Port of Seattle 
Report to Audit Committee 
2017 Audit Results 
June 25, 2018

Agenda 
Reports Issued 
Areas of Audit Emphasis 
Matters Required to be Communicated 
Upcoming Accounting Pronouncements 
Other Communications 




2  Port of Seattle 2017 Audit Results

Reports Issued 
Unmodified opinion on financial statements for the Enterprise Fund and the
Warehousemen's Pension Trust Fund 
Report on the Schedule of Net Revenues Available for Revenue Bond Debt Service 
Single Audit Reports 
o  Audit and report on internal control and compliance over financial reporting in accordance with
Government Auditing Standards 
No findings of noncompliance noted 
o  Audit and report on compliance related to the major federal award programs, the schedule of
expenditures of federal awards and related internal controls 
No findings of noncompliance noted 
Audit and report on the schedule of Passenger Facility Charge (PFC) receipts and
expenditures and related internal controls 
No findings of noncompliance noted 
Agreed Upon Procedures Report for Washington State Department of Ecology 

3  Port of Seattle 2017 Audit Results

Areas of Audit Emphasis 

Internal control environment 
o  Cash receipts/receivables, cash disbursements/payables, payroll, bond and investment
transactions, general IT controls, financial close and reporting, administration of federal awards; 
Management estimates 
o  Environmental remediation liability, legal and insurance contingencies/ recoveries, depreciation,
allowance for doubtful accounts, grant receivables, actuarial valuations for the Warehousemen's
Pension Trust amounts; 
Northwest Seaport Alliance joint venture 
o  Testing of internal controls over allocation of transactions and accounts 
o  Verified the Port of Seattle's share in operating revenue through confirmation with component
auditor and agreement to NWSA audited financial statements 
Capital assets 
o  Consideration of capitalization policies and potential impairment, as well as testing of
additions, retirements, overhead application, capitalized interest, depreciation 
4  Port of Seattle 2017 Audit Results

Areas of Audit Emphasis (continued) 
Signatory lease and operating agreement 
o  Analysis of revenue requirement by cost center category according to the agreement including
landing fees, terminal rents, gate fees, baggage claim rates, preferential and common use
rates under the SLOA III agreement 
o  Revenue share and year-end settlement of amounts on an airline by airline basis 
Bond activity 
o  Tested the issuance in March 2017 of $127 million of general obligation and in August 2017
$688 million of revenue and refunding bonds to refund 2009A and 2009B-1bonds 
o  Arbitrage liability, capitalized interest, discounts and premiums, debt repayments, compliance
with covenants, and audit of net revenues schedule 
Revenue Recognition 
o  Operating revenue analysis using business indicators such as landed weight, enplanements,
gate usage, and boat counts 
o  Ad valorem tax levy, investment income, PFC, CFC, and federal grants 
o  Consideration of the collectability of related receivables 
5  Port of Seattle 2017 Audit Results

Areas of Audit Emphasis (continued) 
Net position 
o  Consideration of classification for unrestricted, restricted, and net investment in capital assets
categories 
Information Technology 
o  General Computer Controls 
o  Implementation of new ParkingSoft system 
Management's Discussion and Analysis and Notes to Financial Statements 
Two major federal programs tested this year  
o  TSA Surveillance Systems Program $3.2 Million 
o  Checked Baggage Screening Programs $10.8 Million 


6  Port of Seattle 2017 Audit Results

Required Communications 
Auditor and Management responsibilities for financial statements under Generally Accepted
Auditing Standards 
o  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 
o  Our audit does not relieve Port management and the Port Commission of its responsibilities 
Audit was performed according to the planned scope 
Significant accounting policies are summarized in Note 1 to the financial statements 
Financial statement disclosures were consistent, clear and understandable 
Representations were requested and received from management 


7  Port of Seattle 2017 Audit Results

Required Communications (continued) 
New accounting pronouncements implemented in 2017 
o  GASB Statement No. 82 (Pension Issues  amendment to GASB No. 67, No. 68, and No. 73) 
There were no disagreements with management 
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 
o  Procedures performed included journal entry testing, vendor analysis, and interviews of
personnel 
Moss Adams is independent with respect to the Port of Seattle 
8  Port of Seattle 2017 Audit Results

Upcoming Accounting Pronouncements 

GASB 75  Accounting and Financial Reporting for Postemployment Benefits Other than
Pensions (effective in 2018): Addresses accounting and financial reporting issues related
to other postemployment benefit plans (OPEB). We will work with management to plan for
the implementation of these standards. 
GASB 85  Omnibus 2017 (effective in 2018): Addresses practice issues that have been
identified during implementation and application of certain GASB Statements. We will work
with management to plan for the implementation of this standard. 
GASB 86  Certain debt extinguishment (effective in 2018): Clarifies requirements related to
whether debt is considered defeased when only existing resources are used (not using
proceeds from refunding debt issuance). Requires cash or other monetary assets to be
placed in trust with an escrow agent, trust restricted to owning essentially risk-free assets
and amounts sufficient to met all obligations (principal, interest). We will work with
management to plan for the implementation of this standard. 

6  Certain debt extinguishments 
9  Port of Seattle 2017 Audit Results

Upcoming Accounting Pronouncements (continued) 

GASB 83  Certain Asset Retirement Obligations (effective in 2019): Addresses accounting
and financial reporting for certain asset retirement obligations. We will work with
management to plan for the implementation of this standard. 
GASB 84  Fiduciary Activities (effective in 2019): Addresses the improvement of guidance
regarding the identification of fiduciary activities for accounting and financial reporting
purposes and how those activities should be reported. We will work with management to
plan for the implementation of this standard. 
GASB 87  Leases (effective in 2020): Addresses recognition of certain lease assets and
liabilities for leases that previously were classified as operating leases. We will work with
management to plan for the implementation of this standard. 


10  Port of Seattle 2017 Audit Results

Other Communications 

Weekly meetings were held between Moss Adams and Port management and staff
throughout the audit term 
Technical 'whitepapers' were received from Port management throughout the year 
The audits progressed on time and in an orderly fashion; all requested schedules and draft
financial statements were received on a timely basis 
All Port personnel across all departments were courteous, responsive and fulfilled all of our
requests in a timely manner 
'Tone at the Top' and attitude from management was one of helpfulness, candor, and
openness in response to audit requests and discussion points 
As planned, Branch Richards & Co. personnel were an integral part of our audit team.
Approximately 10% of our audit fee for the financial statement audit was paid and attributed
to this small business firm 

11  Port of Seattle 2017 Audit Results

The material appearing in this presentation is for informational purposes only and should not be
construed as advice of any kind, including, without limitation, legal, accounting, or investment advice.
This information is not intended to create, and receipt does not constitute, a legal relationship, including,
but not limited to, an accountant-client relationship. Although this information may have been prepared
by professionals, it should not be used as a substitute for professional services. If legal, accounting,
investment, or other professional advice is required, the services of a professional should be sought.
Assurance, tax, and consulting offered through Moss Adams LLP. Investment advisory offered through
Moss Adams Wealth Advisors LLC. Investment banking offered through Moss Adams Capital LLC.






12  Port of Seattle 2017 Audit Results