Internal Audit Report 

Comprehensive Operational Audit 
Port of Seattle Aviation Division  Noise Programs 


January 1, 2010 December 31, 2011 




Issue Date: March 6, 2012 
Report No. 2012-05

Internal Audit Report 
Noise Programs 
January 1, 2010  December 31, 2011 

Table of Contents 
Transmittal Letter ................................................................................................................................................................... 3 
Executive Summary ............................................................................................................................................................... 4 
Background.............................................................................................................................................................................. 5 
Highlights and Accomplishments ...................................................................................................................................... 6 
Audit Scope and Methodology ............................................................................................................................................ 6 
Conclusion ............................................................................................................................................................................... 7 
Appendix A ............................................................................................................................................................................... 8 















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Transmittal Letter 

Audit Committee 
Port of Seattle 
Seattle, Washington 

We have completed a comprehensive audit of the Aviation Noise Programs Department. 
We reviewed information relating to Aviation Noise Programs from January, 1 2010 to December 31,
2011.
We conducted this performance audit in accordance with generally accepted government auditing
standards. Those standards require that we plan and perform the audit to obtain sufficient,
appropriate evidence to provide a reasonable basis for our findings and conclusions based on our
audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings
and conclusions based on our audit objectives. 
We extend our appreciation to the Noise Programs staff for their assistance and cooperation during
the audit. 


Joyce Kirangi, CPA 
Director, Internal Audit Department 







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Executive Summary 
Audit Scope and Objective The purpose of the audit was to determine whether: 
1.  The monitoring on approved programs from the 2002 Part 150 Study is effective in the following 
specific areas: 
a. Expenditures by the Noise Programs department for residential and school insulation 
programs are appropriate and accurate. 
b. Processing of applications for residential insulation is efficient and timely. 
c. The current Part 150 Study professional services contract payments are in compliance with
the scope and deliverables. 
2.  The funds from the Port's tax levy contributed to the Aviation High School are effectively
monitored. 
We reviewed information for the period January, 1 2010 to December 31, 2011. 
Background  The Noise Programs is part of the Aviation Community Development group and
responsible  for a variety of noise programs at the Seattle-Tacoma International Airport. The
department consists of six FTEs with an average annual operating budget of over $ 1.3 million. 
The Port of Seattle has a number of airport noise programs that have been an on-going effort for
several decades. Most of the programs were developed from airport and community planning efforts,
including several federal Part 150 studies. 
The department manages the following two noise programs at Sea-Tac: 
1.  Noise Remedy 
The program provides sound insulation to significantly reduce the aircraft noise. 
2.  Noise Abatement 
The program reduces and manages aircraft noise through a variety of programs including,
in flight procedures, engine maintenance run-up rules. 

Audit Result Summary  Management has effective monitoring on selected programs from the
2002 Part 150 Study. We noted, however, that the funds from the Port's tax levy contributed to the
Aviation High School were not effectively monitored. This audit issue was also reported by the
Washington State Auditor's Office in its accountability report (Report No. 1007272, released Feb. 27,
2012). The issue was communicated to the Port Commission and Port Leadership, and Port
management has already responded to the audit finding.  Accordingly, we are not repeating the
description of the finding in this audit report. 
Port management has developed further more detailed oversight methodology as outlined  in
Appendix A. 

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Background 
The Aviation Division's Noise Programs in the Community Development is responsible for a variety of 
noise programs. The department consists of six FTEs with the following operating expenses: 
2010      2011 
Salaries and Benefits                $557,166    $579,536 
Outside Services                   740,353    420,425 
Telecommunications                19,833     15,957 
Travel & Other Employee Exps          10,154     15,051 
Others                         34,631      4,830 
Total Operating before Capital Charges  $1,362,137  $1,035,799 
Source: PeopleSoft 
The Port of Seattle has a number of airport noise reduction programs for neighbors of Seattle-Tacoma
International Airport that have been an on-going effort for several decades.  Most of the programs
were developed from airport and community planning efforts, including several federal Part 150
studies. Part 150 is a voluntary planning effort that enables the airport to use federal funds for noise
mitigation projects. 
The following are the significant department activities: 
Updated Part 150 Study 
The Part 150 Study is a technical and community involvement effort to evaluate overall airport noise
in order to determine the impacts on the community and evaluate potential mitigation programs,
including working with the communities on land use controls. The updated study began in 2009 and is
currently underway. 
Community Outreach is a requirement within FAA's Part 150 regulation. The goal of community
outreach for the study is to engage all local agencies and citizens to ensure that concerns and
suggestions are received and adequately considered as part of the study. 
Noise Remedy Program 
The Noise Remedy program provides sound insulation to significantly reduce the aircraft noise that
people hear within homes and schools that are located within the areas impacted from Sea-Tac
operations. The insulation program is relatively expensive with an average cost of $100,000 per
home. 
This program has been ongoing for many years and some 9,300 homes to date have been insulated. 
Noise Abatement Program 
Noise Abatement programs are aimed at reducing and managing aircraft noise through a variety of
programs including in flight procedures, engine maintenance run-up rules, Fly Quiet program, and
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noise and flight track monitoring. Noise Abatement programs have been developed through the Part 
150 process and through noise mediation and have been adopted by Port Commission Resolution. 
Complaint tracking and monitoring is part of the noise abatement program. The Noise Office manages 
a phone service and website for managing incoming complaints. 

Highlights and Accomplishments 
In 2010 and 2011, the Airport Noise Office successfully managed the Airport Noise and Community
Land Use Planning efforts through the formal FAA Part 150 process. Numerous outreach meetings
were held with the public and local elected officials to understand their concerns and allow
participants to provide input to the study.
Ongoing sound insulation projects continue to move forward with the funding for sound renovation at
building #9 at Highline Community College, sound reduction funding for the Highline School District,
and continued funding for single family home sound renovations. 
In 2010, the department implemented the Port's first Job Order Contracting (JOC) to improve
contracting methods. The Noise Office also responded to over 4,275 calls to the noise hotline during
2010 and 2011.
Noise abatement work continue forward over the past two years with the successful implementation of
a Fly Quiet program aimed at providing a positive incentive for airlines to reduce noise. The program
awards the top airlines each year who contribute the most to noise reduction.

Audit Scope and Methodology 
We reviewed information for the period 2010-2011. We utilized a risk-based audit approach from
planning to testing. We gathered information through interviews, observations and analytical reviews,
in order to obtain a complete understanding of the Noise Programs and tested the relevant controls. 
We applied additional detailed audit procedures to areas with the highest likelihood of significant
negative impact as follows: 
We randomly selected and reviewed ten disbursements by the Noise department related to
residential insulation from 2010-2011 to determine whether they were appropriate and
accurate. 
We reviewed all eight disbursements ($1.7 million) from 2010-2011 for the school insulation
program to determine whether they were appropriate and accurate. 
We reviewed a judgmental sample of 13 applications from 29 active applications for residential
insulation for efficiency and timeliness of processing. 

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We reviewed a judgmental sample ($490,000 or 48% of the total)           of professional service
contract payments for the current Part 150 Study from 2010-2011 for compliance with the 
contract requirements. 
We reviewed the current monitoring of contributions to the Aviation High School to determine 
whether it is sufficient and adequate. 

Conclusion 
Management has effective monitoring on selected programs from the 2002 Part 150 Study. We noted,
however, that the funds from the Port's tax levy contributed to the Aviation High School were not
effectively monitored. This audit issue was also reported by the Washington State Auditor's Office in
its accountability report (Report No. 1007272, released Feb. 27, 2012). The issue was communicated
to the Port Commission and Port Leadership, and Port management has already responded to the
audit finding. Accordingly, we are not repeating the description of the finding in this audit report. 
Port management has developed further more detailed oversight methodology as outlined in
Appendix A. 











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Appendix A 
Below is an image copy of the department's detailed oversight monitoring methodology. 

















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