February 27, 2009 Audit Committee Presentation 
Sharon Briggs, General Manager 
Recreational Boating 

Follow-up on outstanding issues from 11/08 Audit Committee Presentation 

Findings & Recommendations 
1)    Shilshole Bay Marina  Segregation of Duties  Guest Moorage 

Recommendation: Employees responsible for entering customer data and
calculating customer balances should be prohibited from having access to
customer payments. 
Action Taken: 
Revisions made to the guest moorage process to specifically separate boat
check from cash handling duties. One additional boat check added each day 
(total 3 per day) to tighten registration, payment and collection process.
Process changes reviewed with Internal Audit on February 10th.
2)    Shilshole Bay Marina  Computer System Weakness 
Issue resolved with the installation of the new Marina Management System 
(MMS) in June 2008. 
3)    Shilshole Bay Marina  Guest Moorage Revenue Accountability 
Recommendation: Formalize procedures for collecting guest moorage payments
and the collection efforts should be fully documented and maintained. 
Action Taken 
Procedures documented and provided to all staff. Process revisions include the
addition of a daily boat check. Payment receipts are now required to be
displayed in the window of the vessel to help identify who has paid and who has
not. Payment "reminders" are placed on vessels that have not paid. Vessels are
impounded if no payment within 24 hours.

Recommendation: Balance adjustments should be completely documented,
including the reason for the adjustment; the collection efforts exhausted prior to
adjusting and the names of the individuals approving the adjustments. 
Action Taken 
Because guest moorage is not billed through the Port's accounting system, debit
or credit balances are not tracked through Accounting. This is currently under 
discussion with Accounting regarding collection (or refund) of outstanding
balances. Procedures will include regular reviews to determine if write-off should
occur to Bad Debt. Credits or any other kind of adjustments to an account will be
reviewed/approved by Management and documented. 
Recommendation: Front desk clerks should be prohibited from overriding
amounts calculated by the system. Any overrides should require management
approval and should be well documented. 
Action Taken 
Included in the new procedures is the provision that any kind of adjustment to an
account (i.e. input error; change to a reservation) must be reviewed with and
approved by Management. Changes documented in MMS. 
Recommendation: Procedures should be implemented to collect leasehold tax
from guest moorage customers in the marina for more than 30 days. 
Action Taken 
This is under discussion with ICT and Accounting. Modifications will need to be
made to MMS to flag stays that are over 20 days. Language regarding leasehold
tax being applied to visits of 30 days or more needs to be included on guest
moorage envelopes. Need to determine how to retroactively charge the
leasehold tax within MMS and how to account for a change in PeopleSoft. 
4. Bell Harbor Marina  Segregation of Duties and Accountability of Funds 
Recommendation: Employee should not share a cash drawer to receipt funds.
This makes is impossible to establish responsibility for any shortages or losses
incurred. 
Action Taken 
Each person has their own cash drawer and accountable to balance each day's
transactions. 
TMR was replaced by MMS which resulted in the implementation of new
procedures that included the establishment of separate logon ID for each
employee and reconciliation of cash receipts on a daily basis.

5. Bell Harbor Marina  Computer System Weakness/Discounts 
Action Taken 
TMR was replaced by MMS and new procedures were implemented that meet
the recommendations of the Audit Report. In addition, any discount/coupons
issued are now tracked manually and reviewed by management. 
A request has been issued to ICT to modify MMS to automatically track coupon
discounts received for guest moorage. 
Management Report 
Action Taken 
Updates to the tariff were completed by the end of 4th Quarter 2008.