Presented to Port of Seattle 
Audit Committee 
Accountability Audit 
Exit Conference 
December 19, 2017 

Washington State Auditor's Office

SAO Audit Team 
Kelly Collins, CPA, Director of Local Audit  Kelly has been with the Washington State Auditor's Office 
since 1992.  In her role she oversees the audit teams which perform the audits for over 2,200 local 
governments. She serves on the Washington Finance Officers Association Board and is a member of the 
Washington Society of Certified Public Accountants' Government Auditing and Accounting Committee.
Mark Rapozo, CPA, Assistant Director of Local Audit  Mark has been with the Washington State 
Auditor's Office since 1983. In his role as Assistant Director he assists with the statewide oversight and 
management of all the audits for local government.
Joe Simmons, CPA, Audit Manager  Joe has been with the State Auditor's Office since 1987 and became 
Audit Manager of Team Central King County in November of 2015.  In his prior role as Assistant Audit 
Manager on two different teams he worked on audits of state and local governments throughout Pierce, 
Kitsap, Mason, Clallam, and Jefferson counties.
Elizabeth Pyatt, Assistant Audit Manager  Elizabeth has been with the State Auditor's Office since 
2013. During her time with the Office, she has conducted financial statement, federal grant compliance, 
and accountability audits for state and local governments throughout the Seattle area. 
Melia Lucero, CPA; Audit Lead  Melia holds a Master of Accounting degree and has been with the State 
Auditor's Office since 2014. In her role as Assistant State Auditor, Melia has worked on two different 
teams covering state and local governments throughout King County, which include the larger audits of 
King County, the University of Washington, the Port of Seattle, and Harborview Medical Center. 


Washington State Auditor's Office                                                   2

Accountability Audit Report 
Port of Seattle Accountability
Report 
Audit Scope 
Determined if controls were in place to protect public
resources and if the Port was in compliance with laws
and regulations relating to financial matters for the
period January 1, 2016 through December 31, 2016. 

Results in Brief 
"In the areas we audited, Port operations
complied with applicable requirements and
provided adequate safeguarding of public
resources. The Port also complied with state
laws and regulations and its own policies and
procedures in the areas we examined." 

Washington State Auditor's Office                                                   3

Accountability Audit Areas 
Self-insurance programs    Reviewed controls over claims administration, contracts
language, solvency requirements, and proper approvals from
state 
Proper reporting to State (BARS schedule 21) 
Audit result: no issues 
Economic grant            Reviewed the Economic Development Partnership program and
programs                 the Cooperative Tourism program for allowability of activities. 
Reviewed the monitoring of subrecipients to ensure
compliance with grant agreements 
Audit results: no issues 

Audit highlight: It was a pleasure working with Bill Ellis for the Economic Development Partnership
program. Even though, he has only been with the Port for less than six months, he was very
knowledgeable of the program and assisted us with any questions raised. 


Washington State Auditor's Office                                                   4

Accountability Audit Areas 
State grants                Reviewed the Toxics Cleanup Remedial Action grant program
from the Department of Ecology 
Reviewed internal controls and selected transactions to test
for adequate support 
Audit results: no issues 
Moorage revenue         Bell Harbor and Harbor Island marinas 
Reviewed internal controls and selected transactions fees
charged to ensure fees were in compliance with the
established marine tariffs. 
Audit results: Department recommendation on rate policy 

Audit highlight: We appreciate the assistance provided by Kiu Holmes. She was able to explain the
reimbursement process through the Department of Ecology with ease. We also appreciate her
maintenance of Port records, which allowed for an efficient audit. 
We would like to thank Giuseppe Alvarado for his prompt and knowledgeable responses to our inquiries
regarding marina operations. We would also like to thank Michael Cink for his availability, patience, and
professionalism over the course of the audit. 
Washington State Auditor's Office                                                   5

Accountability Audit Areas 
Procurement of personal      Reviewed the procurement methods of personal
service contracts                service contracts, including the use of competition
waivers 
Reviewed internal controls over selected contracts
and compliance with state law (RCW 53.19) 
Audit result: Department audit recommendations 


Audit highlight: The Port's Central Procurement Office provided us valuable
assistance during our audit over the procurement of personal service contracts.
Specifically, Nora Huey and Sofia Mayo provided us prompt and knowledgeable
responses to auditor requests with patience and great professionalism. 

Washington State Auditor's Office                                                   6

Prior Year Finding Follow-up 
Based  on  our  follow-up procedures, 
we consider the prior year finding to 
be resolved. 
A  summary  schedule  of  prior  audit 
findings   is   included   in   our   audit 
report. 


Audit highlight: We appreciate the Port's
efforts to address the prior year audit finding.
Rudy Caluza provided valuable assistance to us,
as our main point of contact. We appreciate his
availability and willingness to provide us timely
audit responses and updates. 
Washington State Auditor's Office                                                  7

Concluding Remarks 

We would like to take this opportunity to extend our
appreciation to the Port staff for their cooperation and
assistance given to us during the audit. 

We would like to thank our audit liaison Debbi
Browning and her staff for their assistance in making
sure our auditors received all requested information in
an timely and efficient manner. 

Washington State Auditor's Office                                                   8




















Report Publication 
The Accountability audit report will be released and published 
on December 19, 2017. You can view it at: www.sao.wa.gov 

Audit reports are published on our website and distributed via email
in an electronic .pdf file.   We also offer a subscription 
service  that  allows  you  to  be  notified  by  email  when  audit 
reports are released or posted to our website.  You can sign up 
for this convenient service at: 
https://portal.sao.wa.gov/saoportal/Login.aspx 

Washington State Auditor's Office                                                   9







Auditor's Office contacts 
Pat McCarthy 
State Auditor 
(360) 902-0360 
Pat.McCarthy@sao.wa.gov 
Kelly Collins, CPA 
Director of Local Audit 
(360) 902-0091 
Kelly.Collins@sao.wa.gov 
Mark Rapozo, CPA                        Joe Simmons, CPA 
Assistant Director of Local Audit                      Audit Manager 
(360) 902-0471                            (206) 615-0557 
Mark.Rapozo@sao.wa.gov              Joseph.Simmons@sao.wa.gov 
Elizabeth Pyatt                               Melia Lucero, CPA 
Assistant Audit Manager                                            Audit Lead 
(206) 615-0557                               (206) 263-2868 
Elizabeth.Pyatt@sao.wa.gov                   Melia.Lucero@sao.wa.gov 
Washington State Auditor's Office                                                   10