Port of Seattle 
January 1, 2009 through December 31, 2009 
September 7, 2010

State Auditor's Office 
Mission 
The State Auditor's Office independently serves the citizens of Washington by promoting
accountability, fiscal integrity and openness in state and local government. Working with
these governments and with citizens, we strive to ensure the efficient and effective use of
public resources. 
Audit Authority 
State Law requires the Auditor's Office to examine the financial affairs of all local
governments. For each such examination, "inquiry shall be made as to the financial
condition and resources of the local government; whether the Constitution and laws of the
state, the ordinances and orders of the local government, and the requirements of the
State Auditor have been properly complied with; and into the methods and accuracy of
the accounts and reports" (RCW 43.09.260). This statute further requires the Office to
prepare and distribute a report or reports of the results of such audits. 

Audit Information 
Audit Scope 
Our audit will cover the following general areas for the period beginning January 1, 2009 
and ending December 31, 2009: 
Accountability for public resources and compliance with laws and regulations 
In keeping with general auditing practices, we do not examine every transaction, activity
or area.  Instead, our audits focus on identifying and examining those transactions,
activities or areas that pose the highest risk. 
Accountability for Public Resources and Legal Compliance 
We will evaluate accountability and compliance with certain state laws and regulations in
the following areas: 
Procurement                              Revenue and receivables 
Disbursements                            Contract compliance 
Conflict of interest                          Loss reporting 
Insurance 
Audit Reports 
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At the completion of the audit, the State Auditor's Office will issue the following reports: 
Accountability Report 
The results of our accountability audit are included in this report. 
Reporting Levels 
Findings 
Findings formally address issues in an audit report. The Port is given the opportunity to
respond to a finding, and this response, or synopsis of it, is published in the audit report.

Management Letters 
Management letters communicate less significant instances of noncompliance, and make
recommendations for strengthening internal controls. Management letters are referenced
but not included in the audit report. 
Exit Items 
Exit items are less serious audit issues than a finding or management letter and may be
informally communicated to the entity.
Known or Suspected Loss Notification 
State law (RCW 43.09.185) requires all state agencies and local governments to
immediately notify the State Auditor's Office in the event of a known or suspected loss of
public resources or other illegal activity. This includes situations where disciplinary action
against an employee is being considered due to known or suspected losses of public
funds, fraud, illegal acts, or noncompliance with policies related to preventing losses or
other illegal acts. Governments should not begin investigations or take steps to resolve 
suspected losses or illegal activity without first informing our Office. 
Additional information on reporting known or suspected losses and the Office's Fraud
Program is available at www.sao.wa.gov  Investigations  Fraud Program. Notifications
can be made online at www.sao.wa.gov  Investigations  Fraud Program  Report a
Fraud.  Questions can be directed to the Audit Manager in your area or Sarah Walker,
Fraud Manager, who can be reached at sarah.walker@sao.wa.gov or by phone at (509)
454-3621. 
Contacts and Other Information 

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The State Auditor's Office is committed tomaintaining positive relationships and open
communication with all entities we audit. 
Entity Contacts 
Debbi Browning                   (206) 787-3081 
Entity Audit Liaison                    Browning.d@portseattle.gov 
State Auditor's Office Contacts 
Carol Ehlinger                      (206) 615-0555 
Audit Manager                    ehlingerc@sao.wa.gov 
Tony Martinez                     (206) 296-1750 
Assistant Audit Manager              martinea@sao.wa.gov 
Matt Lanier, CPA                   (206) 296-1751 
Auditor in Charge                   lanierm@sao.wa.gov 

The cost of the audit is estimated to be approximately $54,165, plus travel
expenses. 
Our Office is committed to protecting your confidential or sensitive information.
You are responsible for notifying us when any documents, records, files, or data
containing information that is covered by confidentiality or privacy laws, such as
HIPAA, are provided to us. 
We will also perform an audit of the Port Industrial Development Corporation. Our
audit will cover accountability for public resources and compliance with laws and
regulations for the period beginning January 1, 2006 and ending December 31,
2009. The cost of the audit is estimated to be $3,144. 









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