Internal Audit Briefing 
Presented to the Port of Seattle 
Audit Committee and Tay Yoshitani, CEO 
Joyce Kirangi, CPA 
Director, Internal Audit 
December 06, 2011

Agenda 
Audit Report 
1.  Lease and Concession Audits 
None 
2.  Operational Audits 
Central Processing System 
None 
Comprehensive Operational Audit 
Airfield Operations 
Limited Operational Audit 
None 
3rd Party Audit 
None 
Peer Review 
2011 Work Plan Status Update 
2012 Proposed Internal Work Plan 
Preliminary Scope Discussion for IT Risk Assessment and Performance Audit

Comprehensive Operational Audit- 
Airfield Operations 
Background 
The Airfield Operations Department has 24 employees with an annual operating 
budget of $3.5 million (exclusive of depreciation expenses). The Department is 
responsible  for  ensuring  continuing  compliance  with  the  Federal  Aviation 
Administration  (FAA)  regulations  for  airfield  operations,  operating  certification, 
training  and  wildlife  management.  Additionally,  the  Department  oversees  the 
Airport Communications Center, and has taken the lead in implementing one of the 
nation's first Safety Management Systems at Seattle-Tacoma International Airport 
(STIA). 
The Department accounts for all airfield revenues, including landing fees, gate fees 
and parking fees for all aircraft, in accordance with the fee schedule under Port 
Tariff No. 1. During the period under audit, the Department collected at an average 
of $62 million annually. 



Source: PeopleSoft

Comprehensive Operational Audit- 
Airfield Operations 
Audit Objectives 
The purpose of the audit was to determine whether management has implemented
adequate controls to ensure: 
1.Revenue generated by the Airfield Operations Department is complete and
accurate 
2.Professional services contracts are in compliance with requirements 
3.Small and attractive items are properly safeguarded 
4.Benchmarks are available and can be used to help improve airport operations 
We reviewed information for the period of January 1, 2008, through December 31,
2010, including activity through the end of fieldwork in November 2011.

Comprehensive Operational Audit- 
Airfield Operations 
Audit Result 
Clean Audit Report

2011 Work Plan Status Update 

2011 Work Plan Status 
audit progress attached

Preliminary 2012 Work Plan Discussion 

Risk-Based Internal Audit Steps 
Understand Port businesses and objectives 
Discuss Port risks with Port leadership and Commissioners (see attached) 
Identify potential Port wide risks 
Link the risk to specific Port objectives that could be disrupted/impaired 
Determine and set the scale to be used in the risk assessment 
Assess and rank risk factors/drivers 
2012 project selection based on risk ranking

Preliminary 2012 Work Plan Discussion 
Risk-Based Internal Audit Universe 
Strategic/                          Accountability/ 
IT              Operational   Compliance                Reporting
Governance                    Transparency
Risk               Risk        Risk                    Risk 
Risk                             Risk 
Business Units/Departments                               X         X          X          X 

Lease and Concession                                   X 
Central Key Processing Systems                   X                    X 
3RD Party Mgmt.                                       X         X          X 
Federal Assistance                                        X                      X 
Financial Reporting                              X          X           X          X 
Capital Improvement Program                     X         X          X          X 
Commission Directives/Policies           X                                           X 
Information Technology (IT)      X 
Non-audit Services                              X         X           X

Preliminary 2012 Work Plan Discussion 
Preliminary 2012 Audits by Type 
Audit Type            Count      % 
Lease and Concession                          14     44% 
Limited Operational Audit 
8      25% 
Business Units/Departments            6     19% 
3RD Party Management 
3       9% 
Central Key Processing System           1      3%

Preliminary Scope Discussion 
for IT Risk Assessment and 
Performance Audit 
Preliminary Scope attached