The realm at I-80 close to 7200 West the place the Utah Inland Port is deliberate to be in-built Salt Lake Metropolis is pictured on Jan. 27, 2020. The Utah Inland Port Authority wants to stipulate clear targets for the long run — which it hasn’t but performed — earlier than beginning to spend a few of the $150 million in bonds permitted final yr, in accordance with a brand new report. Steve Griffin, Deseret Information
The Utah Inland Port Authority wants to stipulate clear targets for the long run — which it hasn't but performed — earlier than beginning to spend a few of the $150 million in bonds permitted final yr, in accordance with a brand new report.
The restricted evaluation by the state Legislative Auditor Basic's Workplace started in spring this yr after the Utah Legislature modified the Utah Inland Port Authority Board's make-up, and the brand new board was sworn in, in Could. Auditors famous within the report the board requested them to carry out the evaluation to "present course and potential danger areas as fast as doable."
Auditors say they discovered a couple of "considerations," together with "monetary dedication with out sufficient planning, gaps in organizational construction that cut back inner controls, and the necessity for stronger procurement and contract administration."
The auditors say the Inland Port Authority wants to put out a long-term plan, known as a grasp improvement plan, to stipulate its targets and goals and information improvement selections. That should occur earlier than the authority spends the "sizable bond" it took out, excluding funding that will get permitted by the Inland Port Authority Board, in accordance with the report.
The Inland Port Authority has a request for proposal in search of a marketing consultant to assist create a grasp improvement plan, which auditors known as a "constructive step." However auditors famous they're "involved this has not been a better precedence on the port" — and the board ought to be sure a grasp improvement plan is in place earlier than utilizing the bond issued final winter.
The port authority marked a big enhance in spending from 2021 to 2022 due largely to $8.02 million for an up-front lease-to-own cost for the Stadler Rail take a look at observe, and $6.31 million put aside for safety of the port's $150 million bond safety, auditors stated.
Port authority employees members advised auditors the Stadler Rail venture was "beforehand recognized" as a state precedence, however auditors say the board ought to nonetheless "rigorously weigh" whether or not such tasks are a good suggestion for the port.
The Stadler Rail manufacturing plant within the space of 5600 West and 150 South is among the tasks the port authority has checked out to enhance Utah's importing and manufacturing logistics. The constructing is near the place a proposed rail spur take a look at observe is being thought-about — utilizing the bonds, officers stated final yr.
Auditors stated the inland port can also be spending a big amount of cash on rental and lease prices for buildings and land. For instance, the Inland Port Authority spent about $2.4 million from 2020 to 2022 on land put aside for a transload facility. A big leap on this yr's spending is "primarily from about $4.6 million for the development of a highway within the Northwest Quadrant of the port," in accordance with the evaluation.
"Once more, whereas these selections might show to be prudent, we're involved about important monetary commitments being made with public funds earlier than a grasp improvement plan is developed and all choices are thought-about," auditors wrote.
Auditors additionally inspired extra involvement from the board to "maintain employees accountable" for outcomes. The audit advisable an audit committee and treasurer be put in place to strengthen this system's inner controls.
"The finances evaluation course of is one other space that deserves extra consideration. Employees ought to make extra data publicly obtainable for board members and the general public to grasp (Utah Inland Port Authority's) finances," the report states.
Auditors stated they discovered that in working with contractors, the port authority "didn't have sufficient measurable metrics and timelines in contracts to offer construction and accountability with contractors," pointing to a different cause for extra board member involvement.
"We're inspired to see that the port has been aware of this and is engaged on enhancements to their course of," auditors wrote.
The report additionally notes contractors are largely "sole sourced" by the Inland Port Authority, that means it solicits contract proposals from just one enterprise at a time relatively than going via the standard, aggressive request for proposal course of.
"This reduces transparency and might foster an surroundings the place public assets should not adequately safeguarded," auditors wrote.
However as a separate entity from the state, the Utah Inland Port Authority is exempt from the procurement guidelines that state businesses are required to comply with, in accordance with the audit. The evaluation didn't look into whether or not the authority needs to be topic to the identical procurement and transparency necessities, however auditors steered it as a difficulty for the Legislature to take a look at transferring ahead.
In a letter responding to the audit, the Utah Inland Port Authority board members and Government Director Ben Hart stated they "wholeheartedly agree with all suggestions within the audit and have directed UIPA administration, together with new UIPA govt director Ben Hart, to maneuver ahead with implementing them together with different finest practices."
The letter states that the Inland Port Authority has had unbiased monetary auditors evaluation its monetary statements yearly, they usually discovered that every one expenditures had been made "in accordance with the board permitted budgets and insurance policies and legislative statute."
The board members and govt director additionally famous that the Inland Port Authority is "a studying and rising group," and thanked auditors for the recommendations.