INTERNAL AUDIT
LIMITED OPERATIONAL AUDIT
AVIATION DIVISION RAMP INSURANCE PROGRAM
BACKGROUND
The Port of Seattle Airport Schedule of Rules and Regulations policy establishes insurance requirements for all motor
vehicles and equipment accessing Air Operations Areas (AOA). The AOA is an area “enclosed by the Airport security fence,
including ramps, aprons, runways, taxiways, gate positions, airport parking areas, and FAA facilities.”
The Airfield Operations Department oversees the Aviation Ramp Insurance Program to ensure that all vehicles/equipment
driving onto the Airfield are properly insured. The program is necessary to mitigate the financial loss to the Port in the
event of an accident. Although the Airfield Operations is primarily responsible for the program, there are other Aviation
departments from Aviation Security to Aviation Business Development who are indirectly involved in the program.
STATISTICS HIGHLIGHTS
TRAFFIC STATISTICS FOR VEHICLES ACCESSING THE AIRFIELD
January 1, 2015 – July 6, 2015
vehicle in/out count
% of the total in/out count
Top 10 companies
179,100
54%
Top 20 companies
218,543
66%
Top 30 companies
247,546
75%
Data Source: Aviation Credential Center
Note: * The data does not include vehicles under escorted and construction vehicles accessed the Airfield
For the period January 1, 2015, through July 6, 2015, approximately 297 companies accessed the airfield. These companies
employ more than 8,000 non-Port employees who use vehicles to access the airfield at various times throughout the year.
See below statistics.
INTERNAL AUDIT
LIMITED OPERATIONAL AUDIT
AVIATION DIVISION RAMP INSURANCE PROGRAM
AUDIT OBJECTIVES AND SCOPE
The purpose of this audit was to determine whether Port management controls are designed and operating effectively to
ensure:
1. Effective monitoring of the insurance requirements for all vehicles or motorized equipment accessing the airfield.
2. Compliance with the Port policy (Sections of 6E. of Seattle-Tacoma International Airport – Schedule of Rules and
Regulations No. 5) and the procedure (Ramp Insurance requirements).
We reviewed information for the period January 1, 2014 – August 31, 2015.
INTERNAL AUDIT
LIMITED OPERATIONAL AUDIT
AVIATION DIVISION RAMP INSURANCE PROGRAM
AUDIT RESULT
Port Management controls are inadequate to mitigate risks related to uninsured vehicles and/or vehicles without proper
insurance accessing Sea-Tac airfield. Further, Port management does not have a comprehensive and effective process to
verify insurance compliance for activity on the airfield.
One Reportable Finding
1. Port management ramp insurance controls are not adequate to mitigate the risks of uninsured or underinsured vehicles
accessing the airfield in the following areas:
• Untimely Processing of Submitted Insurance Certificates
• Insufficient Coordination Among Port Departments
• Insufficient Monitoring of Insurance at Each Gate Onto the Airfield
INTERNAL AUDIT
LIMITED OPERATIONAL AUDIT
PURCHASING CARD PROGRAM
BACKGROUND
The Port of Seattle introduced a new procurement card program and policy (CPO-7) in April 2011. The P-card is a credit
card-based system used to purchase non-strategic goods and services. The program provides a more efficient process for
small dollar purchases. It additionally reduces the transaction costs of purchasing routine goods and services.
The transaction limit on a single P-card purchase is $5,000, with a typical monthly maximum expenditure of $25,000, with a
few cardholders having higher limits based on business needs.
As of May 2015, there were some 126 active cards. The total procurement card expenditures for the period January 1, 2014
through May 31, 2015 were over $12 million.
FINANCIAL HIGHLIGHTS
TOP TEN DEPARTMENTS AND VENDORS OF P-CARD PROGRAM
January 2014 – May 2015
TOP 10 DEPTS
(in 000’s)
TOP 10 VENDORS
(in 000’s)
Av. Maint.
$4,712
39%
Keeney’s Office Supply
$ 544
4%
Marine Maint.
1,594
13%
Aramark Uniform
469
4%
Port Const. Svcs.
717
6%
Grainger
407
3%
ICT
489
4%
Cummins NW
187
2%
Police
363
3%
Amazon Marketplace*
175
1%
Public Affairs
360
3%
Act 3 Catering
169
1%
Fire
315
3%
Google
168
1%
Av. Bus. Dev.
269
2%
Amazon.com*
134
1%
HR
236
2%
The Part Works
132
1%
Av. Landside
151
1%
National Safety
122
1%
Top 10 Total
$ 9,206
76%
$2,507
21%
Grand Total
$ 12,165
100%
$ 12,165
100%
Data Source: Bank of America
*Amazon Marketplace is third party vendors selling thru Amazon. Amazon.com is direct sales with that company
INTERNAL AUDIT
LIMITED OPERATIONAL AUDIT
PURCHASING CARD PROGRAM
AUDIT OBJECTIVES AND SCOPE
The purpose of the audit was:
1. To determine whether department controls are adequate to ensure compliance with the requirements of CPO-7.
2. To identify possible changes to improve the efficiency and effectiveness of the program.
We reviewed information for the period January 1, 2014 – May 31, 2015.
INTERNAL AUDIT
LIMITED OPERATIONAL AUDIT
PURCHASING CARD PROGRAM
AUDIT RESULT
Department controls are adequate to ensure compliance with CPO-7. We did not identify additional significant changes to
improve the efficiency and effectiveness of the program.
No Reportable Findings.
INTERNAL AUDIT
2015 Flexible Work Plan
