Presentation to the 
Port of Seattle 
Audit Committee 
Agenda 
Results of 2011 Audit 
Reports issued 
Internal Control Matters 
May 15, 2012 
Areas of Audit Effort 
Required Communication 
Other Communication 

1

Reports Issued 
Report on financial statements 
Unqualified opinion on the financial statements, which 
encompass separate statements of the Enterprise Fund and
the Warehousemen's Pension Trust Fund 
Audit and report on Schedule of Net Revenues Available for
Revenue Bond Debt Service 
Audit and report on Schedule of Passenger Facility Charges
(PFC's), receipts and expenditures and related internal controls 
Audit and report on Federal Financial Assistance Programs and
related internal controls and compliance in accordance with
Federal OMB Circular A-133 (Single Audit) 

2

Internal Control Matters 
No material weaknesses or significant deficiencies in internal
controls identified 
Report on Internal Controls in accordance with Government
Auditing Standards 
SAO finding pertaining to Aviation High School was posted 
Observations for process improvements 
Timely closing of construction projects 
Minor discrepancies in federal grant reporting for the Law
Enforcement Officer (LEO) Reimbursement Agreement
Program 
Information technology matter 
Routine review of segregation of duties of system and
database administrators 
3

Areas of Audit Effort 
Internal control environment 
Understand and test the design and implementation of key controls
surrounding all significant financial statement accounts and administrative
processes and compliance requirements 
Assess information technology general controls and certain application
controls 
Test sample of transactions of the capital assets related systems, payroll,
cash disbursements and procurement systems, and leases 
Treasury and investment, debt, cash, budget, third party transactions,
environmental remediation liability, and financial close and reporting cycles
tested through observations, inquiries and walkthroughs of each system and
controls 
Management estimates 
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 

4

Areas of Audit Effort - 
continued 
Revenue recognition 
Operating revenue analysis using business indicators such as landed weight,
enplanements, gate usage, crane movements, and boat counts 
Ad valorem tax levy, investment income, PFC, CFC, and federal grants 
Consideration of the collectability of related receivables 
Signatory lease and operating agreement 
Revenue requirements for landing fees and terminal rents according to the
agreement 
Cost elements - debt service allocation and operating and maintenance
expense 
Accounting for leases 
Airport concessions and fuel system, Seaport, and Real Estate leases 
Testing of lease terms, payments and appropriate accounting treatment and
disclosures 

5

Areas of Audit Effort - 
continued 

Bonds and related accounts 
Arbitrage liability, capitalized interest, discounts and premiums, new debt
issuance, debt repayments, compliance with covenants, and audit of Net
Revenue Schedule 
Capital assets 
Consideration of capitalization policies and potential impairment as well as
testing of additions, retirements, overhead application, capitalized interest,
depreciation 
Net assets 
Consideration of classification for unrestricted, restricted, and invested in
capital assets, net of related debt 
Warehousemen's Pension Trust Fund 
Separate materiality and procedures 

6

Areas of Audit Effort - 
continued 

Administration of federal awards and related administrative
controls and compliance 
Total federal expenditures of $22.7 million 
Two major programs 
Airport Improvement Program - $19.5 million 
LEO Reimbursement Agreement Program - $1.0 million 
Tested major programs for compliance with OMB-Circular A-133 and grant
specific requirements 
No findings of noncompliance or questioned costs noted 
Passenger Facility Charge (PFC) Program Audit 
Schedules of Passenger Facility Charge Program Receipts and Expenditures 
Tested internal controls and compliance with PFC requirements 
No findings of noncompliance or questioned costs noted 


7

Required Communications 
Auditor and Management responsibilities for financial
statements under Generally Accepted Auditing Standards 
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 
Our audit does not relieve management and the Commission of its
responsibilities 
Audit was performed according to the planned scope 
Significant accounting policies 
Summarized in Note 1 to the financial statements 
Certain Fuel Hydrant activities were reclassified to 'non-operating' rather
than 'operating' 
Financial Statement disclosures were consistent, clear and
understandable 
There were no proposed or passed audit adjustments 

8

Required Communications 
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 
Procedures performed: 
Journal entry testing 
Interviews of personnel 
Moss Adams is independent with respect to the Port of Seattle 
9

Other Communications 
All significant audit issues and new accounting pronouncements
were addressed early in the audit process 
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 ten percent of our audit
hours are contributed by this small business firm on an annual
basis 

10