INTERNAL AUDIT REPORT
OPERATIONAL AUDIT 
CASH CONTROLS  SEA-TAC PARKING GARAGE








JANUARY 2018  AUGUST 2018 
INTERNAL AUDIT 
ISSUE DATE: SEPTEMBER 14, 2018 
REPORT NO. 2018-10



Cash Controls  Sea-Tac Parking Garage
January 2018  August 2018 
TABLE OF CONTENTS 

EXECUTIVE SUMMARY ................................................................................................................................................. 3 
BACKGROUND .............................................................................................................................................................. 4 
AUDIT SCOPE AND METHODOLOGY ........................................................................................................................... 5 
SCHEDULE OF FINDINGS AND RECOMMENDATIONS............................................................................................... 6 
APPENDIX A: RISK RATINGS ........................................................................................................................................ 7 














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Cash Controls  Sea-Tac Parking Garage
January 2018  August 2018 

EXECUTIVE SUMMARY 
Internal Audit performed an audit of Cash Handling controls at the Sea-Tac Parking Garage for the period
January 1, 2018 to August 15, 2018. The audit was performed to evaluate the efficiency and effectiveness
of the internal controls and related policies and procedures. 
We concluded; that in general, the Landside Operations staff is handling and accounting for parking cash
receipts appropriately. 
For the period January 1, 2018 through August 15, 2018, cash transactions totaled approximately $2 
million, which represent approximately four percent of total parking receipts of $54 million.  Cash is the
most liquid of assets and is susceptible to loss if not properly controlled. Therefore, it is extremely 
important to assure that strong internal controls are built around the cash process and that these controls
are functioning as intended. 
We identified opportunities, to further strengthen controls. The opportunities reflected below, are also 
discussed in more detail on page six of this audit report: 
Opportunities exist to enhance access controls to the cash counting room and to reduce the
amount of the $20,000 change fund. 
We extend our appreciation to Port management and the staff of Airport Operations for their assistance
and cooperation during this audit. 


Glenn Fernandes, CPA 
Director, Internal Audit 




RESPONSIBLE MANAGEMENT TEAM 
Lance Lyttle, Managing Director Aviation 
Mike Ehl, Director Airport Operations 
Jeff Hoevett, Sr. Manager Airport Operations 

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Cash Controls  Sea-Tac Parking Garage
January 2018  August 2018 
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. 
The toll booths are operated by 19 cashiers and 14 supervisors. Annually, the staff processes 2.1 million
public parking transactions, for which credit cards are most often used. As of August 15, 2018, the Port
collected parking cash receipts of $2 million. This represented about four percent of the total parking
receipts which were $54 million. The table below reflects the cash and credit card receipts for the current
and prior year: 
PARKING RECEIPTS  SEA-TAC PARKING GARAGE 

PERIOD                          CASH RECEIPTS    CREDIT CARD RECEIPTS      TOTAL PARKING RECEIPTS 
2018 (January 1  August 15)                $2,036,311                 $51,944,002                     $53,980,313 
2017 (January 1  December 31)             3,311,769                  77,862,735                      81,174,504 
TOTAL                                $5,348,080             $129,806,737                 $135,154,817 
*
Data Source: PeopleSoft Financials 
The focus of this audit was on the cash handling procedures at the STIA Garage. Cash handling
encompasses the controls and processes to account for and safeguard monies received in cash or check.
It also includes the change funds that the cashiers use to make change for customers who pay with cash
as well as petty cash funds, which are used for disbursing cash for small incidental expenses/refunds. To
minimize the risk of theft and fraud, it is essential that controls are in place. 
According to RCW 43.09.240; every public employee, whose duty is to collect or receive payments due or
for the use of the public, shall deposit such moneys collected or received once every 24 hours. 





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Cash Controls  Sea-Tac Parking Garage
January 2018  August 2018 
AUDIT SCOPE AND METHODOLOGY 

We conducted this 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 January 1, 2018 through August 15, 2018. We utilized a risk-based approach
from the planning phase to the testing phase of our audit. We gathered information through document
requests, research, interviews, observations, and analytical procedures. We assessed significant risks
and identified controls to mitigate those risks. Our audit included the following procedures: 
Cash Handling: 
Performed walk throughs to gain an understanding of cash handling procedures. 
Verified that access to cash drawers in the cash room was restricted. 
Obtained an understanding of how unreadable and lost tickets are processed. 
Gained an understanding of the parking validation process. 
Evaluated segregation of duties. 
Judgmentally selected 12 daily cash reconciliations to understand how variances were identified
and resolved. 
Evaluated the design and operating effectiveness of internal controls. 

Policies and Procedures: 
Reviewed the policies and procedures and verified they were being followed by cashiers and
supervisors. 
Verified policies and procedures agreed with industry best practices. 

Safeguarding Cash: 
Evaluated physical access to the safe. 
Observed the Loomis cash pick up process. 




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Cash Controls  Sea-Tac Parking Garage
January 2018  August 2018 
SCHEDULE OF FINDINGS AND RECOMMENDATIONS 
1) RATING: MEDIUM
Opportunities exist to enhance access controls to the cash counting room and to reduce the
amount of the $20,000 change fund. 
An access code is required to enter the cash counting room. The code has not been changed in over six
months nor is it changed on a recurring schedule. This poses a risk of unauthorized access entry. 
To establish a $300 daily fund balance for each of the approximately 20 cashiers for their cash registers,
a minimum of $6,000 is required. However, currently $20,000 is maintained as a change fund, which
appears excessive. Additionally, maintaining a high cash balance on hand also increases other risks. 

Recommendation: 
The code should be changed as soon as an employee no longer needs access. At a minimum, the code
should be changed at least once every three months to help prevent the code from being used by
unauthorized employees. 
Although more costly, consideration should be given to implementing a card reader for the cash room.
The benefits include the ability to track an individual's access in and out of the facility and to be able to
immediately remove access  when an employee transfers  between functions  or ends  his or her 
employment with the Port. 
Airport Operations should reduce the cash working fund to a more reasonable amount. 

Management Response/Action Plan: 
Counting Room Door: 
A work order was submitted and the door code was changed as of September 10, 2018. We have placed
a reminder on our calendars to have the code changed every three months. 
A work order has been submitted to have a card reader installed on the counting room door. 
Reducing the change fund: 
We will reduce the change fund by $4,000 and evaluate how this amount works with the operation. The
fund is used not only for daily cashier working funds but also used to exchange large bills, that cashier
have received throughout the day, into $1 & $5 bills. Those large bills are then exchanged by the bank
back into $1 & $5 bills. 
We'll continue to evaluate the appropriate change fund based on business activity. 


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Cash Controls  Sea-Tac Parking Garage
January 2018  August 2018 
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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