Seattle port adopts slate of accountability policies
Port of Seattle officials have approved a group of new policies designed to tackle criticism raised last year in a state audit of port contracting procedures.
The port commissioners on Monday approved the new policies, which include procedures to strengthen commission oversight of major port construction projects, establish protocols for regular updates to the board on capital projects, and the adoption of a code of conduct to increase transparency in the port's actions.
Each of the items addresses concerns raised by the 350-page state audit, which covered port operations from 2004 to 2007. State investigators found nearly 50 indications of financial and contracting irregularities or fraud at the port. While the state audit did not detail any cases of suspected fraud in 2007, the state found that the port had 'no controls in place to prevent a variety of fraud schemes.'
In addition, the state auditors found that the port wasted nearly $100 million in taxpayer money through improper construction contracting.
Released in December 2007, the audit led to an ongoing U.S. Justice Department investigation into the accusation of fraud at the port. The state auditor's office was unable to prove fraud due to state regulations putting the collection of substantiating evidence outside the legal mandate of the office.
A port-generated internal review completed in June gave the port's financial accounting since the period covered by the state audit a 'clean, unqualified' bill of health. In the commissioned report, port-hired accountants 'noted no significant deficiencies nor material weaknesses' in the port’s internal controls in the period following that analyzed by the state audit.
In passing the new slate of procedures, the commissioners acknowledged the connection to the state and internal audit.
'The commission showed our commitment to taking strong action in response to the recent performance audit,” said Lloyd Hara, commission vice president. 'We will continue to discuss those changes in public session so that the citizens are aware of what we are doing. And of course, we will cooperate fully with any investigation — we welcome any opportunity to improve the port’s operations.'
Seattle port adopts slate of accountability policies
