Washington State Auditor’s Office
Schedule of Audit Findings and Responses
Port of SeattleKing CountyDecember 4, 2012
The Port’s internal controls were inadequate to ensure all credit card
transactions at the parking garage were processed, resulting in lostrevenue of $394,982.SUMMARY
The Port’s Landside Operations division manages Seattle
Tacoma International Airport’s
(Sea-Tac) onsite parking garage. It collected approximately $49,367,630 in parking feesin 2011 and $37,251,336 from January through September 2012. Credit cards are usedto pay approximately 75 percent of parking fees.On June 26, 2012, a parking garage customer called Landside Opera
service to report that a parking fee did not appear on a credit card statement. This wasthe second call in two weeks the Port had received regarding this issue. Landside
researched the customer’s claims and found the receipting system fa
iled to process allcredit card payments. It determined the issue was isolated to one parking garage exit
lane’s credit card processor.
When it found the possible loss in July 2012, the Port
immediately secured the system’s hardware and software data and
began aninvestigation into the issue.The Port found the receipting system failed to process approximately 10,514 parking feecredit card transactions, totaling $387,986 from January through August 2012. Duringthis period, the Port did not have internal controls in place to ensure all credit cardtransactions were processed.
We reviewed the Port’s work and found it had correctly
calculated the loss during this period.
The Port’s investigation also identified 864 failed credit card transactions in 2
011.However, the Port did not calculate the amount associated with these failed transactions.
On August 8, 2012, the Port reported to the State Auditor’s Office that the malfunctioning
credit card processing system had led to a loss of revenue at the parking garage.
We reviewed the Port’s investigation to determine if it was complete, had calculated the
loss correctly and if the Port established procedures to prevent and detect future creditcard losses.We found the Port did not identify the full amount of the loss. We found no evidence tosuggest the credit card processing failures were isolated to 2011 and 2012. The Porthas not yet identified the cause of the incidents. We also found the Port did notadequately test the installation of the new parking garage receipting equipment toensure it was receipting all credit card transactions.