COMMISSION
AGENDA MEMORANDUM
BRIEFING ITEM
DATE:
January 14, 2025
TO:
Stephen P. Metruck, Executive Director
FROM:
Glenn Fernandes, Director, Internal Audit
Item No.
Date of Meeting
11a
Jan 14, 2025
SUBJECT: 2024 Internal Audit Annual Report
EXECUTIVE SUMMARY
The purpose of this memo is to brief the Commission and the public on audits performed in the
2024 calendar year. The 2024 Audit Plan was approved at the December 13, 2023, Audit
Committee meeting.
Internal Audit (IA) has completed 16 audits and identified 10 High Risk, 14 Medium Risk, and 3
Low Risk issues for management action. In addition, R.L. Townsend & Associates, an external,
independent auditor, who was engaged to audit General Contractor/Construction Manager
(GC/CM) construction projects, presented an Annual Audit Services Report at the December 5,
2024, Audit Committee meeting.
Implementation of the associated recommendations will strengthen internal controls, enhance
processes, and improve efficiencies. Internal Audit has a process in place where we periodically
follow up on recommendations and agreed upon management action plans to assure action is
taken. This process also relies on attestations from Management. Delinquent action plans are
periodically brought to the Audit Committee's attention.
BACKGROUND
On December 11, 2007, the Port of Seattle (Port) Commission passed a motion, which resulted
in the creation of an independent and objective Internal Audit function. The Internal Audit
Charter was last updated and approved by the Audit Committee, the Commission President,
and the Executive Director on October 5, 2020. No significant changes have warranted an
update since then.
The Audit Committee serves as an arm of the Port Commission. For 2024, Commissioner
Hasegawa chaired the Audit Committee, and Commissioner Calkins served as the other
commission member. Ms. Sarah Holmstrom, CPA, a Finance Leader for Amazon Advertising,
served as the external member of the Audit Committee.
Template revised April 12, 2018.
COMMISSION AGENDA - Briefing Item No. 11a
Meeting Date: January 14, 2025
Page 2 of 3
Internal Audit conducts audits and reviews of Port departments, programs, functions, systems,
contracts, and activities based on the department's approved audit plan. In discharging their
duty, the Internal Audit Director and his staff are accountable to the Audit Committee and to
the Executive Director.
LISTING OF 2024 INTERNAL AUDITS COMPLETED
Below is a list of audits completed by Internal Audit in 2024. These audits are categorized by
audit type.
Performance:
1) Time Approval Controls
2) Utility Management
3) Equity Policy Directive Compliance
4) Aqueous Film Forming Foam (AFFF) Transition
5) Partner in Employment
6) Delegation of Authority
Performance - Capital:
7) Concourse A Expansion for Lounges - Delta TRA
8) Parking Garage Modernization Project
9) TSE Phase 2 Bollard and ADA Ramps
10) Terminal 117 Sites 23-25 Restoration Project Closeout
Information Technology:
11) Application Software Security1
Limited Contract Compliance:
12) Pallino Seatac, LLC
13) 1915 KCHouse Concepts Seatac, LLC
14) Stellar Bambuza
15) Seattle Food Partners, LLC
16) Seatle Chocolate Company
1.
Security Sensitive - Exempt from public disclosure per RCW 42.56.420.
ATTACHMENTS TO THIS BRIEFING
(1) Presentation
Template revised September 22, 2016.
COMMISSION AGENDA - Briefing Item No. 11a
Meeting Date: January 14, 2025
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
February 13, 2024 - The Commission was briefed on 2023 completed audits.
January 24, 2023 - The Commission was briefed on 2022 completed audits.
December 9, 2021 - The Commission was briefed on 2021 completed audits.
December 8, 2020 - The Commission was briefed on 2020 completed audits.
December 10, 2019 - The Commission was briefed on 2019 completed audits.
Template revised September 22, 2016.
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