Port of Seattle
Discussion with the Audit Committee
2021 AUDIT PLANNING

Presented by: Olga A. Darlington, Partner
Anna Waldren, Senior Manager

Agenda

o Moss Adams Service Team
o Scope of Services
o Responsibilities (Auditor and Management)
o Audit Process
o Consideration of Fraud
o Risk Assessment
o Audit Timeline



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Your Service Team Leadership
Olga A. Darlington              Tammy Erickson                Anna Waldren
Lead Client Service                   Concurring Reviewer                Senior Manager
and Engagement
Tammy.Erickson@                     Anna.Waldren@
Partner                           mossadams.com                     mossadams.com
Olga.Darlington@
mossadams.com

Click icon to    Max Jasper                  Click icon to      Abe McClenny
add headshot
IT Senior               add headshot   IT Manager
Manager
Abe.mcClenny@
Max.Jasper@                        mossadams.com
mossadams.com


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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;


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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.




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Consideration of Fraud in a Financial Statement Audit
Auditor's responsibility: Obtain reasonable assurance the financial statements as a whole
are free from material misstatement  whether caused by fraud or error.

Procedures to address the
Engagement team discussion
risk of fraud
Perform procedures to address
Identify the risks of material
identified risks
misstatement due to fraud
Inherent limitation of an audit
Unavoidable risk exists that some material
misstatements may not be detected


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Significant Risks Identified
During the planning of the audit, we have identified the following significant risks:
Significant Risks       Procedures
Revenue          We will substantively analytically test airport and real estate revenue based on current
Recognition         and prior year information of revenue benchmarks such as square footage, number of
passengers, number of planes and landings, dock occupancy, and container counts.
We will analyze significant leasing transactions and perform tests of internal controls
surrounding the lease revenue determination and recognition process.
Construction in      We will perform tests of capitalized costs to determine that the charges are reasonable
Progress and       for the work project and meet the criteria for capitalization. We will also evaluate the
Capital Assets       newly established process by management to evaluate open work orders for timely
closing and transfer to proper categories of capital asset for depreciation.


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Significant Risks Identified
During the planning of the audit, we have identified the following significant risks:
Significant Risks       Procedures
Management       We will analyze management's assumptions in establishing allowance for uncollectible
Estimates           accounting, depreciable lives of capital assets, environmental and legal reserves as
well as actuarial assumption in establishing pension and OPEB liabilities.
Grant Compliance   We will perform compliance testing of expenditures of federal reserves following the
Audit  CARES      requirements of Uniform Grant Guidance. Specific test will be designed to ensure
funds              allowability of expenditures of grant awards under CARES Act and CRSSAA.



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Audit Timeline
2021                                 2022



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


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Documents Containing Audited Financial Statements
and Independent Auditor's Report


Our responsibility under           Request for advance           Arrangements to obtain
generally accepted            notification when Port           the other information
auditing standards               intends to include            prior to report issuance
audited financial
statements and the
independent auditor's
report in a document


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