Limited Contract Compliance Audit
Marmot Mountain, LLC DBA ExOfficio

January 2025 - December 2025

Issue Date: August 24, 2026
Report No. 2026-05

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Marmot Mountain, LLC DBA ExOfficio

Executive Summary
Internal Audit (IA) completed a limited scope compliance audit of the Lease and Concession Agreement
(Agreement) between Marmot Mountain, LLC DBA ExOfficio and the Port of Seattle (Port).
The period reviewed was January 1, 2025, through December 31, 2025.
The audit was performed to determine whether concession fees were complete, properly calculated,
and remitted 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

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Marmot Mountain, LLC DBA ExOfficio

Background
In June of 2018, the Port entered into a lease agreement (AIR002364) with Marmot Mountain, LLC DBA
ExOfficio. Under this agreement, Marmot Mountain, LLC operates a retail store called ExOfficio, which
sells various Marmot Mountain, Coleman, and ExOfficio related products.
The Minimum Annual Guarantee (MAG) is 85% of the total paid by the concessionaire to the Port, for
the previous calendar year. The MAG for 2025 was $179,657.62. 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:
Annual Gross Sales
Less than or equal to $4,500,000
Greater than $4,500,000 and less than $5,000,000
Greater than $5,000,000

Percentage of Gross Sales
13.5%
14.0%
14.5%

The table below reflects Marmot Mountain LLC DBA ExOfficio's Gross Sales:
Period
2025 January - June
2025 July - December

Gross Sales
$806,705
1,029,961
$1,836,666

Approach
The period assessed was January 2025, through December 2025 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 AFR
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

•

Obtained and reviewed the Profit & Loss statements for variances

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