INTERNAL AUDIT BRIEFING 
PRESENTED TO THE PORT OF
SEATTLE AUDIT COMMITTEE AND 
MR. TED FICK, CEO 
JOYCE KIRANGI, CPA, CGMA 
DIRECTOR, INTERNAL AUDIT 
TUESDAY, AUGUST 11, 2015

AGENDA          INTERNAL AUDIT 
Audit Report 
1.  Information Technology 
PeopleSoft Post-Upgrade Implementation Audit 
Data Center Audit 
2.  Operational Audits 
Comprehensive Operational Audit/Departmental Audit 
None 
Limited Operational Audit 
Aviation Division Manual Receipting Operations 
Scrappage and Replacements for Air in Puget Sound (ScRAPS) Program 
3.  Lease and Concession Audits 
Sky Chefs 
4.  Third-Party Audit 
None 
New Business/Update

Information Technology Risk Map 
INTERNAL AUDIT 
Information Technology Control Environment 
General Controls mitigate risk associated with: 
P          IT operations, User management, change management 
r              application development, maintenance and upgrade 
Data Center Management 
o                                      Tier I Controls 
Business continuity (e.g., backup and recovery) 
c        Application Controls mitigate risk associated with : 
e          Input, processing and output of the application 
s
Risk that could be subject to additional controls 
s 
F      Non-IT Additional Management Controls 
l
Separation of Duties 
o       Reconciliations 
w        Reviews 
Tier II Controls 
Etc. 
Is this Acceptable Level of Residual Risk for the Organization??

LIMITED OPERATIONAL AUDIT 
INTERNAL AUDIT 
AVIATION DIVISION MANUAL RECEIPTING OPERATIONS 
BACKGROUND 
There are over 50 departments in the Aviation Division. We identified 38 departments with either 
known or possible receipting activity. For purposes of this audit, we define receipting activity as 
the following: 
Payments from customers (e.g., parking customers, airport tenants). 
Refunds from vendors (e.g., utility companies, equipment/tool suppliers). 
Payments from employees (e.g., payments for Port events, reimbursements of travel expenses). 
Payments from other organizations (e.g., reimbursements from other governments). 
FINANCIAL HIGHLIGHTS

LIMITED OPERATIONAL AUDIT 
INTERNAL AUDIT 
AVIATION DIVISION MANUAL RECEIPTING OPERATIONS 
AUDIT OBJECTIVES AND SCOPE 
The purpose of the audit was to determine whether Aviation Division management controls are
adequate to ensure: 
Manual receipts are complete. 
Complied with applicable legal requirements. 
We reviewed information for the period January 1, 2013  December 31, 2014, through the current
time.

LIMITED OPERATIONAL AUDIT 
INTERNAL AUDIT 
AVIATION DIVISION MANUAL RECEIPTING OPERATIONS 
AUDIT RESULT 
Management controls are adequate to ensure receipts are materially complete and in compliance 
with legal requirements that we deemed significant to the objectives of our audit. 
No Reportable Findings.

LIMITED OPERATIONAL AUDIT 
INTERNAL AUDIT 
ScRAPS 2 PROGRAMCLEAN AIR TRUCK REPLACEMENT 
BACKGROUND 
Included in the 2015 Audit Committee Annual Work Plan was a limited operational audit of the 
ScRAPS 2 Program  Clean Air Truck Replacement Program. The audit objective was to assess 
management controls to ensure accountability over program funds and compliance in achieving the 
desired program outcomes. 
After conducting our planning and assessing the risks of this program, we have decided to 
terminate the audit. We did not identify any significant risks, and further audit testing would add 
no value.

LEASE AND CONCESSION AUDIT 
INTERNAL AUDIT 
LSG Sky Chefs Inc. 
BACKGROUND 
LSG Sky Chefs, Inc. (Sky Chefs) is a subsidiary of LSG Lufthansa Service Holding AG and currently 
operates in 54 countries. Sky Chefs provides in-flight catering service, including the preparation 
and distribution of in-flight foods, beverages, and related services to domestic and overseas 
airlines at Seattle Tacoma International Airport 
The agreement requires two forms of payments from Sky Chefs: rent (Land and Building) and 
concession fees. Rent is computed based on square footage and is due monthly. Annual rent for 
Land is $169,611 and for the building is at $286,000. Concession fees are 7% of gross revenue for 
airline operations and 3.5% of gross revenue for non-airline operations. 
FINANCIAL HIGHLIGHTS 
KEY FINANCIAL RESULTS FOR LSG SKY CHEFS INC. 
AGREEMENT  REPORTED GROSS          CONCESSION
RENT 
YEAR       REVENUES                PAID 
2011-2012           $28,564,832     $455,611       $1,993,992 
2012-2013           34,362,522     455,611        2,399,376 
2013-20141           39,127,474     455,611        2,733,797 
TOTAL           $102,054,828   $1,366,832      $7,127,165 
Data Source: PeopleSoft Financials 
Data Note: 1 as of 02/28/2014

LEASE AND CONCESSION AUDIT 
INTERNAL AUDIT 
LSG Sky Chefs Inc. 
AUDIT OBJECTIVES AND SCOPE 
The purpose of the audit was to determine whether: 
The reported concession fees were complete, properly calculated, and remitted timely to
the Port. 
The Port and lessee complied with provisions of the Lease and Concession Agreement, as
amended. 
We reviewed information for the period March 1, 2011  February 28, 2014.

LEASE AND CONCESSION AUDIT 
INTERNAL AUDIT 
LSG Sky Chefs Inc. 
AUDIT RESULT 
The reported concession fees were complete, properly calculated, and remitted timely to the Port. 
Sky Chefs also complied with the provisions of the Lease and Concession Agreement that we 
deemed significant to the audit objectives. However, Lessee's response to audit requests was 
unreasonably untimely. 
There was one reportable finding: 
1. Sky Chefs did not provide audit response timely.