Commissioners                                               Tay Yoshitani 
Chief Executive Officer 
John Creighton 
Chair and President 
Bill Bryant                                    P.O. Box 1209 
Patricia Davis                           Seattle, Washington 98111 
Lloyd Hara                             www. portseattle.org 
Gael Tarleton                              206.728.3000 

APPROVED MINUTES 
AUDIT COMMITTEE SPECIAL MEETING OCTOBER 7 2008 
The Port of Seattle Commission Audit Committee met in a special meeting at 9:00 a.m.,
Tuesday, October 7, 2008 in the Commission Chambers at Pier 69, 2711 Alaskan Way,
Seattle, WA. Commissioners Hara and Tarleton were present, as well as citizen committee
member Steve Miller. Also in attendance were CEO Tay Yoshitani and Joyce Kirangi, Port
Internal Audit Manager. 
CALL TO ORDER 
The committee special meeting was called to order at 9:01 a.m. by Commissioner Lloyd
Hara. 
Motion for approval of minutes for audit committee meeting of September 2, 2008 - 
Tarleton 
Motion carried by the following vote: 
In Favor: Hara, Tarleton (2) 
Follow-up Report on SAO Audit Recommendations 
Presenters: Joyce Kirangi, Port Internal Audit Manager and Jack Hutchinson, Senior Internal
Auditor 
Ms. Kirangi provided information on ways in which SAO recommendations were being
addressed by staff. The areas addressed included the following:
SAO Recommendation #2  Review of major recent and ongoing projects to identify
cases where engineers' estimates and contractors' proposed amounts are consistently the
same and, in such cases, undertake a further evaluation of underlying causes; followed by
remedial actions as appropriate. 
SAO Recommendation # 7  Review of change orders negotiated and approved under all
contracts to determine if there were incorrect mark-ups on change orders. 

Oct 7 2008 Audit Min


MINUTES OF AUDIT COMMITTEE SPECIAL MEETING 
TUESDAY, OCTOBER 7 2008                          P. 2 
SAO Recommendation #11  Evaluate all Port Construction Services contracts during the
past three years to determine where instances of lapping contractor invoices occurred and
take corrective actions as appropriate. 
SAO Recommendation #14  Initiate a review of all professional services agreement to
determine the full extent to which competition requirement have been circumvented and
take corrective actions as appropriate. 
SAO Recommendation #16  (a) Determine the extent to which costs in violation of
Federal grant requirements have been claimed for reimbursement and received from
Department of Transportation and other federal agencies, (b) notify applicable federal
grant officers of the violations, and (c) initiate corrective actions prescribed by federal
officials. 
SAO Recommendation #17  Review all professional services agreements to assure that
(a) such agreements comply with state law in terms of being for specific Port
requirements rather than being used as supplements of Port staffing, (b) the agreements
are being administered in strict conformity with contract provisions and requirements, (c)
the contracts contain defined labor category qualifications, and (d) contract files are
complete and maintained by Port employees rather than contractor personnel. 
SAO Performance Audit  Lessons Learned 
Presenter: Dakota Chamberlain, Director, Seaport Project Management 
A document was provided to the committee reflecting lessons learned by staff in their
response to the 2007 SAO audit. Mr. Chamberlain reviewed ideas which could be useful in
responding to future audits. 
Status Report on Response to 2007 TKW Audit 
Presenter: Ray Rawe, Chief Engineer, Engineering Services 
Mr. Rawe presented to the committee an update of issues from the 2007 TKW audit, noting
which items a considered closed, and which are still outstanding and in process of being
addressed. 
Moss Adams 2008 Engagement Service Plan 
Presenters: Laurie Tish and Lillian Mramba of Moss Adams 
Information was provided to the committee on the areas of focus for the 2008 Moss Adams
audit. 
ADJOURNMENT 
There being no further business, the meeting was adjourned at 11:10 a.m. 

Commissioner Lloyd Hara 

Oct 7 2008 SCM Audit Min