Commissioners                                             Tay Yoshitani 
Tom Albro 
Chief Executive Officer 
Commission President 
Stephanie Bowman                      P.O. Box 1209 
Bill Bryant                               Seattle, Washington 98111 
John Creighton                          www.portseattle.org 
Courtney Gregoire                         206.787.3000 
APPROVED MINUTES 
AUDIT COMMITTEE SPECIAL MEETING MAY 20, 2014 
The Port of Seattle Commission Audit Committee met in a special meeting Tuesday, May 20, 2014, in the
Commission Chambers at Pier 69, 2711 Alaskan Way, Seattle, Washington. Committee members present
included Commissioner Bryant. Commissioner Creighton and Christina Gehrke participated by telephone.
Also present were Tay Yoshitani, Chief Executive Officer; Joyce Kirangi, Internal Audit Department
Director; Jack Hutchinson, Internal Audit Manager; Laurie Tish of Moss Adams LLC; Tyler Parrick of Moss
Adams LLC; Ben Wolfgram, Senior Internal Auditor; Brian Nancekivell, Senior Internal Auditor; Ruth Riddle,
Senior Internal Auditor; Jeff Hollingsworth, Senior Manager, Risk Management; Lauren Smith, Manager,
Human Resources and Development Information System; Tom Barnard, Research and Policy Analyst; and
Paul White, Commission Clerk. 
Call to Order: 
The committee special meeting scheduled to begin at 8:30 a.m. in accordance with notice published
pursuant to RCW 42.30.080 was called to order at 8:30 a.m. by the Clerk due to the absence of committee
members and immediately adjourned to 9:00 a.m. in Commission Chambers.
The committee special meeting was called to order at 9:02 a.m. by Commissioner Bryant. Commissioner
Creighton and public member Christina Gehrke participated by telephone. 
Approval of Audit Committee Meeting Minutes of December 3, 2013: 
On motion by Commissioner Creighton, seconded by Commissioner Bryant, the minutes of the
Audit Committee special meeting of December 3, 2013, were approved. 
Moss Adams 2013 Audit Exit Conference: 
The committee received a presentation from Ms. Tish and Mr. Parrick that included the following relevant
information: 
All audit reports are dated April 25, 2014, and work is complete. 
The opinion on financial statements for Enterprise Fund and the Warehousemen's Pension Trust
Fund has been issued. These statements comprise the Port's Comprehensive Annual Financial
Report. The opinions are unmodified. 
Single audit reports on internal controls and compliance over financial reporting and on compliance
for federal award programs are nearly finalized. An audit and report on the schedule of passenger
facility charges was also performed. 

Audio recordings of meeting proceedings and meeting materials are available on the Port of Seattle web site: www.portseattle.org

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TUESDAY, MAY 20, 2014 
A deficiency in internal controls was noted related to a vendor-supplied ancillary revenue operating
system. There were no other findings of noncompliance. 
Areas of audit focus and methodology were delineated. 
Required communications were delivered, including statements related to auditor and management
responsibilities, audit scope, significant accounting policies, consistency and clarity of financial
statements, management participation, absence of proposed or passed audit adjustments that
would affect net position, consultation with other external auditors, absence of difficulties
encountered or illegal acts discovered, ability to continue as a going concern, consideration given
to identifying fraud, and the independence of the auditor, Moss Adams, from the Port of Seattle. 
Comprehensive Operational Audit  Airport Public Parking Operation: 
The committee received a presentation from Mr. Wolfgram that included the following relevant information: 
The audit covered the period January 1, 2013, through April 11, 2014. 
Its purpose was to determine whether management controls are adequate to ensure exception
transactions are properly processed, cash and credit card transactions are reconciled to bank
deposits, and parking fees are charged in compliance with approved tariff rates, as well as to
determine whether the parking revenue system completely captures a record of each vehicle
exiting the garage. 
The audit concluded that management controls are adequate to ensure the functions described
above and tube-counting devices captured 99.2 percent of the vehicles exiting the garage as
compared to vehicle records in the parking revenue system. 
Exception transactions are those that are out of the ordinary in some way, such as use of validation
coupons or removal of vehicles by tow truck or similar circumstances that require additional
management scrutiny. 
There were no reportable findings from this audit. 
Performance of the internal processing of the public parking system was outside the scope of this audit. 
Comprehensive Operational Audit  Aviation Building Department: 
The committee received a presentation  from Mr. Hutchinson that included the following relevant
information: 
The audit covered the period January 1, 2011, through December 31, 2013. 
Its purpose was to determine whether management controls are adequate to ensure permit and
plan review fee receipts were complete, properly recorded, and deposited timely; inspections and
plan reviews outside normal business hours were properly authorized and billed; and department
expenditures were properly authorized and for legitimate business purposes. 
There was one finding that management controls were not adequate to mitigate the risk associated
with absence of separation of duties.  In small departments, incompatible duties are often
concentrated. The audit found that insufficient management oversight resulted in errors relating to
approval of overtime and unbilled inspection hours, incorrectly (under) calculated fees and untimely
collection of fees, untimely deposits, and employee travel expenses. 
A written report following implementation of measures to respond to these findings will be
submitted to the Audit Committee.

PORT COMMISSION AUDIT COMMITTEE MEETING MINUTES         Page 3 of 4 
TUESDAY, MAY 20, 2014 
Limited Operational Audit  Fire and Police Payroll Process Review: 
The committee received a presentation  from Mr. Nancekivell  that included the following relevant
information: 
The audit covered the period January 1, 2012, through August 31, 2013. 
Its purpose was to determine whether management has implemented adequate controls to ensure
actual pay and benefits meet terms of bargaining agreements and applicable laws and regulations
and to ensure payroll records are accurate and complete. 
The audit found that the Fire and Police Departments have implemented adequate controls as
noted above, but that more formalized communications and coordination efforts are required
among the multiple Port departments involved in administering various bargaining agreement
details to successfully implement the agreements. Errors affecting numerous employees, although
not financially significant, have occurred over prolonged periods. 
Limited Operational Audit  Police Forfeiture of Funds: 
The committee received a presentation from Ms. Riddle that included the following relevant information: 
The audit covered the period January 1, 2010, through December 31, 2013. 
Its purpose was to determine whether management controls are adequate to ensure proper
processing of seized property in compliance with state law, proper accounting of forfeited property,
and that expenditures of forfeited property comply with federal, state, and local laws, particularly
allowability of expenditures, reporting of activity of forfeited funds, and restrictions on the time
period during which forfeited funds are to be expended. 
The audit found that management controls were adequate to ensure the functions described, with
the exception of ensuring that expenditures of forfeited funds are allowable. The department made
expenditures of approximately $326,000 that did not have the necessary close connection to the
cause of their seizure. 
Recommendations included reimbursement of the state forfeiture fund from appropriate resources
for the unallowable expenditures, development of clear guidance and authorization forms, and
implementation of review processes to detect improper charges in a timely manner. 
Limited Operational Audit  Tuition Reimbursement Program: 
Without objection, a written report and presentation slides were accepted in lieu of a verbal presentation on
the Tuition Reimbursement Program Limited Operational Audit, covering the period of January 1, 2012
through  December 31, 2013. The purpose of the audit, as reported, was to determine whether
management had implemented adequate controls to ensure compliance with the Employee Learning and
Development Policy HR-12. 
The report included no findings of significance, and there was no discussion of this agenda item.
Central Procurement Office Efficiency Audit Review Update: 
Ms. Kirangi reported that there is a consultant conducting the Central Procurement Office Efficiency Audit
Review. Port Commissioners will be interviewed as part of the audit, and work is expected to be complete
by June 30, 2014.

PORT COMMISSION AUDIT COMMITTEE MEETING MINUTES         Page 4 of 4 
TUESDAY, MAY 20, 2014 
Enterprise Risk Management Project    Aviation Facility and Infrastructure and Maintenance
Operations: 
The committee received a presentation from Mr. Hollingsworth and Ms. Smith that included the following
relevant information: 
The project included a series of activities designed to identify areas of risk within the department
and develop objectives and strategies for mitigating these risks. 
Objectives developed included the following, which were linked to related Airport Strategies: 
Limiting growth of operations and maintenance costs to a compound annual growth rate of
2.8 percent between 2012 and 2018. 
Meeting future electrical growth needs through conservation and use of renewable energy
resources. 
Minimizing lifecycle capital and operations and maintenance costs. 
Developing a comprehensive computer based asset management system to anticipate
Airport and tenant needs. 
Grow continuous process improvement across the Port by increasing the number of
process improvements and increasing participation at all levels. 
Operate all electrical, mechanical, and communication systems reliably to the benefit of
tenants and passengers. 
Reduce greenhouse gas emissions by 15 percent below 2005 levels by 2020. 
Operate a world class international airport by ensuring safe and secure operations. 
Improving overall safety of aircraft and vehicular movement measured by an increase in a
composite annual score of 100 total possible points, ranking a variety of safety events. 
Continue to manage and renegotiate agreements with the City of SeaTac. 
Risk was ranked based on impact and likelihood. 
A Risk Assessment Matrix for the department was developed. 
[Clerk's note: At the time of adjournment, this agenda item was not yet completed. It was announced that
it would be taken up again at a later date.] 
Adjournment: 
At 9:45 a.m., the Committee recessed due to loss of a quorum resulting from technical difficulties of the
telephone system. The special meeting was reconvened by Commissioner Bryant at 9:52 a.m. and
immediately adjourned. 

John Creighton 
Minutes approved: July 30, 2014