Port of Seattle 
Report to Audit Committee 
Agenda:                        2016 Audit Results 
Reports Issued 
Areas of Audit Emphasis                        May 12, 2017 
Matters Required to be Communicated 
Upcoming Accounting Pronouncements 
Other Communications 


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REPORTS ISSUED 
Unmodified opinion on financial statements for the Enterprise Fund and the
Warehousemen's Pension Trust Fund 
Report on the Schedule of Net Revenues Available for Revenue Bond Debt
Service 
Single Audit Reports 
o  Audit and report on internal control and compliance over financial reporting in
accordance with Government Auditing Standards 
Two findings noted as reported by otheraudit organizations 
o Audit and report on compliance related to the major Federal Award Programs, the
Schedule of Expenditures of Federal Awards and related internal controls 
No findings of noncompliance noted 
Audit and report on the schedule of Passenger Facility Charge (PFC) receipts
and expenditures and related internal controls 
No findings of noncompliance noted 
Agreed Upon Procedures Report for Washington State Department of Ecology 
Tobe issued in May 2017 

2

AREAS OF AUDIT EMPHASIS 
Internal control environment 
o Cash receipts/receivables, cash disbursements/payables, payroll, bond and
investment transactions, general computer controls, financial close and reporting,
administration of federal awards, separation of NWSA activity 
Management estimates 
o Environmental remediation liability, legal and insurance contingencies/
recoveries, depreciation, allowance for doubtful accounts, grant receivables,
actuarial valuations for the Warehousemen's Pension Trust amounts 
Northwest Seaport Alliance joint venture 
o Transfer of initial assets to the NWSA
o Testing of internal controls over allocation of transactionsand accounts 
o Verified the Port of Seattle's share in operating revenue through confirmation
with component auditor and agreement to NWSA audited financial statements 
o Evaluated service allocation agreements associated with NWSA 
3

AREAS OF AUDIT EMPHASIS (CONTINUED) 
Net pension liability 
o Recognition of share of the liability for Port employees' future pension
obligations as part of the Washington State Department of Retirement System
(DRS) as well as the future pension liability obligation associated with the
Warehouseman's Pension Trust Fund 
o Employer liability and related deferred inflows/outflows including selections of
new hires from the census and contributions made by the Port to the DRS 
Bondactivity 
o Tested the issuance of $249 million of Revenue Refunding bonds issued in July
2016 and August 2016 to refund 2006, 2007A and 2007B bonds 
o Arbitrage liability, capitalized interest, discounts and premiums, debt repayments,
compliance with covenants, and audit of Net Revenues Schedule 
o Alaskan Way Viaduct payment funded from issuance ofbonds 
Capital assets 
o Consideration of capitalization policies and potential impairment, as well as testing
of additions, retirements, overhead application, capitalized interest, depreciation 
4

AREAS OF AUDIT EMPHASIS (CONTINUED) 
Revenue recognition 
o Operating revenue analysis using business indicators such as landed weight,
enplanements, gate usage, and boat counts 
o Ad valorem tax levy, investment income, PFC, CFC, and federal grants 
o Consideration of the collectabilityof related receivables 
Signatory lease and operating agreement 
o Analysis of revenue requirement by cost center category according to the
agreement including landing fees, terminal rents, gate fees, baggage claim rates,
preferential and common use rates under the SLOA III agreement 
o Revenue sharing and year-end settlement of amounts on an airline by airline
basis 
Unpredictable Procedures 
o Selected a significant non-SLOA lease agreement to test contract compliance and
application of fees charge in accordance with contract terms 

5

AREAS OF AUDIT EMPHASIS (CONTINUED) 
Net position 
o Consideration of classification for unrestricted, restricted, and net investment in
capital assets categories 
Information Technology 
o  General computer controls 
o Ancillary revenue operating system 
Management's Discussion and Analysis and Notes to Financial Statements 
Twomajor federal programs tested this year  
o Airport Improvement Program $17.3 million 
o Port Security Grant Program$1.6 million 
Surveillance Systems 
Checked Baggage Screening Program 

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REQUIRED COMMUNICATIONS 
Auditor and Management responsibilities for financial statements under
Generally Accepted Auditing Standards 
o 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 Port 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 
Representations were requested and received from management 
There were no proposed or passed audit adjustments 

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REQUIRED COMMUNICATIONS (CONTINUED) 
New accounting pronouncements applied during 2016  GASB Statement
No. 72 (Fair Value Measurement and Application) 
There were no disagreements with management 
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 interviewsof personnel 
Moss Adams is independent with respect to the Port of Seattle 

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UPCOMING ACCOUNTING PRONOUNCEMENTS 
GASB 74  Financial Reporting for Postemployment Benefit Plans Other than
Pension Plans (effective in 2017) and GASB 75  Accounting and Financial
Reporting for Postemployment Benefits Other than Pensions (effective in
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 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. 
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UPCOMING ACCOUNTING PRONOUNCEMENTS
(CONTINUED) 
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. 
Lease Accounting  Exposure draft approved in January 2016. Public
comment deadline was 2016 but has been extended. There is not yet a
release date for this new standard. 

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OTHER COMMUNICATIONS
Weekly meetings were held between Moss Adams and Port management and
staff throughout the audit term 
Technical 'whitepapers' were received from Port management throughout
the year 
The audits progressed on time and in an orderly fashion; all requested
schedules and draft financial statements were received on a timely basis 
All Port personnel across all departments were courteous, responsive and
fulfilled all of our requests in a timely manner 
'Tone at the Top' and attitude from management was one of helpfulness,
candor, and openness in response to audit requests and discussion points 
As planned, Branch Richards & Co. personnel were an integral part of our
audit team. Approximately 10% of our audit fee for the financial statement
audit was paid and attributed to this small business firm 
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