Briefing Supp

INTERNAL AUDIT BRIEFING 
PRESENTED TO THE PORT OF SEATTLE
AUDIT COMMITTEE AND 
MR. TED FICK, CEO 
JOYCE KIRANGI, CPA, CGMA 
DIRECTOR, INTERNAL AUDIT 
TUESDAY, OCTOBER 21, 2014

AGENDA          INTERNAL AUDIT 
Audit Report 
1.  Lease and Concession Audits 
Anton Airfood (dba Anthony's at Sea-Tac) 
2.  Operational Audits 
Central Processing System 
General Ledger 
Comprehensive Operational Audit/Departmental Audit 
None 
Limited Operational Audit 
Customer Facility Charge (CFC) Compliance 
3. Third-Party Audit 
None 
Briefing/Update 
Capital Projects Audit Update 
2014 Work Plan Status Update & Risk Assessment for the 2015 Work Plan 
Proposed Internal Audit 2015 Budget

CENTRAL PROCESSING SYSTEM 
GENERAL LEDGER                            INTERNAL AUDIT 

BACKGROUND 
The General Ledger (G/L) is the core of the PeopleSoft Financial Management System. The PeopleSoft
subsystem applications, such as payables and receivables, create and post appropriate journals to the
General Ledger. From the G/L, the Port produces monthly detailed and summary accounting information
and annual financial reports.
The Port has used the PeopleSoft Financial Management System since 1997. The latest upgrade (Version
9.1) was implemented in September 2013. AFR is currently deploying system updates/bundles to all six
PeopleSoft Financial modules which also incorporate an upgrade to PeopleTools scheduled to be
completed by October 2014.

CENTRAL PROCESSING SYSTEM 
INTERNAL AUDIT 
GENERAL LEDGER 
AUDIT OBJECTIVES AND SCOPE 
The purpose of the audit was to determine whether management controls over the General Ledger
are adequate to ensure: 
Access to the general ledger is proper. 
Journal entries to the general ledger are proper and accurate. 
All journal entries are accounted for. 
We reviewed information for the period January 1, 2013  June 30, 2014.

CENTRAL PROCESSING SYSTEM 
INTERNAL AUDIT 
GENERAL LEDGER 
AUDIT RESULT 
Management controls over the general ledger are adequate to ensure access is proper, entries are 
proper and accurate, and all journal entries are accounted for. 
No Reportable Findings.

LIMITED OPERATIONAL AUDIT 
INTERNAL AUDIT 
CUSTOMER FACILITY CHARGE (CFC) COMPLIANCE 
BACKGROUND 
The Customer Facility Charge (CFC) is a user fee paid only by those renting cars at the airport. 
Rental car companies collect the CFC and remit revenue to the Port. The revenue is used to cover 
all rental car facility expenses including but not limited to busing operations and debt services. 
The Port has been collecting the CFC fee since 2006, and the current fee is $6 per day.                   Fiscal Year      Reported Gross Revenue  Paid Concession 
2010  2011               14,402,658      1,440,303 
The Port collects approximately $30 million annually and incurs roughly $26 million in operating and           2011  2012 *            4,995,787      518,657 
TOTAL                 19,398,445      1,958,960 
debt service expenditures. Any excess revenue is accumulated to finance future capital costs.                 Source: PeopleSoft 
*Ended 05/16/12 
FINANCIAL HIGHLIGHTS 
(in thousands)             2012   2013
Sources of Funds
CFC Collections           $30,016 $31,549
Interest Earnings             191    104
Uses of Funds
Debt Service             19,689  19,667
Operating Costs            6,146   6,363
Project Expenditures (capital)   17,122   2,512
Ending CFC Fund Balance     $12,634 $15,745
Data Source: Aviation Finance & Budget

LIMITED OPERATIONAL AUDIT 
CUSTOMER FACILITY CHARGE (CFC) COMPLIANCE            INTERNAL AUDIT 
AUDIT OBJECTIVES AND SCOPE 
The purpose of the audit was to determine whether: 
Management controls over operating costs are adequate to ensure compliance with applicable
Revised Code of Washington (RCW) 14.08.120 in the use of the CFC funds. 
We reviewed information for the period January 1, 2012  July 31, 2014.

LIMITED OPERATIONAL AUDIT 
CUSTOMER FACILITY CHARGE (CFC) COMPLIANCE            INTERNAL AUDIT 
AUDIT RESULT 
Port management has implemented adequate controls to ensure reasonable compliance with the 
use of Customer Facility Charge (CFC). 
No Reportable Findings.

BRIEFING/UPDATE                   INTERNAL AUDIT 

Capital Projects Audit Update 
2014 Work Plan Status Update & Risk Assessment for the 2015 Work Plan 
Proposed Internal Audit 2015 Budget

BRIEFING/UPDATE                   INTERNAL AUDIT 
Proposed Internal Audit 2015 Budget 
Overall Budget Highlights 
2013              2014              2015 
Amount     %      Amount     %      Amount     % 
Salaries/Wages and Benefits        1,167,551   85.81%     1,229,327   86.46%     1,269,748   86.83% 
Outside Services                 128,450    9.44%      129,950    9.14%      124,750    8.53% 
Travel, Training, and Other Emp
Expense                      45,550   3.35%       45,139   3.17%       51,479   3.52% 
Telecommunications              5,820   0.43%       5,880   0.41%       5,520   0.38% 
General Expense                 4,340   0.32%       3,950   0.28%       4,121   0.28% 
Equipment Expense               5,950   0.44%       4,560   0.32%       3,760   0.26% 
Supplies/Stock                    3,000    0.22%        3,000    0.21%        3,000    0.21% 
1,360,661  100.00%     1,421,806  100.00%     1,462,378  100.00%

BRIEFING/UPDATE                   INTERNAL AUDIT 
Proposed Internal Audit 2015 Budget 
Additional Items for the 2015 Budget 
Request Item            Committee             Management Approval 
Approval 
Senior Construction Auditor        Pending Discussion   Management has preliminarily approved $60,000
with the Committee   for consulting services. 
Request Amount: $102,708 
Contracted Services for Subject      Pending Discussion   Management has preliminarily approved the use
Matter Experts (SMEs)            with the Committee   of the Corp contingency funds for this purpose, as
needed. 
Request Amount: $100,000 
ACL Analytics Tool  Server Version    Pending Discussion   Management has preliminarily approved full
with the Committee   $15,000 
Request Amount: $15,000 
Peer Review by ALGA            Pending Discussion   Management has preliminarily approved full
with the Committee   $15,000 
Request Amount: $15,000

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