P.O. Box 1209 
Seattle, Washington 98111 
www.portseattle.org 
206.787.3000 
APPROVED MINUTES 
AUDIT COMMITTEE SPECIAL MEETING FEBRUARY 22, 2016 
The Port of Seattle Commission Audit Committee met in a special meeting Monday, February 22, 2016, in
the Commission Chambers at Pier 69, 2711 Alaskan Way, Seattle, Washington. Committee members
present included Commissioner Albro, Commissioner Creighton, and Christina Gehrke. Also present were 
Rudy Caluza, Director, Accounting & Financial Reporting; Joyce Kirangi, Internal Audit Department
Director; Lisa Lam, Assistant Director, Financial Reporting Review Services; Dan Chase, Senior Internal
Auditor; Margaret Songtantaruk, Senior Internal Auditor; Paul White, Commission Clerk; and Amy Dressler,
Assistant Commission Clerk. 
Call to Order: 
The committee special meeting was called to order at 3:30 p.m. by Commissioner Creighton. 
Approval of Audit Committee Meeting Minutes of January 6, 2016: 
The minutes of the Audit Committee special meeting of January 6, 2016, were approved. 
Update  External Audit Services Request for Qualifications: 
The Committee received a presentation from Ms. Lam and Mr. Caluza that contained the following
information: 
Proposals from external firms were reviewed and evaluated, and interviews with two firms were
conducted in mid-December. 
After one more evaluation round, a final firm will be selected. 
The  Audit Committee may be asked to approve the final selection at a future meeting, pending
review of the committee charter and past practice. 
Update  Required Annual Communications to the Audit Committee and Results of External Peer
Review: 
The Committee received a presentation from Ms. Kirangi that contained the following information: 
The Internal Audit department charter was examined and remains relevant. 
Communications regarding independence and quality assurance were delivered. 
In 2015, Internal Audit successfully passed their second external peer review. 


Audio recordings of meeting proceedings and meeting materials are available on the Port of Seattle web site: www.portseattle.org






PORT COMMISSION AUDIT COMMITTEE MEETING MINUTES         Page 2 of 3 
MONDAY, FEBRUARY 22, 2016 
Comprehensive Operational Audit  Office of the Port of Seattle Commission: 
The Committee received a presentation from Ms. Kirangi that included the following information: 
This audit covered the period of January 1, 2014 to September 30, 2015. 
The purpose of this audit was to determine that Commission offers and staff are provided adequate
training and information, that Commissioner's per diem and salaries are in compliance with legal
requirements, that transparency is maintained, and that expenses are valid, related to Port
business, and in compliance with Port guidelines. 
There were no reportable findings. 
Limited Operational Audit  Aviation and Marine Maintenance Inventory Program: 
The Committee received a presentation from Mr. Chase that included the following information: 
This audit covered the period of January 1, 2015-October 31, 2015. 
The purpose of this audit was to determine that the inventory process is effective with regards to
how stock items are created, quantity, timing, and nature of purchases, and disposal of obsolete
inventory. 
It was determined that identification and removal of obsolete inventory (defined as inventory that
has not been used in over 12 months) is not always accomplished efficiently. Further, processes
could be enhanced in order to more efficiently use existing inventory before new items are
purchased. 
There were no other reportable findings. 
Management response indicated that processes to catch redundant purchases are in place but are
not reflected in the audit. Additionally, some inventory is held longer because it is difficult and
costly to replace when needed (for example, some items are no longer made). 
The Audit Committee recommended a follow up on this item in 2017. 
Proposed Internal Audit 2016 Work Plan: 
The committee received a presentation from Ms. Kirangi and Ms. Songtantaruk that included the following
information: 
At the beginning of the work plan process, a risk assessment is performed based on the Internal
Audit department's institutional knowledge, discussions with Port leadership, analysis of data, and
prior audit history. The goal of the flexible work plan is to align audit strategies with overall Port
goals. 
Six types of auditable risk are examined during the risk assessment process: strategic/governance,
operational, accountability/transparency, reporting, information technology, and compliance. 
Risks are scored based using a matrix based on impact and likelihood. 
Lease and concessions audits are of particular concern because lessees are a large revenue
generator but are not managed directly by the Port. Over the years, audit attention has led to
clearer, more effectively managed concessions agreements.

PORT COMMISSION AUDIT COMMITTEE MEETING MINUTES         Page 3 of 3 
MONDAY, FEBRUARY 22, 2016 
A limited operational audit of Aviation Capital Programs is new this year, with attention paid to
major projects that are currently underway. Involvement at the inception of projects will help ensure
that construction costs are appropriate, and that governance requirements (such as disadvantaged
business enterprise involvement and apprenticeships) are being met. 
In response to concerns about whether the Internal Audit department is has staff capacity appropriate to
become involved in auditing capital programs, Ms. Kirangi stated that they believe the plan is feasible with
current staff but will report back to the committee if further resources become necessary. 
Internal Audit also plans to provide consulting services to other Port departments during the
upcoming year, with projects to include assisting Accounting & Financial Resources with the
selection of an external auditing firm, involvement from the outset with Transportation Network 
Company agreements at the airport, providing input as policy directives are developed as a result
of the new delegation of authority, and other projects as needs arise. 
In response to questions about Internal Audit staffing, Ms. Kirangi stated that the current number of
estimated hours is possible the current vacancy in the Audit Manager role, but they want to fill the position
as soon as possible. A schedule department audits and when they were last performed will be provided at
or before the next meeting. 
Regarding external consultants, Ms. Kirangi stated that the current IT consulting budget is sufficient, but 
they have brought in a consultant to guide the auditors in auditing major construction projects. It was
requested that a progress report be provided in August, detailing progress on the work plan and resources
required to complete it. 
The 2016 Internal Audit Work Plan was approved. 
Adjournment: 
There being no further business, the special meeting was adjourned 4:55 p.m. 
Tom Albro 
Minutes approved: May 9, 2016