Accountability Audit Report 
Port of Seattle 
King County 

For the period January 1, 2014 through December 31, 2014 






Published
Report No. 1015604

Washington State Auditor's Office 

Issue Date  (Issued by OS) 
Board of Commissioners 
Port of Seattle 
Seattle, Washington 
Report on Accountability 
Thank you for the opportunity to work with you to promote accountability, integrity and
openness in government. The State Auditor's Office takes seriously our role of providing state
and local governments with assurance and accountability as the independent auditor of public
accounts. In this way, we strive to help government work better, cost less, deliver higher value
and earn greater public trust.
Independent audits provide essential accountability and transparency for Port operations. This
information is valuable to management, the governing body and public stakeholders when
assessing the government's stewardship of public resources.
The attached comprises our report on the Port's compliance and safeguarding of public
resources. Our independent audit report describes the overall results and conclusions for areas
we examined. We appreciate the opportunity to work with your staff and we value your
cooperation during the audit. 
Sincerely, 


JAN M. JUTTE, CPA, CGFM 
ACTING STATE AUDITOR 
OLYMPIA, WA 



Insurance Building, P.O. Box 40021   Olympia, Washington 98504-0021   (360) 902-0370   TDD Relay (800) 833-6388

TABLE OF CONTENTS 

Audit Summary ............................................................................................................................... 4 
Related Reports ............................................................................................................................... 5 
Information About The Port............................................................................................................ 6 
About The State Auditor's Office ................................................................................................... 8 














Washington State Auditor's Office                                                                   Page 3

AUDIT SUMMARY 
Results in brief 
In the areas we audited, Port operations complied with applicable requirements and provided
adequate safeguarding of public resources.  The Port also complied with state laws and
regulations and its own policies and procedures in the areas we examined. 

About the audit 
This report contains the results of our independent accountability audit of the Port of Seattle
from January 1, 2014, through December 31, 2014.
Management is responsible for ensuring compliance and adequate safeguarding of public
resources from fraud, loss or abuse. This includes the design, implementation and maintenance
of internal controls relevant to these objectives. 
Our audit involved performing procedures to obtain evidence about the Port's uses of public
resources, compliance with state laws and regulations and its own policies and procedures, and
internal controls over such matters.
In keeping with general auditing practices, we do not examine every transaction, activity or area.
Instead, the areas examined were those representing the highest risk of fraud, loss, abuse, or
noncompliance. The following areas were examined during this audit period: 
Procurement (bidding/prevailing           Self-insurance programs
wage/change orders)                   General disbursements 
Voluntary separation program            Tenant reimbursements 
Lease billings 






Washington State Auditor's Office                                                                   Page 4

RELATED REPORTS 
Financial 
A financial statement audit was performed by a firm of certified public accountants. That firm's
report is available from the Port of Seattle. The firm reported a significant deficiency in internal
controls over financial reporting regarding the Port's ancillary revenue operating system. The
deficiency is in the design of the internal controls necessary to adequately address system
reliability, process controls and data security in the ancillary revenue operating system. 

Federal grant programs 
A firm of certified public accountants evaluated internal controls and tested compliance with the
federal program requirements, as applicable, for the Port's major federal programs. That firm's
report is available from the Port of Seattle.












Washington State Auditor's Office                                                                   Page 5

INFORMATION ABOUT THE PORT 
The Port is a municipal corporation of the state of Washington, organized on September 5, 1911,
under state statute RCW 53.04.010 et seq. In 1942, the local government in King County
selected the Port to operate the Seattle-Tacoma International Airport.
Port policies are established by a five-member Commission, elected at-large by the voters of the
County for four-year terms. The Commission appoints the Chief Executive Officer, who
oversees daily operations for the Port. Through resolutions and directives, the Commission sets
policy for the Port. These policies are then implemented by the Chief Executive Officer and his
executive staff.
The Port is comprised of three operating divisions: Aviation, which manages all operations at the
Airport, including landside operations such as parking garage; Seaport, which manages maritime
cargo and cruise passenger marine terminals as well as industrial property connected with
maritime businesses, and; Real Estate, which manages recreational and commercial moorage
facilities, leases commercial and industrial properties, and plans and facilitates the development
of selected real estate assets. 
A Capital Development Division and a number of corporate service departments support the
Operating Division and the broad mission of the Port. Capital Development houses departments
responsible for engineering, project management and construction functions, and the Central 
Procurement Office, which consolidates contracting and procurement functions. Other port-wide
departments include Accounting and Financial Reporting, Commission Office, Executive,
Finance and Budget, Health and Safety, Human Resources and Development, Information and
Communications Technology, Labor Relations, Legal, Police Public Affairs, Office of Social
Responsibility, and Risk Management.
For 2014, the Port had total operating revenues of $534.9 million, which represents a 1.9 percent 
decrease from 2013. Total operating expenses increased from $307.0  million in 2013 to
$309.3 million in 2014. The Port's net operating income before depreciation decreased
$12.4 million from 2013 to 2014. The Port employed 1,780 employees in 2014. 





Washington State Auditor's Office                                                                   Page 6


Contact information related to this report 
Address:       Port of Seattle 
Attn: Debbi Browning 
P.O. Box 1209 
Seattle, WA 98111 
Contact:       Debbi Browning, Assistant Director, General Accounting & Business 
Telephone:     (206) 787-3081 
Website:       www.portseattle.org 
Information current as of report publish date. 

Audit history 
You can find current and past audit reports for  the  Port of Seattle at 
http://portal.sao.wa.gov/ReportSearch. 












Washington State Auditor's Office                                                                   Page 7









ABOUT THE STATE AUDITOR'S OFFICE 
The State Auditor's Office is established in the state's Constitution and is part of the executive
branch of state government. The State Auditor is elected by the citizens of Washington and
serves four-year terms. 
We work with our audit clients and citizens to achieve our vision of government that works for
citizens, by helping governments work better, cost less, deliver higher value, and earn greater
public trust. 
In fulfilling our mission to hold state and local governments accountable for the use of public
resources, we also hold ourselves accountable by continually improving our audit quality and
operational efficiency and developing highly engaged and committed employees. 
As an elected agency, the State Auditor's Office has the independence necessary to objectively
perform audits and investigations. Our audits are designed to comply with professional standards
as well as to satisfy the requirements of federal, state, and local laws. 
Our audits look at financial information and compliance with state, federal and local laws on the
part of all local governments, including schools, and all state agencies, including institutions of
higher education. In addition, we conduct performance audits of state agencies and local
governments as well as fraud, state whistleblower and citizen hotline investigations. 
The results of our work are widely distributed through a variety of reports, which are available
on our website and through our free, electronic subscription service. 
We take our role as partners in accountability seriously, and provide training and technical
assistance to governments, and have an extensive quality assurance program. 
Contact information for the State Auditor's Office 
Deputy Director for Communications   Thomas Shapley 
Thomas.Shapley@sao.wa.gov 
(360) 902-0367 
Public Records requests   PublicRecords@sao.wa.gov 
Main telephone   (360) 902-0370 
Toll-free Citizen Hotline   (866) 902-3900 
Website   www.sao.wa.gov 

Washington State Auditor's Office                                                                   Page 8