Port of Seattle
2020 Audit Entrance Presentation
December 10, 2020
Presented by: Olga A. Darlington, Partner
Anna Waldren, Manager

Agenda

o  Moss Adams Service Team
o  Services to be Provided & Deliverables
o  Responsibilities (Auditor and Management)
o  Audit Timeline
o  Audit Process
o  Areas of Audit Emphasis
o  Relationship with Audit Committee



2 Port of Seattle 2020 Engagement Service Plan

Your 2020 Service Team Leaders
Team Member                     Responsibilities
Olga A. Darlington,  Olga will serve as the lead client service partner, overseeing all
Partner  engagements we perform for the Port, and addressing any technical
questions/issues and new standards implementation.
Tammy Erickson,  Tammy will serve as the QC reviewer of our reports, and will consult on
Partner  technical issues or key elements of the audits, as needed.

Anna Waldren,  Anna will supervise our team in the field, and manage each of the audits
Manager  we perform.
Team Member                     Responsibilities
Max Jasper,  Max will supervise our IT team and perform audit procedures related to
Manager  the Port's IT systems, including general computing controls testing.

3 Port of Seattle 2020 Engagement Service Plan

Your 2020 Audit Service Team

The following individuals will also serve on the Port of Seattle engagement team
o  Caroline Mahalitic, Senior
o  Connor McCauley, Senior
o  Sam Dalin, Experienced Staff
o  Fiona Deng, Branch Richards & Co., SBE Subcontractor
o  Carmelle Marescot Palomino, Marescot Palomino & Associates, SBE Subcontractor



4 Port of Seattle 2020 Engagement Service Plan

Summary of Our Services and Deliverables
Audit and report on financial statements for the Port's Enterprise Fund and Fiduciary Fund,
comprised of the Warehousemen's Pension Trust Fund, included in the Port's Comprehensive
Annual Financial Report;
Report on internal control and compliance over financial reporting in accordance with Government
Auditing Standards;
Audit and report on compliance related to Major Federal Award Program(s), the Schedule of
Expenditures of Federal Awards and related internal controls in accordance with the Uniform Grant
Guidance;
Audit and report on the schedule of Passenger Facility Charge (PFC) program receipts and
expenditures, and related internal controls;
Audit and report on the schedule of net revenues available for revenue bond debt service;
Agreed Upon Procedures and report to State of Washington Department of Ecology relating to
Terminal 91 Facility
Agreed Upon Procedures and report to the Environmental Protection Agency relating to East
Waterway SRI/FS

5 Port of Seattle 2020 Engagement Service Plan

Our Responsibility Under U.S. Generally Accepted Auditing
Standards and Government Auditing Standards
1 To express our opinion on whether the consolidated    2 To perform an audit in accordance with generally
financial statements prepared by management with                         accepted auditing standards issued by the AICPA and
your oversight are fairly presented, in all material                               Government Auditing Standards issued by the
Comptroller General of the United States, and design the
respects, and in accordance with U.S. GAAP.
audit to obtain reasonable, rather than absolute,
However, our audit does not relieve you or                                   assurance about whether the consolidated financial
management of your responsibilities.                                        statements are free of material misstatement.
3 To consider internal control over financial reporting     To communicate findings that, in our judgment, are
and internal control over compliance as a basis for                           relevant to your responsibilities in overseeing the
designing audit procedures but not for the purpose                4
financial reporting process and administering federal
of expressing an opinion on its effectiveness or to                             awards. However, we are not required to design
provide assurance concerning such internal control.                         procedures for the purpose of identifying other
matters to communicate to you.



6 Port of Seattle 2020 Engagement Service Plan

Audit Timeline
2020                                  2021



SEPTEMBER       SEPTEMBER/        JANUARY          MARCH/         By APRIL 30         MAY/JUNE
OCTOBER                           APRIL
Planning                                 Assessment of                                 Final QC            Presentation of
meetings with          Performance                IT               Perform final           reviews, and          the audit results
management          of interim          environment        audit fieldwork          finalize             to Audit
procedures           and testing of             for the               auditors'              Committee
and testing of             system                financial                reports
Perform AUP
Audit planning            internal               internal              statements,
Presentation of          procedures as
and risk               controls               controls             Single Audit
audit results to          required by the
assessment                                                        and PFC
DECEMEBR                                  management        EPA and
Department of
Entrance
Ecology
meeting with
Audit
Committee


7 Port of Seattle 2020 Engagement Service Plan

Audit Process - Planning and Risk Assessment
Audit risk involves the risk of material misstatement in the financial statements:
o  Inherent risk, control risk and detection risk;
o  Consideration of fraud

Audit is designed to provide reasonable:
o  Not absolute  assurance that the consolidated financial statements are free of material
misstatements;

Audit scope and approach is determined based upon results of risk assessment


Risk Based AuditRisk Based Audit                  Reasonable AssuranceReasonable Assurance                  Consideration of FraudConsideration of Fraud
8 Port of Seattle 2020 Engagement Service Plan

Audit Process  Testing Procedures


Internal Controls                        Analytical Procedures                 Substantive Procedures

- IT General & Application Controls                          - Revenue and expenses
- Confirm account balances
- Revenue Cycle  Leases, Airlines revenues                - Accruals
- Vouch to supporting documentation
- Disbursement Cycle                                       - Trends, comparisons, and expectations
- Examine objective evidence
- Payroll Cycle
- Tests of details
- Financial Close & Reporting
- Representations from attorneys and
- Compliance with Federal Awards & PFC Audit                                                                        management
Guide



9 Port of Seattle 2020 Engagement Service Plan

Areas of Audit Emphasis

Internal Control Cycles           Management Estimates                     Debt

Accounting for Leases            Revenue Recognition               Capital Assets

Environmental Remediation
Net Position Classification        Pension & OPEB Liabilities
Liability

Northwest Seaport Alliance        Grant Compliance Audit 
Investments
Joint Venture                     CARES funds

10 Port of Seattle 2020 Engagement Service Plan

Our Relationship with the Audit Committee

The Committee serves as 'Those Charged with Governance"
Our primary responsibility is to report to the Committee
We will:
Ask you to approve our audit plan
Communicate any material weaknesses in internal control or material
irregularities as soon as they arise
Report on status throughout the audit
Provide an exit conference summarizing results of the audit
Be available to the Committee members at any time


11 Port of Seattle 2020 Engagement Service Plan





Questions?
Team Contact Information

Olga A. Darlington, olga.darlington@mossadams.com (425) 551-5712
Tammy Erickson, tammy.erickson@mossadams.com (509) 777-0149
Anna Waldren, anna.Waldren@mossadams.com (206) 302-6282
Max Jasper, max.jasper@mossadams.com (253) 284-5274




12 Port of Seattle 2020 Engagement Service Plan

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 p rofession al sh ould be so ught .
Assurance, tax, and consulting offered through Moss Ada ms LLP. I nves tment advisor y off ere d throug h
Moss Adams Wealth Advisors LLC. Investment banking offered t hrou gh Moss Adam  s Capital LLC.






13 Port of Seattle 2020 Engagement Service Plan