Entrance Conference: Port of Seattle 
The Office of the Washington State Auditor's vision is increased trust in government. Our mission is to provide
citizens with independent and transparent examinations of how state and local governments use public funds, and
develop strategies that make government more efficient and effective. 
The purpose of this meeting is to share our planned audit scope so that we are focused on the areas of highest risk.
We value and appreciate your input. 
Audit Scope 
Based on our planning, we will perform the following audit: 
Accountability audit for January 1, 2018 through December 31, 2018. 
We will examine the management, use and safeguarding of public resources to ensure there is protection from
misuse and misappropriation. In addition, we will evaluate whether there is reasonable assurance for adherence 
to applicable state laws, regulations and policies and procedures. 
We plan to evaluate the following areas: 
Follow-up of recommendations issued in prior year audit (management letter and exit
recommendations): we will gain an understanding of corrective actions taken by the Port. We will
evaluate the responses to determine if actions taken address the prior audit recommendations. We
will perform testing of corrective action, as applicable, to verify the Port's implementation of the 
recommendations. 
Self insurance programs: state law and SAO audit policy requires an examination of all self-
insurance programs at least once every two years. Our office last reviewed this area during the
FY16 accountability audit. We will review schedule 21 (Risk Management) and gain an
understanding of controls over the self-insurance programs to ensure that state law requirements
were met. 
Electronic Fund Transfers: we will gain an understanding of controls over EFT disbursements to
ensure adequate safeguarding of public resources. We will review selected EFT transactions, based
on auditor judgment, to determine whether transactions are valid and supported with adequate
documentation. 
Procurement of professional services (A&E) contracts: we will gain an understanding of controls
over the procurement of professional service contracts at the Port. We will review selected
contracts, based on auditor judgement, to ensure compliance with state law requirements and Port
policies and procedures. 
Payroll  Fire department overtime: we will gain an understanding of controls over the overtime
payroll process at the Port, specifically for the Fire department. We will review selected overtime
payments, based on auditor judgement, to ensure payments are allowable, valid , and supported with
adequate documentation.

Industrial Development Corporation  January 1, 2016 through December 31, 2018 : SAO audit
policy requires an examination of Industrial Development Corporations at least once every three
years. Our office last reviewed the Port's IDC for fiscal years 2013-2015. We will perform an
assessment audit of the IDC's activities for fiscal years 2016-2018 to ensure state law requirements
were met. 

Engagement Letter 
We have provided an engagement letter that confirms both management and auditor responsibilities, and other
engagement terms and limitations. Additionally the letter identifies the cost of the audit, estimated timeline for
completion and expected communications. 
Work of Other Auditors 
A financial statement and single audit of the Port was performed by Moss Adams. 
In accordance with professional standards, we considered the audit report and audit work performed by the other
auditors in the planning of our audit. This includes communicating with the other auditors, evaluating the quality
and results of the other auditor's work, and identifying areas that could affect our audit, including those in which
we could leverage the work already performed. 
Accountability audits differ in scope from financial statement and single audits. Financial statement audits
determine if amounts reported in the financial statements are fairly stated, while single audits determine
compliance with specific federal grant requirements. In contrast, accountability audits determine compliance with
laws, regulations and the government's policies in areas selected for testing, as well as determine if public assets
are safeguarded against loss or misuse. 
The accountability audit may examine some of the same areas covered in the financial statement and single audit.
However, due to the objective for accountability audits, the audit will approach and test these differently and not
duplicate work already performed. 
Levels of Reporting 
Findings 
Findings formally address issues in an audit report. Findings report significant deficiencies and material
weaknesses in internal controls; misappropriation; and material abuse or non-compliance with laws, regulations 
or policies. You will be given the opportunity to respond to a finding and this response will be published in the
audit report. 
Management Letters 
Management letters communicate control deficiencies, non-compliance or abuse that are less significant than a
finding, but still important enough to be formally communicated to the governing body. Management letters are
referenced, but not included, in the audit report. 
Exit Items 
Exit items address control deficiencies or non-compliance with laws or regulations that have an insignificant
effect on the audit objectives. These issues are informally communicated to management.

Important Information 
Confidential Information 
Our Office is committed to protecting your confidential or sensitive information. Please notify us when you give
us any documents, records, files, or data containing information that is covered by confidentiality or privacy laws. 
Audit Costs 
The cost of the audit is estimated to be approximately $101,000, plus travel expenses. 
Expected Communications 
During the course of the audit, we will communicate with Debbi Browning, Assistant Director of General
Accounting and Business Technology on the audit status, any significant changes in our planned audit scope or
schedule and preliminary results or recommendations as they are developed. 
Please let us know if, during the audit, any events or concerns come to your attention of which we should be
aware. We will expect Debbi to keep us informed of any such matters. 
Audit Dispute Process 
Please contact the Audit Manager or Assistant Director to discuss any unresolved disagreements or concerns you
have during the performance of our audit. At the conclusion of the audit, we will summarize the results at the exit
conference. We will also discuss any significant difficulties or disagreements encountered during the audit and
their resolution. 
Loss Reporting 
State agencies and local governments are required to immediately notify our Office in the event of a known or
suspected loss of public resources or other illegal activity. These notifications can be made on our website at
www.sao.wa.gov/report-a-concern/how-to-report-a-concern/fraud-program/. 
Peer Reviews of the Washington State Auditor's Office 
To ensure that our audits satisfy Government Auditing Standards, our Office receives external peer reviews every
three years by the National State Auditors Association (NSAA). The most recent peer review results are available
online at www.sao.wa.gov/about-sao/who-audits-the-auditor/. Our Office received a "pass" rating, which is the
highest level of assurance that an external review team can give on a system of audit quality control. 
Working Together to Improve Government 
Audit Survey 
When your report is released, you will receive an audit survey from us. We value your opinions on our audit
services and hope you provide us feedback. 
Local Government Support Team 
This team provides support services to local governments through technical assistance, comparative statistics,
training, and tools to help prevent and detect a loss of public funds. Our website and client portal offers many
resources, including a client Help Desk that answers auditing and accounting questions. Additionally this team
assists with the online filing of your financial statements.






The Center for Government Innovation 
The Center is a resource for local governments that want to solve problems, innovate, and improve the value of
their services to citizens. The Center is available by phone, online, or in person to offer assistance, programs, and 
tools  at no additional charge. You can contact the Center for more information at center@sao.wa.gov. 
Audit Team Qualifications 
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 AccountingCommittee. Phone: (360) 902-0091 or
Kelly.Collins@sao.wa.gov 
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. He also served as the chairman of the Local Records Committee of the
Washington State Archives for 10 years. Phone: (360) 902-0471 or Mark.Rapozo@sao.wa.gov 
Joe Simmons, CPA, Program 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. He has also provided support as one of our Office's county and city subject
matter  specialists  and  is  currently  the  CPA  audit  Program  Manager.  Phone:  (206)  263-2838  or
simmonsj@sao.wa.gov 
Aron Keleta, Assistant Audit Manager  Aron has been with the State Auditor's Office since 2015. During his
time with the Office, Aron has performed financial and accountability audits for several cities, fire districts, water
districts, and school districts. Aron has a Bachelor's degree in Business Administration, with an emphasis in
Accounting from Washington State University. Phone: (206) 684-0672 or keletaa@sao.wa.gov 
Sandy Nguyen, CPA, Audit Lead  Sandy has been with the State Auditor's office since 2016. In her role as an
Assistant State Auditor, Sandy has worked on the financial statement, federal grant, and accountability audits for
the City of Seattle and Port of Seattle. Sandy has a Bachelor's degree in Economics from the University of
Washington. Phone: (206) 615-0555 or Sandy.Nguyen@sao.wa.gov 
Angela Funamori, Assistant State Auditor  Angela has been with the State Auditor's Office since 2017.
Angela has a Bachelor's degree in Accounting from Central Washington University. In her role as an Assistant
State Auditor, she has worked on the financial statement, federal grant compliance, and accountability audit for
King County. 
Ava Taylor, Assistant State Auditor  Ava has been with the State Auditor's Office since 2019. Ava graduated
from the University of Washington with a Master of Professional Accountancy. In her role as an Assistant State
Auditor, Ava has worked on the financial statement and accountability audits for the City of Seattle.