October 10, 2016 



Port of Seattle 
2016 Engagement Service Plan

AGENDA 
Moss Adams Service Team Leaders 
Services to be Provided 
Responsibilities (Auditor / Management) 
Phases and Timing of the Audit 
Our Audit Approach 
Areas of Audit Emphasis 
Auditing and Accounting Standards Update

YOUR 2016 AUDIT SERVICE TEAM LEADERS 
Team Member     Responsibilities 
Engagement Reviewer - Laurie will serve as your lead client service
partner, overseeing all projects we perform for the Port. 
Laurie Tish, 
Partner 
Concurring Reviewer - Olga will serve as the second reviewer of the
financial statements and our reports and, as necessary, will consult
Olga Darlington,  on technical issues or key elements of the audits. 
Partner 
Manager - Tyler will oversee the engagement team and will review
testing performed during the audit. 
Tyler Reparuk, 
Manager 
Manager - Lisa will supervise our staff in the field and manage each
Lisa Dion,  of the audits we perform. 
Manager

YOUR 2016 AUDIT SERVICE TEAM LEADERS 
Team Member   Responsibilities 
IT Consulting Partner - Kim will lead our audit procedures covering the
Port's Information Technology (IT) systems, including general computer
controls. 
Kimberly Koch, 
Partner 

IT Consulting Director- A Qualified Security Assessor, Kevin will serve 
as an additional reviewer of our IT procedures and will oversee and
perform audit procedures related to IT security and related issues. 
Kevin Villanueva, 
Director 
IT Consulting Manager - Blake will supervise staff and perform audit
procedures related to the Port's IT systems, including general computing
controls.
Blake Thomas, 
Manager

YOUR 2016 AUDIT SERVICE TEAM 
The following individuals will also serve on the Port
of Seattle Engagement Team: 
Abigail Barr, Senior 
Anna Waldren, Senior 
Krista Gregory, Staff 
Larry Bussard, Branch Richards & Co; Subcontractor, Manager 
Fiona Deng, Branch Richards & Co; Subcontractor, Staff

SUMMARY OF OUR SERVICES 
Audit and report on financial statements for both the Enterprise Fund and the
Warehousemen's Pension Trust Fund to be included in the Port's Comprehensive
Annual Financial Report 
Audit and report on internal control and compliance over financial reporting in
accordance with Government Auditing Standards 
Issue a management letter of recommendations and observations, as necessary 
Audit and report on compliance related to the Airport Improvement Program (AIP)
and other Major Federal Award Program(s), the Schedule of Expenditures of Federal
Awards and related internal controls in accordance with the OMB Uniform 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 
Perform Agreed Upon Procedures and report to State of Washington Department of
Ecology relating to Terminal 91 Facility

OUR RESPONSIBILITIES 

Audit  GAAS & GAGAS                 Read Other Information 



Report Non-Compliance (Single Audit)           Express Opinion / Issue Reports 



Communicate  Audit Committee             Communicate  Management

MANAGEMENT'S RESPONSIBILITIES 

Prepare Correct FS                Internal Controls 



Compliance                 Report Fraud 



Make Available               Representation Letter

PHASES OF THE AUDIT 

Planning and       Assessment of       Substantive       Reporting and
Risk            Internal            Audit           Presenting
Assessment         Controls         Procedures        Audit Results

AUDIT TIMELINE 
Planning & Risk      Testing of       Testing of IT     Substantive Audit     Reporting &
Assessment     Internal Controls      Controls        Procedures      Communications 

October 
2016 
April 2017 
Final review of fieldwork,
October                    report issuance, meet and
2016                   present to management
and Audit Committee 

September-                   March 2017 
October                Final fieldwork procedures
2016                 for Financial Statement and
Single Audit

PLANNING AND RISK ASSESSMENT 
Audit risk involves the risk of material misstatement in
the financial statements 
Inherent risk, control risk and detection risk 
Audit is designed to provide reasonable  not absolute  
assurance that the financial statements are free of
material misstatements 
Audit scope and approach is determined based upon
results of risk assessment

EVALUATION OF INTERNAL CONTROLS 
Evaluate components of internal controls 
Top-down approach 
Significant Accounts and Processes considered 
Billings and accounts receivable, leases, capital assets and
projects, procurement, cash disbursements, payroll, debt,
treasury, environmental remediation liability and
contingencies, stormwater utility, financial close and reporting 
IT Controls 
Application controls 
General computing controls 
Administration of federal awards (Single Audit) 
Includes tests of compliance

SUBSTANTIVE AUDIT PROCEDURES 
Tests of Details 
Directed testing and audit sampling 
Random and judgmental sampling methods are used 
Compliance with requirements of the major federal awards and
the Passenger Facility Charge program 
Analytical Procedures 
Comparison of current and prior year results, and actual to budgeted
amounts 
Analysis of detailed changes within certain accounts such as capital
assets, long term debt and investments 
Predictive analytics for income statement accounts, based upon
history , data independent of accounting department, and industry
expectations 
Holistic review of overall financial statements

AREAS OF AUDIT EMPHASIS 
Internal Control       Management
Bond Accounts 
Cycles             Estimates 

Accounting for
Revenue Recognition     Capital Assets 
Leases 

Net Position                        Environmental
Pension Liability 
Classification                         Remediation Liability 

Other       Northwest Seaport
Uniform Guidance
Postemployment     Alliance  Joint
(Single Audit) 
Benefits            Venture

ACCOUNTING PRONOUNCEMENTS (GASB) 
GASB 72 - Fair Value Measurement and Application  (effective for 2016) 
GASB 74 - Financial Reporting for Postemployment Benefit Plans Other Than
Pension Plans (effective Fiscal Year 2017) 
GASB 75 - Accounting and Financial Reporting for Postemployment Benefits
Other Than Pensions (effective for 2018) 
GASB 76 - The Hierarchy of Generally Accepted Accounting Principles for
State and Local Governments - (effective Fiscal Year 2016) 
GASB 78 - Pensions Provided through Certain Multiple-Employer Defined Benefit
Pension Plans  (effective for 2016) 
GASB 82 - Pension Issues- an amendment of GASB Statements No. 67, No.
68, and No. 73 (effective for 2017)










CONTACT INFORMATION: 
LAURIE TISH, LAURIE.TISH@MOSSADAMS.COM 206.302-6466 
OLGA DARLINGTON, OLGA.DARLINGTON@MOSSADAMS.COM 425.551-5712 
TYLER REPARUK, TYLER.REPARUK@MOSSADAMS.COM 206.302-6431 
LISA DION, LISA.DION@MOSSADAMS.COM 206.302-6734 
KIM KOCH, KIM.KOCH@MOSSADAMS.COM 509.777-0107 
KEVIN VILLANUEVA, KEVIN.VILLANUEVA@MOSSADAMS.COM 206.302-6542 
BLAKE THOMAS, BLAKE.THOMAS@MOSSADAMS.COM 509.777-0107 

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