Attachment 6 Survey Results for Audit Meeting held Nov 01, 2011 9:01am at Pier 69

6 Survey Results

PORT OF SEATTLE
MEMORANDUM
DATE: November 1, 2011
TO: Audit Committee
FROM: Joyce Kirangi, Internal Audit Director
SUBJECT: Risk Survey Among Key Port Leaders for Internal Audit 2012 Risk Assessment
Internal Audit conducts a variety of procedures to prepare its annual risk assessment. Included are a series
of interviews with key Port leaders across five divisions to obtain management perspectives on the current
business environment and to assess risk landscape in their respective responsibility areas and for the Port
as a whole. Specifically, the following two questions were posed to each interviewee:
1. What risk do you see in your area to which Internal Audit can add value through an independent
and objective review?
2. Considering the Port as a whole, what areas (e.g., systems, processes, departments, etc.) do you
see a risk of negative impact?

We began the interviews some 90 days ago and have recently completed the process. We have met with
the following key leaders:
Commissioner Creighton Colleen Wilson Linda Styrk
Commissioner Tarleton Joe McWilliams Peter Garlock
Tay Yoshitani, CEO Dave Soike Ralph Graves
Kurt Beckett, Chief of Staff Vickie Rawlins Rudy Caluza
Dan Thomas Gary Buchanan Mark Reis
Borgan Anderson Elizabeth Leavitt Wendy Reiter
Jeff Hollingsworth Mike Ehl Luis Navarro
Jim Schone Patricia Akiyama Deanna Zachrisson
James Jennings

The following are not all-inclusive but represent common areas of concern among interviewees. They are
not listed in any order of importance.
Compliance cost regarding CPO policies and procedures (efficiency)
Electronic Technician (ET) at Aviation Maintenance being a de facto second IT department
(efficiency)
Hiring practices in regard to minimum qualifications
Business continuity including succession planning to minimize "brain drain" and/or loss of
institutional memories due to staff turnover and retiring baby boomers
Use of service or PTO days following a separation announcement
3rd party management agreements
Accuracy and completeness of airline and lessee self-reported information, especially in regard to
revenue calculations
Consistency and enforcement of insurance and indemnity provisions in various contracts
Rightsizing ICT as it relates to FTEs and budget also cost effectiveness and efficiency as it relates
to ICT technology operation and delivery of service
New policy and/or process reviews (e.g., P-card, ERM, LEAN, etc.)
Cost allocations, including revenue diversion concerns from the airport
Commission Office Departmental Audit
Seaport Division air emission programs--compliance and monitoring of the programs
Performance audit of Port employees head counts -- ~1800 in 2012 budget

Survey Results September 2011 * = Port Authorities
Internal Audit Department
Organization and Types of Audits conducted
Question # 1. Does Question # 2.
your internal audit group Does your oganization
audit both the traditional have two separate and
organization internal distinct audit groups? One
Internal Audit Department controls and ALSO audit for the traditional internal Other Comments
lease and concession controls and another
contract compliance? group for lease and
concession audits?

Organization and Types of Audits conducted
Alaska Department of Transportation & Public We conduct all types of audits for the State DOT. We also
YES NO
Facilities audit highways, ferries, and public buildings.
We conduct both types of audits, athough we have one
Athens International Airport YES NO
employee who is kind of specialized in concession audits.
Our airport is owned by the City of Austin. The Austin Office of
the City Auditor audits the whole city departments. The City
Austin-Berstrom International Airport YES NO Aviation Division runs the airport and has auditors who conduct
concession audits, parking, IT, internal controls, and conduct
risk assessment.
We conduct Performance Audits, Compliance, Financial Audits,
and Operational Audits on all City departmenta. In addition, we
do Airport Concessions and Vendor Contracts Audits.
City of El Paso YES NO
Functionally, we report to the City Manager, and
Legistrativelyto the Internal Audit Committee (4 members of
City Council).
We have a team of 6 auditors and I audit manager assigned to
City of Phoenix - Sky Harbor International Airport YES NO the Airport. This team conducts both internal control audits and
airport lease and concession. We report to the City Manager.
CVG - Cincinnati/Northern Kentucky International We conduct both types of audits. We administratively report to
YES NO
Airport the CEO and functionally to the Audit Committee.
Our 15 auditors perform all types of audits - Financial,
Operational, Compliance, IT, Revenue, and Contract audits.
Dallas/Fort Worth International Airport YES NO
The department is indepent of management and reports to the
Board of Directors.
We conduct both internal controls and concession audits.
Denver International Airport YES NO
Internal controls is a newer audit activity for our group.
The airport facilities are owned by the City of Orlando, but the
Greater Orlando Aviation Authority YES NO airport itself is a special district (airport authority) and has a
sepate governing board.
Greater Rochester International Airport N/A N/A Our Internal Audit Function is outsourced.

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There are two separate and distinct audit groups - one for
Greater Toronto Airports Authority - Cananda NO YES internal controls and the other group for lease concession and
compliance.
Internal Audit conducts both types of audits - internal controls
Hartisfield - Jackson Atlanta International Airport YES NO and lease and concession. We also outsource some audits to
private CPA firms if needed.
Hillsborough County Aviation Authority, Tampa We are independent of management. We have passed two
YES NO
International Airport peer reviews in accordance with the Yellow Book.
Honolulu International Airport YES NO We perfom both audit functions
We perform both organization internal control audits and the
airport lease and concession arrangements. Internal Audit is
Jacksonville Aviation Authority YES NO
independent of management and reports to the Board of
Directors.
The County Internal Audit Function conducts
concession/lease/license audits and other county functions
John Wayne Airport - California YES NO and/or internal controls. The airport intenal audit functions
concentrates on construction auditing and providing consulting
services to PARCS/parking system
Lambert- St. Louis International Airport YES NO
Lee County Port Authority YES NO One of the auditor is assigned primarily at the airport.
Revenue auditors are under the Controller. They are
Los Angeles World Airports - Los Angeles responsible for auditing Airport Lease and Concessions. Our
International Airport, LA/Ontario International NO YES audit group reports to the Deputy Executive Director of
Airport, and Van Nuys Regional Airport) Administration. We make our audit presentation to the Audit
and Ethics Committee bi-monthly.
Louisville Regional Airport Authority YES NO
Performs both internal controls and lease and concession
Lusaka International Airport YES NO
audits.
We have a staff of 4 auditors, and we conduct all types of
audits - whatever needs to be done we do.
Maryland Aviation Administration - Baltimore YES NO Operational/organization audit reports are issued to the CEO,
and tenants/concession, and contractor audit reports are issued
to the related party.
Massachusetts Port Authority /Logan International We conduct both types of audits, including construction and
YES NO
Airport system audits.

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McCarran International Airport is part of the Clark County of
Nevada. The County has another audit group that audits the
rest of the County government, but all airport activities are
McCarran Internaltional Airport - Las Vegas YES NO audited by the airport auditors. The types of audits which
include contract compliance (lease/concession), and internal
control audits. We just recently added the internal control
audits.
We conduct both types of audits -- traditional internal controls
Metropolitan Washington Airports Authority YES NO and lease and concession audits. Internal Audit is independent
of management and reports to the Board of Directors.
Niagara Frontier Transportation Authority (NFTA) YES NO All auditors share in the types of audits that we do.
Our Audit Department is organized by major types of audits.
We have the following 8 divisions within Internal Audit.
Construction Audits, Coporate Audits, Information Systems &
Technology Audits, Mainytenance & Service Agreements
Audits, Operational Audits Percentage Agreements Audits,
NO. We have one Audit
Port Authority of New York & New Jersey Revenue Audits, and World Trade Audits. All auditors reveiw
YES Group with various work
(JFK, Newark, and LaGuardia airports etc.) internal controls applicable to their audits. However, the more
groups within it.
traditional agency-wide internal controls is conducted by the
Corporate Audits divsion. We are independent from
management. We report directly to the Port authority's
Inspector General and have a dotted line to the Audit
Committee. We average approx. 10-13 auditors per airport.
No. We have one Audit
Group. Some audit staff
Port of Oakland - Port Authority YES The Audit Department reports directly to the Board.
concentrate on lease and
concession audits
We conduct both types of audits. We also have a seaport that
Port of Portland - Port Authority YES NO
we audit as well. Audit staff conducts all types of audits.

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The authority is comprised of an airport, seaport, and real
Port of Seattle - Port Authority YES NO estate. Internal Audit Department reports to the Audit
Committee and administratively to the CEO.
We have one audit group that conducts both audits - process (
Raleigh-Durham Airport Authority YES NO internal controls) audits, and compliance audits that include
lease and concessions.
We conduct both types of audits, but one auditor is specialized
Reno-Tahoe Airport Authority YES NO
in auditing parking revenue.
For a long time, the focus of our audit function was contract
Salt Lake City Intenational Airport YES NO compliance, but we have transformed to internal controls, now
conducting both types of audits.
Our audit group performs audit of airport Internal Control
San Diego County Regional Airport Authority YES NO Processes, Leases & Concessions, Contract Payments, and
Construction Activitity.
San Antonio Airport System YES NO Our group performs both types of audits
We conduct both internal controls, and lease and concession
Spokane International Airport YES NO
audits.
Internal Audit is independent of management. We report to the
Tucson Airport Authority YES NO
Board through the Audit Council.
We conduct both internal controls and lease concession audits.
Wayne County Airport Authority (WCAA) in Detroit YES NO We also outsource some of our audits to private CPAs when
needed.
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