PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      6a 
ACTION ITEM             Date of Meeting   October 27, 2015 
DATE:    October 9, 2015 
TO:     Ted Fick, Chief Executive Officer 
FROM:    Lisa Lam, Assistant Director of Revenue Services and Financial Reporting
& Controls, Accounting & Financial Reporting 
Rudy Caluza, Director, Accounting & Financial Reporting 
CC:      Dan Thomas, Chief Financial Officer 
SUBJECT:  External Audit Services for the Port's 2016 to 2020 Operating Periods 

Amount of This Request: Not to exceed $3,000,000 
Source of Funds: AFR operating budget & Portwide non-opearating budget 

ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to execute a contract for
external audit services for the financial periods 2016-2020 in an estimated amount of
$3,000,000 for the full contract term. The base contract is one year with four, one-year
renewal options. 
SYNOPSIS 
Annual independent audits are required for the financial statements of the Port's Enterprise
Fund and the Warehousemen's Pension Trust Fund for purposes of obtaining an independent
auditor's opinion as to the fairness in presentation of the financial results and position. 
Independent audits are also required for the Port's administration of Federal grants and
Passenger Facility Charge (PFC) revenues in accordance with applicable regulations. These
audits have been covered under the existing external audit services contract. That contract is
due to expire in April 2016 once the 2015 audit services are completed. 
The annual external audit services include the following deliverables: 
Independent Audit and Opinion - Financial Statements of the Port's Enterprise Fund 
Independent Audit and Opinion - Financial Statements of the Warehousemen's
Pension Trust Fund

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
October 9, 2015 
Page 2 of 2 
Independent Audit and Opinion  Net Revenue Available for Revenue Bond Debt
Service 
"Single Audit" and Report of Federal Grants Awarded 
PFC Program Audit and Report 
Agreed upon procedure of the Port's compliance with financial assurance regulations
for the Washington State Assurance Submission for the Port's Terminal 91 Facility. 
This contract will be competitively procured. Staff is working with Office of Social
Responsibility to identify small business opportunities to be included in the procurement 
process as a goal or requirement. 
FINANCIAL IMPLICATIONS 
The total audit fee estimated for all five years is expected to be under $3,000,000. The fee for
the 2016 audit services, which is conducted during latter 2016 and the first half of 2017, is
included in the AFR department's 2016 proposed budget and will be included in the 2017 
AFR proposed operating budgets, and in non-operating budgets as appropriate. The funding
sources are approximately split 55% and 45% in operating and non-operating expense,
respectively. For audit services in 2017  2020, the budget will be included in the Port's
annual budget. 
STRATEGIES AND OBJECTIVES 
Be a high performance organization: To be transparent and accountable over the
stewardship of public funds/assets, to be in full compliance with prescribed industry
accounting & financial reporting standards and Federal regulations, and to timely and
accurately report on the Port's financial results. 
ATTACHMENTS TO THIS REQUEST 
None. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
10/6/2015  Audit Committee approved proceeding of External Independent Audit RFQ