Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM Item No. 11a
BRIEFING ITEM Date of Meeting Dec 9, 2025
DATE: December 9, 2025
TO: Stephen P. Metruck, Executive Director
FROM: Glenn Fernandes, Director, Internal Audit
SUBJECT: 2025 Internal Audit Annual Report
EXECUTIVE SUMMARY
The purpose of this memo is to brief the Commission and the public on audits performed in the
2025 calendar year. The 2025 Audit Plan was approved at the December 5, 2024, Audit
Committee meeting.
Internal Audit (IA) completed 13 audits, 10 limited contract compliance reviews, and 2 capital
project reviews. These identified 8 High Risk, 10 Medium Risk, and 7 Low Risk issues for
management action. In addition, R.L. Townsend & Associates, an external, independent auditor,
who was engaged to audit General Contractor/Construction Manager construction projects,
presented an Annual Audit Services Report at the December 5, 2024, Audit Committee meeting.
Implementation of the associated recommendations will strengthen internal controls, enhance
processes, and improve efficiencies. Internal Audit (IA) has a process in place where we
periodically follow up on recommendations and agreed upon management action plans to
assure action is taken. This process sometimes relies on attestations from Management.
Delinquent action plans are periodically brought to the Audit Committee’s attention.
BACKGROUND
On December 11, 2007, the Port of Seattle (Port) Commission passed a motion, which resulted
in the creation of an independent and objective Internal Audit function. The Internal Audit
Charter was last updated and approved by the Audit Committee, the Commission President,
and the Executive Director on October 5, 2020. No significant changes have warranted an
update since then.
The Audit Committee serves as an arm of the Port Commission. For 2025, Commissioner Ryan
Calkins chaired the Audit Committee, and Commissioner Hamdi Mohamed served as the other
commission member. Ms. Sarah Holmstrom, CPA, a Strategic Finance Leader for Swinomish
Enterprises, served as the external member of the Audit Committee.
COMMISSION AGENDA – Briefing Item No. 9a Page 2 of 3
Meeting Date: December 9, 2025
1
Performed as a review
2
Security Sensitive – Exempt from public disclosure per RCW 42.56.420te revised September 22, 2016.
IA conducts audits and reviews of Port departments, programs, functions, systems, contracts,
and activities based on the department’s approved audit plan. In discharging their duty, the
Internal Audit Director and his staff are accountable to the Audit Committee and to the
Executive Director.
LISTING OF 2025 INTERNAL AUDITS AND REVIEWS COMPLETED
Below is a list of audits and reviews completed by Internal Audit in 2025.
Performance:
1) Recovery Effort - Data Integrity – Maritime
2) Banking/Fraud Controls
3) Community Initiatives - ANEW
4) Consultants/Contractor Management
5) Port Management Governance Committees
Performance - Capital:
1) Terminal 91 Berths 6 & 8
2) Maritime Center at Fishermen's Terminal
3) 2023 Airfield Projects - Contract 2
4) Widen Arrivals Roadway
5) Recovery Effort - Data Integrity - Construction Management
1
6) Club at SEA
1
Information Technology:
1) Closed Network System - Satellite Transit System (STS) (AVM)
2
2) Third-Party Risk Management (ICT & AVM)
2
3) Access Control Management (AVM)
2
4) Access Control Management (ICT)
2
Limited Contract Compliance:
1) Gate Gourmet, Inc.
1
2) BF Foods, LLC
1
3) Concourse Concessions, LLC
1
4) SSP America SEA, LLC (Ballard Brew Hall)
1
5) SSP America SEA, LLC (Mi Casa Cantina)
1
6) SSP America SEA, LLC (Le Grand Comptoir)
1
7) SSP America SEA, LLC (Camden Food Co.)
1
8) Sun's, Inc.
1
9) The Yarrow Group, LLC
1
10) LaTrelle's Flight Kitchen, LP (Wendy’s)
1
Template revised April 12, 2018.
ATTACHMENTS TO THIS BRIEFING
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
January 14, 2025 – The Commission was briefed on 2024 completed audits.
February 13, 2024 – The Commission was briefed on 2023 completed audits.
January 24, 2023 – The Commission was briefed on 2022 completed audits.
December 9, 2021 – The Commission was briefed on 2021 completed audits.
December 8, 2020 – The Commission was briefed on 2020 completed audits.
December 10, 2019 – The Commission was briefed on 2019 completed audits.
