Accountability Audit
Exit Conference
Presented to Port of Seattle
Audit Committee
May 7, 2020

O f f i c e  o f  t h e  W a s h i n g t o n  S t a t e  A u d i t o r                                                                                      1

SAO Executive Management
Pat McCarthy
State Auditor


Insert         Kelly Collins, CPA
Staff          Director of Local Audit
Picture
Here

Insert        Mark Rapozo, CPA
Staff          Assistant Director of Local Audit
Picture
Here

Washington State Auditor's Office                                                 2

Executive Summary
Audit Scope
Accountability audit for 2018 (see draft report).
Audit Results in Brief
In the areas we examined, the Port operations complied, in all
material respects, with applicable state laws, regulations, and
its own policies,  and provided  adequate controls over  the
safeguarding of public resources.

Audit highlight: We appreciate the Port's commitment to the
safeguarding of public funds and developing control systems that
ensure compliance with laws and regulations.
Washington State Auditor's Office                                                 3

Prior Year Follow-up
Compensation increases for non-represented employees
Management letter and exit recommendation
Status: Resolved

Small and attractive assets
Exit Recommendations
Status: Resolved


Washington State Auditor's Office                                                 4

Accountability Areas Examined
Industrial Development Corporation
Reviewed controls over operations and financial statements for
fiscal years 2015-2018
Audit result: no issues

Self-insurance programs
Reviewed controls over claims administration, contracts language,
solvency requirements, and proper approvals from state
Ensured accurate reporting to State (BARS schedule 21)
Audit result: no issues

Washington State Auditor's Office                                                 5

Accountability Areas Examined
Bell Harbor Marina- petty cash/change funds
Reviewed controls over the petty cash/change fund safekeeping
procedures
Audit results: no issues
Fire department overtime pay
Reviewed controls over the overtime payroll process at the Fire
department
Reviewed selected overtime payments for compliance with Port
policy and union requirements
Audit results: no issues
Washington State Auditor's Office                                                 6

Accountability Areas Examined
Procurement of Professional Service (A&E) contracts
Reviewed controls over the procurement of professional service contracts

Tested 17 contracts for compliance with state law
Audit results: exit recommendation

Electronic Fund Transfers (EFT)
Reviewed controls over the creation of new vendors, modifications of
vendor bank accounts, and payments
Tested 33 additions/modifications of vendor information and payments
Audit results: exit recommendation


Washington State Auditor's Office                                                 7

Accountability Areas Examined
Employees used for publics works projects
Reviewed controls over the use of employees for publics works
projects and compliance with state law
Audit results: exit recommendation







Washington State Auditor's Office                                                 8

Concluding Remarks
Audit cost
Total estimated cost: $107,000
Next scheduled audit  September 2020
Accountability for Public Resources
Review of CPA work papers
Report publication
Management Representation Letter
Audit highlight: we appreciate the collaboration and assistance from
our Audit Liaison. She helped ensure a smooth audit process from
start to finish.
Washington State Auditor's Office                                                 9