Internal Audit Internal Audit Briefing 
Presented to the Port of Seattle 
Audit Committee and Tay Yoshitani, CEO 

Joyce Kirangi, CPA, CGMA 
Director, Internal Audit 
December 03, 2013

Agenda 
Audit Report 
1.  Lease and Concession Audits 
Vino Volo 
InMotion  no reportable findings/conditions 
2.  Operational Audits 
Central Processing System 
None 
Comprehensive Operational Audit /Departmental Audit 
Aviation Maintenance Department 
Limited Operational Audit 
None 
3rd Party Audit 
None 
Briefing/Updates 
Internal Audit 2013 Metric 
Internal Audit 2013 Work Plan Status 
Proposed 2014 Internal Audit Work Plan

Lease and Concession Audit 
Vino Volo 
Background 
Vino Volo is located in the Central Terminal Marketplace. Its product line
consists of wines from around the world, sold by the bottle, glass or tasting
flights; lunch, dinner, and small-plates; and wine-related merchandise,
books, and magazines. 
Vino Volo entered into its first lease and concession agreement with the Port
of Seattle on April 17, 2006, for a 10-year term ending April 30, 2016.

Lease and Concession Audit 
Vino Volo 
Audit Objectives 
The purpose of the audit was to determine whether: 
1.  The reported concession revenue is complete, properly calculated, and
remitted timely. 
2.  The lessee complied with significant provisions of the lease and
concession agreement. 
The scope of our audit covered the period from May 1, 2010  September 30,
2012.

Lease and Concession Audit 
Vino Volo 
Audit Result 
Concession revenue reported by Vino Volo was complete, calculated
properly, and remitted timely, except for overpayment of the concession
fee. Vino Volo complied with significant provisions of the lease and
concession agreement. 
One Finding 
1.  Vino Volo overstated gross receipts and overpaid the concession fee. 

Audit Recommendation 
Port management work with Vino Volo to resolve the overpayment and ensure
future gross receipts are reported in accordance with the terms of the agreement.

Comprehensive Operation Audit 
Aviation Maintenance Department 
Background 
Aviation Maintenance is the Port's largest department with approximately
360 employees and an annual operating budget of approximately $56
million. There are nine separate labor unions representing approximately
300 Aviation Maintenance employees. 
The Department's primary objective is to ensure properly functioning
systems and equipment at aviation facilities. 
Operating Expenses (in thousands)          2011          2012 
Salaries, Wages, & Benefits               36,299         41,361 
Equipment & Supplies                  5,644         6,770 
Other Expenses                      6,414         5,700
Total                               48,357         53,831 
Data Source: PeopleSoft, as of November 7, 2013

Comprehensive Operation Audit 
Aviation Maintenance Department 
Audit Objectives 
The purpose of the audit was to determine whether the Department's
controls are adequate to ensure: 
1.  Inventory records are accurate and complete. 
2.  Asset information is recorded completely, accurately, and timely in the
Maximo system. 
3.  The preventive maintenance program is timely and effective. 
We reviewed information for the period January 1, 2012  September 30,
2013.

Comprehensive Operation Audit 
Aviation Maintenance Department 
Audit Result 
Aviation Maintenance's controls are adequate to ensure that inventory
records are accurate and complete, asset information is recorded
completely, accurately and timely, and the preventive maintenance
program is timely and effective. 
No Reportable Findings/Conditions

Briefing/Updates 

Internal Audit 2013 Metric 
Internal Audit 2013 Work Plan Status
Proposed 2014 Internal Audit Work Plan

Briefing/Updates 
Internal Audit 2013 Metrics