industry/widely accepted financial 
analysis method 

8

Leased Cranes 
Verify reported crane use, inspect cranes, review 
maintenance records 
Action Status 
Completed 
Established procedure to review & compare use data 
Established procedures to enhance crane inspections 
already being performed and review maintenance 
records 
9

Fishermen's Terminal 
Segregation of duties, supervisory oversight, 
system access control 
Action Status 
Completed 
Key control duties segregated 
Supervisory review strengthened 
System access restrictions enhanced 

10

Port Jobs 
Authority to contract, contributions to pre-apprenticeship 
program, clear scope of work, in-kind support 
Action Status 
Completed 
State legislation passed in 2010 clarified Port's ability 
to contract 
.20/per hour eliminated from new construction contracts 
2008 and 2010 Port Jobs contracts have been clear on 
scope of work & in-kind support 
11

Loss Reporting 
Protocols for reporting losses, level of engagement,
monitor compliance, standard loss reporting form 
Action Status 
Completed 
Internal audit, Legal, Risk management, ICT, Police 
and Workplace responsibility collaboration 
Reporting & documentation protocols strengthened, 
will be incorporated in revised Code of Conduct 
New standard loss reporting form implemented 
Workplace responsibility office to monitor compliance 
12

June 14, 2011
Commission will be asked to approve 
Port's Action Status Report to SAO 
July 1, 2011
Port's final Action Status Report 
transmitted to SAO 

13