Limited Contract Compliance
Sun's, Inc.
January 2024 - December 2024
Issue Date: December 4, 2025
Report No. 2025-19

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Sun's, Inc.

Executive Summary
Internal Audit (IA) completed limited procedures related to the Lease and Concession Agreement
(Agreement) between Sun's, Inc. and the Port of Seattle (Port).
The period reviewed was January 1, 2024, through December 31, 2024.
The review was performed to determine whether concession fees remitted to the Port were complete
and properly calculated.
No exceptions were identified.
We extend our appreciation to the management and staff of Aviation Commercial Management and the
Accounting & Financial Reporting Departments for their assistance and cooperation.

Glenn Fernandes, CPA
Director, Internal Audit

Responsible Management Team
Lisa Lam, Director, Accounting and Financial Reporting
Khalia Moore, Assistant Director, Aviation Commercial Management
Jeff Wolf, Director, Aviation Commercial Management

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Sun's, Inc.

Background
On June 29, 2016, the Port entered into a lease agreement with Sun's, Inc. Under this agreement, Sun's
Inc. operates Manchu Wok. The agreement was amended in 2018, which removed the Minimum Annual
Guarantee, and only required percentage fees, according to the following schedule:
12% of annual gross receipts less than or equal to $2,000,000
13% of annual gross receipts between $2,000,000 and less than or equal to $4,000,000
15% of annual gross receipts greater than $4,000,000
The table below reflects Sun's, Inc. Gross Sales:
Period
2024 January - June
2024 July - December

Gross Sales
$1,286,496
1,361,828
$2,648,324

Approach
The period assessed was January 2024, through December 2024 and included the following
procedures:
• Validated that the percentage fees were calculated correctly and in accordance with the lease revenue
thresholds
• Agreed transactional daily cash detail to monthly sales reports for March and November 2024
• Obtained the Annual Gross Sales Report and compared the report to year-end gross sales data
reported to AFR
• Reviewed the Profit & Loss statements for variances
• Reviewed a random sample of invoices to determine if they were paid on time, and for the full amount
charged

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