PORT OF SEATTLE 
MEMORANDUM 

COMMISSION AGENDA             Item No.      7c 
Date of Meeting     June 28, 2011 
DATE:    June 20, 2011 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    Tom Barnard, Research and Policy Analyst 
SUBJECT:  Review of the Work of Audit Committee 

SYNOPSIS:
The Port of Seattle Audit Committee is required to report to the Port of Seattle Commission
periodically to review its work and results. The period covered for this briefing is from January
2011 through June 2011. 
This review will cover the following activities: 
Internal Audit reports reviewed by the Audit Committee 
Other work reviewed by the Audit Committee 
Discussion on improvements to the work of the Audit Committee 
BACKGROUND: 
The Audit Committee was created to "represent the Commission and have review and oversight 
authority on matters relating to the Port's auditing process and procedures." Its main tasks are to: 
Review and recommend to the Commission the independent auditors to be selected to
audit the financial statements, the federal grant and Passenger Facilities Charge programs
of the Port of Seattle, and other audit services; 
Meet with independent auditors and financial management to review proposed audits for 
the current year and review such audits at their completion, including any
recommendations of the independent auditor; 
Review the adequacy and effectiveness of the accounting and financial controls of the
Port of Seattle, and recommend improvement of such internal controls or establish new
controls, assisted by the independent auditors, the Internal Audit Manager, and Port staff;
and

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
June 20, 2011 
Page 2 of 3 
Perform oversight over periodic independent performance audits to be conducted on the
Port of Seattle, and report the results of such audits to the Commission when completed. 
AUDIT COMMITTEE ACHIEVEMENTS FOR JANUARY - JUNE 2011: 
The Audit Committee reviewed eleven reports prepared by the Internal Audit Manager during 
the January-June 2011 period, which covers five meetings of the Audit Committee. These
include: 
Three lease audits of rental car companies at Sea-Tac Airport; 
Six operational audits including: 
o  Two limited audits of the Capital Improvement Program and Mobile/Smartphone
usage; 
o  Two comprehensive operational audits including Sea-Tac Airport Utilities and
Public Parking; 
o  A third-party operational audit of the Lost & Found Department at Sea-Tac
Airport; and 
o  A review of current practices - Port's Travel and Entertainment Expenses; 
An audit of overtime in the Aviation Division; and 
An update of the Airline Landing Fee program. 
In addition, the Audit Committee: 
Reviewed and approved the 2011 Internal Audit work plan; 
Reviewed the 2010 Comprehensive Annual Financial Review, and the associated
financial audits; and 
Reviewed the selection process and proposed for Commission approval the 2011-2015
contract for future financial audit work to be performed by Moss Adams. 
The Audit Committee also has spent considerable time reviewing possible changes to the
program and work of the Audit Committee. Although the existing Long-Range Goals and
Objectives document has provided some insight into the on-going mission of the Audit
Committee, this year it was felt there was a need to improve and further develop the work of the
Committee in a more comprehensive manner. Some issues the Audit Committee has discussed
so far include: 
A review of the risk analysis process conducted by the Internal Audit Department that is
used to develop the annual Internal Audit work plan;

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
June 20, 2011 
Page 3 of 3 
A review of audit typology, aimed at understanding better what type of auditing the
Internal Audit Department spends most of its resources on; 
Research on standards for Audit Committees in organizations like the Port as 
recommended by the Institute of Internal Auditors (IIA) and other auditing associations;
and 
Review and use of self-assessment tools Audit Committee members could use to assess
their own work. 
This work continues, and it may generate possible changes to the work of the Audit Committee,
including: 
The Audit Committee may request Commission approval in August for a particular
budget recommendation to be included in the 2012 budget to augment the current work of
the Internal Audit Department. 
Further changes to the Audit Committee Charter may be brought forward to bring the
Charter into compliance with IIA and governmental auditing standards, unless precluded
by the unique nature of the organization, at the recommendation of the Audit Committee.
Vickie Rawlins, the Port's Workplace Responsibility Officer, is briefing the Audit
Committee at its July meeting on the Port's "whistleblower" protection provision. 
The Audit Committee may request a quality control review of the Internal Audit
Department. Joyce Kirangi, Director of Internal Audit, is also actively considering
bringing in an outside firm for such a review. 
The Audit Committee may develop a method to insure that all basic financial information
provided to the Commission in briefings be provided to the public member of the Audit
Committee. This would include quarterly reports, budget materials as requested, and
other measures of financial performance.
Finally, the Audit Committee would come to an agreement on what kinds of auditing risk
and business risk it believes the Committee wishes itself and Internal Audit to focus on,
and incorporate the inclusion of these risks into a 2011-2013 Long-Range Goals and
Objectives Plan.
OTHER DOCUMENTS ASSOCIATED WITH THIS BRIEFING: 
None.