Internal Audit Briefing
Presented to the Port of Seattle
Audit Committee and Tay Yoshitani, CEO
Joyce Kirangi, CPA
Director, Internal Audit
January 11, 2011
Agenda
• Audit Report
• Performance audit
Aviation Over Time - Current Practices
• Lease and Concession Audits
• Rent-A-Car Audits
Dollar RAC
Fox RAC
• 2011 Work Plan Preliminary Discussion
• Internal Audit Risk Assessment Process Walk-Through
• Preliminary List of 2011 Audits
Aviation Division Overtime
Background
– A total of 27 separate work units in the division incurs overtime.
Aviation Division Overtime
Audit Objectives
The purpose was to determine whether the Division:
1) Provides adequate oversight to ensure discretionary overtime is driven by
operational necessity, as opposed to non-value added/low risk tasks.
2) Manages overtime results based on achievable, realistic estimates and/or
assumptions within established budgetary goals/targets.
3) Manages overtime hours with an emphasis on costs/benefits with an
awareness of risk-based alternatives.
Aviation Division Overtime
Audit Result
Clean Audit Report
Management Letter Item
Lease and Concession
Audits
Background
Dollar
Concession of 80% of the total amount paid to the Port in the
previous agreement year.
Fox
4% of the annual gross revenue over $480,000 which is to be
adjusted annually by the Consumer Price Index (CPI).
2007 2008 2009
Reported Gross $12,157,119$13,700,673 $15,371,427
Concession Paid $ 1,200,905 $ 1,428,315 $ 1,504,796
2008 2009
Reported Gross $ 6,603,567 $ 217,979
Concession Paid $ 5,976,073 $ 234,926
Lease and Concession
Audits
Audit Objectives
The purpose of the Lease and Concession audits was to determine whether:
1) Reported concession was complete, properly calculated and remitted timely
to the Port.
2) Port and the lessee complied with provisions of the Lease and Concession
Agreement.
3) Lease and Concession Agreement, as amended, complies with applicable
state and Port requirements.
4) Customer Facility Charges (CFC) were properly collected and remitted
timely to the Port.
Lease and Concession
Audits
Audit Result
Dollar
Underreported Gross Revenue
Untimely Payments
Fox
Underreported Gross Revenue
Underreported Customer Facility Charge (CFC)
Untimely Payments
Preliminary 2011 Work Plan
2011 Work Plan Status
• Internal Audit Risk Assessment Process Walk-Through
• Preliminary List of 2011 Audits
