Item No.: _7b Supp___
Date: April 21, 2009


SAO Performance Audit
Update to Commission
Lessons Learned
April 21, 2009

Background Information
December 20, 2007: Washington State Auditor Office issued
Performance Audit Report of Port of Seattle
The audit included 51 Recommendations:
POS established an Audit Response Team and an Audit Action
Plan.
July 1, 2008: First Annual Report to the SAO, providing
information on implementation of 24 of the 51 Recommendations.
To date we have taken action on 47 of the 51 Recommendations.
Those left include improvements to the Small Works Roster
Program, implementing the Project Controls System, and
implementing the recommendations of the Special Investigative
Committee.

2

Lessons Learned
Broad Categories
Preparing for the audit
SAO communication during the audit
Responding to the audit
Implementing audit recommendations
Things we did well


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Preparing for the Audit
Review other audits to learn from them.
Be clear on SAO protocols.
Explore the SAO website, performance audits in general.
Understand how information is transmitted.
Set up access to our systems.
Learn audit work plan.
Explain the port up front.

4

Preparing for the Audit
Have an audit czar (Project Manager) located in internal
audit.
Include Audit Committee members in planning.
Identify location of all relevant files. Do not compile!
Look at current procedures to be sure we are following them.
Prepare employees for auditor interviews.
Explore guidelines, but cautiously, for organizing files.
Clarify with Staff on balancing normal work and audit work.

5

Communication with SAO during the audit
Have someone assigned as the document control manager.
Clarify requests to know what is asked for, and in what format.
Respond in a timely manner - nothing should linger on lists!
Keep both upfront and ongoing lists of requested documents.
Maintain weekly audit team meetings, let SAO lead.
Meetings & Interviews should be documented take notes.
Respond in a professional, truthful, neutral manner.
Have an avenue for intervening if the process is encountering
problems.

6

Responding to the Audit Report
Determine when to keep response to agree or disagree.
Dialogue with SAO, auditor, and the Port to resolve
disagreements.
Early consultation with Commission on audit response.
Create a template for consistency in response.
Assure factual information in our responses.
Work to encourage others to carry Port's message.

7

Implementing recommendations
Understand the impact of your Action Plan on individuals.
Identify benchmarks for Action Plan assessment.
Review business practices to be successful in new
environment of regular performance audits.
Seek areas for efficiency and effectiveness that can be used for
longer term business improvements .


8

What we did well
Met regularly in groups to respond to questions.
Established and updated Accountability page on the Web so
that the public could follow our progress.
Worked closely with External Affairs to emphasize main
messages.
Consistently provided updates to managers.
Prepared extensive report to the SAO in July.

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