Port of Seattle 
Agenda 
Reports Issued 
Areas of Audit Effort                   Results of 2012 Audit 
Required Communications           June 11, 2013 
Other Communications 


1

REPORTS ISSUED 
Unmodified opinion on financial statements for the Enterprise Fund and the
Warehousemen's Pension Trust Fund 
Audit and report on the schedule of net revenue available for revenue bond
debt service 
Audit and report on internal control and compliance over financial
reporting in accordance with Government Auditing Standards 
o No findings of noncompliance noted 
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 
o No findings of noncompliance noted 
Audit and report on the schedule of Passenger Facility Charge (PFC)
receipts and expenditures and related internal controls 
o One finding of noncompliance noted 
2

PASSENGER FACILITY CHARGE (PFC)
PROGRAM AUDIT 
Audit of Schedules of Passenger Facility Charge Program Receipts and
Expenditures 
Tested internal controls and compliance with PFC requirements 
No questioned costs were noted 
One compliance finding was noted related to reporting 
o Total Airport Passenger Facility Charge debt service offset payments reported on
4th quarter status report filed with the Federal Aviation Administration (FAA)
were overstated by $3.1 million compared to internal reports generated by the
Port 
o Management took corrective action prior to issuance of audit report and re-filed
the status report with FAA, noting revised and appropriate debt service offset
payment amounts 


3

AREAS OF AUDIT EFFORT 
Internal control environment 
Management estimates 
o Environmental remediation liability, legal and insurance contingencies/
recoveries, depreciation, allowance for doubtful accounts, grant receivables, self
insurance liabilities, actuarial valuations for the Warehousemen's Pension Trust
amounts and disclosures 
Revenue recognition 
o Operating revenue analysis using business indicators such as landed weight,
enplanements, gate usage, crane movements, and boat counts 
o Ad valorem tax levy, investment income, PFC, CFC, and federal grants 
o Consideration of the collectability of related receivables 
Signatory lease and operating agreement 
o Revenue requirements for landing fees and terminal rents according to the
agreement 
o Cost elements - debt service allocation and operating and maintenance expense 

4

AREAS OF AUDIT EFFORT (CONTINUED) 
Accounting for leases 
o Airport concessions and fuel system, Seaport, and Real Estate leases 
o Testing of lease terms, payments and appropriate accounting treatment and
disclosures 
Bonds and related accounts 
o Arbitrage liability, capitalized interest, discounts and premiums, new debt
issuance, debt repayments, compliance with covenants, and audit of Net Revenue
Schedule 
Capital assets 
o Consideration of capitalization policies and potential impairment as well as
testing of additions, retirements, overhead application, capitalized interest,
depreciation 
Net position 
o Consideration of classification for unrestricted, restricted, and net investment in
capital assets 
Management's Discussion and Analysis and Notes to Financial Statements 

5

REQUIRED COMMUNICATIONS 
Auditor and Management responsibilities for financial statements under
Generally Accepted Auditing Standards 
o Auditor: To form and express an opinion about whether the financial statements
are fairly presented; to plan and perform the audit in accordance with generally
accepted auditing standards and Government Auditing Standards 
o Our audit does not relieve management and the Port Commission of its
responsibilities 
Audit was performed according to the planned scope 
Significant accounting policies are summarized in Note 1 to the financial
statements 
Financial Statement disclosures were consistent, clear and understandable 
There were no proposed or passed audit adjustments 


6

REQUIRED COMMUNICATIONS (CONTINUED) 
Representations were requested and received from management 
Disagreements with management (none) 
Consultation with other independent auditors (none of which we are
aware) 
Difficulties encountered during the audit (none) 
Illegal acts (none noted) 
Ability to continue as a going concern (no disclosure necessary) 
Consideration of fraud in a financial statement audit 
o Procedures performed included journal entry testing and interviews of
personnel 
Moss Adams is independent with respect to the Port of Seattle 


7

OTHER COMMUNICATIONS 
Weekly meetings were held between Moss Adams and Port
management and staff throughout the audit term 
The audits progressed on time and in an orderly fashion 
All Port personnel were courteous, responsive and fulfilled all of our
requests in a timely manner 
As planned, Branch Richards & Co. personnel were an integral part
of our audit team. Approximately eight to ten percent of our audit
hours are contributed by this small business firm on an annual basis 

8

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. 

9