Internal Audit Briefing
Presented to the Port of Seattle
Audit Committee and Tay Yoshitani, CEO
Joyce Kirangi, CPA
Director, Internal Audit
July 11, 2011
Agenda
• Audit Report
• Comprehensive Operational Audit
Airport Office Building (AOB)
• Third-Party Arrangements Operational Audit
None
• Limited Operational Audit
None
• Concession and Lease Audit
Shilshole Bay Fuel Dock
• Questions from Prior Committee Meetings
Comprehensive Operational Audit
Airport Office Building (AOB)
Background
The Airport Office Building (AOB) was first occupied in 2004. The Airport
Office Building Department consists of six staff: a manager, two central
load dock employees and three Conference Center staff. Due to low
internal utilization, the Conference Center has been transformed into a
revenue generating activity since 2005.
The department revenues and expenses for the last two calendar years
are as follows:
Source: PeopleSoft
2009 2010
Operating Revenues $ 126,086 $ 154,351
Operating and Maintenance Exp. $ 599,593 $ 956,283
Comprehensive Operational Audit
Airport Office Building (AOB)
Audit Objectives
The purpose of the audit was to determine whether management has
implemented adequate controls to ensure:
•Revenue generated by the Conference Center is complete and accurate
•Expenditures (including payroll) are authorized and valid
•Compliance with contract requirements
•Compliance with applicable laws
•Operational effectiveness
We reviewed information relating to the period January 1, 2008, through
December 31, 2010, including activity through the end of fieldwork in June
2011.
Comprehensive Operational Audit
Airport Office Building (AOB)
Audit Result
Clean Audit Report
Concession and Lease Audit
Shilshole Bay Fuel Dock
Background
The Shilshole Bay Fuel Dock provides fuel filling services for moorage
customers and the public at Shilshole Bay Marina. The current
agreement was signed in December 2006 and amended/extended in
December 2009 through November 30, 2011.
For the audit period, the aggregate number of gallons pumped and
resulting flowage fees were as follows:
Flow Fee Reporting Period Number of
Gallons
Fees Paid
May 2010 66,604.24 $664.04
November 2010 176,367.00 $1,763.67
Total 242,971.24 $2,427.71
Concession and Lease Audit
Shilshole Bay Fuel Dock
Audit Objectives
The purpose of the audit was to determine whether:
•Rent payments were remitted timely to the Port.
•Reported flowage fees were complete, properly calculated, and remitted
timely to the Port.
•Lessee complied with provisions of the Lease and Concession Agreement
pertaining to environmental standards, insurance and indemnity.
We examined the books and records of Shilshole Bay Fuel Dock for the
period from December 1, 2009, through December 31, 2010.
Concession and Lease Audit
Shilshole Bay Fuel Dock
Audit Result
Clean Audit Report
