Port of Seattle Reform Efforts Recognized by Auditors, Finance Officers

Commission meeting summary added to website to aid public in tracking activities

The Port of Seattle has received a clean audit report on its 2007 financial statements from independent auditor Moss Adams LLP as well as the Government Finance Officers Association’s Distinguished Budget Award for its 2008 budget document.

The scope and scrutiny of the recent Moss Adams audit was expanded to assess vulnerability to fraud in all of the Port’s contracting procedures, including Small Works contracts, change orders, consulting contracts, and management information systems. Moss Adams reported that the Port’s internal controls are sufficient to prevent fraud throughout the organization, finding no “material weakness” in the Port’s processes. The results of the audit were included in the Port’s recently completed Comprehensive Annual Financial Report (CAFR).

“I am very pleased with the Moss Adams audit, and gratified that the Port’s internal controls and processes stood up to the increased scrutiny of the expanded audit,” said Commission President John Creighton. “The Commission welcomed the thorough analysis of our financial statements, and we are pleased that ongoing efforts to increase efficiency and transparency are bearing fruit.”

The Port also received high praise recently from the Government Finance Officers Association. The Port’s 2008 budget document received the Association’s Distinguished Budget Award, given in recognition of “the commitment of the governing body and staff to meeting the highest principles of governmental budgeting.” The Port’s budget document was evaluated against nationally recognized criteria judging its usefulness and clarity as a policy document, financial plan, operations guide and communications device.

“As a former auditor and City of Seattle Treasurer, I am particularly happy that the Port has been honored by the GFOA,” said Commission Vice President Lloyd Hara. “I believe our annual budget document provides an excellent manual for our taxpayers and customers, explaining our strategic priorities and how taxpayer resources are used.”

Other reform-related efforts are bearing fruit as well. The Port Commission today unveiled a thorough summary that describes all briefings, discussions, and actions taken at Commission meetings. The summary will be updated regularly and can be found on the Port’s website. And the Port’s internal auditor released an internal audit of agreements between the Port, Odyssey Maritime Discovery Center, and Columbia Hospitality, Inc. Internal auditors reported an underpayment by CHI of approximately $90,000 through 2007. CHI has reimbursed the Port.

“Internal audits exist just for this reason – to discover mistakes and rectify them as quickly as possible,” said CEO Tay Yoshitani. “Our internal audit team discovered the mistake and Port staff members were able to correct it. As an organization, we have implemented many reforms in the past six months, with more to come – and I am proud of the work we have accomplished.”

The Port will provide a report to the State Auditor’s Office in July, detailing how the organization has responded to the recommendations contained in last year’s performance audit. For more information about the Moss Adams LLP audit, the GFAO award, the Port’s Performance Audit Response Plan, or the new Commission Meeting Summary, please visit the Port's Web site or contact Charla Skaggs, Media Officer, at (206) 728-3235.