Audit Results - Management Response
Briefing to Commission Audit Committee
June 7, 2011

Port's Independent CPA Firm: Moss Adams, LLP
Audit Focus:
Financial Statements / CAFR

Single Audit  Federal grants regulatory compliance

Passenger Facility Charge (PFC)  Federal Aviation
Administration (FAA) regulatory compliance

Audit Results: May 3rd Audit Committee meeting

$400 million current assets

$5.5 billion net capital assets

$3.3 billion long-term debt

$470 million operating revenues

$414 million operating & depr. expenses

$40 million Federal grants/ARRA expenditures

$59 million PFC revenues

NOI: $217 million before depr. $56 million after depr.

Independent auditor opinion  clean, unqualified

Full compliance - prescribed standards (GAAP)  no findings

Effective internal controls in place  no findings

No auditor letter of recommendations

No audit adjustments to Port financial statements prepared by
management
Port CAFR issued timely, early

Ultra-clean financial statement audit results

Federal funds properly administered - no questioned costs

Effective internal controls in place - no findings

"Complied in all material respects with Federal grants regulatory
requirements"
One minor compliance finding
Related to back-funding on a grant
Procedural issue - to check contractors for EPLS debarment
No debarred contractors identified by audit
pre-2009 weakness - 2009 forward, Port in full compliance
Future back-funding, EPLS checked for all contractors

Federal funds properly administered - no questioned costs

Effective internal controls in place - no findings

Complied in all material respects with FAA regulatory
requirements - no findings

Fiscal Integrity
Financial Transparency
Public Accountability