Internal Audit Briefing 

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

Joyce Kirangi, CPA 
Director, Internal Audit 
May 15, 2012

Agenda 
Audit Report 
1.  Lease and Concession Audits 
Bell Street Parking Garage and Pier 66 Parking Lot - Republic Parking Northwest, Inc. 
2.  Operational/Performance Audits 
Central Processing System 
None 
Comprehensive Operational Audit 
Risk Management 
Limited Operational Audit 
None 
3rd Party Audit 
None 
Briefing/Updates

Concession and Lease Audit 
Republic Parking Northwest, Inc. 

Background 
Republic Parking was founded in 1966 in Tennessee, and now has operations in North America
and Europe. The Northwest division is headquartered in Seattle and operates in Washington,
Idaho, and Hawaii. Republic has been managing both the Bell Street Garage and Pier 66 Parking
Lot since 1992. 
The terms of the agreement defines the concession as follows: 
Pier 66 Parking Lot - 90% of the gross parking revenues 
Bell Street Garage - 71% of gross parking revenues if the concession amount exceeds the
monthly rent of $65,000 
Below are financial highlights for the agreement year from June 2010 to May 2011: 
Location             Reported       Rent Payments      Concession Payments 
Revenue 
Bell Street Garage       $ 2,517,169           $ 880,152*            $ 907,039 
Pier 66 Parking Lot         $ 17,614                 n/a             $ 14,049 
Source: PeopleSoft 
* Includes payment of state Lease-Hold Tax of 12.84%.

Concession and Lease Audit 
Republic Parking Northwest, Inc. 

Audit Objectives 
The purpose of the audit was to determine whether : 
1.  Rent and gross sales were complete and paid within the contractual
timelines 
2.  Republic complied with insurance and surety requirements 
3.  Republic complied with lease requirements intended to mitigate
unrealized revenues 
The scope of the audit covered the period from June 1, 2010 through
May 31, 2011.

Concession and Lease Audit 
Republic Parking Northwest, Inc. 

Audit Result 
One Audit Finding 
1. Incomplete Reporting of Bell Street Garage Concession Revenues 
$2 online processing fee 
Cash over/short

Comprehensive Operational Audit 
Risk Management 

Background 
The Risk Management Department provides many services and performs many tasks: 1)
incident reporting, 2) claims management, 3) contractual risk analysis, 4) risk financing, 5)
insurance purchasing, 6) driver safety training, 7) enterprise risk management assessments
and 8) special event management. The Department also has a role in self-funding for
employee health benefits, fleet management as it pertains to driver safety, contractual
liability management with the Central Procurement Office, construction safety and
managing the federal mandated drug testing requirements for commercial driver license
holders. 
Below are financial highlights for the last three years: 
Description                           2010 Actual   2011 Actual   2012 Budget 
(as of Feb. 
2012) 
SALARIES & BENEFITS               $ 547,697   $ 522,392   $ 651,016 
OTHER OPERATING AND MAINTENANCE      $ 87,659    $ 22,139    $ 23,153 
Source: PeopleSoft

Comprehensive Operational Audit 
Risk Management 

Audit Objectives 
The purpose of the audit was to determine whether management has
implemented adequate controls to ensure: 
1.  Policies and procedures are followed and kept current 
2.  Performance measures are tracked 
3.  Receipts are properly accounted for 
The scope of the audit covered the period from January, 1 2010, through
December 31, 2011.

Comprehensive Operational Audit 
Risk Management 

Audit Result 
No Finding

Briefing/Updates 


IT and Performance Risk Assessment RFP 
Received 13 proposals 
Shortlisted 
ALGA Peer Review 
Tentatively scheduled for July 9 through 13.