INTERNAL AUDIT BRIEFING 
PRESENTED TO THE PORT OF
SEATTLE AUDIT COMMITTEE AND 
MR. TED FICK, CEO 
JOYCE KIRANGI, CPA, CGMA 
DIRECTOR, INTERNAL AUDIT 
THURSDAY, MAY 07, 2015

AGENDA          INTERNAL AUDIT 
Audit Report 
1.  Lease and Concession Audits 
Flying Food 
2.  Operational Audits 
Comprehensive Operational Audit/Departmental Audit 
Ground Transportation 
Survey and Mapping 
Limited Operational Audit 
None 
3.  Third-Party Audit 
None 
Briefing/Update 
None

LEASE AND CONCESSION AUDIT 
INTERNAL AUDIT 
FLYING FOOD 
BACKGROUND 
Flying Food Group, LLC, (FFG) was founded in Chicago in 1983, at which time it served one airline 
out of one kitchen at Midway Airport. Today, FFG produces over 100 million meals annually from 
its network of 18 US kitchens, which stretch from Honolulu to New York City. Customers include 
over 70 of the world's leading airline customersprimarily internationalplus key retail partners, 
including over 3,000 US Starbucks. 
The agreement with the Port of Seattle originated in 1988. It spans a term of 30 years. At the end 
of the lease term in 2018, there is provision for two, five-year options, at the Port's discretion.
The agreement requires a monthly concession payment of 7% of gross sales. 
FINANCIAL HIGHLIGHTS 
KEY FINANCIAL RESULTS FOR FLYING FOOD GROUP 
AGREEMENT YEAR          REPORTED GROSS SALES        CONCESSION PAID 
1
2011                          $ 12,670,003             $ 859,683 
2012                               13,056,391                 913,947 
2013                               12,776,481                 894,353 
TOTAL                          $ 38,502,875             $ 2,667,983 
Data Source: PeopleSoft Financials

LEASE AND CONCESSION AUDIT 
INTERNAL AUDIT 
FLYING FOOD 
AUDIT OBJECTIVES AND SCOPE 
The purpose of the audit was to determine whether: 
The reported concession fees were complete, properly calculated, and remitted timely to
the Port. 
The lessee complied with significant provisions of the Lease and Concession Agreement, as
amended. 
We reviewed information for the period January 1, 2011  December 31, 2013.

LEASE AND CONCESSION AUDIT 
INTERNAL AUDIT 
FLYING FOOD 
AUDIT RESULT 
The reported concession fees were materially complete, properly calculated, and remitted timely 
to the Port. The lessee materially complied with significant provisions of the Lease and Concession 
Agreement, as amended, except for failing to meet the required timeline for submission of the 
annual report. 
There was one reportable finding: 
1. Flying Food did not submit the annual report by the due date.

COMPREHENSIVE OPERATIONAL AUDIT 
INTERNAL AUDIT 
GROUND TRANSPORTATION 
BACKGROUND 
The Ground Transportation Department at Seattle-Tacoma International Airport is a department of 
15+ FTEs.  The Department is responsible for managing a variety of ground transportation 
operators consisting of taxis, limousines, courtesy vehicles, airporters, charter buses, shuttle 
buses, crew vans and parcel carriers. In 2014, there were some 2.4 million outbound trips from the 
airport to various destinations. The Department processed over $8 million in transportation fees 
(non-aeronautical revenue) in 2014. 
FINANCIAL HIGHLIGHTS 
Department Revenues - 2014 Actual 
Type            Revenue        Charge Method 
Taxi - Yellow Cab             $3,637,214  concession agreement 
Courtesy cars/vans; crew vans    2,437,657  per trip 
On-call limos                  943,112  concession agreement 
Pre-arranged limo              513,583  annual permit 
Shared ride van                227,108  per trip 
Charter bus                  179,261  per trip 
Airporters                    108,646  per trip 
Belled-in taxi                    56,212  annual permit 
Parcel carrier                   21,538  annual permit 
Other                      172,951 
TOTAL                 $ 8,297,282 
Data Source: PeopleSoft Financials

COMPREHENSIVE OPERATIONAL AUDIT 
INTERNAL AUDIT 
GROUND TRANSPORTATION 
AUDIT OBJECTIVES AND SCOPE 
The purpose audit was to determine whether management controls are adequate to ensure that: 
all applicable tariffs are accurately and completely recorded 
concession revenue is accurately and completely recorded. 
We reviewed information for the period January 1, 2013  December 31, 2014.

COMPREHENSIVE OPERATIONAL AUDIT 
INTERNAL AUDIT 
GROUND TRANSPORTATION 
AUDIT RESULT 
The Ground Transportation Department has adequate controls to ensure all applicable tariffs and 
concession revenue are accurately and completely recorded. 
No Reportable Findings.

COMPREHENSIVE OPERATIONAL AUDIT 
INTERNAL AUDIT 
SURVEY AND MAPPING 
BACKGROUND 
The Survey and Mapping Services Department is part of the Engineering Management Services 
group within the Port of Seattle's Capital Development Division. The Department provides survey 
services including construction layout, utility locates, lease line lay out, etc. to all Port divisions. 
The Survey and Mapping Services is a department of about 15 FTEs with an annual operating 
budget (before capital charges and transfers) of approximately $1.9 million. Almost all (~94%) of 
the department expenses are in salaries, wage, and benefits. The department has experienced a 
sharp increase in overtime activity in recent years as construction at the Aviation Division expands. 
It was, therefore, important to assess whether the department has established effective controls 
to handle the increased overtime activity. 
FINANCIAL HIGHLIGHTS 

Department Expenses Before Capital Charges and Transfers 
Account Description               2013          2014 
Salaries, Wages, and Benefits                    $ 1,478,322     $ 1,701,963 
Travel & Other Employee Expenses                   16,691        22,558 
Other                                      3,705         (622) 
Intra-department Allocations                       68,673        64,408 
TOTAL                               $ 1,567,391     $ 1,788,307 
Data Source: Data Source: PeopleSoft Financials

COMPREHENSIVE OPERATIONAL AUDIT 
INTERNAL AUDIT 
SURVEY AND MAPPING 
AUDIT OBJECTIVES AND SCOPE 
The purpose of the audit was to determine whether management controls are adequate to ensure: 
Non-regular payroll (2nd/3rd shift, and overtime) compensation is proper. 
Travel expenses are appropriate in compliance with the Port policy AC-1 and AC-2. 
We reviewed information for the period January 1, 2013  December 31, 2014.

COMPREHENSIVE OPERATIONAL AUDIT 
INTERNAL AUDIT 
SURVEY AND MAPPING 
AUDIT RESULT 
Management controls are not adequate to mitigate the risks related to non-regular hours and 
travel expenses. 
There was one reportable finding: 
1. The department controls for overtime and travel expenses are not adequate.