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

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