Internal Audit Briefing 

Presented to the Port of Seattle 
Audit Committee and Tay Yoshitani, CEO 

Joyce Kirangi, CPA 
Director, Internal Audit 
August 7, 2012

Agenda 
Audit Report 
1.  Lease and Concession Audits 
National Rent-A-Car 
Alamo Rent-A-Car 
2.  Operational Audits 
Central Processing System 
None 
Comprehensive Operational Audit 
None 
Limited Operational Audit 
Procurement Card Administration 
3rd Party Audit 
None 
Briefing/Updates 
1.  2012 Work Status 
2.  Audit Services Requests by Management

Lease and Concession Audit 
National and Alamo Rent-A-Car 

Background 
National and Alamo are wholly owned by privately held Enterprise
Holdings, Inc. headquartered in St. Louis , MO. National and Alamo
maintain a local administrative office and operate from the
consolidated rental car facility. 
National            Alamo 
Reported Gross     Paid   Reported Gross    Paid
Fiscal Year         Revenue     Concession    Revenue     Concession 
2008  2009        26,953,984  4,055,120   23,765,153*  4,057,922*
2009  2010        29,592,351  2,959,235    24,124,032   2,412,403
2010  2011        32,466,920   3,246,692    22,419,994   2,379,554
$89,013,255  $10,261,047   $70,309,179  $8,849,879
* MAG is greater than concession for the Agreement Year

Lease and Concession Audit 
National and Alamo Rent-A-Car 

Audit Objectives 
The purpose of the audit was to determine compliance with: 
1.   The reported concession was complete, properly calculated, and
remitted timely to the Port. 
2.  The Port and the lessee complied with significant provisions of the
Lease and Concession Agreement, as amended. 
3.  Customer Facility Charges (CFC) were properly collected and remitted
timely to the Port. 
We reviewed information for the period November 2008, through October
2011.

Lease and Concession Audit 
National and Alamo Rent-A-Car 

Audit Result 
Finding 
o Clean Audit Report

Limited Operational Audit 
Procurement Card Administration 

Background 
As of April 1, 2011, the Port of Seattle introduced a new procurement card program and policy
(CPO-7) and substantially expanded the use of procurement cards throughout the Port. The new
program promotes repetitive, small dollar purchases, and cardholders are not restricted to
specific vendors. This new program is intended to provide a more efficient process and reduce
the costs of purchasing routine goods and services. 
As of February 2012, there were 142 active cards, and the total procurement card expenditures
for the period April 1, 2011, through February 29, 2012, were $5.2 million. 
Top Two Departments' P-card Expenditures Before and After CPO-7 
Procurement Card Expenditures      Procurement Card Expenditures 
April 30, 2009, thru March 31, 2011     April 1, 2011, thru February 29, 2012 
(23 months)                   (11 months) 
Before CPO-7                  After CPO-7 
Aviation
Maintenance.                   $1,080,189                $1,905,440 
Seaport
Maintenance                     392,429                  883,191 
Source: PeopleSoft

Limited Operational Audit 
Procurement Card Administration 
Background continued 
The top five P-card vendors and other vendors before and after CPO-7 are identified below,
with total P-card vendors increasing from 505 to 1,595. 
Procurement Card Expenditures                            Procurement Card Expenditures 
April 30, 2009, thru March 31, 2011                               April 1, 2011, thru February 29, 2012 
(23 months)                                          (11 months) 
Before CPO-7                                         After CPO-7 
XEROX CORP                   $589,499      15%  KEENEYS OFFICE SUPPLY,             $390,386         7% 
UNIFORM&CAREER APPAR
W W GRAINGER                   407,011      10%                             373,205         7% 
EL 
UNIFORM&CAREER APPAREL           385,936      10%  W W GRAINGER                   204,649        4% 
KEENEY'S OFFICE SUPPLY               333,291       9%   DELL                            129,114         3% 
UNITED REPROGRAPHICS              281,639       7%  BRATWEAR                       83,136         2% 
Others (about 500 vendors)              1,934,551       49%   Others (about 1,590 vendors)              4,108,340          77% 
Total       $3,931,927       100%                            Total     $5,288,830          100% 
The reduction in POs and the increase in P-card purchases have reduced accounts payable
processing costs. 
200
150
100
50
0
Source: PeopleSoft Apr May Jun  Jul  Aug Sep  Oct Nov Dec  Jan  Feb
2011 2011 2011 2011 2011 2011 2011 2011 2011 2012 2012

Limited Operational Audit 
Procurement Card Administration 

Audit Objectives 
The purpose of the audit was to determine whether: 
1.   The procurement card (P-card) program is efficient and effective 
2.  Management controls are adequate to ensure: 
Proper assignment and monitoring of roles and responsibilities 
Safe and secure distribution of P-cards 
Compliance with the requirements of CPO-7 
Rebate is accurate and maximized 
We reviewed information for the period April, 1 2011, through February 29,
2012.

Limited Operational Audit 
Procurement Card Administration 

Audit Result 
Improvement Opportunity 
The Current Guidance Of CPO-7 Could Be Improved To Optimize the Use Of The
Procurement Card, While Continuing To Manage Risks To The Port.

Briefing/Updates 


2012 Work Plan Status 
Audit Services Request by Management Not Part of the
Department's 2012 Work Plan 
Two Requests 
Doug Fox Parking  lease audit 
Review/Consult Airport Public Parking Control Processes