PORT OF SEATTLE 
MEMORANDUM 
DATE:      October 10, 2016 
TO:         Audit Committee 
FROM:     Joyce Kirangi, Internal Audit Director 
SUBJECT:    Internal Audit 2017 Proposed Budget 

Per the Audit Committee Charter, the Committee reviews the Internal Audit Department's annual budget
and gives its recommendation to the full Commission. Thus, I respectfully submit our proposed 2017 
budget for your consideration. 
2017 Budget Highlights and Notes 
The budget was prepared under the 2017 Port budget guidelines. I t fully complies with the
established guidelines and budget targets. 
Proposed
2015 Actual      2016 Budget
2017 Budget
Amount   %    Amount   %    Amount   %
Salaries/Wages and Benefits (1)         $1,118,496 87.40%  $1,299,553 82.80%  $1,365,420 69.32%
Outside Services (2)                   122,496 9.57%    186,190 11.86%    545,130 27.67%
Travel, Training, and Other Emp Expense (3)    21,761 1.70%     45,940 2.93%     40,159 2.04%
Equipment Expense                   6,763 0.53%     21,500 1.37%     8,910 0.45%
General Expenses                     4,737 0.37%     8,216 0.52%     3,774 0.19%
Supplies/Stock                         1,643 0.13%      3,000 0.19%      1,500 0.08%
Telecommunications                   3,831 0.30%     5,160 0.33%     4,944 0.25%
1,279,727  100%  $1,569,559  100%   1,969,837  100%

1)  5% increase in salaries/wages from 2016 reflects expected increase from performance
evaluations and employee benefits. This category/amount is calculated by Finance & Budget 
based on the department authorized FTEs. 
2)  Increase in Outside Services is for the following : 
o  Conduct a Port-wide information technology risk assessment to identify technology risks
and develop a 3-year work plan for IT audits -- $190,000. 
o  The Port has budgeted to spend approximately $650 million in capital improvement
program in 2017 and up to $2.7 billion within the next five years. In response, Internal
Audit has requested $180,000 to outsource the review and monitoring of the significant
Port capital programs. 
3)  Travel/registration to meet the Continuing Professional Education (CPE) requirements of the
Government Auditing Standards and the International Standards for the Professional Practice
of Internal Auditing. 
The remaining are for sundry items (e.g., cell phone bills, Port Compliance and Ethics Hot
Line, professional membership dues, and subscriptions). 
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