Internal Audit Presentation

Financial Stewardship                    Accountability                       Transparency
Port of Seattle Audit Committee
Internal Audit Update
Glenn Fernandes - Director, Internal Audit
June 11, 2020
Remote Meeting
1:00 PM  3:00 PM

Operational Excellence                    Governance

2020 Audit Plan Update  Guiding Principles
COVID-19 impact on Port businesses and resources
Internal Audit value proposition to respond to COVID-19 impact
Advisory (Consulting) Services where needed
Professional Standards  Advisory (Consulting) Services
Generally Accepted Government Auditing Standards (GAGAS)
International Professional Practices Framework (IPPF)


2

2020 Audit Plan  Proposed Modifications
Limited Contract Compliance                  Operational                       Information Technology
Lenlyn Limited1                                Equipment Acquisition, Monitoring &              Network Password Management
Concourse Concessions, LLS                   Disposal                                               Secure Configuration for Hardware and
McDonald's USA, LLC                         Ground Transportation  Taxi Cabs                   Software on Mobile Devices, Laptops,
Concessions Int'l, INC1                        Cash Controls                                           Workstations and Servers
Fireworks                                      Outside Services (Professional) 1                    T2 Airport Garage Parking System
Qdoba Restaurant Corporation              Interlocal Agreement Mapping                      Replacement1
E-Z Rent A Car                                 Delegation of Authority Compliance5               Inventory & Control of Software Assets
Capital                                                Biometrics4
Service Tunnel Renewal/Replace                    Malware Defenses (ICT)
Central Terminal Infrastructure Upgrade       ____________________________
North Terminal Utilities Upgrade  Phase          Payment Card Industry (PCI) - Qualified
11                                               Security Assessor2
AOA Perimeter Fence Line Standards               Criminal Justice Information Services
Compliance                                 (CJIS)3

1 Due to the COVID-19 Pandemic, these audits will be deferred to the 2021 Audit Plan.                            4. This is a focused analysis, not an audit, accordingly we will issue a Memo.
2 This work will be performed by an outside firm. Internal Audit will provide a summary report to the Audit Committee.        5. This is a contingency audit that was approved by the Audit Committee in December of 2019.
3 This work will be performed by the Washington State Patrol. Internal Audit will provide a summary report to the Audit Committee.

3

2020 AUDIT PLAN STATUS
Audit Title                                          Type               Jan   Feb  Mar  Apr  May  Jun   Jul   Aug  Sep  Oct  Nov  Dec
Cash Controls                                                       Operational
Equipment Acquisition, Monitoring and Disposal                       Operational
Network Password Management                                 IT
McDonald's USA, LLC                                                Contract Compliance
Service Tunnel Renewal/Replace Project                             Operational - Capital
Interlocal Agreement Mapping1                                      Operational
Qdoba Restaurant Corporation                                       Contract Compliance
E-Z Rent A Car                                                      Contract Compliance
Fireworks                                                         Contract Compliance
AOA Perimeter Fence Line Standards Compliance                      Operational - Capital
Secure Configuration for Hardware and Software on Mobile Devices,    IT
Laptops, Workstations and Servers
Concourse Concessions, LLS                                          Contract Compliance
Payment Card Industry (PCI)-Qualified Security Assessor               IT
Criminal Justice Information Services (CJIS)                            IT
Malware Defenses (ICT only)2                                        IT
Ground Transportation-Taxi Cabs                                     Operational
Delegation of Authority Compliance2                                 Operational
Biometrics Population                                               IT
Central Terminal Infrastructure Upgrade                              Operational - Capital
Inventory and Control of Software Assets                             IT
Outside Services (Professional)                                      Operational
North Terminal Utilities Upgrade-Phase 1                             Operational - Capital
Lenlyn Limited                                                      Contract Compliance
Concessions Int'l, INC                                                Contract Compliance
T2 Airport Garage Parking System Replacement                        IT

Complete
In Process
KEY
Not Started
Defer to 2021
Note 1: Advisory Services Project added per the Commission's request
Note 2: Contingency audit approved by the Audit Committee in December of 2019
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2021 Audits  Potential New Audits & Carryover Audits
BlackLimited Contract Compliance                Operational                    Information Technology
Lenlyn Limited1                         Outside Services (Professional)1              T2 Airport Garage Parking
Concessions Int'l, INC1                 Rent & Concession Deferral                    System Replacement1
Recovery2                              Malware Defenses (Aviation)1
Capitalization of Assets2

Capital
North Terminal Utilities Upgrade 
Phase 11


1 Audits deferred to 2021 from 2020 due to COVID-19 Pandemic.
2 Potential audits considered for 2021.

5

Open Issue Follow-Up Status  Aging Report as of June 10, 2020



*1 Two issues outstanding more than two years are:
Fishing & Commercial Operations  Manual Billing Process at Risk of Error  To be built in house - Vendor proposals did not support PCI/cloud based.
IT Disaster Recovery Capability (Security Sensitive)  Exempt from Public Disclosure per RCW 42.56.420  Issue Not Discussed in Public Session.
*2 Four IT issues do not have Target Dates and are not included in this chart. These issues are in the process of being addressed, however, three are 1-2 years
past the Report Date, and one is more than 2 years past the Report Date. .
See Appendix A for a detail listing of outstanding issues aging as of June 10, 2020
6

Audits Completed
1) Qdoba Restaurant Corporation
No issues noted (not discussed)



7

Appendix
A  Aging of Outstanding Issues as of June 10, 2020


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Appendix A  Aging of the Outstanding Issues as of June 10, 2020
Operational, Capital, Information Technology, and Limited Contract Compliance Audits
Months/Years                    Months/Years
Days Outstanding       Outstanding  Days Outstanding       Outstanding
Type                       Audit                      Description     Rating   Report Date      Target Date (from Report Date)  (from Report Date) (from Target Date)  (from Target Date)
Operational   Fishing & Commercial Operations   Manual Billing Process at Risk of Error      High    2/23/2018       3/31/2019            838   More than 2 years            437         1-2 years
IT            AVM/F&I Data Centers           Physical Access to Facilities      High    12/4/2018  No Date Supplied            554         1-2 years            N/A             N/A
IT            AVM/F&I Data Centers  Protection Against Environmental Factors      High    12/4/2018  No Date Supplied            554         1-2 years            N/A             N/A
IT                  Security of PII                  Security Sensitive      High    2/26/2019      12/31/2019            470         1-2 years            162       0-6 months
Operational            Marine Maintenance                    Fleet and Fuel      High    6/14/2019      12/31/2023            362       6-12 months           -1299          Not Due
Operational            Marine Maintenance                  Keys and Badges      High    6/14/2019      12/31/2023            362       6-12 months           -1299          Not Due
IT                 HIPAA Security                  Security Sensitive      High     9/4/2019       7/31/2020            280       6-12 months             -51          Not Due
IT                 HIPAA Security                  Security Sensitive      High     9/4/2019       7/31/2020            280       6-12 months             -51          Not Due
Operational          Airport Employee Access                  Security Sensitive      High     9/5/2019       6/30/2020            279       6-12 months             -20          Not Due
IT     Closed Network System Security                  Security Sensitive      High     9/5/2019      12/31/2019            279       6-12 months            162       0-6 months
Operational        Architecture & Engineering       Determine Fair and Reasonable      High    12/9/2019       6/30/2020            184       6-12 months             -20          Not Due
Operational        Architecture & Engineering       Management Review Over Max      High    12/9/2019       6/30/2020            184       6-12 months             -20          Not Due
Operational        Architecture & Engineering                 Contract Accuracy      High    12/9/2019       6/30/2020            184       6-12 months             -20          Not Due
IT      IT Disaster Recovery Capability                  Security Sensitive    Medium   11/29/2017  No Date Supplied            924   More than 2 years            N/A             N/A
IT            AVM/F&I Data Centers         Physical Facilities Management    Medium    12/4/2018  No Date Supplied            554         1-2 years            N/A             N/A
IT      IT Change Mgmt & Patch Mgmt                  Security Sensitive    Medium    12/4/2018       6/30/2019            554         1-2 years            346       6-12 months
IT                  Security of PII                  Security Sensitive    Medium    2/26/2019      12/31/2019            470         1-2 years            162       0-6 months
IT                  Security of PII                  Security Sensitive    Medium    2/26/2019       3/31/2020            470         1-2 years             71       0-6 months
Capital   Concourse D Hardstand Holdroom             Audit Clause Restriction    Medium      9/3/2019      12/31/2019            281       6-12 months            162       0-6 months
Capital   Concourse D Hardstand Holdroom           Designer Error & Omission    Medium      9/3/2019      12/31/2019            281       6-12 months            162       0-6 months
IT                 HIPAA Security                  Security Sensitive    Medium     9/4/2019       7/31/2020            280       6-12 months             -51          Not Due
IT                 HIPAA Security                  Security Sensitive    Medium     9/4/2019       7/31/2020            280       6-12 months             -51          Not Due
IT     Closed Network System Security                  Security Sensitive    Medium     9/5/2019       3/31/2020            279       6-12 months             71       0-6 months
IT     Closed Network System Security                  Security Sensitive    Medium     9/5/2019       3/31/2020            279       6-12 months             71       0-6 months
IT     Closed Network System Security                  Security Sensitive    Medium     9/5/2019       6/30/2020            279       6-12 months             -20          Not Due
IT     Closed Network System Security                  Security Sensitive    Medium     9/5/2019      12/31/2020            279       6-12 months            -204          Not Due
IT   Inventory and Control of HW Assets                  Security Sensitive    Medium   11/12/2019       6/30/2023            211       6-12 months           -1115          Not Due
Operational        Architecture & Engineering                     Governance    Medium    12/9/2019       6/30/2020            184       6-12 months             -20          Not Due
Operational   Equipment Monitoring & Disposal    Monitoring of Theft Sensitive Assets    Medium     3/11/2020        6/1/2020             91       0-6 months              9       0-6 months
IT     Network Password Management                  Security Sensitive    Medium    3/20/2020      12/31/2020             82       0-6 months            -204          Not Due
IT     Network Password Management                  Security Sensitive    Medium    3/20/2020       9/30/2020             82       0-6 months            -112          Not Due
IT     Network Password Management                  Security Sensitive    Medium    3/20/2020      12/31/2020             82       0-6 months            -204          Not Due
Operational                 Cash Controls   Seg. of Duties - Fish Term. & Shilshole    Medium    3/25/2020       6/30/2020             77       0-6 months             -20          Not Due
Operational                 Cash Controls     Procedures - Airport Lost and Found    Medium    3/25/2020       6/30/2020             77       0-6 months             -20          Not Due
Operational   Equipment Monitoring & Disposal             Asset Disposal Process       Low     3/11/2020       3/11/2020             91       0-6 months             91       0-6 months
IT     Network Password Management                  Security Sensitive       Low    3/20/2020      12/31/2020             82       0-6 months            -204          Not Due

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