Taking action and being accountable

 Port acts on State Auditor's recommendations
In December 2007, the State Auditor’s Office released its performance audit on the Port’s construction management program. On July 1, 2008, the Port of Seattle submitted its Annual Report Summary reporting the significant progress made in implementing the 51 recommendations contained in the audit.

Port departments had implemented 24 of the recommendations as of July 1, 2008, and are on track to deliver 21 of the remaining items by August 31. While the organization disagreed with six of the recommendations, the Port worked to find alternatives that met the underlying intent. The audit report contained two overarching recommendations: establishing a central procurement office, and revising Resolution 3181, which governs how the Port Commission delegates authority to the CEO.

CEO Tay Yoshitani centralized the Port’s contracting and procurement activities earlier this year. The Port’s Central Procurement Office has been completely functional since April, and is headed by Nora Huey, an attorney with significant experience in contracting and procurement for public agencies in Washington. Yoshitani also created a Capital Development Division, to be headed by a managing director reporting directly to the CEO. The recruitment process for the position is currently nearing completion.

“The Port builds strategic infrastructure projects that create jobs and benefit the entire region, and consolidating those activities into one division will make us more productive and competitive,” Yoshitani said. “We have worked hard implementing these reforms, and we are a better Port for it.”

Commissioners Pat Davis and Gael Tarleton are leading a Commission subcommittee to reevaluate Resolution 3181. The committee, which includes citizen panelists with expertise in organizational governance, has held several public meetings, soliciting input from citizens, staff members and community leaders. Their recommendations will be presented to the full Commission on August 5.

The Port’s audit committee is overseeing work on recommendations which called for internal audits of specific Port programs. As recommended, the Port’s internal audit manager now reports directly to the audit committee and the CEO.

Moving forward, the Port will continue its efforts to meet and exceed the recommendations of the State Auditor’s Office.

A full list of audit recommendations, plus more information on the steps the Port is taking can be found on this site.

Port of Seattle Audit Action Summary
  • Centralized procurement and construction management
  • Established subcommittee to review Commission delegation of authority
  • Strengthened control procedures for construction project change orders
  • Improved contract tracking and safeguards to prevent cost overruns
  • Established quarterly reporting for all capital projects
  • Established fraud awareness and prevention policy
  • Implemented a toll-free hotline for reporting suspected fraud (877) 571-5237
  • Extended internal ethics policies to cover Port contractors


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