Port of Seattle 
Audit Status Update 
April 2, 2013 


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SCOPE OF WORK 
SUMMARY OF 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 
o Issue a management letter of recommendations and observations 
Audit and report on compliance related to the major Federal Award
Programs (AIP and Port Security Grant), the Schedule of Expenditures of
Federal Awards and related internal control in accordance with Federal
Circular OMB A-133 
Audit and report on the schedule of Passenger Facility Charges (PFC's),
receipts and expenditures and related internal controls 
Audit and report on the schedule of net revenue available for revenue bond
debt service 
2

2012 AUDIT STATUS UPDATE 
Audit is proceeding on schedule 
o On target to issue opinion and reports on or before April 30, 2013 
Phases of the Audit 
o Planning and risk assessment              Done 
Presentation made to audit committee in September 2012 
o Assessment of internal controls             Done 
o Substantive audit procedures              In process 
o Reporting and presentation of audit results 
Scheduled for June 2013 audit committee meeting 

3

EVALUATION OF INTERNAL CONTROLS 
Internal control is a process designed to provide
reasonable assurance regarding the achievement of
defined objectives 
o Effectiveness and efficiency of operations 
o Reliability of financial reporting 
o Compliance with applicable laws and regulations 
Five components of internal control 
o Control Environment 
o Risk Assessment 
o Control Activities 
o Information and Communication 
o Monitoring 

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SIGNIFICANT ACCOUNTS AND
PROCESSES 
Billings, cash receipts, and receivables 
Signatory Lease and Operating Agreement 
Leases 
Procurement, cash disbursements, and payables 
Payroll 
Capital projects 
Treasury and Investments 
Debt and related accounts 
Pollution remediation obligation and contingencies 
Budget 
Financial close and reporting 
Information technology (general computer controls) 
Administration of federal awards and related administrative
controls 
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OUR APPROACH TO INTERNAL 
CONTROL TESTING 
Top-down approach 
Assess entity-level controls and information technology
related (general computer) controls 
Identify significant accounts and processes 
Obtain documentation of significant accounts and
processes 
Assess design and implementation and perform
walkthroughs of significant controls 
Identify "key controls" for testing 
Perform tests of controls and compliance 

6

ADMINISTRATION OF FEDERAL AWARDS 
Major Programs identified 
Airport Improvement Program (Department of Transportation - FAA) 
Port Security Grant Program (Department of Homeland Security) 
Internal controls and tests of compliance will be performed
relative to the following administrative requirements 
Allowable costs 
Cash management 
Davis-Bacon Act 
Equipment management 
Matching 
Period of availability 
Procurement 
Real property acquisition 
Reporting 
Special tests and provisions 
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CELEBRATING A CENTURY OF SERVICE 
In 1913 an accountant opened a small practice in Seattle to serve the
Pacific Northwest's booming timber industry. Today, that practice is one
of the largest accounting and consulting firms in the nation, serving
businesses and organizations around the globe. 
Yet while we're pleased to celebrate our centennial, we remain focused
on what's truly mattered all along: you. Because anniversaries are nice.
But providing you with vital insights to help your organization
succeed? That counts. 

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