Port of Seattle

Internal Audit Report

Aviation Security Department

Department Audit

Audit Period January 1, 2007 through December 31, 2008

Issue Date: September 1, 2009

Report No.: 2009-13

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Internal Audit Report

Aviation Security Department (org. no. 3341)

Audit Period January 1, 2007 – December 31, 2008

Table of Contents

Internal Auditor’s Report .............................................................................................................................................. 3

Executive Summary ....................................................................................................................................................... 4

Background ...................................................................................................................................................................... 5

Audit Objective ................................................................................................................................................................ 5

Scope of the Audit .......................................................................................................................................................... 6

Audit Approach ............................................................................................................................................................... 6

Conclusion ....................................................................................................................................................................... 6

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Internal Audit Report

Aviation Security Department (org. no. 3341)

Audit Period January 1, 2007 – December 31, 2008

Internal Auditor’s Report

We have completed an audit of the Aviation Security Department (ASD). ASD Management has the

primary responsibility to establish and implement effective internal controls surrounding all non-TSA

secured areas encompassing the perimeter, cargo and passenger areas. The Department is also

responsible for the administration of the Security Violations Program.

The purpose of the audit was to identify and assess controls to determine whether:

1. P-card purchases are appropriate, and the reconciliation procedures are working as intended by

management.

2) Management oversight over procurement activities, pertaining to the temporary employment of

security guards and corresponding contract vendor requests, includes proper reviews and

approvals to ensure compliance with Port policies and procedures.

3) Aviation Security non-capitalized assets and equipment are properly accounted for, tracked and

monitored.

4) Overtime hours are tracked and recorded properly and comply with the Collective Bargaining

Agreement.

We reviewed information relating to fiscal years 2007 and 2008.

We conducted the audit using due professional care. The audit was planned and performed to obtain

reasonable assurance that department controls are adequate and operating effectively as intended in

the aforementioned areas.

Based on the audit procedures performed, the ASD has adequate and effective controls over P-card

purchases, procurement of temporary security guards, non-capitalized assets, and overtime.

We extend our appreciation to ASD Management and staff for their assistance and cooperation during

the audit.

Joyce Kirangi, CPA

Sr. Internal Audit Manager

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Internal Audit Report

Aviation Security Department (org. no. 3341)

Audit Period January 1, 2007 – December 31, 2008

Executive Summary

Audit Scope and Objective The purpose of the audit was to identify and assess the controls to

determine whether 1) P-card purchases are appropriate and the reconciliation procedures are working

as intended by management, 2) Management oversight over procurement activities, pertaining to the

temporary employment of security guards and corresponding contract vendor requests, includes proper

reviews and approvals to ensure compliance with Port policies and procedures, 3) Aviation Security

non-capitalized assets and equipment are properly accounted for, tracked and monitored, and 4)

Overtime hours are tracked and recorded properly and comply with the Collective Bargaining

Agreement.

We reviewed information relating to fiscal years 2007 and 2008.

Background Aviation Security Department (ASD) is a department with 62 employees to control

access to restricted/secure areas of the airport. The department utilizes an annual operating budget of

approximately $6 million to achieve the following goals and objectives:

• Provide a leadership role to assure the safe and continuous operation of the Airport.

• Provide a service that is vital in the exercise of civil authority.

• Maintain the safety of the public at all times.

• Sustain operations during an emergency.

• Comply with and enforce all regulatory security requirements.

Audit Result Summary Aviation Security Department has adequate and effective controls over P-

card purchases, procurement of temporary security guards, non-capitalized assets, and overtime.

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Internal Audit Report

Aviation Security Department (org. no. 3341)

Audit Period January 1, 2007 – December 31, 2008

Background

ASD has 62 labor-represented Security Specialists guided by a collective bargaining agreement with

the International Longshore and Warehouse Union Local No.9. The current agreement is effective

through July 31, 2010.

Aviation Security is staffed 24/7 with two regular teams of security professionals. However, when a staff

increase is necessary due to heightened security for a relatively short period of time, the department

relies on temporary security guards.

• TAC – 20 Terminal Access Controllers who are responsible for 15 cargo area inspections

including ID checks on the ramp, as well as entering the buildings of all who are beyond the

security demarcation line. They also verify that personnel are maintaining positive control of

the area, especially if the bay doors are open.

• SAC – 42 Senior Access Controllers who are responsible for controlling, monitoring, and

granting or denying access into restricted/secure areas of the Airport.

The Department goals and objectives include:

• Provide a leadership role that assures the safe and continuous operation of the Airport.

• Provide a service that is vital in the exercise of civil authority.

• Maintain the safety of the public at all times.

• Sustain operations during an emergency.

• Comply with and enforce all regulatory security requirements.

The department’s operating expense for a 3-year period ending 2009 is as follows:

(in 000s)

2007

2008

2009

Salaries and Benefits $4,741

$5,875

$5,520

Outside Services 1,765

Equipment 22

Supplies & Stock 43

Other 179

175

151

Total Operating Expense $6,750

$6,117

$5,740

Source: PeopleSoft

Audit Objective

The purpose of the audit was to identify and assess the controls to determine whether:

1. P-card purchases are appropriate, and the reconciliation procedures are working as intended by

management.

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Internal Audit Report

Aviation Security Department (org. no. 3341)

Audit Period January 1, 2007 – December 31, 2008

2) Management oversight over procurement activities, pertaining to the temporary employment of

security guards and corresponding contract vendor requests, includes proper reviews and

approvals to ensure compliance with Port policies and procedures.

3) Aviation Security non-capitalized assets and equipment are properly accounted for, tracked and

monitored.

4) Overtime hours are tracked and recorded properly and comply with the Collective Bargaining

Agreement.

Scope of the Audit

The scope of the audit covered the period January 1, 2007 through December 31, 2008.

Audit Approach

We performed the following audit procedures:

• We obtained an understanding of the department’s operations and its environment.

• We reviewed applicable state and local laws, rules, and regulations, as well as Port policies,

procedures, and guidelines.

• We obtained and analyzed financial data and other relevant information to assess risk.

• We reviewed and tested controls over P-card, procurement, non-capitalized assets, and

overtime to determine the effectiveness of implemented controls.

Conclusion

Aviation Security Department has adequate and effective controls over P-card purchases,

procurement of temporary security guards, non-capitalized assets, and overtime.