INTERNAL AUDIT 
UPDATE 


ADDITIONAL NEW BUSINESS 
1   2016 Flexible Workplan Status Update 
2   AAIA Conference Update

INTERNAL AUDIT 
LEASE AND CONCESSION AGREEMENT AUDIT 
SeaTac Rentals Inc. dba Payless Car Rental 
AUDIT OBJECTIVES AND SCOPE 
The purpose of the audit was to determine whether Port management monitoring controls are
adequate and effective to ensure: 
SeaTac Rentals Inc. reported Concession Fees were complete, properly calculated, and
remitted timely to the Port. 
SeaTac Rentals Inc. and lessee complied with provisions of the Lease and Concession
Agreement, as amended. 
Customer Facility Charges (CFC) were properly collected and remitted. 
We reviewed information for the period May 17, 2012  May 31, 2014.

INTERNAL AUDIT 
LEASE AND CONCESSION AGREEMENT AUDIT 
SEATAC Rentals dba Payless Car Rental 
BACKGROUND 
SeaTac Rentals dba Payless Car Rental is a subsidiary of Avis Budget Group. 
The lease and concession agreement with SeaTac became effective May 17, 2012. The terms of the
agreements provide for a Minimum Annual Guarantee (MAG) of 85% of the total amount paid to the Port
in the previous agreement year. Additionally, the agreement requires Percentage Fee equal to ten
percent (10%) of gross revenues, provided the fee is higher than the monthly MAG. 

FINANCIAL HIGHLIGHTS

INTERNAL AUDIT 
LEASE AND CONCESSION AGREEMENT AUDIT 
SEATAC Rentals dba Payless Car Rental 
AUDIT RESULT 

Management controls are effective to ensure that reported concession fees were materially complete,
properly calculated, and remitted timely to the Port. The Lessee materially complied with the terms of
the Lease and Concession Agreement, as amended. 
However, we determined that Customer Facility Charge (CFC) was underreported. We recommend Port
management seek recovery of $19,682 in CFC charges. We also recommend Port management consider
assessing applicability a one-time late fee, accrued interest, audit cost, and seek recovery from the
tenant as appropriate. 
One Reportable Finding: 
1.  The Customer Facility Charge (CFC) was underreported

INTERNAL AUDIT 
LEASE AND CONCESSION AGREEMENT AUDIT 
Marel Seattle Inc. 
BACKGROUND 

Marel is the leading global provider of advance food processing systems and services for the poultry, fish,
meat and further processing industry. The company provides equipment and systems help food processors
of all sizes, in all markets, to operate at peak productivity 
After conducting our planning and assessing the risks of the agreement, we have decided to discontinue
the audit. We did not identify any significant risks, and further audit testing would add no value

INTERNAL AUDIT 
COMPREHENSIVE OPERATIONAL AUDIT 
Ground Transportation 
BACKGROUND 
Ground Transportation (GT) is responsible for the Airport's GT businesses. All GT activities are
monitored by ten controllers who oversee the operation by monitoring the upper drive, lower drive,
commercial lanes on the third floor of the parking garage, cell phone lots, and airport roadways. The
controllers are responsible for inspecting taxies and limos, as well as monitoring commercial vehicles
that utilize the airport to ensure that all the operators follow State, County, and Port regulations. 
From the Ground Transportation Center (GTC), limos and charter buses are dispatched, as well as
assisting phone-in and walk-up customers. The GTC is located in the center of the third floor of the
parking garage. GT operators generate more than 2.8 million trips annually. 
GT also employs Tour Group Coordinators (TGC's) during the cruise ship season (May through October).
TGC's are a vital component to providing safe and efficient operations of charter bus operations in the
North, South, and off-site lots. Their responsibilities include, assisting cruise passengers, assigning
parking spaces, directing bus drivers into and out of assigned parking spaces, and dispatching buses
from the 28th holding and South lot.

INTERNAL AUDIT 
COMPREHENSIVE OPERATIONAL AUDIT 
Ground Transportation 
FINANCIAL HIGHLIGHTS

INTERNAL AUDIT 
COMPREHENSIVE OPERATIONAL AUDIT 
Ground Transportation 
AUDIT OBJECTIVES AND SCOPE 
The purpose of the audit was to determine: 
Accuracy and timeliness of Seattle Tacoma International Limousine Association (STILA) billing and
payments 
Accuracy and completeness of STILA reported trip data 
Effectiveness of billing processes (including Transportation Network Company's) 
Sufficiency of Ground Transportation (GT) staffing levels 
Effectiveness of management monitoring controls of key contractual elements within STILA and Puget
Sound Dispatch, LLC DBA Yellow Taxi Association* (PSD) including: 
Green initiatives 
Insurance requirements 
Safety

INTERNAL AUDIT 
COMPREHENSIVE OPERATIONAL AUDIT 
Ground Transportation 
AUDIT RESULT 
Environmental requirements have adequately been meet and management monitoring controls continue
to improve. Although GT management had not monitored this requirement, we verified that STILA has
seven hybrid sport utility vehicles within their fleet. The concession agreement requires six. We also
discussed PSD requirements with management from Environmental and generally conclude that monitoring
of "green" initiatives is improving to mitigate risk of non-compliance. 
However, staffing levels may not be sufficient to meet Aviation business goals and essential job functions
(see issue 1). 
Additionally, management oversight and approval has not been incorporated into the internal control
structure. Although no material differences were identified between STILA and Port trip counts, additional
trip fee revenue and rent credits were not applied timely as required by the Concession Agreement dated
January 12, 2011. We also identified that a process does not exist to obtain insurance documents as
required in the STILA and PSD concession agreements and in some operating agreements (see issue 2). 
Two Reportable Findings: 
1) Resources May Not be Sufficient to Meet 2016 Aviation Business Goals 
2) Management Oversight of Contract Requirements Should be Improved so That Contract Terms are
Enforced

INTERNAL AUDIT 
INFORMATION TECHNOLOGY AUDITS 
Health Insurance Portability and Accountability ACT

INTERNAL AUDIT 
INFORMATION TECHNOLOGY AUDITS 
Health Insurance portability and Accountability ACT (HIPAA) 
AUDIT OBJECTIVES AND SCOPE 
The purpose of the audit was to ensure that the Port is in compliance with the requirements of the
Health Insurance Portability and Accountability ACT (HIPAA)

INTERNAL AUDIT 
INFORMATION TECHNOLOGY AUDITS 
Health Insurance portability and Accountability ACT (HIPAA) 
AUDIT RESULT 

The Port is not in full compliance with the HIPAA act, which is prescriptive in its requirements.
Opportunities exist to enhance Port practices and document procedures to become compliant. 
The Port of Seattle has made significant improvements to implement a robust information security
program. However, several significant risks remain.

INTERNAL AUDIT 
New Business 


ADDITIONAL NEW BUSINESS 
1   Request for Funding of Additional Capital Program Audits