Attachment Report 3 Commission Office for Audit Meeting held Feb 22, 2016 1:00PM at Pier 69

Report 3 Commission Office

INTERNAL AUDIT REPORT

COMMISSION OFFICE
Comprehensive Operational Audit

JANUARY 1, 2014 SEPTEMBER 30, 2015

ISSUE DATE: FEBRUARY 22, 2016
REPORT NO. 2016-03

COMMISSION OFFICE INTERNAL AUDIT
JANUARY 1, 2014 SEPTEMBER 30, 2015
EXECUTIVE SUMMARY

AUDIT OBJECTIVES AND SCOPE

The purpose of the audit was to determine whether management controls over the following areas are
adequate to ensure:
1. Commissioners and staff are provided adequate training/information flow.
2. Commissioners' per diem and salaries are in compliance with legal requirements and properly
supported.
3. Transparency.
4. Commissioners' expenses are valid and related to Port business and comply with Port
guidelines.
We reviewed information for the period January 1, 2014 September 30, 2015. Details of our audit's
scope and methodology are on page 2.
BACKGROUND

The Commission Office is a department within the Port of Seattle. This audit was focused on the
departmental activities, not on the Commissioners themselves. The current structure of the
Commission Office includes a Chief of Staff, who reports directly to the Commissioners, and six fulltime
staff members, who report to the Chief of Staff. The Commission Office provides broad support
to the five elected Commissioners, including, but not limited to:
1. Policy research and analysis.
2. Scheduling Commissioners' meetings and activities within the Port and the community.
3. Scheduling travel and processing expenses.
4. Noticing public meetings of the Commission, preparing agendas and briefing materials, and
posting video-taped meetings and approved minutes to the internet.
5. Publishing Commissioner expenses on the Port's internet.
6. Processing Commissioners' per diems and salaries.
7. Liaising with other Port departments.
8. Training new Commissioners.
O
AUDIT RESULT
Management controls over the following are materially adequate:
1. Commissioners and staff are provided materially adequate training/information flow.
2. Commissioners' per diem and salaries are in compliance with legal requirements and properly
supported.
3. Transparency.
4. Commissioners' expenses are valid and related to Port business and comply with Port
guidelines.
i

COMMISSION OFFICE INTERNAL AUDIT
JANUARY 1, 2014 SEPTEMBER 30, 2015

TABLE OF CONTENTS

EXECUTIVE SUMMARY ................................................................................................................................................. i
TRANSMITTAL LETTER ................................................................................................................................................ 1
BACKGROUND ............................................................................................................................................................. 2
FINANCIAL HIGHLIGHTS ............................................................................................................................................. 2
HIGHLIGHTS AND ACCOMPLISHMENTS.................................................................................................................... 2
AUDIT SCOPE AND METHODOLOGY .......................................................................................................................... 3
CONCLUSION ............................................................................................................................................................... 3

COMMISSION OFFICE
INTERNAL AUDIT
JANUARY 1, 2014 SEPTEMBER 30, 2015

TRANSMITTAL LETTER

Audit Committee
Port of Seattle
Seattle, Washington
We have completed an audit of the management controls over Commission Office activity. We
reviewed information relating to the Commission Office from January 1, 2014 September 30, 2015.
We conducted this performance audit in accordance with Generally Accepted Government Auditing
Standards and the International Standards for the Professional Practice of Internal Auditing. Those
standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to
provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe
that the evidence obtained provides a reasonable basis for our findings and conclusions based on our
audit objectives.
We extend our appreciation to management and staff of the Commission Office and to the
Commissioners for their assistance and cooperation during the audit.

Joyce Kirangi, CPA, CGMA
Internal Audit, Director

AUDIT TEAM RESPONSIBLE MANAGEMENT TEAM
Ruth Riddle, Senior Auditor Mike Merritt, Chief of Staff
Commissioners Bowman and Gregoire, Co-Presidents

COMMISSION OFFICE
INTERNAL AUDIT
JANUARY 1, 2014 SEPTEMBER 30, 2015

BACKGROUND

The Commission Office is a department within the Port of Seattle. This audit was focused on the
departmental activities, not on the Commissioners themselves. The current structure of the
Commission Office includes a Chief of Staff, who reports directly to the Commissioners, and six fulltime
staff members, who report to the Chief of Staff. The six full-time staff positions include the
following:
Policy Analyst (2)
Executive Assistant (2)
Commission Clerk
Assistant Commission Clerk
The Commission Office provides broad support to the Commissioners, including, but not limited to:
1. Policy research and analysis.
2. Scheduling Commissioners' meetings and activities within the Port and the community.
3. Scheduling travel and processing expenses.
4. Noticing public meetings of the Commission, preparing agendas and briefing materials, and
posting video-taped meetings and approved minutes to the internet.
5. Publishing Commissioner expenses on the Port's internet.
6. Processing Commissioners' per diems and salaries.
7. Liaising with other Port departments.
8. Training new Commissioners.
FINANCIAL HIGHLIGHTS

COMMISSION OFFICE EXPENSES
YEAR AMOUNT
2014 $1,343,968
2015 (thru 9-30-15) $960,962
Data Source: PeopleSoft Financials

HIGHLIGHTS AND ACCOMPLISHMENTS

Management updated the Commissioners' Handbook in preparation for providing training to the
new Commissioner in 2016.
Processes have been improved to ensure:
o Timely and accurate posting of Commissioners' expenses and per diems to the internet.
o Constituent correspondence is tracked and responses provided timely.

COMMISSION OFFICE
INTERNAL AUDIT
JANUARY 1, 2014 SEPTEMBER 30, 2015

AUDIT SCOPE AND METHODOLOGY

We reviewed information for the period January 1, 2014 September 30, 2015. We utilized a riskbased
approach from planning to testing. We gathered information through research, interviews,
observations, and analytical review, in order to obtain a complete understanding of management
controls over Commission Office activity. We evaluated risk and tested the mitigating controls, to
determine whether they were operating as intended.
The key management controls we tested and the detailed tests we performed are as follows:
1. Commissioners and staff are provided adequate training/information flow:
a. Review new Commissioner orientation manual to determine whether it provides
adequate information.
b. Discuss training/communication of information with staff to determine whether
adequate.
2. Commissioners' per diem and salaries are in compliance with legal requirements and properly
supported.
a. Test 100% of per diem and salaries for all Commissioners.
b. Trace at least one month's per diem for each Commissioner to supporting calendared
schedule of events/activities.
3. Transparency
a. Trace a limited number of Commissioners' expenses posted to internet to actual
disbursements.
b. Trace 100% of per diems posted to internet to amounts disbursed.
c. Determine whether Commission meetings are open and public and commission actions
are available to the public.
4. Commissioners' expenses are valid and related to Port business and comply with Port
guidelines
a. Select a limited number of expenses for each Commissioner and conduct triple-purpose
testing to determine whether:
i. Properly approved (control).
ii. Properly supported by receipts (substantive) in Concur.
iii. Valid Port business (compliance).
CONCLUSION

Management controls over the following are materially adequate:
1. Commissioners and staff are provided materially adequate training and information flow.
2. Commissioners' per diem and salaries are in compliance with legal requirements and properly
supported.
3. Transparency.
4. Commissioners' expenses are valid and related to Port business and comply with Port
guidelines.

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