PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      5c 
Date of Meeting     June 7, 2011 
DATE:    May 27, 2011 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Dan Thomas, Chief Financial & Administrative Officer 
Rudy Caluza, Director, Accounting & Financial Reporting 
Lisa Lam, Senior Manager, Financial Reporting & Controls 
SUBJECT:  External Audit Services for the Financial Statement, Single Audit (federal grant
compliance) and Passenger Facility Charge (PFC) Auditing Services for the Port's
2011-2015 Operating Periods 
Amount of This Request: Not to exceed $2.6 million 
Source of Funds: Operating budget & Portwide non-opearating budget 
Estimated Workers Employed: 10 to 15 
ACTION REQUESTED: 
Request authorization for the Chief Executive Officer to execute a contract for external independent
audit professional services for the period 2011-2015. The contract will be in the amount not-toexceed
$2.6 million for the full term of the contract (three years with two one-year renewal options at
the Port's discretion). Service Directives will be issued on an annual basis ordering the annual
external audits. 
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 auditors 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 PFC revenues in accordance with
applicable regulations. These audits have been covered under the existing external audit services
contract which expired in April 2011 as the 2010 audit services were completed. 
As in the past, the Port openly and competitively selects the external auditor.  The Request for
Qualification ("RFQ") for independent external audit services was reviewed and approved by the
Audit Committee at the February 1, 2011 meeting. The RFQ process from drafting, advertising to
evaluation was led by the Central Procurement Office and observed by the Director of Internal Audit
in accordance with Resolution No. 3605, as amended. Four proposals were received in response to
the RFQ. At least ten percent of the subcontract work associated with the Port's external audits is to
be performed by small business.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 27, 2011 
Page 2 of 2 
At the May 3, 2011 meeting, the Audit Committee reviewed and approved management's
recommendation to select Moss Adams, LLP., as the Port's independent external auditors for the
operating periods 2011 through 2015 based on the results of the RFQ process. 
SCOPE OF WORK: 
The annual external audit services will 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 
Independent Audit and Opinion  Net Revenue Available for Revenue Bond Debt Service 
"Single Audit" and Report of Federal Grants Awarded 
Passenger Facility Charge Program Audit and Report 
For each annual audit, the audit services schedule is as follows:
Perform Planning and Interim Audit work        September to November 
Perform Final Audit work                   February to April 
Issuance of Audit Reports                   By April 30 
SOURCE OF FUNDS: 
The total contract cost for the five years results in an amount not-to-exceed $2.6 million. The fee for
the 2011 audit services, which is conducted during latter 2011 and first half of 2012, is included in
the Accounting & Financial Reporting (AFR) department's 2011 approved budget and will be
included in the 2012 AFR proposed operating budget, and in non-operating budgets as appropriate.
The funding sources are approximately 55% and 45%, respectively. For audit services in 2012
2015, the funds will be requested in the Port's respective annual budgets. 
STRATEGIC OBJECTIVES: 
Be a high performance organization: To be transparent and accountable for public funds and
timely report on the Port's financial results and position. To be in full compliance with
prescribed industry accounting and financial reporting standards, and federal regulations. 
TRIPLE BOTTOM LINE: 
The RFQ for external audit services incorporated the Port's "Small Business Initiative" goals to
allow at least 10% of subcontracting work with small businesses. 
PREVIOUS COMMISSION ACTION: 
None.