INTERNAL AUDIT REPORT 

Survey and Mapping Department 
Comprehensive Operational Audit 

January 1, 2013  December 31, 2014 

ISSUE DATE: MAY 07, 2015 
REPORT NO. 2015-07

Survey and Mapping Department                                       INTERNAL AUDIT 
January 1, 2013  December 31, 2014 

TABLE OF CONTENTS 


TRANSMITTAL LETTER.................................................................................................................................................. 3 
EXECUTIVE SUMMARY ................................................................................................................................................. 4 
BACKGROUND ............................................................................................................................................................... 5 
FINANCIAL HIGHLIGHTS .............................................................................................................................................. 5 
AUDIT SCOPE AND METHODOLOGY ............................................................................................................................ 5 
CONCLUSION ................................................................................................................................................................ 6 
SCHEDULE OF FINDINGS AND RECOMMENDATIONS ............................................................................................... 7 
1.   THE DEPARTMENT CONTROLS FOR OVERTIME AND TRAVEL EXPENSES ARE NOT ADEQUATE .............. 7 











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Survey and Mapping Department                                       INTERNAL AUDIT 
January 1, 2013  December 31, 2014 

TRANSMITTAL LETTER 

Audit Committee 
Port of Seattle 
Seattle, Washington 

We have completed an audit of the Survey and Mapping Department. We reviewed information for the
period January 1, 2013  December 31, 2014. 
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 the management and staff of the Survey and Mapping Department for
their assistance and cooperation during the audit. 


Joyce Kirangi, CPA, CGMA 
Internal Audit, Director 

AUDIT TEAM                      RESPONSIBLE MANAGEMENT TEAM 
Margaret Songtantaruk, Senior Auditor      Tina Soike, Chief Engineer 
Jack Hutchinson, Manager             Garry Ensley, Survey & Mapping Manager 





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Survey and Mapping Department                                       INTERNAL AUDIT 
January 1, 2013  December 31, 2014 
EXECUTIVE SUMMARY 

AUDIT OBJECTIVES AND SCOPE 
The purpose of the audit was to determine whether management controls are adequate to ensure: 
Non-regular payroll (2nd/3rd shifts and overtime) compensation is proper. 
Travel expenses are appropriate in compliance with Port Policy AC-1 and AC-2. 
We reviewed information for the period January 1, 2013  December 31, 2014. Details of our audit's
scope and methodology are on page 5. 

BACKGROUND 

The Survey and Mapping Services Department is part of the Engineering Management Services group
within the Port of Seattle's Capital Development Division. The Department provides survey services
including construction layout, utility locates, lease line lay out, etc. to all Port divisions. 
The Survey and Mapping Services is a department of about 15 FTEs with an annual operating budget
(before capital charges and transfers) of approximately $1.9 million. Almost all (~94%) of the
Department expenses are in salaries, wages, and benefits. The Department has experienced a sharp
increase in overtime activity in recent years, as construction at the Aviation Division has expanded. 

AUDIT RESULT 
Management controls are not adequate to mitigate the risks related to non-regular hours and travel
expenses. See discussion in Finding 1 of the Schedule of Findings. 






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Survey and Mapping Department                                       INTERNAL AUDIT 
January 1, 2013  December 31, 2014 

BACKGROUND BACKGROUND 

The Survey and Mapping Services Department is part of the Engineering Management Services group
within the Port of Seattle's Capital Development Division. The Department provides survey services
including construction layout, utility locates, lease line lay out, etc. to all Port divisions. 
The Survey and Mapping Services is a department of about 15 FTEs with an annual operating budget 
(before capital charges and transfers) of approximately $1.9 million. Almost all  (~94%) of the
Department expenses are in salaries, wages, and benefits. The Department has experienced a sharp
increase in overtime activity in recent years as construction at the Aviation Division has expanded. It
was, therefore, important to assess whether the Department has established effective controls to
handle the increased overtime activity. 

FINANCIAL HIGHLIGHTS 
FINANCIAL HIGHLIGHTSFINANCIAL HIGHLIGHTS FINANCIAL HIGHLIGHTS 
The Department's actual expenses for the audit period are as follows: 
Department Expenses Before Capital Charges and Transfers 
Account Description               2013          2014 
Salaries, Wages, and Benefits                    $ 1,478,322     $ 1,701,963
Travel & Other Employee Expenses                   16,691        22,558
Other                                      3,705         (622) 
Intra-department Allocations                       68,673        64,408
TOTAL                               $ 1,567,391     $ 1,788,307 
Data Source: Data Source: PeopleSoft Financials 

AUDIT SCOPE AND METHODOLOGY 

We reviewed information for the period January 1, 2013  December 31, 2014. We utilized a risk-based
audit approach from planning to testing. We gathered information through document reviews, staff
interviews, observations, and data analyses, in order to obtain a complete understanding of the
Department operations. We assessed significant risks and identified controls to mitigate those risks. We
evaluated whether the controls were functioning as intended. 
We applied additional audit procedures to areas with the highest likelihood of significant negative
impact as follows: 
1)  To determine whether management controls are adequate to ensure that non-regular payroll (2nd/3rd 
shifts, and overtime) compensation is proper. 


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Survey and Mapping Department                                       INTERNAL AUDIT 
January 1, 2013  December 31, 2014 
We conducted a variety of analyses, including weekend and project overtime analyses, to
select a risk-based sample of 8 employees for 102 work days. 
For each item in the risk-based sample, we examined evidence for prior approval, verified the
accuracy of overtime calculations, and reviewed available documentation to support the
number of hours worked. 
We corroborated working hours with Port personnel outside of the Department to ensure
propriety of overtime hours. 
2)  To determine whether management controls are adequate to ensure that travel expenses are
appropriate and in compliance with the Port Policy AC-1 and AC-2. 
We tested a risk-based sample of 59 items for proper approval, allowability, and complete
documentation to support the expenses. 

CONCLUSION 
CONCLUSION 
Management controls are not adequate to mitigate the risks related to non-regular hours and travel
expenses. See discussion in Finding 1 of the Schedule of Findings. 












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Survey and Mapping Department                                       INTERNAL AUDIT 
January 1, 2013  December 31, 2014 
SCHEDULE OF FINDINGS AND RECOMMENDATIONS 
1. THE DEPARTMENT CONTROLS FOR OVERTIME AND TRAVEL EXPENSES ARE NOT
ADEQUATE 

a)   Overtime 
The Commission approved Salaries and Benefits Resolution defines overtime as hours worked
in excess of regularly scheduled 40 hours per week. The resolution requires overtime be preapproved
by supervisor or manager, and provides a disciplinary action to those working
overtime without pre-authorization.  The approval  is an acknowledgement  of  business
necessity from management, and as such the prior approval is important from accountability
perspectives. 
We tested a risk-based sample of 8 employees for 102 work days. We  determined there was
no documented evidence of overtime prior approval. Although staff and supervisors related 
informal conversations authorizing overtime, there was no formalized process to request and 
pre-approve overtime. Of the 102 days tested, we identified evidence of overtime hours
worked for only 14 days, and that evidence lacked certain details to completely support the
hours worked. In the absence of documented evidence to support overtime hours, we
conducted additional procedures to corroborate selected hours. No indicators of inappropriate
use of overtime came to our attention. 
A lack of management process to pre-approve overtime contributed to the observed
exceptions. The inadequate control, if continued, could lead to mis/abuse of overtime. 
b)   Travel Expenses 
Port Policy AC-2 provides a framework for acceptable travel and business expenses and
outlines how employees can obtain reimbursements. We tested a risk-based sample of 59 
employee travel expenses and found the Department controls were inadequate.  When
controls are inadequate, errors or inappropriate transactions (big or small) can go undetected. 
Testing Results: 
Travel Expense Test 
Test            Audit Results 
Amount   Allowed   Disallowed   Questionable 
Air Travel  baggage fee       $ 75       $ 75
Local Transportation         121       121
Lodging                2,163     1,158      $ 311       $ 694
Meals                1,116       703       180        233
TOTAL              $ 3,475     $ 2,057       $ 491       $ 927 
Data Source: PeopleSoft Financials 

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Survey and Mapping Department                                       INTERNAL AUDIT 
January 1, 2013  December 31, 2014 
The majority of the disallowed cost consists of lodging/meals for an additional night following
the end of a conference. The conference in question completed all its activities at 3 p.m., 
according to the conference agenda, and thus there was no Port business purpose for the
extra night. Also included in the disallowed are meals, the costs of which were already
included in the conference registration fee. 
The questionable costs are expenses with potentially qualifying circumstances; however,
these circumstances were not always clearly reflected in the existing documentation. Thus,
the following warrant further examination by management: 1) Extra night stays for which a
business purpose is not clearly documented, 2) Between-meal sundry purchases, and 3)
Purchases before the travel status. 
Unfamiliarity with the Policy contributed to the observed exceptions and, if not corrected, 
could result in improper expenses. 
Recommendations: 
We recommend management: 
1.   Design and implement a system of controls to ensure pre-approval of overtime. 
2.   Train staff in AC-2 on travel expenses. 
3.   Recover the disallowed travel expense, if appropriate. 
Management Response: 
Department Response to Pre-Approval of Overtime. 
Survey and Mapping Services does concur with the findings that the pre-approval process of
overtime was lacking in a written format. In response to the audit findings Survey and Mapping
Services has implemented a more thorough written process to preapprove overtime. Survey and
Mapping Services is working with the overall engineering department to setup an Overtime
Guidelines procedure that will be followed.  This will consist of an email, text or written
document that will be sent to the manager or designee with justification for the work needed,
data and duration of the overtime and what project the employee will be working on. This will be
approved by their Manager or designee prior to the overtime being performed. If the manager is
unavailable the overtime will be approved within one business day. At the end of each pay period
the manager or designee will reconcile the overtime with the HCM Payable time report for further
verification.  Engineering has also created a SharePoint folder to keep all of the overtime
documentation and will be checked periodically. The Engineering Overtime Guidelines may change
as we move forward with the implementation.
Department Response to Travel Expenses. 
Survey and Mapping Services agrees with the Auditors findings. Survey and Mapping Services has
tasked each employee with reading both the AC-1 and AC-2 Policies that correspond to travel and
each employee has already signed a document stating that they have read each policy. Survey and
Mapping Services has also made a Travel Guidelines check list that includes items that pertain to
travel expenses outlined in the AC-2 policy that will be given to each employee before they

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Survey and Mapping Department                                       INTERNAL AUDIT 
January 1, 2013  December 31, 2014 
embark on their travel. We have already had a team meeting to go over this checklist and have
discussed items and answered questions pertaining to travel in the AC-1 and AC-2 Policies.
Managers are moving forward to recover the disallowed travel expenses, if appropriate. 




AUDIT SCOPE AND METHODOLOGY 














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