Internal Audit Briefing
Presented to the Port of Seattle
Audit Committee and Tay Yoshitani, CEO
Joyce Kirangi, CPA
Director, Internal Audit
September 7, 2010

Agenda
Audit Report
Functional Review of Port-Wide Marketing Activities
2010 Audit Work Plan - Progress Update

Functional Review of
Marketing Activities
Background
Marketing is defined for purposes of this audit as the processes and
activities involved in promoting facilities and/or services of the Port.
The financial analysis of the audit is limited to expenditures in
Advertising and Trade Business and Community Development.
Promotional Hosting was specifically excluded from the scope of this
audit because the State Auditor's Office (SAO) audits these
expenditures yearly. SAO has commended the Port's overall
processes and monitoring.

Functional Review of
Marketing Activities
Background (continued)
Over the years the Port has developed a decentralized approach to
marketing. The current marketing activities include the following work
units:
Commercial Strategy (formerly Seaport Container Marketing)
Air Service Development
Airport Concessions
Air Cargo
Public Affairs
Corporate Communications
Tourism Public Affairs
Public Affairs  Airport
Real Estate/Harbor Services Marketing
Cruise, Dock Operations and Industrial Properties
Social Responsibility

Functional Review of
Marketing Activities
Audit Objectives
1.To assess the adequacy of the structure and strategies of marketing
activities throughout the Port based on clear priorities, clarity of
purpose and alignment with Port-wide strategic plans.
2. To identify whether marketing is carried out by management in an
efficient and effective manner, and whether management practices
promote successful performance measurement.

Functional Review of
Marketing Activities
Audit Result
No Significant Issues - Clean Audit Report
Observations
Port-wide Marketing Strategy
Coordination Among Business and Corporate Work Units

2010 Audit Work Plan
Progress Update
2010 Audit Work Plan - Progress Update
Audit Committee Approved 2010 Audits
" 35 individual engagements
Completed
" 9 Completed
" 6 Wrap-up Stage

2010 Audit Work Plan
Progress Update
2010 Audit Work Plan - Progress Update
(continued)
In-Progress
" SeaTac Utility
" Fox Rent-A-Car
" DTAG (dbaThrifty)
" CMC INVESTMENTS INC (dba Dollars)
" AIRPORT MANAGEMENT SERVICES LLC
" GATE GOURMET INT'L
" Smarte Carte
" Landed Weight/Landing fees - all airlines
" SODEXHO AMERICA LLC
" Port Contracting Practices at Capital Development Division (CDD) - Post
SAO Audit/Effectiveness
" Travel and Entertainment (T&E) - economy/accountability
" Overtime - Port staff - all aviation depts.

2010 Audit Work Plan
Progress Update
2010 Audit Work Plan - Progress Update
(continued)
Remaining
" Public Parking
" REPUBLIC PARKING NORTHWEST INC
" Crane Rental (EAGLE MARINE, STEVEDORE SVCS, TOTAL
TERMINALS)
" Aviation/Marine Maintenance -- inventory (follow-up of a specific
finding)
" Ground Transportation - revenue completeness (follow-up of a
specific finding)
" ID Badging  receipting weaknesses (follow-up of a specific finding)
" Mobile Communication Device Procurement Practices and
Administration
" ABM contract (Aviation Main Terminal janitorial services) - effective
monitoring