INTERNAL AUDIT REPORT 
OPERATIONAL AUDIT 
EMPLOYEE PARKING  AIRPORT GARAGE 

November 1, 2015  October 31, 2017 

ISSUE DATE: March 9, 2018 
REPORT NO. 2017-25

Employee Parking Audit  Airport                        INTERNAL AUDIT 
Garage 
11/1/2015  10/31/2017 
TABLE OF CONTENTS 


EXECUTIVE SUMMARY ................................................................................................................................................. 3 
BACKGROUND .............................................................................................................................................................. 4 
AUDIT SCOPE AND METHODOLOGY ........................................................................................................................... 5 
SCHEDULE OF FINDINGS AND RECOMMENDATIONS............................................................................................... 7 
APPENDIX A  RISK RATINGS   ... 10 













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Employee Parking Audit  Airport                        INTERNAL AUDIT 
Garage 
11/1/2015  10/31/2017 
EXECUTIVE SUMMARY 
Internal Audit (IA) completed an audit of Employee Parking at the Seattle-Tacoma International Airport
(STIA) for the period November 2015 through October 2017. The audit was performed to evaluate
internal controls and compliance with Port Policy. 
Employee Parking encompasses parking for Port employees, contractors, consultants, and tenants (i.e.
Concessionaires). Revenue generated from Employee Parking was approximately $9.3 million in 2016
and increased to $9.6 million in 2017. 
In general, we concluded that management needs to evaluate processes and identify controls to reduce
the likelihood of exceptions. Because policy documents provide useful information and are the foundation
of an internal control environment, we recommend memorializing requirements into policy documentation. 
We identified one medium rated issue related to internal controls and one medium rated issue regarding
motorcycle parking. These issues are discussed in more detail on page(s) seven through nine of the
report. 
1) Processes related to Employee Parking at the STIA Garage do not always incorporate internal controls
to reduce the likelihood of errors and policy exceptions. Opportunities also exist to streamline
processes, thereby increasing efficiencies. 
2) A process for motorcycle parking needs to be developed and consistently enforced. 

We extend our appreciation to the management and staff of Landside Operations for their assistance and
cooperation during the audit. 


Glenn Fernandes, CPA 
Director, Internal Audit 

RESPONSIBLE MANAGEMENT TEAM 
Jeff Hoevett, Senior Manager Airport Operation Landside 
Michael Ehl, Director Airport Operations 
Lance Lyttle, Managing Director Aviation 



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Employee Parking Audit  Airport                        INTERNAL AUDIT 
Garage 
11/1/2015  10/31/2017 

BACKGROUND 

The Seattle-Tacoma International Airport (STIA) Parking Garage is owned and operated by the Port of
Seattle, a municipal corporation, organized under statutory authority of the State of Washington. The
garage is the largest parking facility in the region with more than 13,000 stalls. The garage offers General
parking and Terminal Direct parking. General parking is available on floors one through three and five
through eight. Terminal Direct parking is available on the fourth floor and provides direct access to the
main terminal via sky bridges at a slightly higher cost. 
In 2017, ParkingSoft was implemented replacing the Scheidt & Bachmann parking system. ParkingSoft
includes automated entrance and exit gates and processes prepaid tickets and credit cards. It also
monitors the available parking capacity. 
Landside Operations includes four business units: 
- Employee Parking 
- Public Parking 
- Ground Transportation 
- Airport Transit Operations 
Employee Parking encompasses parking for Port employees, contractors, consultants, and tenants (i.e.
Concessionaires). As of November 2017, a total of 2,671 parking access cards were issued. Revenue
generated from Employee Parking was approximately $9.3 million in 2016 and increased to $9.6 million in
2017. 
Landside's Public Parking business operates a facility with approximately 13,000 spaces and is a primary
contributor of non-aeronautical revenues. Public parking revenue was $70 million in 2016 and increased
to $75 million in 2017. The garage generates 2.1 million public parking transactions annually. 
The Ground Transportation operation oversees transportation service including taxi, airporters, and
technology network companies. In 2017, the business managed more than three million trips with
revenues of more than $15 million. 
Airport Transit Operations is responsible for transporting rental car customers between the Airport's main
terminal and the consolidated Rental Car Facility. This operation transported more than five million
customers in 2017. 




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Employee Parking Audit  Airport                        INTERNAL AUDIT 
Garage 
11/1/2015  10/31/2017 

AUDIT SCOPE AND METHODOLOGY 
We conducted this operational audit in accordance with Generally Accepted Government Auditing
Standards and the International Standards for the Professional Practice of Internal Auditing. 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. 
The period audited was November 1, 2015 through October 31, 2017. We utilized a risk-based audit
approach from planning to testing. We gathered information through interviews, observations, and
reviews of Department policies and procedures. Our audit included the following procedures: 
1)  Deactivation of Access Cards 
Performed testing procedures around 86 terminated Port employees to determine if parking cards
issued to these employees were deactivated and collected upon termination. 
Tested a sample of 10 contractors, eight consultants, and eight tenants whose contract or lease
had ended with the Port, to determine if the parking cards assigned to them had been deactivated
and collected. 
2)  Inactive Access Cards 
Tested a sample of 15 employees, 15 contractors/consultants and 15 tenants to determine if
inactive parking cards (cards not used within 30 consecutive days) were deactivated as stated in
the Port's Parking Policy. 
3)  Parking Policy Guidelines 
Tested a sample of 15 contractors/consultants and 15 tenants, to determine if they had parked
overnight for two or more consecutive nights by reviewing their daily parking activity during the
period January 1, 2017 through October 31, 2017. 
Tested a sample of 15 contractors/consultants to determine if the expiration date of the parking
cards assigned to these card holders were restricted to 12 months as stated in Port Policy. 
4)  Motorcycle Parking 
Toured the STIA Parking Facility, including the third floor non-designated motorcycle parking area,
employee parking lots, and toll plaza. 



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Employee Parking Audit  Airport                        INTERNAL AUDIT 
Garage 
11/1/2015  10/31/2017 
Compared the amount, if any, charged for motorcycle parking by contacting the following Airports: 
Los Angeles Internal Airport (LAX) 
Hollywood Burbank Airport (BUR) 
McCarran Internal Airport (LAS) 
Vancouver International Airport (YVR) 
George Bush Intercontinental Airport (IAH) 
San Francisco International Airport (SFO) 
Portland International Airport (PDX) 














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Employee Parking Audit  Airport                        INTERNAL AUDIT 
Garage 
11/1/2015  10/31/2017 
SCHEDULE OF FINDINGS AND RECOMMENDATIONS 
1) RATING: MEDIUM
Processes related to Employee Parking at the STIA Garage do not always incorporate
internal  controls  to  reduce  the  likelihood  of  errors  and  policy  exceptions.
Opportunities also exist to streamline processes thereby increasing efficiencies. 
In general, we identified opportunities for management to enhance processes to increase accuracy and
efficiency.  We  also  observed  that  management  oversight,  review,  and  approval,  is  generally  not
incorporated into processes. 
Below we provide three examples that illustrate opportunities to refine procedures: 
1)  Overnight or extended parking (vacation, training) is limited to Port employees. However, we
identified contractors, consultants and tenants who had parked at the Garage for an extended
period. Management indicated that monitoring to verify that this benefit is limited to employees, 
is not performed. We noted that: 
Two contractors out of a sample of 15 selected for testing, had parked their vehicles at the
Garage for more than two consecutive nights on multiple occasions. 
Three tenants out of a sample of 15 selected for testing, had parked their vehicles at the
Garage for more than two consecutive nights on multiple occasions. 
2)  Although not captured formally into Policy documents, management indicated that parking
cards for Contractors and Consultants are issued for a 12 month term. However, we identified
one contractor out of the 15 samples tested; whose parking card had an initial term of 36
months. 
3)  When an individual's employment with the Port has ended, parking cards are not always
deactivated. We identified seven individuals, out of a sample of 86, who no longer worked at
the Port, but whose parking cards were still active. Also, three contractors from a sample of
10 contractors, still had an active access card though their contract with the Port had ended. 
Recommendation: 
Management should evaluate the Parking Policies and revise them to include provisions that are current 
and relevant. 
Once Policy requirements have been established, internal controls including management review should
be implemented. 


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Employee Parking Audit  Airport                        INTERNAL AUDIT 
Garage 
11/1/2015  10/31/2017 
Management Response/Action Plan: 
1.  Complimentary  parking  cards  are  available  to  a  variety  of  Port  partners,  including  tenants,
contractors, and consultants.  The reporting system that indicates card presence is unable to
define how a card is being used.  We have restrictions on personal travel for consultants and
contractors. Access control system limitations make it difficult to monitor extended parking stays.
Since cards are assigned to vehicles as well as individuals, at times the vehicle presence (with
cards) exceeds 24 hours even though a person is not at the worksite. 
2.  Consultant and contractor parking privileges are requested by Port staff sponsors.  There is a
procedure in place wherein the Port staff member makes a formal request on behalf of the
consultant or contractor which includes details such as: 
a.  Company 
b.  Vehicle identification 
c.   Duration of contract or project 
Some consultants or contractors have defined projects that commit the Port for more than a 12-
month period.  As such, the Employee Parking team generally honors requests that exceed 12
months even with a preference for a shorter term. 
3.  Employee Parking has a process in place to deactivate cards after an employee's separation from
service. This process requires the Landside Customer Service Specialists to manually deactivate
the card. Operations identified five of the seven tested cards as being active, but not in use. The
two remaining cards had either been deactivated as required, or available to an active employee.
We acknowledge that this manual cancellation is prone to error and would benefit from additional
oversight. We will implement a Billing Specialist review over this process by March 31, 2018 to
reduce the likelihood of future errors. 







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Employee Parking Audit  Airport                        INTERNAL AUDIT 
Garage 
11/1/2015  10/31/2017 
2) RATING: MEDIUM
A process for motorcycle parking needs to be developed and consistently enforced. 
When approaching the airport, signage guiding motorcyclists to enter the garage does not exist. As a
result, not all motorcyclists enter the garage the same way. Some enter on the first floor, and pay $30,
while others bypass the gated entry and enter via Arrivals on the third floor, thus not paying a fee. During
the audit, we researched how other airports charge motorcyclists. What we found was some airports
charged a reduced fee, while others provided complimentary motorcycle parking. However,  free
motorcycle parking could be considered a violation of the Washington State Constitution and Federal
Regulations. 
Once in the garage, motorcyclists use two unofficial parking locations. These locations require the owner
to either drive their motorcycle over a curb, use a small asphalt ramp, or enter using access points
designed for individuals with luggage carts.  Additionally, motorcycles entering and exiting, at the south
end of the third floor, are at risk of accidents with TNC's, taxicabs and courtesy vehicles.  Although
unlikely, if an accident were to occur, the Port would most likely be liable for not providing an easily
accessible and official parking space. 
Establishing a sustainable and repeatable process is important as airport parking demand grows and
space becomes increasingly limited. 
Recommendation: 
Management should consider a reduced fee for motorcycle parking after assessing the impact on
revenue. Regardless of the decision, a consistent point of entry should be established. Most likely,
signage will need to be added when approaching the garage to guide motorcyclists to the correct point of
entry. 
Management should also consult with Risk Management. This consultation should evaluate the likelihood
and financial impact if an accident were to occur in an unofficial motorcycle parking area. 
Management Response/Action Plan: 
The recommendation of the Auditor is appreciated.  Current policy provides that public customers are
responsible to pay appropriate parking fees as indicated by entry, and exit signs, as well as the tariff
associated with the airport's parking facility.  Port Legal had previously provided an opinion that there is
no legal justification for complimentary public motorcycle parking. At issue is the area on the third floor of
the garage where access controls are lacking.  This area had been authorized for tenant and employee
motorcycle parking. It is assumed that these motorcycle parkers are included in other parking programs
(complimentary or fee-based) and have access to the parking garage. Management will consult with the
Port's Risk Department and review previous recommendations to register tenant motorcyclists in a more
formalized program by April 30, 2018. 

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Employee Parking Audit  Airport                        INTERNAL AUDIT 
Garage 
11/1/2015  10/31/2017 
APPENDIX A: RISK RATINGS 
Findings identified during the course of the audit are assigned a risk rating, as outlined in the table below. The
risk rating is based on the financial, operational, compliance or reputational impact the issue identified has on
the Port. Items deemed "Low Risk" will be considered "Exit Items" and will not be brought to the final report. 
Port Commission/
Rating         Financial         Internal Controls         Compliance           Public 
Management 
Large financial
impact                                    Noncompliance
High probability
with applicable                               Important 
Missing, or inadequate                         for external audit
Remiss in                                Federal, State,
HIGH                       key internal controls                       issues and/or
responsibilities                                   and Local Laws,                           Requires immediate
negative public
of being a                                    or Port Policies                               attention 
perception 
custodian of
public trust 
Partial controls            Inconsistent          Potential for      Relatively important 
compliance with      external audit
Moderate
MEDIUM                  Not adequate to identify    Federal, State,     issues and/or     May or may not
financial impact 
noncompliance or       and Local Laws,     negative public     require immediate
misappropriation timely      or Port Policies         perception            attention 
Generally
Internal controls in place                           Low probability
complies with
but not consistently                            for external audit
Federal, State and                       Lower significance 
Low financial       efficient or effective                             issues and/or
LOW/                                         Local Laws or Port
impact                                                        negative public
Exit Items                                                  Policies, but some                         May not require
Implementing/enhancing                         perception 
minor                          immediate attention 
controls could prevent
discrepancies
future problems 
exist 
Efficiency    An efficiency opportunity is where controls are functioning as intended; however, a modification would make
Opportunity                                        the process more efficient 






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