PORT ANGELES — State auditors issued one finding that the Port of Port Angeles did not have controls to ensure compliance with federal prevailing wage requirements, officials told the port during its meeting Monday.
Amy Strzalka, assistant audit manager for the Office of the Washington State Auditor, told the port the deficiency was related to the $2 million federal Economic Development Administration grant that helped fund building the Composite Recycling Technology Center (CRTC).
The port underwent three audits. There was a 2016 accountability audit, a 2015-2016 financial statements audit and a 2015-2016 federal single audit. Other than the finding, Strzalka said it was a clean audit.
In regard to the CRTC, under the Davis-Bacon Act, the port is required to collect certified payroll reports for the 27 contractors and subcontractors every week that they worked, Strzalka said.
“That’s a lot of moving parts to keep track of,” she said.
“If you don’t have a system established up front to identify who is working when, it’s pretty impossible to keep track of.”
The port has already changed its standard contractor application for payment form, according to a preliminary draft audit report.
Chris Hartman, director of engineering for the port, told commissioners that it could cost upward of $50,000 to hire someone to monitor major projects such as the CRTC construction and to keep track of the payroll reports.
“It’s just hours,” he said. “It’s having the proper system in place and going through the motion.”
Strzalka told the port commissioners that port staff were “very helpful, accommodating and friendly,” which sped up the process and saved the port about $5,000.
“It helped us move through our audit in a timely matter,” she said. “It actually saved you dollars.”
It was estimated the audit would cost the port $44,000, but actual costs were closer to $39,000, she said.
One part of the audit costs that caught the attention of port commissioners was the cost to audit compliance for passenger facility charges.
Strzalka said that portion of the audit cost the port roughly $930.
Commissioner Steve Burke pointed out the port lost money on the audit of the program.
“It costs more than $900 to audit less than $900 of transactions,” he said.
Strzalka said the audit reports likely will be available to the public late this week or early next week. The reports can be found then at http://www.sao.wa.gov/Pages/default.aspx.
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Reporter Jesse Major can be reached at 360-452-2345, ext. 56250, or at jmajor@peninsula dailynews.com.
