Internal Audit Briefing
Presented to the Port of Seattle
Audit Committee and Tay Yoshitani, CEO
Joyce Kirangi, CPA
Director, Internal Audits
November 3, 2009

Agenda
Audit Reports
Department Audits
Human Resources and Development (HRD)
Internal Audit 2009 Work Plan Status
Preliminary Discussion of Internal Audit 2010
Work Plan

HRD
Dept. Mission Statement
Human Resources & Development (HR&D)
engages and equips employees to achieve
exceptional results. We partner with others to
sustain the Port of Seattle as a vital, highperforming
organization.
Brief Introduction
HRD is a department of approx. 30 FTEs and has
an assortment of responsibilities including, but is
not limited to, hiring, benefits, compensation,
consulting, diversity, and training.

HRD
Audit Objective
To determine if HRD:
Performs a regular risk assessment to adequately
addresses risk
Effectively monitors and maintains Other Post-
Employment Benefit (OPEB) data
Effectively monitors Pier 69 Flex Passes
The audit covered the period from January 1, 2007
through December 31, 2008.

HRD
Financial Highlights
The department operates on an average annual
expense budget of approx. 3.5 million.
Below are expense highlights in thousands for a 2-
year period ending 2008.
Description           2007     2008
Salaries/Wages & Benefits    2,666    3,085
Metro/Ferry Pass                56       81
Registration/Tuition               124      115
Advertising                        93      118

HRD

Audit Findings
Clean Audit Report
Management Letter Items
Risk Assessment Process
OPEB Information
Flex Passes

2009 Internal Audit Work Plan Status
2009 Work Plan Status
Seaport audit projects have been intentionally put on hold due to ongoing
SAO Performance audit.
ERM and performance aspects were embedded into department audits
rather than as discrete reviews.
Furlough (10 working days per employee=525 hours ) was not part of
contingency in 2009 work plan.
Budgeted 1 FTE in 2009 has not been filled due to the Port hiring freeze
and nation-wide financial crisis.
Central Processing Systems
Audit Unit                             Completed       Ongoing     Remaining
Payroll                                             P
Accounts Payable                              P

2009 Internal Audit Work Plan Status
2009 Work Plan Status
Organizational Operations/Internal Control Reviews
Audit Unit                             Completed       Ongoing     Remaining
Seaport Security
P
Police Department                  P
HR&D                    P
Lease Management                         P
ICT                                       P
Airfield Security                        P

2009 Internal Audit Work Plan Status
2009 Work Plan Status
Lease and Concession Audits
Audit Unit                                   Completed   Ongoing    Remaining
Louis Dreyfus Corp
P
SSA TERMINALS LLC                            P
EAGLE MARINE SERVICES LTD                   P
HERTZ CORPORATION            P
AVIS RENT A CAR SYSTEM          P
BUDGET RENT A CAR             P
MAD ANTHONY'S INC PIER 66       P
MAD ANTHONY'S INC.              P

2009 Internal Audit Work Plan Status
2009 Work Plan Status
Lease and Concession Audits - continued
Audit Unit                                   Completed   Ongoing    Remaining
KIEWIT GENERAL JOINT                              P
VENTURE
CONCESSIONS INT'L INC.                              P
FIREWORKS                  P
BORDERS INC                          P
STONEPATH LOGISTICS INT'L                          P
SERVICES INC
ANTON AIRFOOD                P
CLEAR CHANNEL WORLDWIDE                      P

2009 Internal Audit Work Plan Status
2009 Work Plan Status
3rd Party Management
Audit Unit                                   Completed   Ongoing    Remaining
Wright Runstad & Co.
P
Requested Reviews
Audit Unit                                   Completed   Ongoing    Remaining
Office of Social Responsibility
P
Acquisition & Relocation
P
Other Limited Reviews
P

Preliminary Discussion of
2010 Internal Audit Work Plan
2010 A.R.A.P. Update
Refreshed Financial Data
Engaged and solicited management for input
Begun in-depth analysis of:
Relevant Financial Information (i.e., budget and actual)
Historical/Upcoming (to the extent known)
Organizational Changes
Emerging Issues
Prospective Management Input
In/External Recent Audit Issues ( including Corrective
Action Plan)

Preliminary Discussion of
2010 Internal Audit Work Plan
Internal Audit General Approach on Work Plan
Risk-Based
Internal Audit selects a theme, where possible, in
each audit category
In-Flight meal concession in 2007
Boating and Marina operations in 2008
Rent-A-Car on a 3-year cycle by ownership
Security related department audits in 2009
All remote cash collection locations  continuous

Preliminary Discussion of
2010 Internal Audit Work Plan
2010 Work Plan Considerations
Performance auditing
Departments or Port-wide programs
Enterprise Risk Management (ERM)
Continuing Coverage
Revenue Audits - Self-Reporting Lease and
Concession Agreements
Internal Controls, Accountability, and Compliance
Central Processing Common Systems
Follow-up on significant prior audit issues
Continuous Auditing and Monitoring