PORT OF SEATTLE 
MEMORANDUM 

DATE:    May 9, 2016 
TO:     Audit Committee 
FROM:    Joyce Kirangi, Internal Audit Director

SUBJECT:  Capital Projects Audit Engagement Update 

The current 2016 - 2020 aviation capital program totals over $2 billion and includes four major
projects: completion of the Runway 16C/34C Reconstruction, NorthSTAR program  including
the expansion of the North Satellite -, Baggage Optimization/Replacement, and International
Arrivals Facility (IAF). There are some 90 capital construction projects Port-wide underway,
with the bulk of the projects being in Aviation. 

Aviation Division Capital Budget (in millions) 
2016    2017    2018    2019    2020    Total 
$360   $457   $454   $416   $363   $2,050 
Source: 2016 Capital 
Budget 
Internal Audit began in 2015 an audit of the construction phase of the Runway 16C-34C
Reconstruction project. The first phase of the construction was completed in 2015 and totally
reconstructed Runway 16C-34C, giving new life to the oldest of Sea-Tac's three runways. The
9,426-foot runway that was originally built in 1969 is now projected to have another 40-year
lifecycle. The interim audit report on the 2015 construction was submitted separately. 
We will continue to audit the 2016 construction phase, which will include closure of the inboard
runway for necessary repairs and the subsequent closure of the center runway to complete its
reconstruction. We will audit the Close-out phase of the project when that occurs. 
We will be assessing risks and controls in the other three major projects in 2016. We have
engaged a construction auditing consultant to advise us and develop a risk assessment and audit
program. 
We have developed a risk assessment methodology for capital projects and risk rated all 90
current projects, to assist in prioritizing audit activities now and in the future.