1. PORT OF TACOMA Request adoption of resolution 2010-07, which authorizes the formation of an Audit Committee for the Port of Tacoma Audit Committee Action Requested

2. PORT OF TACOMA Audit Committee purpose Audit Committee evaluation completed by Staff and Commission Commission requested staff prepare a resolution to form an Audit Committee at the 8/19/2010 commission meeting Audit Committee Background

3. PORT OF TACOMA The Audit Committee Charter is referenced in the resolution and outlines the committee’s: Purpose and Authority Composition and Appointments Responsibilities and roles Deliverables Audit Committee Charter

4. Audit Committee Purpose Financial audit oversight A.Annual Financial Audits B.Washington State Accountability Audit and Regulatory Compliance Audits C.Washington State Performance Audits D.Port of Tacoma Voluntary Audits E.Performance/Operational Audits F.Internal Control Assessments G.Annual Port Compliance Report 4

5. Audit Committee Authority Empowered to seek information from Port staff and auditors Recommend the engagement of auditors, outside consultants Recommend voluntary internal audits be performed 5

6. 6 PORT OF TACOMA Audit Committee Composition Audit Committee Commissioner------------Chair Commissioner------------Vice Chair Regular Attendees Port Chief Financial Officer Director of Accounting and Port Auditor General Legal Counsel

7. 7 PORT OF TACOMA Audit Committee Appointments Appointed by Commission President for a term of at least 2 years for continuity Committee Chair and Vice Chair Positions Committee members may be reappointed 7

8. 8 PORT OF TACOMA Audit Committee Deliverables Develop Annual Audit Program Calendar – February Meet Quarterly open public meetings in study session format Review Financial Audit update full commission annually

9. 9 PORT OF TACOMA Audit Committee Action Requested Request adoption of resolution 2010-07, which authorizes the formation of an Audit Committee for the Port of Tacoma