I
n
Se
a
Co
m
Januar
y
n
ternal
A
a
port Con
t
m
prehensi
v
y
1, 2010
Issue Dat
e
Repor
A
udit R
e
t
ainer Ma
v
e Opera
t
to Dece
m
: August
2
t
No. 2011
-
e
port
nageme
n
t
ional Au
d
m
ber 31,
2
, 2011
-
13
n
t
d
it
2010
Trans
m
Executi
Backgr
o
Audit
O
Depart
m
Audit S
Conclu
s
m
ittal Lette
r
ve Summ
a
o
und ........
O
bjective ...
m
ent Highl
cope and
M
s
ion ..........
r
................
a
ry ............
.................
.................
ights and
A
M
ethodol
o
.................
Sea
p
Com
p
Tabl
e
.................
.................
.................
.................
A
ccompli
s
o
gy ............
.................
Inter
n
p
ort Cont
a
p
rehensiv
e
2
e
of Conte
n
.................
.................
.................
.................
s
hments ...
.................
.................
n
al Audit
a
iner Man
a
e
Operatio
n
ts
.................
.................
.................
.................
.................
.................
.................
a
gement
nal Audit
.................
.................
.................
.................
.................
.................
.................
.................
.................
.................
.................
.................
.................
.................
......... 3
......... 4
......... 5
......... 5
......... 6
......... 6
......... 7
We hav
e
Departm
controls
We revi
e
Manage
m
role wa
s
adequat
e
We con
d
obtain r
e
intended
The Co
n
operatio
n
We exte
assistan
c
Joyce Ki
Internal
A
e
complete
d
ent. The p
u
to ensure
e
e
wed inform
a
m
ent has th
s
to assess
e
and opera
t
d
ucted the
a
e
asonable a
s
.
n
tainer Ma
n
n
s are effec
t
n
d our app
r
c
e and coo
p
r
angi, CPA
A
udit, Direc
t
d
a compre
u
rpose of th
e
e
ffective op
e
a
tion relatin
g
e primary r
e
and test t
h
t
ing effectiv
e
a
udit using
d
s
surance th
a
n
agement
D
t
ive and in c
o
r
eciation to
S
p
eration duri
n
o
r
Sea
p
Com
p
Tran
s
hensive op
e
e
audit wa
s
e
rations an
d
g
to calenda
e
sponsibilit
y
h
ose contro
l
e
ly.
d
ue professi
o
a
t departme
n
D
epartment
o
mpliance
w
S
eaport Co
n
n
g the audit
.
Inter
n
p
ort Cont
a
p
rehensiv
e
3
s
mittal Let
t
e
rational a
u
s
to determi
n
d
complianc
e
r year 2010
.
y
to establis
h
l
s in order
o
nal care.
T
n
t controls
a
has adeq
u
w
ith applica
b
n
tainer Ma
n
.
n
al Audit
a
iner Man
a
e
Operatio
t
er
u
dit of Sea
p
n
e whether
e
with appli
.
h
and impl
e
to establis
h
T
he audit w
a
a
re adequat
e
u
ate and
e
b
le requirem
n
agement D
e
a
gement
nal Audit
p
ort Contai
n
managem
e
cable rules
e
ment effec
t
h
whether t
h
a
s planned
a
e
and opera
t
e
ffective co
n
ents.
epartment
a
n
er Manag
e
e
nt has ade
q
and regula
t
t
ive controls
h
e controls
a
nd perform
t
ing effectiv
e
n
trols to e
n
a
nd staff fo
r
e
ment
q
uate
t
ions.
. Our
were
ed to
e
ly as
n
sure
r
their
Audit
S
impleme
1. T
e
2. Le
We revi
e
Backgr
o
manage
s
private
c
Internati
o
and cra
n
are prop
e
The dep
a
expense
s
Real Est
a
Audit R
e
Departm
agreem
e
is effecti
v
S
cope and
n
ted adequ
a
e
rminal and
c
ase and bill
i
e
wed inform
a
o
und Cont
a
s
five termin
c
ompanies
o
nal, and N
o
n
e lease ag
r
e
rly maintai
n
a
rtment ge
n
s
. Terminal
a
te Lease
A
e
sult Sum
m
ent has ad
e
e
nts are effe
c
v
ely monito
r
Objective
a
te controls
t
c
rane rent l
e
i
ng informat
i
a
tion relate
d
a
iner opera
t
als located
o
that includ
e
o
rthland Se
r
eements, a
n
ed.
n
erates 60+
and crane
A
dministratio
m
ary Base
d
e
quate and
c
tively man
a
r
ed.
Sea
p
Com
p
Execu
t
Our audit
t
o assure th
e
ase agree
m
i
on is effecti
v
d
to the peri
o
t
ions as a
o
n 500 plus
e
Eagle M
rvices. The
nd managi
n
million in o
p
rent billing
n, and Port’
s
d
on the a
u
effective co
a
ged. In ad
d
Inter
n
p
ort Cont
a
p
rehensiv
e
4
t
ive Sum
m
objective
w
at:
m
ents are ef
f
v
ely monito
r
o
d from Jan
u
group has
acres. Ter
m
arine Servi
departmen
t
n
g the lease
p
erating rev
e
is a shared
s
Accountin
g
u
dit procedu
ntrols to en
d
ition, we o
b
n
al Audit
a
iner Man
a
e
Operatio
m
ary
w
as to det
e
f
ectively ma
n
r
ed in PRO
P
u
ary 1, 201
0
four full ti
m
m
inal space
ces, SSA
t
is respons
agreement
e
nues and i
responsibil
g
Departme
n
u
res perfor
m
sure that t
e
b
served that
a
gement
nal Audit
e
rmine if
m
n
aged.
P
works.
0
to Decemb
m
e equival
e
is leased to
Terminals,
ible for est
a
t
s to ensure
ncurs 2+ m
i
ity between
n
t.
m
ed, Contai
n
e
rminal and
lease and
b
m
anagemen
t
er 31, 2010
.
e
nts (FTEs
)
and operat
e
Total Ter
m
a
blishing ter
that Port a
i
llion in ope
r
the depart
m
n
er Manag
e
crane rent
b
illing infor
m
t
has
.
)
and
e
d by
m
inals
minal
ssets
r
ating
m
ent,
e
ment
lease
m
ation
Backgr
o
The mis
s
custome
include
f
operator
s
T
T
T
T
T
The de
p
generat
e
rent. Th
e
coordina
Summa
r
Operati
n
Ter
m
Ter
m
Ter
m
Ter
m
Ter
m
Total O
Operati
n
Ter
m
Ter
m
Ter
m
Ter
m
Ter
m
Total O
Source: P
e
*significant
Audit O
b
The pur
p
to assur
e
1.
T
2. L
o
und
s
ion of the
d
r
s to move
g
f
ive terminal
s
as follows
:
T
erminal 5
T
erminal 18
T
erminal 30
T
erminal 46
T
erminal 11
5
p
artment h
a
e
s approxim
a
e
departme
n
ted with Re
a
r
y of Opera
t
n
g Revenu
e
m
inal 5
m
inal 18
m
inal 30
m
inal 46
m
inal 115
perating R
e
n
g Expense
s
m
inal 5
m
inal 18
m
inal 30
m
inal 46
m
inal 115
perating E
x
e
opleSoft/Respo
n
decrease in exp
b
jective
p
ose of the
a
e
that:
T
erminal and
ease and bi
d
epartment
i
g
reater am
o
s located o
n
:
- Eagle Ma
- SSA Ter
m
- SSA Ter
m
- Total Ter
m
5
- Northlan
d
a
s four full
a
tely $60+
m
n
t directly
m
a
l Estate Le
a
t
ing Incom
e
e
e
venue
s
x
penses
n
sibility Reports
enses is due to
p
a
udit was t
o
crane rent
l
lling inform
a
Sea
p
Com
p
i
s to provid
e
o
unts of car
g
n
500 plus
a
rine Service
m
inals
m
inals
m
inals Inter
n
Services.
time equiv
a
m
illion in o
p
m
anages lea
a
se Admini
s
e
and Expe
n
21,06
15,48
3,81
9
12,22
6
4,53
2
$57,12
0
(7
4
75
8
1,68
8
1,28
6
22
2
$3,88
0
p
roject cancelati
o
o
determine
l
ease agree
m
a
tion is effec
Inter
n
p
ort Cont
a
p
rehensiv
e
5
e
cargo facil
g
o through t
a
cres. Ter
m
s
n
ational
a
lents (FT
E
p
erating rev
e
se agreem
e
s
tration and
P
n
ses Relat
e
2008
1,252
1,152
9
,158
6
,494
2
,127
0
,183
$
4
,951)
8
,577
8
,549
6
,080
2
,385
0
,640
$
o
ns and delays i
if manage
m
m
ents are e
tively monit
o
n
al Audit
a
iner Man
a
e
Operatio
ities, equip
m
t
he Port of
S
m
inal space
E
s) to man
a
e
nues annu
a
e
nts, but te
r
Port’s Acco
u
e
d to Conta
200
9
22,065,23
9
16,678,70
2
5,687,93
7
12,012,46
0
4,593,20
7
$
61,037,54
5
529,41
5
1,103,93
5
2,462,911
578,49
3
245,83
5
$
4,920,589
*
n 2010.
m
ent has im
p
ffectively m
a
o
red in PR
O
a
gement
nal Audit
m
ent, and s
e
S
eattle. Con
is leased t
o
a
ge lease
a
lly from te
r
r
minal/cran
e
u
nting Depa
iner Traffic
9
9
23,
6
2
16,
8
7
7,
9
0
12,
5
7
4,
6
5
$65,
6
5
6
5
5
2
3
4
5
3
*
$2,2
6
p
lemented
a
a
naged.
O
Pworks.
e
rvices to e
n
tainer oper
a
o
private ter
agreement
s
r
minal and
c
e
rent billing
rtment.
2010
6
24,788
8
58,234
9
79,328
5
72,521
6
62,725
6
97,596
6
22,539
5
89,583
2
20,894
4
88,937
3
45,030
6
6,983*
a
dequate co
n
n
able
a
tions
minal
s
and
c
rane
s are
n
trols
Depart
m
Faced
w
Custom
e
crane re
n
The pro
g
R
M
I
n
A summ
a
Source:
P
Audit S
c
We utili
z
multitud
e
analytic
a
conduct
e
identifie
d
functioni
n
Our add
summari
1.
U
2. I
n
3.
M
1
,
1
,
2
,
2
,
Thousands
m
ent Highli
g
w
ith ever i
n
e
r Support
P
n
t rebates a
n
g
ram contrib
R
ecord brea
k
M
ore than 2.
1
n
crease in o
a
ry of TEU’
s
P
ort of Seattle C
o
c
ope and M
e
z
ed a risk-
b
e
of inform
a
a
l reviews in
e
d an ass
e
d
controls to
n
g as inten
d
itional deta
z
ed into thr
e
U
pdating billi
n
surance &
S
M
aintenance
0
500
,
000
,
500
,
000
,
500
2001
2
g
hts and A
c
n
creasing
c
P
ackage p
r
n
d a thirty-d
uted to:
k
ing cargo v
o
1
million TE
U
perating re
v
s
from 2001
t
o
ntainer and To
n
e
thodolog
y
b
ased audit
a
tion gatheri
order to ob
t
e
ssment of
mitigate th
o
d
ed. Based
iled audit
p
e
e categorie
ng informati
S
urety moni
t
of cranes
&
2
002 2003 20
0
Sea
p
Com
p
c
complish
m
c
ompetition
r
ogram to i
n
a
y deferral
o
o
lume in 20
1
U
’s (twenty-
f
v
enue from
6
t
o 2010 is a
s
n
nage Statistics
R
y
approach
ng method
s
t
ain a comp
significant
o
se risks. W
on the risk
a
p
rocedures
s:
o
n
t
oring
&
facilities
0
4 2005 2006
Inter
n
p
ort Cont
a
p
rehensiv
e
6
m
ents
in 2010, t
h
n
crease co
n
o
f space re
n
1
0
f
oot equival
e
6
1.0 million i
s
follows.
R
eporting Syste
m
from planni
s
including
lete unders
t
risks asso
c
e evaluated
a
ssessment,
on the are
a
2007 2008 2
0
n
al Audit
a
iner Man
a
e
Operatio
h
e depart
m
n
taine
r
traff
i
n
t payments.
e
nt units)
n 2009 to 6
5
m
i
ng to test
research, i
n
t
anding of t
h
c
iated with
whether th
e
,
we establi
s
a
of audit
f
0
09 2010
a
gement
nal Audit
m
ent initiate
d
i
c. The pro
5
.7 million i
n
sampling.
W
n
terviews, o
h
e Containe
r
Container
e
implemen
t
s
hed the are
focus can
d
a yea
r
-l
o
gram inclu
d
n
2010
W
e perfor
m
bservations
r
Operation
s
Operations,
t
ed controls
a of audit f
o
be groupe
d
o
ng
d
ed
m
ed a
, and
s
. We
and
were
o
cus.
d
and
1. Upd
a
a.
C
T
C
P
a
t
o
b.
C
W
w
m
p
2. Insu
r
To
adeq
3. Main
t
We i
cran
e
Conclu
s
Based o
adequat
e
effective
l
a
ting Billing
C
onsumer
P
T
o determin
e
C
PI adjust
m
P
ROPworks
nd conditio
n
o
determine
C
ustomer S
u
W
e reviewe
d
w
hether the
m
onitored.
W
rogram initi
a
ance & sur
e
determine
uate/suffici
e
Manage
m
lease m
a
Five lea
s
defined i
n
t
enance of
c
dentified m
a
e
s by tenant
Nine of
s
to ensur
e
during th
Three of
s
ion
n the audit
e
and effec
t
l
y managed
Informatio
P
rice Index
e
the effecti
v
m
ents to bi
l
for all five
c
n
s of the ag
r
whether th
e
u
pport Pac
k
d
temporary
Customer
S
W
e reviewed
a
tion and te
r
e
ty monito
r
the effect
e
nt insuranc
e
m
ent use of
a
nagement
s
s
es fo
r
their
n
the agree
m
c
ranes & f
a
a
nagement
s. To deter
m
s
eventeen a
e
timely cer
t
e certificati
o
the five an
n
procedure
s
t
ive control
s
and billing i
n
Sea
p
Com
p
n
v
eness of
m
l
ling, we r
e
c
urrent leas
e
r
eements,
a
e
CPI adjust
m
k
age
cost reduc
t
S
upport Pa
c
the corres
p
r
mination.
r
ing
iveness o
f
e
and suret
y
the insura
n
s
ystem.
adequacy
a
m
ents.
a
cilities
controls o
v
m
ine the eff
e
nnual crane
t
ification an
d
o
n process.
n
ual terminal
s
performed
to ensure
t
n
formation i
s
Inter
n
p
ort Cont
a
p
rehensiv
e
7
m
anagement
e
viewed m
a
e
s. We rec
a
a
nd compar
e
m
ents were
t
ions provid
e
c
kage for th
e
p
ondence fil
e
f
manage
m
y
coverage
o
n
ce and sur
e
a
nd sufficien
v
er proper
m
e
ctiveness o
f
mechanica
d
complete
m
condition s
t
, Seaport
C
t
hat termin
a
s
effectively
n
al Audit
a
iner Man
a
e
Operatio
controls to
a
nagement
a
lculated 20
e
d the amo
u
properly m
o
e
d to the t
e
e
four appli
c
e
for timely
m
ent contr
o
o
ver Port’s a
e
ty reminde
cy in insura
m
aintenanc
e
f
such contr
o
l certificatio
n
m
itigation e
f
t
udies cond
u
C
ontainer M
a
a
l and cran
e
monitored.
a
gement
nal Audit
ensure co
m
use of C
P
10 lease a
m
u
nts to the
a
o
nitored.
e
nants in or
c
able lease
s
notification
o
ls to en
a
ssets, we r
e
rs in PROP
w
nce and su
r
e
of the Po
o
ls, we revi
e
n
s and stru
c
f
forts of iss
u
u
cted by th
e
a
nagement
e
rent lease
m
plete and
t
P
I reminde
m
ounts per
t
a
ctual billed
der to dete
r
s
was effe
c
to the tena
n
sure conti
n
e
viewed:
w
orks, the
P
r
ety covera
g
rt’s facilitie
s
e
wed:
c
tural inspe
c
u
es, if any,
n
e
Port.
Departmen
agreement
t
imely
rs in
t
erms
rates
r
mine
c
tively
n
ts of
n
uing
P
ort’s
g
e, as
s
and
c
tions
n
oted
t has
s are