INTERNAL AUDIT 
EXTERNAL AUDITS 


EXTERNAL AUDITS 
1   State Auditor's Office Accountability Audit Entrance Meeting 
2   Health Insurance Portability and Accountability Act (HIPAA) Compliance
Audit -- Apgar & Associates

INTERNAL AUDIT 
UPDATES 


UPDATES 
1   2016 Flexible Workplan Status Update 
2   Management Update on Contract Administration

2016 FLEXIBLE WORK PLAN STATUS UPDATE
E - exited with the Committee
Status Legend:  P - Pending Exit w/AC          O - ongoing audit             NS - not started
INTERNAL AUDIT 
Audit Category             Audit                                                  Status Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec.
Lease and Concession Agreements  1 CLEAR CHANNEL WORLDWIDE                                   P
2 LOUIS DREYFUS CORP - PIER 86                                 O
3 AIRPORT MANAGEMENT SERVICES LLC (Hudson)                       O
4 MAD ANTHONY'S AT P 66 AND CHINOOK'S AT FISHERMEN's TERMINAL           E
5 CRUISE TERMINAL OF AMERICA                                 E
6 THE CLIPPER NAVIGATION INC.                                 E
7 THE MAREL SEATTLE                                       E
8 TERRI D'S CATERING DBA ACT-3                                 E
9 EAN LLC (Enterprise, Alamo and National RAC) - carried forward from 2015        E
10 FIREFLY CAR RENTAL - carried forward from 2015                       E
11 SEATAC RENTALS dba PAYLESS CAR RENTAL - carried forward from 2015          E
Comprehensive Operational      12 AIRPORT OPERATIONS - GROUND TRANSPORTATION                      E
13 AIRPORT SECURITY DEPARTMENT/CREDENTIAL CENTER                     E
14 POLICE DEPARTMENT                                         O
15 LANDSIDE EMPLOYEE PARKING                                   NS
3rd Party Management         16 AIRPORT CLUB INTERNATIONAL &                                O
17 CLUB CASCADE LOUNGE (VIP)                                    O
18 BELL HARBOR INTERNATIONAL CONFERENCE CENTER (P66 BHIC)               O
19 WORLD TRADE CENTER (WTC - S) P66 CLUB/RESTAURANT)                   O
Limited Operational           20 AIRPORT TERMINAL -- JANITORIAL SERVICES PROGRAM                      NS
21 CENTRALIZED INTERNATIONAL SUPPORT SERVICES PROGRAM                 O
22 CAPITAL PROGRAM - RECONSTRUCTION OF CENTER RUNWAY                 E
Information Technologies Projects  23 HIPAA COMPLIANCE - HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT    E
24 GENERAL CONTROL - END-POINT SECURITY                            P
25 IT ASSET MANAGEMENT/RADIO COMMUNICATION EQUIPMENT                NS
Consulting Services            1 TRANSPORTATION NETWORK COMPANIES (TNCs)                          E
2 FOLLOW-UP 2015 YELLOW CAB AUDIT                             E
3 SELECTION OF EXTERNAL FINANCIAL AUDITOR                         E
4 OTHERS                                              O
Percentage
Total # of audits  25   100%
# of Completion 14    56%
# of in progress  8    32%
# of not started  3    12%

INTERNAL AUDIT 
LEASE AND CONCESSION AGREEMENT AUDIT 
Clipper Navigation, Inc. 
BACKGROUND 
Clipper Navigation, Inc. (also known as Clipper Vacations) is a privately held company in Seattle,
Washington and offers transportation services, tours, and accommodation packages. The company
was established in 1986 and serves the Pacific Northwest and Western Canada. 
The Port of Seattle and Clipper Navigation, Inc., entered into a lease agreement dated April 24th,
2014 whereby Clipper Navigation, Inc. agreed to pay Base Rent to lease certain property located at
Pier 69. In addition to Base Rent, a per-passenger charge is paid to the Port of Seattle for every
embarking or dis-embarking passenger. 

FINANCIAL HIGHLIGHTS 
CLIPPER NAVIGATION RENT PAYMENTS 
YEAR                 AMOUNT 
MAY 1, 2014 - ARPIL 30, 2015          $ 277,269.95 
MAY 1, 2015 - ARPIL 30, 2016            277,269.95 
Data Source: PeopleSoft

INTERNAL AUDIT 
LEASE AND CONCESSION AGREEMENT AUDIT 
Clipper Navigation, Inc. 
AUDIT OBJECTIVES AND SCOPE 
The purpose of the audit was to: 
1. Evaluate the design and operating effectiveness of Port management monitoring controls. 
2. Determine compliance with the significant terms and conditions within the Lease
Agreement between Clipper Navigation, Inc. (Lessee) and the Port of Seattle. 
Specifically, we evaluated: 
Accuracy and timeliness of the billings and payments 
Rent surety 
Insurance 
We reviewed and analyzed records for the period May 1, 2014 through April 30, 2016.

INTERNAL AUDIT 
LEASE AND CONCESSION AGREEMENT AUDIT 
Clipper Navigation, Inc. 
AUDIT RESULT 
Based on the audit procedures performed, Clipper Navigation, Inc. materially complied with most
of the significant terms and conditions of the Lease Agreement.
We also concluded that internal controls are generally operating effectively. However, our testing
identified an opportunity to further strengthen controls related to rent surety (see Finding #1).

INTERNAL AUDIT 
LEASE AND CONCESSION AGREEMENT AUDIT 
Clipper Navigation, Inc. 
AUDIT RESULT  FINDING #1 
CONTROLS OVER RENT SURETY REQUIREMENTS ARE NOT ALWAYS OPERATING EFFECTIVELY 
When the new lease dated April 24, 2014 was signed, management evaluated the amount, but did
not obtain a letter of credit for the new lease, which created a lapse in coverage of approximately
29 months. An amendment, dated September 2016, was obtained to reinstate the letter of credit
after Internal Audit brought this issue to the attention of management during the audit.

INTERNAL AUDIT 
NEW BUSINESS 


NEW BUSINESS 
1   2017 Internal Audit Budget 
2   Request for Review of Audit Committee and Internal Audit Charters