LEASE AND CONCESSION AUDIT 
INTERNAL AUDIT 
Puget Sound Dispatch LLC dba Yellow Cab 
BACKGROUND 
The Port entered into a five-year concession agreement, effective November 1, 2010, with PSD for "the
non-exclusive right to provide transportation services from the Airport by way of On-Demand Taxi
services" In exchange for the right, PSD agreed to pay Concession Fees of 13% of Gross Receipts
generated in connection with the agreement or the Minimum Annual Guaranty of $3,670,778,
whichever is higher. 
The Concession Agreement provides the following two methods to calculate gross receipts as the basis
for Concession Fees: 
Based on total actual revenues derived from operations under the terms of the Agreement 
Or 
Based on other reasonably available information to Concessionaire where "...a precise
determination of Concessionaire's total Gross Receipts may be difficult or impossible." Under this
methodology, the Port and PSD agreed to determine the Gross Receipts by a formula: outbound
trips x average fare = Gross Receipts.

LEASE AND CONCESSION AUDIT 
INTERNAL AUDIT 
Puget Sound Dispatch LLC dba Yellow Cab 
BACKGROUND CONTINUED

LEASE AND CONCESSION AUDIT 
INTERNAL AUDIT 
Puget Sound Dispatch LLC dba Yellow Cab 
AUDIT OBJECTIVES AND SCOPE 
The purpose of the audit was: 
1. To determine whether Port management monitoring controls are adequate and effective to ensure: 
Puget Sound Dispatch (PSD) submits a detailed statement showing the Gross Receipts derived from the Concession
Agreement and pay to the Port, if applicable, percentage fee in excess of the Minimum Annual Guarantee (MAG). 
2. To determine whether PSD-reported MAG/Concession Fees were complete, properly calculated, and remitted timely to
the Port. 
3. To determine whether Port management and PSD complied with significant financial terms of the agreement. 
4. To determine how the unique gross receipts provision, which allows the use of estimates, became part of the agreement. 
We reviewed and analyzed records for the entire Agreement period. For purposes of rendering our opinion, we focused on
the period November 1, 2011  August 31, 2015. Under the Agreement record retention requirement, PSD is not required to
retain records for periods prior to November 2011.

LEASE AND CONCESSION AUDIT 
INTERNAL AUDIT 
Puget Sound Dispatch LLC dba Yellow Cab 
AUDIT RESULT 

Management monitoring controls over the Puget Sound Dispatch Concession Agreement were/are not adequate to ensure 
accurate and complete reporting of Concession Fees. Although PSD mathematically calculated Concession Fees properly and 
submitted the information timely, PSD-reported Concession Fees were not complete or accurate. Additionally, PSD did not 
comply with the record retention requirements in the Agreement. 
The origin of the unique Gross Receipts provision, which allows the use of estimates, is noted in the first and second 
paragraphs under the report Background. 

Three (3) Reportable Findings

LEASE AND CONCESSION AUDIT 
INTERNAL AUDIT 
Puget Sound Dispatch LLC dba Yellow Cab 
AUDIT RESULT  FINDING #1 

1. Port Management Monitoring Controls Over The Puget Sound Dispatch (PSD) Agreement Are 
Inadequate And Ineffective. 
Port management did not have complete knowledge of the methodology used by PSD to calculate or estimate Gross 
Receipts reported to the Port. 
Management monitoring of taxicab activities was not adequate to reasonably ensure that all airport fleet vehicles were 
properly tagged with a functioning AVI ID. 
Management had no knowledge of how the zones were determined. Management did not understand or follow up on 
whether the method used was supported with data/information, or whether the established zones were reasonable and 
acceptable to the Port. 
Port management did not stay abreast of evolving and emerging applicable taxi regulations in King County. 
Trips by non-airport fleet taxicabs were not tracked. 
Port management had little interactions with PSD related to monthly financial reporting. 
Port management did not follow up on unusual trends and information.

LEASE AND CONCESSION AUDIT 
INTERNAL AUDIT 
Puget Sound Dispatch LLC dba Yellow Cab 
AUDIT RESULT  FINDING #2 

2. Puget Sound Dispatch Reported Inaccurate And Incomplete Gross Receipts. 
PSD used two different methods during the audit period to calculate Gross Receipts as follows: 
During the period November 2011  March 2015, Gross Receipts were imputed based on a simple formula: Outbound Trip 
Count x Average Fare = Gross Receipts. 
Average Fare - no records to support this average fare estimation 
Outbound Trip Count  incomplete information in support of the trips used in Gross Receipts calculations 
During the period April 2015  August 2015, PSD reported Gross Receipts based on data from its dispatch system. 
Incomplete reporting of trips, resulting in underreported Gross Receipts

LEASE AND CONCESSION AUDIT 
INTERNAL AUDIT 
Puget Sound Dispatch LLC dba Yellow Cab 
AUDIT RESULT  FINDING #3 

3. Puget Sound Dispatch Did Not Comply With The Agreement Record Retention. 
PSD did not maintain a system of records in full support of the reported Gross Receipts and Concession Fees. Records 
were incomplete and/or missing for the audit period and did not comply with the 3-year retention requirement.