Internal Audit Report 

Comprehensive Operational Audit 
Fishermen's Terminal 

January 1, 2011 - April 30, 2013 




Issue Date: June 11, 2013 
Report No. 2013-08

Internal Audit Report 
Fishermen's Terminal 
January 1, 2011 - April 30, 2013 

Table of Contents 

Transmittal Letter ..................................................................................................................... 3 
Executive Summary .................................................................................................................. 4 
Background .............................................................................................................................. 5 
Highlights and Accomplishments ........................................................................................... 6 
Audit Scope and Methodology ................................................................................................ 6 
Conclusion ................................................................................................................................ 7 












2 of 7

Internal Audit Report 
Fishermen's Terminal 
January 1, 2011 - April 30, 2013 

Transmittal Letter 


Audit Committee 
Port of Seattle 
Seattle, Washington 

We have completed an audit of Fishermen's Terminal. 
We reviewed information relating to Fishermen's Terminal and the Maritime Industrial Center for the
period January 1, 2011, through April 30, 2013. 
We conducted this performance audit in accordance with generally accepted government auditing
standards. Those standards require that we plan and perform the audit to obtain sufficient,
appropriate evidence to provide a reasonable basis for our findings and conclusions based on our
audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings
and conclusions based on our audit objectives. 
We extend our appreciation to the management and staff of Harbor Services and the Fishing and
Commercial Vessels Department for their assistance and cooperation during the audit. 



Joyce Kirangi, CPA, CGMA 
Director, Internal Audit 





3 of 7

Internal Audit Report 
Fishermen's Terminal 
January 1, 2011 - April 30, 2013 

Executive Summary 

Audit Scope and Objective The purpose of the audit was to determine whether: 
Department controls are adequate to provide reasonable assurance that moorage revenue is
accurate and complete in compliance with Department policies and procedures, including the 
Port-wide moorage tariff. 
The Department has implemented sufficient corrective action to address issues identifiedin 
prior audits. 
The scope of our audit covered the period January 1, 2011, through April 30, 2013. 
Background  Fishermen's Terminal is part of the Harbor Services Department within the Real
Estate Division. Approximately 10 employees are under the direction of the Senior Manager of
Fishing and Commercial Vessels. The employees contribute to the mission of providing moorage
facilities, equipment, and services to fishing, commercial, and recreational vessels. Fishermen's
Terminal has 371 individual slips and 2,500 linear feet of moorage, including 1,200 linear feet of
concrete dock space for loading and repair work. Set on Seattle's Ship Canal, which links Lake
Washington to Puget Sound, Fishermen's Terminal has been the traditional homeport for the North
Pacific Fishing Fleet for almost 100 years. 
A 2007 economic study indicated that Fishermen's Terminal contributes to: 
3,924 local jobs 
$404 million in wages and salaries 
$196 million in business revenue for the region 
More than $37 million in state and local taxes 
Audit Result Summary  The Department's controls are adequate to provide reasonable assurance
that moorage revenue is accurate and complete  in compliance with Department policies  and
procedures. Management has implemented sufficient corrective action to address issues identified in
prior audits. 





4 of 7

Internal Audit Report 
Fishermen's Terminal 
January 1, 2011 - April 30, 2013 
Background 
Located on Seattle's Ship Canal, which links Lake Washington to        the Puget Sound, Fishermen's
Terminal has been the traditional home port for the North Pacific Fishing Fleet for almost 100 years. 
Fishermen's Terminal provides freshwater moorage (daily and monthly) for a variety of boats, ships, 
and other vessels ranging from 20-foot sailboats to ocean-going trawlers over 250 feet long. It has 
371 individual slips and 2,500    linear feet of moorage, including 1,200 linear feet of concrete dock
space for loading and repair work. The facility is also the center of a thriving commercial district with 
shops, restaurants, marine brokerage houses, and more. 
Some of the services and benefits of mooring at Fishermen's Terminal include: 
Freshwater moorage                             Docks for repairs and loading 
24/7 staffing and security                         Fine dining 
Restrooms and showers                          Family restaurants 
Power and water                                Retail shops 
Free parking                                   Storage facilities 
On-site marine haul-out and repair                 Office space 
Sewage and bilge pump-out facilities               The Nordby Conference Center 
Recent capital improvements included replacement of the south seawall and dredging of the west wall
to provide better access for customers. The Port is committed to supporting the fishing industry and to
meeting the changing needs of the North Pacific Fishing Fleet. 
A 2007 economic study indicated that Fishermen's Terminal contributes to: 
3,924 local jobs 
$404 million in wages and salaries 
$196 million in business revenue for the region 
More than $37 million in state and local taxes 
Fishermen's Terminal is part of the Harbor Services Department within the Real Estate Division and
operates with approximately 10 FTEs. The Department revenue streams are mandated by the
Commission-approved Tariff. The Tariff specifies what and how much to charge for various services 
provided by the Department. The Department expenditure cycle is managed through the annual
budgeting process and is monitored by management throughout the year. 
The main revenue source of the Department is moorage. Daily and monthly moorage charges are
based on moorage location, length of stay, vessel length, and the vessel's classification as either an
active fishing vessel, a commercial vessel, or a recreational vessel. In addition, approximately 39% of
the Department's revenue is generated by other sources including electricity, locker rentals, land
storage, and equipment rental. 


5 of 7

Internal Audit Report 
Fishermen's Terminal 
January 1, 2011 - April 30, 2013 
Financial Activity 
The Department's financial information is as follows: 
Fishing and Commercial Vessels Revenues and Expenses 
(Amounts in Thousands) 
Revenue and Expense             2010        2011         2012 
Revenue                $2,740  100%  $2,544  100%   $2,538  100% 
Berthage & Moorage             $1,752   64%   $1,554    61%   $1,542    61% 
Lockers                       $587   21%   $587    23%    $593    23%
Other Revenue                 $401   15%    $403    16%    $403    16% 
Expenses               $1,731  100%  $1,573  100%   $1,621  100% 
Salaries & Benefits                 $999    58%    $897    57%     $958    59% 
Utilities                               $488    28%     $488     31%      $497     31%
Other Expenses                 $244   14%    $188    12%     $166    10% 
Less: Depreciation               1,858         1,936          1,601
Net Income/(Loss)            ($849)       ($965)         ($683) 
Data Source: PeopleSoft 

Highlights and Accomplishments 
During the course of the audit, we observed the following Department highlights and
accomplishments. The Department: 
Implemented a requirement that customers provide proof of insurance for their vessel, in order 
to reduce the instances of derelict or dangerous vessels mooring at the harbor. 
Hosts the Fishermen's Fall Festival to benefit the Seattle Fishermen's Memorial. 
Manages and provides service to a diverse and frequently changing population of vessels
including fishing, commercial, and recreational vessels with varying needs. 
Received the Envirostar Clean Marina award from King County for the second time.
Fishermen's Terminal received a 5-star rating, which is the highest rating possible. 

Audit Scope and Methodology 
We reviewed information for the period January 1, 2011, through April 30, 2013. We utilized a riskbased
audit approach from planning to testing. We  gathered information through  review of
documents,  interviews, observations,  and analytical reviews, in order to obtain a complete 
understanding of Fishermen's Terminal operations. We assessed significant risks and identified
controls to mitigate those risks. We evaluated whether the controls were functioning as intended. 
We applied additional detailed audit procedures to areas with the highest likelihood of significant
negative impact as follows: 
6 of 7

Internal Audit Report 
Fishermen's Terminal 
January 1, 2011 - April 30, 2013 

1.  Inventory of Vessels 
We conducted an inventory of all vessels moored at Fishermen's Terminal on April 29, 2013. 
We compared this inventory to the boat check conducted by terminal staff for the same day to 
determine whether the boat check identifies all vessels at the terminal. 
2.  Billing Rates 
We traced all of the vessels on the boat check for the month of April 2013 to the Marina
Management System to determine whether all vessels were billed correctly for moorage
during the month. 
1.  Vessel Details 
We traced the vessel lengths recorded in the Marina Management System to the United
States Coast Guard database for a risk-based sample of 107 vessels moored at Fishermen's
Terminal during April 2013. 
2.  Tariff Rates 
We traced the moorage rates on the moorage tariff effective January 1, 2013, to the rate
codes in the Marina Management System, to determine whether customers are being charged
the appropriate rates. 
3.  Changes to Billing Rates 
We analyzed historical billing data in the Marina Management System, to determine whether
vessels had been charged different rates at different times during the period January 1, 2010, 
through April 30, 2013. For all vessels where multiple rates had been charged, we reviewed
the billing records to determine whether the rate changes were appropriate. 

Conclusion 
The Department's controls are adequate to provide reasonable assurance that moorage revenue is
accurate and complete in compliance with Department policies and procedures. Management has
implemented sufficient corrective action to address issues identified in prior audits. 




7 of 7