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 DECEMBER 2, 2008 
The Port of Seattle Commission Audit Committee met in a special meeting at 9:00 a.m.,
Tuesday, December 2, 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 was 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. 
Approval of Minutes  None. 
Status Report on the Response to the 2007 TKW Audit 
Presenters: Lilyian Caswell-Isley, Manager, Office of Social Responsibility (OSR) and Ray
Rawe, Chief Engineer 
Ms. Caswell-Isley provided a document for review, titled "TKW Audit Report Summary"
and provided background on audit findings related to the Port"s Small Business Program
(items 12-21 within the report). Also provided was a copy of a printed version of current
information available on the Port"s website at the link to Social Responsibility. Ms. Caswell-
Isley noted that the majority of work related to the findings in the report would be completed
within the first quarter of 2009. 
Ms. Caswell-Isley pointed out items that would be ongoing into the future, and would not
necessarily be considered as "closed out." 
Ms Caswell-Isley confirmed to the Committee that all work moving forward with future
updates to Port Resolution No. 3506, regarding small businesses, is being done in
conjunction with both the Capital Development Division and the Central Procurement Office.
She also noted that the OSR is working closely with the legal department in this regard. 

Dec 2 SCM Audit Min

MINUTES OF AUDIT COMMITTEE MEETING 
TUESDAY, DECEMBER 2, 2008                         P. 2 

CEO Yoshitani responded to comments from Commissioner Hara regarding the commitment
for the Port in response to applicants who need to feel more a part of the system. He
commented that he believed the Port is being as aggressive as possible with the outreach of
the small business program. 
Commissioner Tarleton suggested that the "outreach" needs to show more people on the
small business roster who are actually getting jobs as a result. 
Mr. Yoshitani commented on a policy issue that would be presented within the next couple of
months regarding the promotion of utilizing small businesses. 
Commissioner Hara asked that staff return within 90 days to report on the first quarter results 
on progress of the Office of Social Responsibility. He also asked that staff be sure they have
adequate tracking methodologies of goals and targets. 
Commission Tarleton noted that she would like to see, within the revised resolution
regarding small businesses, language recommending an annual review by the audit
committee of the compliance and effectiveness of the different business units within the Port. 
Commissioner Hara asked that staff return within 90 days to provide information on progress
of items outstanding. 
Mr. Rawe then commented that he anticipated engineering items within the TKW audit
report would be closed out by either the end of the current year, or first quarter of 2009. He
also noted that he would be returning again in January, 2009 with further information. 
Internal Audit Work Plan for 2009 
Presenter: Joyce Kirangi, Internal Audit Manager 
Commissioner Hara noted that the upcoming work plan suggested there would be more of a
focus on performance audits. 
Ms. Kirangi commented that the internal audit work plan for the upcoming year was really a
work in process. She reviewed that there would be a risk assessment approachment and
methodology. Noted were 10 areas which she felt should be addressed, which included: 
Central Processing Systems 
Organizational or Department Reviews 
Revenue Audits (customers, tenants) 
Federal Assistance 
Third Management Contracts 
Performance 
Financial Reporting / General Ledger 
Enterprise Risk Management 

Dec 2 SCM Audit Min

MINUTES OF AUDIT COMMITTEE MEETING 
TUESDAY, DECEMBER 2, 2008                         P. 3 
Special Investigations or other requests 
Capital Improvement Program 
Following former recommendations from the committee as to which areas should be
reviewed in 2009, Ms. Kirangi suggested that accounts payable and payroll may be
appropriate. 
Commissioner Hara reiterated the fact that he does not want to see a duplication of efforts as
far as internal and external audits, not only at this point in time, but also into the future. 
Commissioner Tarleton stated that by mid-December more information should be available
for the full Commission regarding where the audit committee is headed. 
Ms. Kirangi and CEO Yoshitani responded to questions from Commissioner Tarleton
regarding how cruise lines in Port areas might be conducive to public and/or private
partnerships. 
ADJOURNMENT 
There being no further business, the meeting was adjourned at 10:44 a.m. 

Lloyd Hara 










Dec 2 SCM Audit Min