Internal Audit Report

Anton Airfood of Seattle, Inc.
Lease and Concession Compliance Audits

July 1, 2005 through June 30, 2008




Issue Date: May 5, 2009
Report No. 2009-05

Internal Audit 
Anton Airfood of Seattle, Inc. (Agreement No. 374)
Audit Period: July 1, 2005  June 30, 2008 

Table of Contents
Internal Auditor's Report ...................................................................................................... 3 
Executive Summary ............................................................................................................ 4 
Background ......................................................................................................................... 5 
Audit Objectives .................................................................................................................. 5 
Audit Scope ......................................................................................................................... 6 
Audit Approach .................................................................................................................... 6 
Conclusion ........................................................................................................................... 6 











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Internal Audit 
Anton Airfood of Seattle, Inc. (Agreement No. 374)
Audit Period: July 1, 2005  June 30, 2008 

Internal Auditor's Report
We audited the Lease and Concession Agreement between the Port of Seattle (Port) and Anton
Airfood of Seattle, Inc., for the period July 1, 2005 through June 30, 2008.   The purpose of the
audit was to determine whether the lessee properly reported gross revenue and that the provisions
of the lease and the concession agreement were adequately monitored by Port management. 
We conducted our audit using due professional care, and we planned and performed the audit to
obtain reasonable assurance as to whether the Port and the lessee had complied with the
provisions of the agreement.
The lessee materially complied with the terms of conditions of the agreement including, but not
limited to, the proper reporting of gross receipts and accurate/timely remittance of the concession
fees. Additionally Port management effectively monitored the agreement to ensure compliance.

We extend our appreciation to the management and staff of the Aviation Business Development
and Accounting Financial Reporting (AFR) for their assistance and cooperation during the audit.



Joyce Kirangi, CPA
Internal Audit Manger






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Internal Audit 
Anton Airfood of Seattle, Inc. (Agreement No. 374)
Audit Period: July 1, 2005  June 30, 2008 

Executive Summary
Audit Scope and Objective The purpose of our audit was to determine the level of compliance
with the provisions of the Anton Airfood of Seattle, Inc (Lessee) Lease and Concession Agreement
No. 374.  We examined the books and records of the Lessee in order to verify reported gross
receipts and concession fees paid from July 1, 2005 through June 30, 2008. We also evaluated
Port controls in order to determine whether lease and concession contract provisions were
adequately  monitored.  The  Aviation  Business  Development  Department  has  the  primary
responsibility for monitoring and implementing effective controls for the Anton Airfood lease
agreement.
Agreement Terms Lease and Concession Agreement No. 374 authorizes Anton Airfood of
Seattle, Inc. to operate a food and beverage concession at the Airport. In accordance with the
terms of the lease, the Lessee pays the Port eight percent (8%) of gross receipts for food and
beverage, alcohol beer & wine, as well as any other gross receipts from the concession.
Audit Result Summary The lessee materially complied with the terms of conditions of the
agreement including, proper reporting of gross receipts, and accurate/timely remittance of the
concession fees. Additionally Port management effectively monitored the agreement to ensure
compliance.









4

Internal Audit 
Anton Airfood of Seattle, Inc. (Agreement No. 374)
Audit Period: July 1, 2005  June 30, 2008 

Background
The Port's lease and concession agreement with Anton Airfood of Seattle, Inc. authorizes the
Lessee to operate an Anthony's branded restaurant pursuant to an agreement with Mad Anthony's
Inc. Mad Anthony's is a family owned restaurants located in the Puget Sound region.
In July of 2005, the Port of Seattle consented to the transfer of controlling interest in Anton Airfood
of Seattle, Inc. to Anton Airfood Investments, Inc.; a wholly owned subsidiary of Autogrill Group,
Inc.  The  Autogrill  Group  is  a  wholly  owned  subsidiary  of  Autogrill  Overseas  (SA).   Host
International, Inc. is another subsidiary of Autogrill Overseas, SA that operates a number of food
and beverage concessions at the Sea-Tac International Airport.
The food and beverage concession agreement with the Lessee stipulates that eight percent (8%)
of gross receipts are to be paid to the Port for food and beverage, alcohol beer & wine, as well as
any other gross revenue from the concession.  The agreement requires one-twelfth monthly
payments of a Minimum Annual Guarantee (MAG) due in advance by the first of each month.
The gross revenue information as reported by the Lessee to the Port for the respective lease years
under review is as follows:

Year Ended June 30     Amount
2006    $ 9,500,711 
2007     10,382,424 
2008     11,202,633 
Total                   $ 31,085,768 
Source: PeopleSoft and Anton Investments, Inc. reporting

Audit Objectives
We reviewed Lessee's accounting records in order to verify that the company had:
Properly reported its gross sales to the Port in accordance with the terms of the lease and
concession agreement.
Properly calculated and paid the appropriate concession fee due to the Port.
Paid its concession fee on time and in accordance with the terms of the agreement.
We also reviewed the effectiveness of the Port management's monitoring system over the lease
agreement.

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Internal Audit 
Anton Airfood of Seattle, Inc. (Agreement No. 374)
Audit Period: July 1, 2005  June 30, 2008 

Audit Scope
The scope of the audit covered the period of July 1, 2005 through June 30, 2008.

Audit Approach
To achieve our audit objectives, we performed the following procedures:
Obtained an understanding of the lease agreement and the significant compliance
requirements
Reviewed Port internal controls and monitoring activities over lease requirements
Obtained relevant financial data from the Lessee
Analyzed data (internal & external) to determine completeness & compliance
Conclusion
The lessee materially complied with the terms and conditions of the agreement including, the
proper reporting of gross receipts and accurate/timely remittance of the concession fees.
Additionally Port management effectively monitored the agreement to ensure compliance.










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