3
Port of Seattle 2017 Engagement Service Plan September 12, 2017 Agenda Moss Adams Service Team Leaders Services to be Provided Responsibilities (Auditor / Management) Phases and Timing of the Audit 2 Our Audit Approach Areas of Audit Emphasis Auditing and Accounting Standards Update Your 2017 Audit Service Team Leaders Team Member Responsibilities Olga A. Darlington, Olga will serve as your lead client service partner, performing engagement review Partner and overseeing all projects we perform for the Port. Tammy Erickson, Tammy will serve as the second reviewer of our reports, serving in the QC role, Partner and will consult on technical issues or key elements of the audits, as needed. 3 Tyler Reparuk, Tyler will oversee the engagement team for all services provided to the Port, and Manager will review testing performed during the audits. Lisa Dion, Lisa will supervise our staff in the field, and manage each of the audits we Manager perform. Your 2017 Audit Service Team Leaders Team Member Responsibilities Kimberly Koch, Kim will lead our audit procedures covering the Port's Information Technology IT Consulting (IT) systems, including general computer controls. Partner Kevin Villanueva, A Qualified Security Assessor, Kevin will serve as an additional reviewer of our IT IT Consulting procedures and will oversee testing procedures related to IT security and related Director issues. 4 Maribelle Clear, Maribelle will supervise staff and perform audit procedures related to the Port's IT Consulting IT systems, including general computing controls testing. Manager Your 2017 Audit Service Team The following individuals will also serve on the Port of Seattle Engagement Team: Anna Waldren, Senior Krista Gregory, Experienced Staff Will Van Curen, Experienced Staff Savannah Stell, Experienced Staff Fiona Deng, Branch Richards & Co; Subcontractor, Experienced Staff 5 Summary of Our Services Audit and report on financial statements for both the Enterprise Fund and the Warehousemen's Pension Trust Fund to be included in the Port's Comprehensive Annual Financial Report; Audit and report on internal control and compliance over financial reporting in accordance with Government Auditing Standards Issue a management letter of recommendations and observations, as necessary; Audit and report on compliance related to the Airport Improvement Program (AIP) and other Major Federal Award Program(s), the Schedule of Expenditures of Federal Awards and related internal controls in accordance with the Uniform Grant Guidance; 6 Audit and report on the schedule of Passenger Facility Charge (PFC) program receipts and expenditures, and related internal controls; Audit and report on the schedule of net revenues available for revenue bond debt service; Agreed Upon Procedures and report to State of Washington Department of Ecology relating to Terminal 91 Facility; Our Responsibilities Audit GAAS & GAGAS Read Other Information 7 Report Non-Compliance (Single Audit) Express Opinion / Issue Reports Communicate Audit Committee Communicate Management Management's Responsibilities Prepare Accurate FS Internal Controls 8 Compliance Report Fraud Make Available Representation Letter Phases of the Audit Planning and Testing of Substantive Issue Reports Risk Internal Audit and Present Assessment Controls Procedures Audit Results 9 Audit Timeline Planning & Risk Testing of Testing of IT Substantive Reporting & Assessment Internal Controls Controls Audit Procedures Communications October 2017 April- May 2018 Final review of fieldwork, October report issuance, meet and 10 2017 present to management and Audit Committee September March- April 2018 2017 Final fieldwork procedures for Financial Statement and Single Audit Planning and Risk Assessment Audit risk involves the risk of material misstatement in the financial statements: - Inherent risk, control risk and detection risk; Audit is designed to provide reasonable: - Not absolute assurance that the financial statements are free of material misstatements; Audit scope and approach is determined based upon results of risk assessment; 11 Evaluation of Internal Controls Evaluate components of internal controls Top-down approach Significant Accounts and Processes considered Billings and accounts receivable, leases, capital assets and projects, procurement, cash disbursements, payroll, debt, treasury, environmental remediation liability and contingencies, other revenues, financial close and reporting IT Controls 12 Application controls General computing controls Administration of federal awards (Single Audit) Includes tests of compliance Substantive Audit Procedures Tests of Details Directed testing and audit sampling Random and judgmental sampling methods are used Compliance with requirements of the major federal awards and the Passenger Facility Charge program Analytical Procedures Comparison of current and prior year results, and actual to budgeted amounts Analysis of detailed changes within certain accounts such as capital assets, long term debt and investments Predictive analytics for income statement accounts, based upon history, data independent of accounting 13 department, and industry expectations Holistic review of overall financial statements Areas of Audit Emphasis Internal Control Management Bond Accounts Cycles Estimates Accounting for Revenue Capital Assets Leases Recognition 14 Environmental Net Position Pension Liability Remediation Classification Liability Other Northwest Seaport Uniform Grant Postemployment Alliance Joint Guidance (Single Benefits Venture Audit) Accounting Pronouncements (GASB) GASB 74 - Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans (effective Fiscal Year 2017) and GASB 75 - Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (effective for 2018): Addresses accounting and financial reporting issues related to other postemployment benefit plans. We will work with management to plan for the implementation of these standards. GASB 82 Pension Issues amendment of GASB Statements No. 67, No. 68, and No. 73 (effective in 2018): Addresses accounting and financial reporting clarifications related to issues identified in statements Nos. 67, 68, and 73. We will work with management to plan for the implementation of 15 this standard. GASB 83 Certain Asset Retirement Obligations (effective in 2019): Addresses accounting and financial reporting for certain asset retirement obligations. We will work with management to plan for the implementation of this standard. Accounting Pronouncements (GASB) GASB 84 Fiduciary Activities (effective in 2019): Addresses the improvement of guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. We will work with management to plan for the implementation of this standard. GASB 85 Omnibus 2017 (effective in 2018): Addresses practice issues that have been identified during implementation and application of certain GASB Statements. We will work with management to plan for the implementation of this standard. 16 GASB 87 Leases (effective 2020): Addresses the accounting change for the recognition of certain lease assets and liabilities for leases that were previously classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the underlying contract. We will work with management to plan for the implementation of this standard. Questions? Contact Information: Olga A. Darlington, olga.darlington@mossadams.com 425.551.5712 17 Tammy Erickson, tammy.erickson@mossadamsn.com 509.777.0149 Tyler Reparuk, tyler.reparuk@mossadams.com 206.302.6431 Lisa Dion, lisa.dion@mossadams.com 206.302.6734 Kim Koch, kim.koch@mossadams.com 509.777.0107 Kevin Villanueva, kevin.villanueva@mossadams.com 206.302.6542 Maribelle Clear, maribelle.clear@mossadams.com 206.302.6513 The material appearing in this presentation is for informational purposes only and should not be construed as advice of any kind, including, without limitation, legal, accounting, or investment advice. This information is not intended to create, and receipt does not constitute, a legal relationship, including, but nor limited to, an accountant-client relationship. Although this information may have been prepared by professionals, it should not be used as a substitute for professional services. If legal, accounting, investment, or other professional advice is required, the services of a professional should be sought. 18 Assurance, tax, and consulting offered through Moss Adams LLP. Wealth management offered through Moss Adams Wealth Advisors LLC. Investment banking offered through Moss Adams Capital LLC.
Limitations of Translatable Documents
PDF files are created with text and images are placed at an exact position on a page of a fixed size.
Web pages are fluid in nature, and the exact positioning of PDF text creates presentation problems.
PDFs that are full page graphics, or scanned pages are generally unable to be made accessible, In these cases, viewing whatever plain text could be extracted is the only alternative.