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Limited Contract Compliance
The Yarrow Group, LLC
January 2024 – December 2024
Issue Date: December 4, 2025
Report No. 2025-20
The Yarrow Group, LLC
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Executive Summary
Internal Audit (IA) completed limited scope procedures to the Lease and Concession Agreement
(Agreement) between The Yarrow Group, LLC 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 were complete, properly calculated,
and remitted timely to the Port.
No exceptions were identified.
We extend our appreciation to 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
The Yarrow Group, LLC
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Background
In September of 2017, the Port entered into a lease agreement (AIR002233) with The Yarrow Group
LLC. Under this agreement, The Yarrow Group, LLC operates Evergreens.
The Minimum Annual Guarantee (MAG) is 85% of the total paid by the concessionaire to the Port, for
the previous calendar year. The annual MAG was $554,885. At the end of the lease year, a reconcilation
is performed comparing the Percentage Fees due to the Port, to the Agreement Year’s MAG. Any
amount of the Percentage Fees that fall below the MAG is due to the Port.
Percentage Fees:
14% of annual gross sales
The table below reflects The Yarrow Group, LLC’s Gross Sales:
Period
Gross Sales
2024 January - June
$2,080,883
2024 July - December
2,928,351
$5,009,234
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 Concessionaire’s monthly general ledger sales data to what was provided to the
Accounting & Financial Reporting Department
• Agreed point-of-sale summary reports to the general ledger
• 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
