Internal Audit Briefing
Presented to the Port of Seattle
Audit Committee and Tay Yoshitani, CEO
Joyce Kirangi, CPA
Director, Internal Audit
August 02, 2011
Agenda
• Audit Report
• Comprehensive Operational Audit
Seaport Container Management
• Third-Party Arrangements Operational Audit
None
• Limited Operational Audit
None
• Concession and Lease Audit
CityIce Cold Storage, LLC
• 2011 Work Plan Status
Comprehensive Operational Audit
Seaport Container Management
Background
The mission of the department is to provide cargo facilities, equipment,
and services to enable customers to move greater amounts of cargo
through the Port of Seattle at Terminal 5, 18, 30, 46, and 115. Container
operations include five terminals located on 500 plus acres. Space is
leased to such private terminal operators as Eagle Marine Services, SSA
Terminals, Total Terminals International and Northland Services.
Summary of Operating Income and Expenses Related to Container Traffic
Source: PeopleSoft
2008 2009 2010
Operating Revenues
$57,120,183
$61,037,545
$65,697,596
Operating Expenses
$3,880,640
$4,920,589
$2,266,983
Comprehensive Operational Audit
Seaport Container Management
Audit Objectives
The objective was to determine if management implemented adequate
controls to assure:
• Lease agreements are effectively managed.
• Lease and billing information is effectively monitored in PROPworks.
We reviewed information related to the period from January 1, 2010 to
December 31, 2010.
Comprehensive Operational Audit
Seaport Container Management
Audit Result
Clean Audit Report
Concession and Lease Audit
CityIce Cold Storage, LLC
Background
The Port currently has five separate agreements with CityIce Cold Storage, LLC
for various locations at Terminal 91 and south end of Terminal 115. CityIce Cold
Storage, LLC provides secondary packaging, onsite processing, agricultural
storage, and Industrial Importers.
Below are CityIce Cold Storage, LLC financial highlights for the last three years:
* Effective January 1, 2010, the Percentage Rental fee under lease agreement #131 was no longer applicable.
Year
Reported
Gross Revenue
Percentage Rental
(payable if it exceeds the rent
paid)
Rent
Paid
2008
$3,802,704
$114,081
$286,936
2009
$4,220,221
$126.606
$298,882
2010
*
*
$313,824
Total
$8,022,916
$240,687
$585,818
Concession and Lease Audit
CityIce Cold Storage, LLC
Audit Objectives
The purpose of the audit was to determine whether:
• Reported concession was complete and properly calculated.
• The Port and the lessee complied with provisions of the Lease and
Concession Agreement.
We examined information related to a two-year period from January 1,
2009, through December 31, 2010.
Concession and Lease Audit
CityIce Cold Storage, LLC
Audit Result
Clean Audit Report
