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

An audio of the meeting proceedings and meeting materials are available on the Port of
Seattle web site - 
http://www.portseattle.org/about/organization/commission/commission.shtml 
APPROVED MINUTES 
AUDIT COMMITTEE SECIAL MEETING JUNE 2, 2009 
The Port of Seattle Commission Audit Committee met in a special meeting at 9:30 a.m.,
Tuesday, June 2, 2009 in the Commission Chambers at Pier 69, 2711 Alaskan Way,
Seattle, WA. Committee members Creighton, Hara and Miller were present, as well as
Deputy CEO Linda Strout and Joyce Kirangi, Port Internal Audit Manager.
Commissioner Gael Tarleton was also in attendance. 
CALL TO ORDER 
The committee special meeting was called to order at 9:37 a.m. by Commissioner Lloyd
Hara. 
Approval of Minutes 
Motion for approval of the Minutes of April 14, 2009 and May 5, 2009  Creighton 
Motion carried by the following vote: 
In Favor: Creighton, Hara (2) 
Mr. Miller participates as a non-voting member of the Committee. 
Internal Audit Report of Louis Dreyfus Grain Terminal Lease 
Presentation documents: Computer slide presentation from Joyce Kirangi and report
titled, "Internal Audit Report  Louis Dreyfus, Corporation Lease Agreement No. 228" 
Presenters: Ms. Kirangi and Jack Hutchinson, Senior Internal Auditor 


June 2 SCM Audit Min



PORT COMMISSION MINUTES OF THE AUDIT COMMITTEE MEETING 
TUESDAY, JUNE 2, 2009                               P. 2 
Ms. Kirangi opened by saying that the Internal Audit Department would be presenting
three audit reports to be closed today, and that all would be very brief as there were few
issues to be discussed. 
Regarding the Louis Dreyfus Lease Audit, staff noted that the audit covered the period of
2006-2008 and pointed out that risk was not very high. The objective of this audit was to
determine whether 1) Louis Dreyfus is properly reporting in accordance with the lease
agreement, and 2) Port management has adequately monitored the agreement. 
Staff stated that recommendations for the Louis Dreyfus lease to include: (1) An audit
clause to adequately protect Port interest, and (2) A payment term to establish and
maximize cash flow. 
Responding to Commissioner Hara's question about the recommendations being included
immediately rather than at the current end of the lease, Mr. Hutchinson stated that the
intent was to incorporate the recommendations into the lease when it is renewed in
November. 
Commissioner Hara commented on the importance of including terms within the lease as
to when any payments are expected to be received (30 days, 15th of the month, etc.) 
Ms. Kirangi responded to comments from Mr. Miller about using information from the
USDA (United States Department of Agriculture) and whether there were any
discrepancies found in the shipping and delivery weights at the site noted by Louis
Dreyfus. Ms.Kirangi stated that she could provide more in-depth information to the
Committee. 
Internal Audit Report of World Trade Center Seattle Mgmt. Services Agreement 
Presentation documents: Computer slide presentation from Joyce Kirangi and report
titled, "Internal Audit Report - World Trade Center Seattle, Management Services
Agreement No. 677" 
Presenter: Ms. Kirangi 
Coverage period of the audit was noted as 2005 2007 for the World Trade Center
(WTC) Seattle management services agreement, which is managed by Columbia
Hospitality. Staff stated that the main focus of the audit was related to accurate revenue
reporting. Staff noted that the only issue of focus was related to the budget, and that they
could not find enough documentable information to show the Port had been notified of
budget variances.
Internal Audit Report of Seaport Security Department 
Presentation documents: Computer slide presentation from Joyce Kirangi and report
titled, "Internal Audit Report  Seaport Security Department" 

June 2 SCM Audit Min

PORT COMMISSION MINUTES OF THE AUDIT COMMITTEE MEETING 
TUESDAY, JUNE 2, 2009                               P. 3 

Presenter: Ms. Kirangi and Mr. Hutchinson 
Staff stated that this was a departmental audit for the period of January 2006 through
December 2008, and noted that it was a clean audit, with adequate and effective controls
to monitor its projects and assets. 
Mr. Miller commented on the importance of the audit committee to have clear
understanding of the audit coverage and internal control coverage of port security grants,
and not assume it is included in the single audit. Discussion followed about the need to
avoid duplicating efforts in staff audits and audits performed by Moss Adams. 
Staff spoke at a high level committee what port security grants cover, including cameras
and badging costs for employees. It was also noted that much of what is covered by the
grants is dictated by the US Coast Guard. 
Upcoming Items 
Staff commented that at the July Audit Committee meeting, there would be a presentation
from the Real Estate Division regarding the World Trade Center. 
Comments were also made regarding the upcoming audit by the State Auditor's Office
(SAO), which would begin soon. 
It was noted that this may be a good time to check in with the Internal Auditor's Office to
follow up on their upcoming work plan. 
10. ADJOURNMENT 
There being no further business, the meeting was adjourned at 10:40 a.m. 
(A digital recording of the meeting is available on the Port's website.) 

Lloyd Hara 
Commissioner 





June 2 SCM Audit Min